Agenda Item is more than 'f S~ pages. Documents can be viewed in Minutf.!s_. ---~ Agenda Item#: 31-5 PALM BEACH COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 21, 2014 [X] Consent [ ] Regular [ ] Ordinance [ ] Public Hearing Department: Department of Economic Sustainability I. EXECUTIVE BRIEF Motion and Title: Staff recommends motion to: A) Approve a HOME Investment Partnerships (HOME) Program funding award in the amount of $1,033,996 to New South Bay Villas, Ltd., the expenditure of which by Palm Beach County shall be subject to the release of these funds by the U.S. Department of Housing and Urban Development through its Integrated Disbursement & Information System; B) Direct staff to negotiate the loan agreement; and C) Authorize the County Administrator or his designee to execute the loan agreement, amendments thereto, and all other documents necessary for project implementation. · Summary: On August 3, 2014, the Department of Economic Sustainability (DES) issued a Request for Proposal DES.2014.1 (RFP) making $2,473,996 in Federal HOME Program funds available for housing development projects. A selection committee consisting of six (6) voting members met at a public meeting held on September 17, 2014. The committee ranked the proposals based on the criteria established in the RFP. The selection committee recommended that New South Bay Villas, Ltd., be awarded funding in the amount of $1,033,996 for the redevelopment of New South Bay Villas, a 131 unit multifamily rental project to be located on the site of the Palm Beach County Housing Authority's Marshall Heights and South Bay Villas properties at 1001 Jasmine Court and 110 Harrelle Drive in South Bay. The project includes the rehabilitation of 65 apartment units in eight (8) buildings, and the replacement of 62 demolished units with 66 newly- constructed units in ten (10) buildings. The project will result in 40 four-bedroom, 34 three- bedroom, 56 two-bedroom, and one (1) one-bedroom apartments. The proposal received scoring preference in the RFP process because of its location in the Glades Region, as per Board direction given during the Action Plan approval process. The project will be developed by the Palm Beach County Housing Authority and the Mccurdy Senior Housing Corporation. Due to strict Federal deadlines staff is requesting the authorization of the County Administrator, or his de$ignee, to execute loan agreements. These are Federal HOME Program grant funds which require a 25% local match provided with State SHIP funds. (Strategic Planning Section) District 6 (TKF) Background and Justification: Funds made available through this RFP allowed developers to submit proposals for new construction or acquisition and/or rehabilitation of affordable or mixed income housing developments containing HOME-assisted units to be occupied by households whose incomes ·are no more than 80% of the Area Median Income. Recipients must expend 100% of awarded funds by September 30, 2016. Beneficiaries must occupy all assisted units by September 30, 2017. By the submittal deadline of September 3, 2014, eight (8) developers submitted proposals in response to the RFP. A responsiveness review determined that all eight (8) proposals were "responsive'\ warranting evaluation by the Selection Committee and consideration for funding recommendations. Notices of the results of the responsiveness review, selection. committee meeting, funding recommendations, and this BCC meeting were provided directly to all respondents and posted on the DES website. Attachments: 1. Selection Committee scoring sheet 2. Request for Proposal - RFP DES.2014.1 3. Proposal for New South Bay Villas
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Agenda Item is more than 'f S~ pages. Documents
can be viewed in Minutf.!s_. ---~ Agenda Item#: 31-5 PALM BEACH COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 21, 2014 [X] Consent [ ] Regular [ ] Ordinance [ ] Public Hearing
Department: Department of Economic Sustainability
I. EXECUTIVE BRIEF
Motion and Title: Staff recommends motion to: A) Approve a HOME Investment Partnerships (HOME) Program funding award in the amount of $1,033,996 to New South Bay Villas, Ltd., the expenditure of which by Palm Beach County shall be subject to the release of these funds by the U.S. Department of Housing and Urban Development through its Integrated Disbursement & Information System; B) Direct staff to negotiate the loan agreement; and C) Authorize the County Administrator or his designee to execute the loan agreement, amendments thereto, and all other documents necessary for project implementation. ·
Summary: On August 3, 2014, the Department of Economic Sustainability (DES) issued a Request for Proposal DES.2014.1 (RFP) making $2,473,996 in Federal HOME Program funds available for housing development projects. A selection committee consisting of six (6) voting members met at a public meeting held on September 17, 2014. The committee ranked the proposals based on the criteria established in the RFP. The selection committee recommended that New South Bay Villas, Ltd., be awarded funding in the amount of $1,033,996 for the redevelopment of New South Bay Villas, a 131 unit multifamily rental project to be located on the site of the Palm Beach County Housing Authority's Marshall Heights and South Bay Villas properties at 1001 Jasmine Court and 110 Harrelle Drive in South Bay. The project includes the rehabilitation of 65 apartment units in eight (8) buildings, and the replacement of 62 demolished units with 66 newlyconstructed units in ten (10) buildings. The project will result in 40 four-bedroom, 34 threebedroom, 56 two-bedroom, and one (1) one-bedroom apartments. The proposal received scoring preference in the RFP process because of its location in the Glades Region, as per Board direction given during the Action Plan approval process. The project will be developed by the Palm Beach County Housing Authority and the Mccurdy Senior Housing Corporation. Due to strict Federal deadlines staff is requesting the authorization of the County Administrator, or his de$ignee, to execute loan agreements. These are Federal HOME Program grant funds which require a 25% local match provided with State SHIP funds. (Strategic Planning Section) District 6 (TKF)
Background and Justification: Funds made available through this RFP allowed developers to submit proposals for new construction or acquisition and/or rehabilitation of affordable or mixed income housing developments containing HOME-assisted units to be occupied by households whose incomes · are no more than 80% of the Area Median Income. Recipients must expend 100% of awarded funds by September 30, 2016. Beneficiaries must occupy all assisted units by September 30, 2017. By the submittal deadline of September 3, 2014, eight (8) developers submitted proposals in response to the RFP. A responsiveness review determined that all eight (8) proposals were "responsive'\ warranting evaluation by the Selection Committee and consideration for funding recommendations. Notices of the results of the responsiveness review, selection. committee meeting, funding recommendations, and this BCC meeting were provided directly to all respondents and posted on the DES website.
Attachments: 1. Selection Committee scoring sheet 2. Request for Proposal - RFP DES.2014.1 3. Proposal for New South Bay Villas
Is Item Included In Current Budget? Yes X Budget Account No.:
2017
No --
2018
Fund 1103 Dept 143 Unit 1434 Object 8201 Program Code/Period varies
B. Recommended Sources of Funds/Summary of Fiscal Impact:
2019
Approval of this agenda item will allocate a total of $1,033,996 to New South Bay Villas, Ltd.
C. Departmental Fiscal Review:
Ill. REVIEW COMMENTS
A. OFMB Fiscal and/or Contract Development and Control Comments:
8. Legal Sufficiency:
~ 10h/4v Chief Assistant County Attorney I
C. Other Department Review:
Department Director
(THIS SUMMARY IS NOT TO BE USED AS A BASIS FOR PAYMENT)
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SCORING CRITERIA
Blue Heron Apartments
Canal Front Apartments
Courtyard Apartments
Davis Landings West
New South Bay Villas
P. L. Dunbar Senior Complex
Sunny Lane Apartments
· Village of Valor
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Palm Beach County Department of Economic Sustainability HOME Program RFP DES.2014.1
Selection Committee Evaluation Criteria
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Request for Proposals
Palm Beach County Department of Economic Sustainability
HOME Investment Partnerships Program
RFP DES.2014.1
August 2014
ATTACHMENT 2
TABLE OF CONTENTS
SECTION 1 ....................................................................................................................... 1 A. Statement of Purpose .......................................................................................... 1
8. Background ............................................................................................................ 1 C. Funding/Available ................................................................................................... 1
D. Defined Terms ....................................................................................................... 1 E. Location Limitations ............................................................................................... 2
F. Eligible Properties ................................................................................ .. . 3 G. Eligible Beneficiaries .............................................................................................. 3
H. Period of Affordability ............................................................................... 3 I. Affordable Rental Rates ...................... .................................................... .4 J. Affordable Sales Prices ........................................................................... .4
K. Rehabilitation Standards ........................................................................................ 5 L. Eligible Costs ......................................................................................................... 5
M. Relocation ............................................................................................................... 5 N. Loan Terms ............................................................................................................ 5 0. Deadlines ............................................................................................................... 6 P. Federal Requirements ............................................................................................ 6
SECTION // ...................................................................................................................... 7 A. Proposal Requirements ........................................................................................ 7 8. Timetable .................................. : .......................................................................... 10 C. Pre-Submittal Conference .................................................................................... 11
D. Addenda ............................................................................................................... 11 E. Submittal Format .................................................................................................. 11
F. Submittal Deadline ............................................................................................... 12 G. Responsiveness Review and Underwriting .......................................................... 12
H. Contact Person .................................................................................................... 12
/. Lobbying - "Cone of Silence" ............................................................................... 13 J. Postponement/Cancellation ................................................................................. 13
K. Costs Incurred by Respondents ........................................................................... 13 L. Right of Clarification ............................................................................................. 13
M. Delineation of RFP ............................................................................................... 13 N. Oral Presentation(s) ............................................................................ 14
0. Proprietary/Confidential Information ................................................... 14
P. Non-Discrimination ............................................................................................ 14
S. Public Entity Crimes .................................... ........................................... 15
T. Insurance ............................................................................................................ 15
U. Palm Beach County Office of the Inspector General ....................................... 15
SECTION l/1 .................................................................................................................... 15 A. Proposal Evaluation .............................................................................................. 15 B. Award Recommendation(s) ............................................................................... 16 C. Funding Award .................................................................................................... 16
D. Agreement Negotiations .................................................................................... 16
E. Right of Appeal ................................................................................................... 17 EXHIB/TS ..................................................................................................... 18
EXHIBIT A: MAXIMUM PER UNIT SUBS/DYAMOUNTS ................................... 18
EXHIBIT B: 2014 INCOME LIMITS CHART ...................................................... 19
EXHIBIT C: 2014 HOME PROGRAM RENTS .................................................. 20 EXHIBIT D: UTILITY ALLOWANCE SCHEDULE. ............................................ 21
EXHIBIT E: 2014 HOME HOMEOWNERSHIP VALUE LIMITS ............................ 23
EXHIBIT F: RESPONDENT CERT/FICA TJON FORM ........................................ 24
EXHIBIT G: DISCLOSURE OF BENEFICIAL INTERESTS .................................. 25 EXHIBIT H: DRUG FREE WORKPLACE CERT/FICA TION ...................................... 27
EXHIBIT I: PALM BEACH COUNTY LOBBYIST REGISTRATION ORDINANCE ..... 28
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SECTION I
A. Statement of Purpose
The Palm Beach County Board of County Commissioners (County), through the Department of Economic Sustainability (DES), is soliciting proposals from Developers to create rental or for-sale housing through new construction or rehabilitation, with or without acquisition. Through this Request for Proposal (RFP) process, the County intends to select one or more projects that will expend all HOME funding by September 30, 2016 and will complete and place into service all project housing units by September 30, 2017.
B. Background
The HOME Program was created by the 1990 Title II, 42 USC 1271, SEC. 201 Cranston-Gonzalez National Affordable Housing Act, and is administered by the U.S. Department of Housing and Urban Development (HUD). The purpose of this program is to allocate funds to eligible Participating Jurisdictions to strengthen public/private partnerships for the provision of affordable housing opportunities for Very Low Income and Low Income households. In Palm Beach County, the HOME Program is administered by DES.
C. Funding/Available
RFP DES.2014.1 makes available up to $2,473,996 in HOME entitlement funding. All funding will be provided in the form of loans requiring repayment of principal and interest. Funds are made available to provide financing for the development of HOME-Assisted Housing Units for rental or for sale to Eligible Beneficiaries.
D. Defined Terms
Administrative Fee is defined as the fee associated with loans to rental projects, and which is paid annually during the term of the loan by the borrower to cover County costs of loan servicing, project monitoring, and other administrative requirements.
Area Median Income (AMI) is defined as the most current income limits published by HUD for the West Palm Beach - Boca Raton Metropolitan Statistical Area (Palm Beach County).
Developer is defined as an entity funded through this RFP to undertake the development of HOME-Assisted Housing Units, and which will assume responsibility for compliance with all related requirements in accordance with HOME regulations. Such entities shall be limited to private for-profit entities, private non-profit entities, or ventures between the same.
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Eligible Beneficiaries are defined as Low Income and Very Low Income households.
HOME-Assisted Housing Unit is defined as a housing unit assisted with HOME funding provided through RFP DES.2014.1 and bearing all requirements related thereto.
Low Income is defined as an annual income that does not exceed eighty percent (80%) of AMI as annually determined by HUD.
Mixed Income Project is defined as a project funded through this RFP which contains a mix of subsidized and affordable housing units and unsubsidized market-rate housing units.
Multi Family Housing is defined as housing with five (5) or more units per residential structure.
Period of Affordability is defined as the time period for which HOME-Assisted Housing Units shall bear affordability requirements of the HOME Program and RFP DES.2014.1.
Respondent is defined as an entity that submits a proposal in response to this RFP.
Selection Committee is defined as the body of individuals that evaluates responsive proposals at a public meeting and formulates funding recommendations for consideration by the Palm Beach County Board of County Commissioners.
Single Family Housing is defined as housing with four (4) or fewer units per residential structure.
Very Low Income is defined as an annual income that does not exceed fifty percent (50%) of AMI as determined annually by HUD.
E. Location Limitations
Properties must be located exclusively within Palm Beach County. The Palm Beach County HOME Program jurisdiction includes the corporate bounds of Palm Beach County, but excludes the municipalities of West Palm Beach, Boynton Beach, Delray Beach, Jupiter, Wellington, and Boca Raton.
If a project is located within one of these municipalities, the municipality must make a financial contribution to the project in an amount equal to no less than half of the HOME funding request. The municipal financial contribution to the
2
project may be in the form of a grant, a loan, the value of donated real property, or other quantifiable means, such as waiver of permit fees, impact fees, or other development fees. The County has the sole authority to determine the value of the financial contribution. The Respondent is solely responsible for obtaining the municipal financial contribution, and for providing documentation of the financial contribution at time of proposal submittal.
Additionally, projects located within the above-identified municipalities must serve beneficiaries from both the municipality and the Palm Beach County HOME Program Jurisdiction. The County will monitor this tenancy requirement at time of initial occupancy and each year during the affordability period.
F. Eligible Project Types
Eligible projects are limited to new construction or rehabilitation, with or without acquisition. Eligible rental projects include both Multi Family Housing and Single Family Housing types. Eligible ownership projects are limited to Single Family Housing type.
Projects may be mixed income and contain both HOME-Assisted Housing Units and non-HOME-Assisted Housing Units. The number of HOMEAssisted Housing Units in the project shall be guided by the amount of HOME funding provided to the project and a maximum per unit HOME subsidy. Per 24 CFR 92.250(a), the maximum per unit HOME subsidy shall be set at the basic Section 221 (d) mortgage limit for elevator construction projects, by bedroom size. Such maximum per unit HOME subsidy amounts are included at Exhibit A. There shall be a representative distribution of housing unit sizes among the mix of HOME-Assisted Housing Units and non-HOME-Assisted Housing Units.
All HOME-Assisted Housing Units must be completed, put into service, and leased by Eligible Beneficiaries no later than September 30, 2017.
G. Eligible Beneficiaries
All HOME-Assisted Housing Units must be either leased or sold to Eligible Beneficiaries-households whose incomes are no greater than eighty percent (80%) of AMI.
In addition, for rental projects with five (5) or more HOME-Assisted Housing Units, at least twenty percent (20%) of the HOME-Assisted Housing Units must be leased to households earning no more than fifty percent (50%) of AMI.
HUD's 2014 income limits are at Exhibit B.
H. Period of Affordability
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All HOME-Assisted Housing Units created for rental shall bear the applicable affordability requirements of the HOME Program and RFP DES.2014.1 for a period of no less than twenty (20) years if newly constructed units, and for no less than fifteen (15) years if rehabilitated units, with or without acquisition. During the Period of Affordability, all HOME-Assisted Housing Units created for rental shall be occupied by Eligible Beneficiaries as tenants.
All HOME-Assisted Housing Units created for ownership shall bear the applicable affordability requirements of the HOME Program and RFP DES.2014.1 for a period of no less than fifteen (15) years. During the Period of Affordability, all HOME-Assisted Housing Units created for ownership must be occupied by Eligible Beneficiaries as owner-occupants.·
The Period of Affordability will be enforced through an encumbrance recorded against title to the HOME-Assisted Housing Units.
I. Affordable Rental Rates
For rental projects, During the Period of Affordability, all HOME-Assisted Housing Units must be leased to Eligible Beneficiaries at rents which do not exceed HUD's HOME High and Low Rents, less utility allowance [24 CFR 92.252]. The High and Low HOME Rents are applicable to HOME-Assisted Housing Units set aside for income groups as follow:
• Low Income (<80% AMI) Units= High HOME Rent • Very Low Income (<50% AMI) Units= Low HOME Rent
HUD's HOME Rents for 2014 are provided at Exhibit C. HOME Rents are subject to annual adjustment by HUD.
A utility allowance for tenant paid utilities shall be calculated based on the applicable HUD utility allowance schedule, and shall be deducted from the applicable HOME Rent to yield the maximum rent that may be charged to the tenant leasing the HOME-Assisted Housing Unit. The current applicable HUD utility allowance schedule is provided at Exhibit D. Utility allowances are subject to annual adjustment by HUD.
J. Affordable Sale Prices
Per 24 CFR 92.252, for ownership projects, the value and sale price of the HOME-Assisted Housing Units shall not exceed 95% of the applicable median purchase price for Palm Beach County, as determined by HUD [24 CFR 92.254]. The 2014 HOME Homeownership Value Limits for single-family detached housing are $262,000 for newly-constructed housing and $157,000 for existing housing. HUD limits for all single-family dwelling structure types are included at Exhibit E.
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All HOME-Assisted Housing units must be sold to Eligible Beneficiaries through a purchase which is affordable to the homebuyer. The County shall consider a purchase affordable when the homebuyer's front-end ratio does not exceed 35%. If necessary to make the purchase affordable to the homebuyer, the County may elect to accept a second mortgage from the buyer for a portion of the HOME subsidy in an amount necessary to bring the front-end ratio to the acceptable level.
The County shall review and approve all proposed sales of HOME-Assisted Housing Units.
K. Rehabilitation Standards
Rehabilitation work completed under this program shall seek to upgrade the property to the extent practicable and feasible to applicable housing and building code standards (including the HUD Section 8 Housing Quality Standards). The rehabilitation shall address lead-based paint remediation, asbestos remediation, hurricane protection, energy efficiency and conservation, the removal of architectural barriers, as well as any construction related improvements to the property in order to comply with the requirements of the required environmental review.
L. Eligible Costs
Eligible uses of the HOME funds are limited to project development costs, including: closing costs of the HOME loan; acquisition; architectural and engineering services; legal and accounting fees; de.molition; site improvements; rehabilitation; construction; purchase of stored materials; building permits; utility connection fees; impact fees; and developer fee. Determination of cost eligibility and reasonableness shall be at the County's sole discretion. Costs of off-site improvements, payment of delinquent taxes and other fees, and costs related to other project financing are ineligible for payment with HOME funds.
M. Relocation
Respondents are cautioned that any activities causing displacement of residents and/or businesses are required to comply with the federal Uniform Relocation Assistance and Real Properties Acquisition Policies Act (URA). The Respondent is solely responsible for all procedural requirements and costs related to the URA.
N. Loan Terms
Financial assistance shall be provided to Developers in the form of loans requiring repayment of principal and interest. Loans shall have a fixed interest
5
rate not to exceed 3.0% APR which will be determined through project underwriting and negotiation.
For loans to rental projects, the term of the HOME loan shall be congruent with the project's first mortgage, up to a maximum length of thirty (30) years. All principal and interest shall be repaid, however, the County may offer balloon payment or interest-only loans based on project underwriting and in compliance with HOME affordability requirements at 24 CFR Part 92.252. Repayment of loan interest and/or principal shall be made no less than annually.
For loans to ownership projects, the term of the HOME loan shall be negotiated and based on the schedule for project completion. Repayment of a proportionate amount of the HOME loan, plus accrued interest, shall be made upon the sale of each HOME-Assisted Housing Unit, until the sale of the final HOME-assisted Housing Unit upon which all remaining principal and interest shall be repaid.
For all loans, a fee of 150 basis points of the HOME loan amount shall be paid by the borrower at closing.
For loans to rental projects, annual payment of a $1,500 Administrative Fee is required during each year of the term of the loan.
0. Deadlines
September 3, 2014 (4:00pm E.S.T.) ................................ Submittal of Proposal October 30, 2014 ............................................. Execution of Loan Agreement September 30, 2015 ................................................ Commence Construction September 30, 2016 .................................. 100% expenditure of HOME Funds September 30, 2017 .......................................... 100% Beneficiaries Realized
P. Federal Requirements
The following are some of the federal regulations applicable to projects funded through this RFP. This list is not all-encompassing, and the exclusion of a requirement from this list does not relieve the Developer of its obligations related thereto.
- 24 CFR Part 92 (HOME Program Regulations) - HOME 42 U.S.C.12704 - Davis-Bacon and Related Acts - Uniform Relocation Assistance and Real Property Acquisition Policies
(URA) - Section 504 of the Rehabilitation Act of 1973, as amended - Lead-Based Paint Poisoning Prevention Act - Section 3 of the Housing and Urban Development Act of 1968, as
amended
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- Executive Order 11246 - Executive Order 11063 - Fair Housing Act of 1988 - Palm Beach County Purchasing Code - 0MB Circular A-122 - 0MB Circular A-133 - Section 8 Housing Quality Standards - Protecting Tenants at Foreclosure Act of 2009 (PTFA), Pub. L. No. 111-22 - Implementation of Section 418 of Division A of the Consolidated
Appropriations Act, 2010, Public Law 111-117, Title IV, 123 Statute 3034, 3112 (ACORN affiliated organizations are not eligible to receive HOME funding)
- S.A.F.E. Mortgage Act and related Acts (RESPA, Consumer Protection, HOEPA, etc.)
- Section 109 Housing and Community Development Act of 1974 - Nondiscrimination under the Age Discrimination Act of 1975, as amended - Title VII of the Civil Rights Act of 1964 - Compliance with Clean Air and Water Acts - The Energy Policy and Conservation Act of 1975
SECTION II
A. Proposal Requirements
A completed registration form for RFP DES.2014.1 shall be submitted to DES in order to be eligible to submit a proposal. The registration form is located at http://www.pbcgov.com/des or may be obtained by visiting DES at 100 Australian Avenue, Suite 500, West Palm Beach, FL 33406.
Each proposal shall meet the following criteria in order to be considered responsive and to be eligible for funding consideration:
1. The proposal shall include a fully completed and executed Respondent Certification Form (Exhibit F). Submit the information required by this Paragraph II. A.1, as Attachment 1.
2. The proposal shall include a detailed project description including, but not limited to: project location (including a detailed location map); type of project (i.e., acquisition and rehabilitation, new construction with/or without acquisition, etc.); development lay out; architectural style; numbers and types of buildings; total numbers of housing units by type/size; numbers of HOMEAssisted Housing Units by type/size; site amenities; and status of project activities undertaken to date. Submit the information required by this Paragraph II. A.2 as Attachment 2.
3. The proposal shall include a market study prepared by an independent third
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party consultant, and including an assessment of local market inventory, demand, pricing, and project marketability. Submit the information required by this Paragraph II. A.3, including a detailed location map as Attachment 3.
4. The proposal shall identify the contact information for all of the project team members. Information should include the name, business affiliation, address, phone number and contact person for each team member. The proposal must identify at a minimum the Respondent, Developer, construction contractor, architect/engineer, and attorney. Submit the information required by this Paragraph II. A.4 as Attachment 4.
5. The proposal shall include an organization chart which identifies the Respondent and the roles of all team members on the project. Submit the information required by this Paragraph II. A.5 as Attachment 5.
6. The proposal shall describe the past experience of the Respondent in undertaking similar activities, including details of the last three (3) projects of similar scope and magnitude to the project being proposed by the Respondent. In addition, the proposal shall include individual resumes which identify each of the proposed team members' experience in similar roles. Submit the information required by this Paragraph II. A.6 as Attachment 6.
7. The proposal shall include evidence of site control. Evidence means a fully executed contract for purchase and sale of the property, an option to purchase, a long term lease, a lease option, a recorded deed, or a recorded certificate of title. Submit the information required by this Paragraph II. A.7 as Attachment 7.
8. The proposal shall include, for Multi Family Housing projects, an appraisal of the project performed by a third-party independent licensed property appraiser. Submit the information required by this Paragraph 11.A.8 and Attachment 8.
9. The proposal shall include a detailed development pro forma which includes all project sources and uses of funding and which explicitly states all assumptions and includes all formulas. The development pro forma must be submitted in both hard copy and electronic file (MS Excel) format. Submit the information required by this Paragraph 11.A.9 as Attachment 9.
1 O.The proposal shall include a detailed operating pro forma which includes all project revenues and expenses and which explicitly states all assumptions and includes all formulas. For rental projects, the operating pro forma shall cover a 15-year period. For ownership projects, the operating proforma shall cover the time period through repayment of the loan and project completion. The operating pro forma must be submitted in both hard copy and electronic file (MS Excel) format. Submit the information required by this Paragraph II.
8
A.10 as Attachment 10.
11. The proposal shall include a detailed litigation history of the Respondent which shall identify any litigation matter in the past five (5) years involving any projects or key personnel employed with Respondent. Submit the information required in this Paragraph II. A.11 as Attachment 11.
12. The proposal shall include documentation evidencing availability of all sources of funding required for the non-HOME balance of the project development budget. Acceptable documentation includes documentation from the financing source(s) providing a firm or a conditional commitment to financing and identifying all financing terms and conditions. Submit the information required in this Paragraph II. A.12 as Attachment 12.
13.AII proposals for projects located in municipalities outside of the Palm Beach County HOME Program Jurisdiction shall include documentation of municipal financial contribution in an amount no less than one half of the HOME funding award. Acceptable documentation of the municipal contribution includes executed agreement, or evidence of official action by the municipality's governing body approving the contribution. Submit the information required by this Paragraph 11 A.13 as Attachment 13.
14.The proposal shall include two (2) years of Externally Audited Financial Statements, Externally Reviewed Financial Statements, Externally Compiled Financial Statements, Federal Income Tax Returns, or Internally Compiled Financial Statements. Organizations less than two (2) years old shall provide the required documents for the maximum period possible. Organizations less than one (1) year old shall submit documentation supporting why the requirements of Paragraph 11.A.14 cannot be met and shall provide any documentation evidencing the financial status of the organization. Submit the information required in this Paragraph II. A.14 as Attachment 14.
15. The proposal shall indentify the current zoning and land use for the project site, the status of development approvals, the availability of required infrastructure, and shall describe the proximity to and availability of schools, commercial facilities, health care services, public transit, and employment centers. Submit the information required in this Paragraph II. A.15 as Attachment 15.
16. The proposal shall include a detailed project schedule including all activities from conceptualization, pre-development, due diligence, land acquisition, engineering, development approvals, permitting, construction, marketing, completion, and lease-up to full occupancy. Submit the information required in the Paragraph II. A.16 as Attachment 16.
17. The proposal shall include an executed public disclosure, in writing, under oath and subject to the penalties prescribed for perjury, on the form attached
9
hereto as Exhibit G, disclosing the name and address of every person having a beneficial interest in the proposed transaction. The beneficial interest in any entity registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose interest is for sale to the general public, is exempt and need not be disclosed. All proposals shall specifically identify, in said disclosure, the name of any officer, director, or agent which is also an employee of Palm Beach County. Further, all proposals must specifically identify any County official employee who owns, directly or indirectly, an interest of Respondent's firm or any of its affiliates. Submit the information required in this Paragraph II. A.17 as Attachment 17.
18. The proposal shall include an executed Drug Free Workplace Certification indicating that the Respondent has implemented a Drug Free Workplace Program which meets requirements of Section 287.087, Florida Statutes. A Drug Free Workplace Certification is provided as Exhibit H to this RFP. If Respondent has not implemented a Drug Free Workplace program, simply complete the form using "not applicable". Submit the information required in this Paragraph II. A.18 as Attachment 18.
19. If the proposal is seeking Glades Region, disabled, veterans, and/or existing County project preference: for Glades Region preference, the proposal shall include documentation that the project is located within the Glades Region of Palm Beach County and will be actively marketed to residents of the Glades Region; for disabled preference, the proposal shall include documentation demonstrating that the project includes design features serving disabled persons and that project marketing plans include specific targeting of disabled persons; for veterans preference, the proposal shall include documentation demonstrating that project marketing plans include specific targeting of veterans; and for existing County project preference, the proposal shall identify the program, amount, and form of previous County funding investment in the project. Submit the information required in this Paragraph 11.A.19 as Attachment 19.
Proposals which fail to provide all proposal requirements listed in Section II.A above will be deemed non-responsive, and will receive no consideration for funding by the Selection Committee.
8. Timetable
The anticipated schedule and deadlines for the RFP are as follows:
Activity
Issue RFP
Date. Time. and Location
Advertised Sunday, August 3 and
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Pre-Submittal Conference
Submittal Deadline
Wednesday, August 6, 2014
Friday, August 15, 2014, 9:00a.m. at the McEaddy Conference Room, 1 zlh Floor, PBC Governmental Center, 301 North Olive Avenue, West Palm Beach, FL 33401.
Wednesday, September 3, 4:00p.m., at the Department of Economic Sustainability, 100 Australian Avenue, Suite 500, West Palm Beach, Florida 33406.
Proposals received after the deadline will be returned without consideration for funding. Modifications to proposals will not be permitted after the deadline.
Selection Committee Meeting Thursday, September 18, 2014, 1:30p.m., at the PBC Vista Center, VC-1 E-58, 2300 Jog Road, West Palm Beach, FL 33411.
BCC Consideration To Be Determined
C. Pre-Submittal Conference
A non-mandatory pre-submittal conference will be held on Friday, August 15, 2014, and will be located at the PBC Governmental Center, 301 North Olive Avenue (12th Floor McEaddy Conference Room), West Palm Beach, FL 33401. County representatives will verbally present, highlight and reinforce the requirements of the RFP.
D. Addenda
If necessary, addenda will be mailed or delivered electronically to all known to have received a complete set of the RFP documents. Copies of the addenda will be made available at the Department of Economic Sustainability, 100 Australian Avenue, Suite 500, West Palm Beach, Florida 33406 where the RFP documents are on file for that purpose. No addenda will be issued later than three (3) calendar days prior to the date for receipt of submittal deadline, except an addendum withdrawing the RFP or one which includes postponement of the submittal deadline.
E. Submittal Format
Failure to provide all of the information and documentation required by this RFP (Section II.A-Submittal Requirements) shall result in a proposal being deemed
11
non-responsive. Non-responsive proposals will receive no consideration for funding.
The Respondent must submit ten (10) copies of the complete proposal. One (1) copy must be in loose leaf form, on paper no larger than 8.5" x 11" and reproducible without color copying. The remaining nine (9) copies shall be bound on paper no larger than 8.5" x 11", with tabbed/identified sections for each required Attachment.
F. Submittal Deadline
Proposals must be submitted no later than 4:00p.m. E.S.T. Wednesday. September 3, 2014, at DES offices located at 100 Australian Avenue, Suite 500, West Palm Beach, FL 33406.
The Respondent is solely responsible for ensuring that its proposal arrives prior to the closing time and date. Delivery problems by third parties are not a valid excuse for missing the closing date or time. The words RFP DES.2014.1 must be boldly printed on the proposal.
G. Responsiveness Review and Underwriting
Each proposal shall be reviewed by the County to determine, in its sole discretion, if the proposal is responsive to the RFP. A responsive proposal is one which 1) has been signed; 2) has been submitted by the specified submittal deadline; 3) has provided all information and documentation required by Section I1.AProposal Requirements; and 4) has documented the availability of all sources identified in the development budget with firm or conditional financing commitments.
Proposals deemed to be non-responsive shall be rejected without being evaluated by the Selection Committee.
While poor formatting, poor documentation, and/or incomplete or unclear information may not be cause to classify a proposal as non-responsive, such substandard submissions may adversely impact the evaluation of a proposal. Respondents who fail to comply with the required and/or desired elements of this RFP do so at their own risk
H. Contact Person
The contact person for this RFP is Carlos Serrano, Director of Strategic Planning and Operations, in the Department of Economic Sustainability. The mailing address, phone number, fax number and e-mail address are:
Carlos Serrano
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Department of Economic Sustainability 100 Australian Avenue, Suite 500
Respondents are advised that the "Palm Beach County Lobbyist Registration Ordinance", a copy of which is attached hereto as Exhibit I, is in effect. The Respondent shall read and familiarize themselves with all of the provisions of said Ordinance, but for convenience, the provisions relating to the Cone of Silence have been summarized here. "Cone of Silence" means a prohibition on any non-written communication regarding this RFP between any Respondent or respondent's representative and any County Commissioner or Commissioner's staff. A Respondent's representative shall include but not be limited to the Respondent's employee, partner, officer, director or consultant, lobbyist, or any actual or potential subcontractor or consultant of the Respondent. The Cone of Silence is in effect as of the submittal deadline. The provisions of this Ordinance shall not apply to oral communications at any public proceeding, including pre-bid conferences, oral presentations before selection committees, or negotiations during any public meeting. The Cone of Silence shall terminate at the time that the BCC awards or approves a funding award, rejects all proposals or otherwise takes action which ends the solicitation process.
J. Postponement/Cancellation
The County may, at its sole and absolute discretion, reject any and all, or parts of any and all proposals; re-advertise this RFP; postpone or cancel this RFP process; or waive any irregularities in this RFP or in the proposals received as a result of this RFP.
K. Costs Incurred by Respondents
All costs involved with the preparing and submission of Respondent's proposal to the County, and any work performed in connection therewith and in negotiating a proposed final agreement(s) shall be borne by the Respondent.
L. Right of Clarification
The County retains the right to contact Respondents after submittal in order to obtain supplemental information and/or clarification in either oral or written form.
M. Delineation of RFP
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This is a Request for Proposals. The County reserves the right to reject all proposals or to negotiate individually with one or more Respondents, and to select a proposal on the basis of what the Selection Committee or the BCC determines to be in the best interest of the County.
N. Oral Presentation(s)
The County may require certain Respondents to make oral presentations, and possibly answer questions, in support of their proposal or to exhibit or otherwise demonstrate the information contained therein.
0. Proprietary/Confidential Information
All information submitted as part of, or in support of, proposals will be available for public inspection after submittal of proposals, in compliance with Chapters 119 and 286, Florida Statutes, popularly known as the "Public Records Law" and the "Government in the Sunshine Law", respectively.
P. Non-Discrimination
Palm Beach County does not discriminate on the basis of race, disability, color, sex, sexual orientation, religion, ancestry, age, gender identity or expression, genetic information, marital status, familial status, or national· origin. Palm Beach County provides equal housing opportunities to all individuals.
Q. Rules, Regulations, Licensing Requirements
The Respondent shall comply with all laws, ordinances, and regulations applicable to the agreement contemplated herein, including those applicable to conflict of interest and collusion. Respondents are presumed to be familiar with all federal, state, and local laws, ordinances, codes, and regulations that may in any way affect the contract, especially Executive Order No. 11246 entitled "Equal Employment Opportunity" and as amended by Executive Order No. 11375, as supplemented by the Department of Labor Regulations (41 CFR, Part 60).
R. Disclaimer
All documents and information, whether written, oral or otherwise, provided by the County relating to this RFP are being provided solely as an accommodation and for informational purposes only, and the County is not making any representations or warranties of any kind as to the truth, accuracy or completeness, or the sources thereof. County shall have no liability whatsoever relating to such documents and information and all parties receiving the same shall not be entitled to rely on such documents and information, but shall have a duty to independently verify the accuracy of the information contained therein.
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S. Public Entity Crime
As provided in Florida Statutes 287.132-133, by entering into this RFP or performing any work in furtherance hereof, the Respondent certifies that it, its affiliates, suppliers, subcontractors and consultants who will perform hereunder, have not been placed on the convicted vendor list maintained by the State of Florida Department of Management Services within the thirty-six (36) months immediately preceding the date hereof. This notice is required by Florida Statutes 287.133(3)(a).
T. Insurance
The Developer shall be required to comply with County insurance requirements at such time that an agreement is executed.
U. Palm Beach County Office of the Inspector General
Palm Beach County has established the Office of Inspector General in Palm Beach County Code, Section 2-421 - 2-440, as may be amended. The Inspector General's authority includes but is not limited to the power to review past, present and proposed County contracts, transactions, accounts and records, to require the production of records, and to audit, investigate, monitor, and inspect the activities of any party doing business with the County, including the party's officers, agents, employees, and lobbyists in order to ensure compliance with contract requirements and detect corruption and fraud. All consultants and parties doing business with the County shall fully cooperate with the Inspector General including providing access to records relating to this RFP and any resulting contract. Failure to cooperate with Inspector General or interfering with or impeding any investigation shall be in violation of Palm Beach County Code, Section 2-421 - 2-440, and punished pursuant to Section 125.69, Florida Statutes, in the same manner as a second degree misdemeanor.
SECTION Ill
A. Proposal Evaluation
A Selection Committee will be designated for evaluation of all responsive proposals. Non-responsive proposals will not be evaluated by the Selection Committee. The Selection Committee shall conduct its evaluation in adherence with the program requirements and evaluation criteria outlined in this RFP. The County reserves the right to appoint non County employee(s) to the Selection Committee.
The following criteria will be used by the Selection Committee as a guideline in evaluating proposals, and is not intended to identify all items within each category to be considered. The Selection Committee will
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award scores up to the maximum amounts identified for each criterion to result in a combined total of up to 100 points.
20 Points - Respondent and development team member qualifications and experience with similar projects
20 Points - Financial viability of the project, leveraging of other resources, and HOME per-unit subsidy
20 Points - Quality of proposed housing product (development plan, features, amenities, and proximity to public services) and impact on local housing needs
20 Points - Documented ability to meet HOME expenditure deadlines and complete project by September 30, 2017
10 Points - Glades Region, disabled, veterans, and existing County project preference
10 Points - Mixed Income Project preference
The Selection Committee meeting will be held Thursday, September 18, 2014, 1 :30pm, and located at the PBC Vista Center, VC-1 E-58, 2300 Jog Road, West Palm Beach, FL 33411.
8. Award Recommendation(s)
The award, if any, will be made to the Respondent(s) whose proposal(s) is considered to be the most advantageous to the County based on the Selection Committee's recommendations. The Department of Economic Sustainability will post the award recommendation(s) for review.
C. Funding Award
The Department of Economic Sustainability will present recommendations for funding award to the Palm Beach County Board of County Commissioners (BCC) at a public meeting. The BCC has the sole authority to award funding under this RFP.
D. Agreement Negotiations
After approval by the BCC, the County will enter into negotiations with the Respondent awarded funding. If the County and the Respondent cannot successfully negotiate an agreement, the County may terminate said negoUations and the funding award, and may elect to initiate negotiations with the second highest ranked Respondent. This process may continue
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until an agreement(s) has been executed or until the County elects to terminate the process. No Respondent shall have any right against the County arising from such negotiations or termination.
E. Right of Appeal
Respondents may appeal any recommendation for award to the BCC. There is no administrative appeal procedure.
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EXHIBIT A: MAXIMUM HOME PER UNIT SUBSIDY AMOUNTS
MAXIMUM MORTGAGE LIMITS - e:U:VATOR CONSTRUCTION Jaokso.nvlle Flortda IMllltlfamily Office
Base Olly; Mui Key loceilily 1: West Palm Beach Keylocalily2:
llilSUted
265%!
Key Locality 3: ELEVATOR CONSTRUCTION
Basic S Ma!(l'll S
Basie s Max111 $
!High Coot at 265%
8asic $ Maxt1~ $
li:!•eost at 265%
Basic $ Max<0 $
IHignC1lsf at -
265%.
Basic $ Se~ion 2S1 M~1,, $
fE!ghGost at 285% N'°"1! [t) • eaag~hl~ Mu~ 270,,..
Allowances for U .s. Department of Housing 0MB Approval No. 2577-0169
Tenant-Furnished Utilities and Urban Development ( exp04/30/2014)
and Other Services Office of Public and Indian Housing
See Public Reoorlina Statement and Instructions on back Locality I Unl!Type I Date (mm/dd/yyyy) Palm Beach County Flat/Garden/High Rise Effective 1-1-14 Utility of Service Monthlv Dollar Allowances
OBR 1 BR 2BR 3BR 4BR 5BR Heating
a. Natural Gas 3.00 3.00 3.00 5.00 6.00 8.00
b. Bottle Gas 5.00 5.00 6.00 8.00 10.00 12.00.
C. OIi / Electric 3.00 3.00 4.00 5.00 5.00 6.00 Cooking a. Natural Gas 3.00 3.00 3.00 4.00 4.00. 4.00
b. Bottle Gas S.00 5.00 6.00 7.00 8.00. 8.00
c. OIi / Electric 4.00 5.00 6.00 7.00 7.00 8.00
Other Electric 18.00 21.00 25.00 30.00 35.00 42.00
Air Conditioning 28.00 32.00 39.00 48.00 56.00 66.00 Water Heating a. Natural Gas 11.00 14.00 16.00 21.00 24.00 29.00
b. Bottle Gas 21.00 26.00 30.00 38.00 45.00 S3.00
c. OIi / Electric 12.00 lS.00 19.00 26.00 33.00 40.00
Water a. City 2S.OO 27.00 31.00 37.00 42.00 46.00
b. County 13.00 14.00 15.00 20.00 24.00 27.00 Sewer a.City 18.00 21.00 27.00 . 35.00 42.00 48.00
OTHER (Specify) E1ectric 7.00 7.00 7.00 7.00 7.00 7.00
Natura1 Gas 11.00 11.00 11.00 11.00 11.00 11.00
(continued on following page)
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Allowances for U.S. Department of Housing 0MB Approval No. 2577-0169
Tenant-Furnished Utilities and Urban Development (exp. 04/30/2014)
and Other Services Office of Public and Indian Housing
See Public Reporting Statement and Instructions on back Locality I UnltType I Date (mm/dd/yyyy) CITY OF LAKE WORTH, FLORIDA Flat/Garden/HighRise Apt. Effective 1-1-14 Utlllty of Service Monthly Dollar Allowances
0BR 1 BR 2BR 3BR 4BR 5BR Heating a. Natural Gas 3.00 3.00 3.00 5.00 6.00 8.00
b. Bottle Gas 5.00 5.00 6.00 8.00 10.00 12.00
c. OIi / Electric 4.00 5.00 6.00 7.00 7.00 8.00 Cooking a. Natural Gas 3.00 3.00 3.00 4.00 4.00 4.00
b. Bottle Gas 5.00 5.00 6.00 7.00 8.00 8.00
C. OU I Electric 6.00 7.00 8.00 9.00 10.00 11.00
Other Electric 25.00 29.00 34.00 42.00 49.00 58.00
Air Conditioning 39.00 45.00 54.00 67.00 78.00 92.00
a. Natural Gas 11.00 14.00 16.00 21.00 24.00 29.00
b. Bottle Gas 21.00 26.00 30.00 38.00 45.00 53.00
C. on I Electrlc 16.00 21.00 26.00 36.00 46.00 55.00
b. Natural Gas 11.00 11.00 11.00 11.00 11.00 11.00
BaseCharae .. . . . ... ....... - . .
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EXHIBIT E: 2014 HOME HOMEOWNERSHIP VALUE LIMITS
West Palm Beach - Boca Raton, FL HUD Metro FMR Area (Palm Beach County)
Single Family Housing Types New/Existing 1-Unit 2-Unit 3-Unit 4-Unit Construction Detached Attached Attached Attached New Homes1 $262,000 $336,000 $407,000 $504,000 Existing Homes2 $157,000 $201,000 $243,000 $301,000
1) HUD maximum permitted value and resale price for newly constructed dwelling structures.
2) HUD maximum permitted post-rehabilitation value and resale price of acquired/rehabilitated dwelling structures.
Source: U.S. Department of Housing and Urban Development
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EXHIBIT F: RESPONDENT CERTIFICATION FORM
RESPONDENT CERTIFICATION FORM
By signing below, the undersigned _______________ as of _____________ (the
Respondent), a _______________ i.e. Florida corporation) hereby certifies that the undersigned is duly authorized to sign this Respondent Certification Form on behalf of the Respondent and that this Respondent Certification Form shall be fully binding upon Respondent. Respondent hereby covenants and agrees to comply with the terms of RFP DES.2014.1, all related Federal Regulations, and related Addenda and to attempt to negotiate in good faith with County the terms of an agreement and will implement the response submitted by Respondent of the RFP. The Respondent further covenants and agrees that it has received all of the information referenced in the RFP, that Respondent fully understands the same, that Respondent completely and accurately completed the response submitted by Respondent pursuant to the RFP, that the information contained in such response submitted by Respondent is true and correct and that Respondent shall be bound by the terms and conditions of the RFP and the covenants, agreements and representations made by Respondent herein and in the response submitted by Respondent to the RFP.
Date of Execution by Respondent: ________________ , 2013
By: _____________ _ RESPONDl;:NT Signature
Its: ______________ _ SEAL Print Signatory's Name
The foregoing Respondent Certification Form was acknowledged before me this _day of _________ , 2013, _________________ the of _________________ , a
_______________ (state and type of entity), who is personally known to me OR who produced _____________ as identification and who did take an oath.
NOTARY PUBLIC Notary Public
State of ________ at Large My Commission Expires:
Print Notary Name My Commission Expires:
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EXHIBIT G: DISCLOSURE OF BENEFICIAL INTERESTS
DISCLOSURE OF BENEFICIAL INTERESTS (REQUIRED BY FLORIDA STATUTES 286.23)
TO: PALM BEACH COUNTY CHIEF OFFICER, OR HIS OR HER OFFICIALLY DESIGNATED REPRESENTATIVE
STATE OF FLORIDA COUNTY OF PALM BEACH
BEFORE ME, the undersigned authority, this day personally appeared, _____ , hereinafter referred to an Affiant who being by me first duly sworn, under oath, deposes and states as follows:
1. Affiant is the ________________ , which entity is the Lead Entity for the Respondent to Palm Beach County Request for proposals Number
2. Affiant's address is: -------------------3. Attached hereto, and made a part hereof, as Attachment -1 is a complete listing of the names and addresses of every person or entity having a five percent (5%) or greater beneficial interest in the proposed HOME project and the percentage interest of each such person or entity.
4. Affiant acknowledges that this Affidavit is given to comply with Florida Statutes 286.23, and will be relied upon by Palm Beach County.
5. Affiant further states that Affiant is familiar with the nature of an oath and with the penalties provided by the laws of the State of Florida for falsely swearing to statements under oath.
6. Under penalty of perjury, Affiant declares that Affiant has examined this Affidavit and to the best of Affiant's knowledge and belief it is true, correct, and complete.
FURTHERAFFIANT SAYETH NAUGHT. By _______ _
__________ , Affiant
The foregoing instrument was sworn to, subscribed and acknowledged before me this __ day of ______ , 20_, by ________________ , who is personally known to me OR who produced ___________ as identification and who did take an oath.
(NOT ARY SEAL BELOW) Notary Signature: ________ _
Notary Name: _________ _ Notary Public State of Florida
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ATTACHMENT 1 TO DISCLOSURE OF BENEFICIAL INTERESTS
SCHEDULE TO BENEFICIAL INTERESTS IN PROJECT PROPOSAL
Affiant is only required to identify five percent (5%) or greater beneficial interest holders in the proposed project. If none, so state. Affiant must identify individual owners. If, by way of example, the proposed project is wholly or partially owned by another entity, such as a corporation, Affiant must identify such other entity, its address and percentage interest, as well as such information for the individual owners of such other entity.
NAME ADDRESS PERCENTAGE OF
INTEREST
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EXHIBIT G: DRUG FREE WORKPLACE CERTIFICATION
Preference shall be given to businesses with drug-free workplace programs. Pursuant to Section 287.087, Florida Statutes, whenever two or more competitive solicitations that are equal with respect to price, quality, and service are received by the State or by any political subdivision for the procurement of commodities or contractual services, a response received from a business that certifies that it has implemented a drug-free workplace program shall be given preference in the award process. Established procedures for processing tie responses will be followed if none of the tied providers has a drug free workplace program. In order to have a drug-free workplace program, a business shall:
1. Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against· employees for violations of such prohibition.
2. Inform employees about the dangers of drug abuse in the workplace, the business's policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual services that are under proposal a copy of the statement specified in Subsection (1 ).
4. In the statement specified in Subsection (1), notify the employees that, as a condition of working on the commodities or contractual services that are under proposal, the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo contendere to, any violation of Chapter 894, Florida Statutes, or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction.
5. Impose a sanction on any employee who is so convicted or require the satisfactory participation in a drug abuse assistance or rehabilitation program as such is available in the employee's community.
6. Make a good faith effort to continue to maintain a drug-free workplace through implementation of applicable laws, rules and regulations.
As the person authorized to sign the statement, I certify that this firm complies fully with the above requirements.
BUSINESS NAME PROVIDER'S SIGNATURE
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EXHIBIT I: PALM BEACH COUNTY LOBBYIST REGISTRATION ORDINANCE
Sec. 2-351. Title and purpose
(a) This article may be cited as the "Palm Beach County Lobbyist Registration Ordinance." (b) The board of county commissioners of the county hereby determines that the operation of responsible government requires that the fullest opportunity be afforded to the people to petition their county government for the redress of grievances and to express freely to the elected officials their opinions on legislation and other actions and issues; that to preserve and maintain the integrity of the governmental decision-making process, it is necessary that the identity and activities of certain persons who engage in efforts to influence county commissioners, advisory board members, and employees on matters within their official duties, be publicly and regularly disclosed.
(Ord. No. 03-018, § 1, 5-20-03)
Sec. 2-352. Definitions
Unless expressly provided herein to the contrary, for purposes of this article, the following definitions will apply: Advisory board will mean any advisory or quasi-judicial board created by the board of county commissioners. Board will mean the board of county commissioners of Palm Beach County, Florida. County commissionerwill mean any member of the board of county commissioners of Palm Beach County, Florida. Employee will mean all personnel employed by the board of county commissioners. Lobbying shall mean seeking to influence the decision of any county commissioner, any advisory board member, or any employee with respect to the passage, defeat or modification of any item which may foreseeably be presented for consideration to the advisory board or board of county commissioners as applicable. Lobbyist shall mean any person who is employed and receives payment, or who contracts for economic consideration, for the purpose of lobbying on behalf of a principal, and shall include an employee whose principal or most significant responsibilities to the employer is overseeing the employer's various relatfonships with government or representing the employer in its contacts with government. "Lobbyist" shall not include any employee as defined by this article when acting in the course of his or her employment, any elected local official when the official is lobbying on behalf of the governmental agency which the official serves, or any member of the official's staff when such staff member is lobbying on an occasional basis on behalf of the governmental agency by which the staff member is employed. Person shall mean individuals, firms, associations, joint ventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations (profit or not-for-profit),
28
professional corporations, or associations, and all other groups or combinations however constituted. Principal shall mean the person or entity a lobbyist represents for the purpose of lobbying.
(Ord. No. 03-018, § 2, 5-20-03; Ord. No. 03-055, Pt. I, 11-18-03; Ord. No. 2009-051, pt. 2, 12-15-09)
Sec. 2-353. Registration and expenditures
(a) Registration required. Prior to lobbying, all lobbyists shall submit an original, fully executed registration form to county administration. A separate registration is required for each principal represented. A registration fee of twenty-five dollars ($25.00) must be included with each registration form submitted. A registrant shall promptly send a written statement to county administration canceling the registration for a principal upon termination of the lobbyist's representation of that principal. This statement shall be signed by the lobbyist. Lobbying prior to registration is prohibited. (b) Registration form. The registration form shall be prepared by county administration and shall require the following information: 1) the name and address of the lobbyist; 2) the name and address of the principal represented; 3) the date the lobbyist was initially retained by the principal; 4) the nature and extent of any direct business association or partnership the lobbyist and principal might have with any current county commissioner, advisory board member, or employee; 5) the area of legislative interest; and 6) a statement confirming that the registrant is authorized to represent the principal. The form shall be signed by the registrant and the principal. (c) Registration exceptions. Registration shall not be required for the following:
(1) County commissioners, advisory board members or employees discussing matters relevant to their official duties; (2) Persons under contract with the county who communicate with county commissioners, advisory board members or employees regarding issues related only to the performance of their services under their contract; (3) Any person who lobbies only in his or her individual capacity for the purpose of self-representation; or (4) Any person who appears before the board or advisory board in a quasijudicial proceeding.
(d) Reporting of expenditures. Commencing October 1, 2011, and on October 1 of each year thereafter, the lobbyist shall submit to county administration a signed statement under oath listing all expenditures made by the lobbyist in lobbying county officials and employees in excess of twenty-five dollars ($25.00) for the preceding year. A statement shall be filed even if there have been no expenditures during the reporting period. The statement shall list in detail each expenditure category, including food and beverage, entertainment, research, communications, media advertising, publications, travel, lodging and special events.
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(1) The county administrator shall provide notice of violation to any lobbyist who fails to timely file an expenditure report and shall also notify the county commission on ethics of this failure. In addition to any other penalties which may be imposed under this article, any lobbyist who fails to file the required expenditure report within thirty (30) days of the date of notice of violation shall be suspended from lobbying unless the notice of violation has been appealed to the commission on ethics.
(e) False statements. A lobbyist shall not knowingly make, or cause to be made, a false statement or misrepresentation in maintaining registration or when lobbying county commissioners, advisory board members, or employees.
(Ord. No. 03-018, § 3, 5-20-03; Ord. No. 03-055, Pt. II, 11-18-03; Ord. No. 2009-051, pt. 2, 12-15-09)
Sec. 2-354. Record of lobbying contacts
(a) Contact log. Except when appearing before the board or any advisory board, all persons shall sign, for each instance of lobbying, contact logs maintained and available in the office of reception of each department of county government. The person shall provide his or her name, whether or not the person is a lobbyist as defined in this article, the name of each principal, if any, represented in the course of the particular contact, and the subject matter of the lobbying contact. All contact logs shall be transmitted to the county administrator at the end of each calendar quarter. (b) Lobbying outside of county offices. In the event that a lobbyist engages in lobbying which is outside of county offices, and which is a scheduled appointment initiated by any person for the purpose of lobbying, the lobbyist shall advise the commissioner's office or employee's department office as appropriate of the calendar scheduling of an appointment and the subject matter of the lobbying contact.
(Ord. No. 03-018, § 4, 5-20-03)
Sec. 2-355. Cone of silence
(a) Cone of silence means a prohibition on any communication, except for written correspondence, regarding a particular request for proposal, request for qualification, bid, or any other competitive solicitation between:
(1) Any person or person's representative seeking an award from such competitive solicitation; and (2) Any county commissioner or commissioner's staff, or any employee authorized to act on behalf of the commission to award a particular contract.
(b) For the purposes of this section, a person's representative shall include but not be limited to the person's employee, partner, officer, director, consultant, lobbyist, or any actual or potential subcontractor or consultant of the person. (c) The cone of silence shall be in effect as of the deadline to submit the proposal, bid, or other response to a competitive solicitation. The cone of silence shall remain in effect
30
and subject to the terms of this section for any person or person's representative who responds to a particular request for proposal, request for qualification, bid, or any other competitive solicitation, and such response is either rejected by the county or withdrawn by the person or person's representative. Each request for proposal, request for qualification, bid or any other competitive solicitation shall provide notice of cone of silence requirements and refer to this article. (d) The provisions of this article shall not apply to oral communications at any public proceeding; including pre-bid conferences, oral presentations before selection committees, contract negotiations during any public meeting, presentations made to the board, and protest hearings. Further, the cone of silence shall not apply to contract negotiations between any employee and the intended awardee, any dispute resolution process following the filing of a protest between the person filing the protest and any employee, or any written correspondence at any time with any employee, county commissioner, or advisory board member or selection committee member, unless specifically prohibited tiy the applicable competitive solicitation process. (e) The cone of silence shall not apply to any purchases made in an amount less than the competitive bid threshold set forth in the county purchasing ordinance (County Code, chapter 2, article Ill, division 2, part A, section 2-51 et seq.). (f) The cone of silence shall terminate at the time the board, or a county department authorized to act on behalf of the board, awards or approves a contract, rejects all bids or responses, or otherwise takes action which ends the solicitation process. (g) Any contract entered into in violation of the cone of silence provisions in this section shall render the transaction voidable.
(Ord. No. 03-018, § 5, 5-20-03; Ord. No. 03-055, Pt. 3, 11-18-03; Ord. No. 2009-051, pt. 2, 12-15-09)
Sec. 2-356. Enforcement
(a) If the county administrator is informed of any person who has failed to comply with the requirements of this article, he or she shall conduct a preliminary investigation as deemed necessary under the circumstances. In the event the county administrator determines that a violation may have occurred based on the results of the investigation, the county administrator shall forward the matter to the county commission on ethics for further investigation and enforcement proceeding as set forth in article XIII of this chapter, the county code of ethics. (b) A notice of violation shall be transmitted to the person indicating the nature of the violation and the penalty imposed. The lobbyist shall have up to thirty (30) days after the date of the notice to seek appeal of the penalty. In the event the lobbyist fails to submit an appeal in writing to the county administrator within thirty (30) days of the date of such notice, the violation shall be deemed final, and the penalty imposed shall be effective immediately.
Violations of this article shall be punishable as follows: (1) Failure to properly register as required by section 3-353 of this article shall be deemed a single violation, punishable by a fine of two hundred fifty dollars ($250.00) per day for each day an unregistered lobbyist engages in lobbying activity, in an amount not to exceed a total of two thousand five hundred dollars ($2,500.00). (2) Failure to properly provide lobbying contact information as required by section 2-354 of this article shall be punishable by a fine of two hundred fifty dollars ($250.00) for each violation. (3) Violations of the cone of silence set forth in section 2-355 of this article shall be punishable by a fine of two hundred fifty dollars ($250.00) for each violation. (4) Any person who knowingly makes or causes to be made a false statement or misrepresentation in maintaining a lobbyist registration shall be subject to a fine of two hundred fifty dollars ($250.00) for each violation. (5) Any person who violates the provisions of this article more than once during a twelve-month period shall be prohibited from lobbying as follows: A second violation shall result in a prohibition of one (1) year; a third violation shall result in a prohibition of two (2) years. (6) The penalties provided in this section shall be exclusive penalties imposed for any violation of the registration, contact log, and cone of silence requirements of this article. Willful violations of this article shall be referred by the commission on ethics to the state attorney for prosecution in the same manner as a second degree misdemeanor pursuant to Florida Statutes, § 125.69. Failure or refusal of any lobbyist to comply with any order of the commission on ethics shall be punishable as provided by law, and shall otherwise be subject to such civil remedies as the county may pursue, including injunctive relief.
REQUEST FOR PROPOSALS (RFP) FOR HOME INVESTMENTS PARTNERSHIP PROGRAM
Date of Addendum No. "1" Issued:
Addendum Coordinator:
PURPOSE OF THIS ADDENDUM:
The purpose of this Addendum is to: .
1 . Provide revisions to the RFP; and
August22,2014
Carlos Serrano Economic Sustainability 100 Australian Avenue, Suite 500 West Palm Beach, FL 33406 Phone: 561-233-3608 Fax: 561-656-7563 E-mail: [email protected]
2. Provide written responses to questions raised regarding the RFP.
GENERAL INSTRUCTIONS:
• This Addendum No. "1" constitutes an integral part of the RFP and shall be read in conjunction with the RFP.
• Where inconsistent with the original RFP, this Addendum shall govern.
• It is the responsibility of all respondents to the RFP to conform to this Addendum.
• Unless specifically changed herein, all other requirements, terms and conditions of the RFP remain unchanged and can only be modified if in writing.
• Respondents shall acknowledge receipt of this Addendum on the form
Addendum No. 1: RFP DES.2014.1 Page 1 of 6
included with this Addendum as Exhibit "A". Respondents shall include Exhibit "A" in their submittal in response to the RFP as Attachment 20.
REVISIONS TO THE RFP
1. Respondents are directed to Section I.D. The corresponding paragraph struck out below shall be deleted and replaced with the underlined paragraph below:
Developer is defined as an entity funded through this RFP to undertake the development of HOME Assisted Housing Units, and 'Nhich 'Nill assume responsibility for compliance with all related requirements in accordance with HOME regulations. Such entities shall be limited to private for profit entities, private non profit entities, or ventures between the same.
Developer is defined as an entity which: 1) is funded through this RFP to complete the development of HOME-Assisted Housing Units; 2) has site control of the project site; and 3) plans. obtains permits, and manages the project from start to finish. Such entities shall be limited to private for-profit entities, private non-profit entities, public agencies, or ventures between the same. Developers shall assume responsibility for compliance with all program requirements in accordance with HOME regulations.
2. Respondents are directed to Section 1.F. The corresponding paragraph, struck out below shall be deleted and replaced with the underlined paragraph below:
All HOME Assisted Housing Units must be completed, put into service, and leased to Eligible Beneficiaries no later than September 30, 2017.
Developers shall set aside certain specific units within the project which shall be "fixed" with the designation as HOME-Assisted Housing Units. All HOME-Assisted Housing Units must be completed, put into service, and either leased or sold to Eligible Beneficiaries no later than September 30, 2017.
3. Respondents are directed to Section 11.A.3. The corresponding paragraph, struck out below shall be deleted and replaced with the underlined paragraph below:
The proposal shall include a market study prepared by an independent third party consultant, and including an assessment of local market inventory, demand, pricing, and project marketability. Submit the information required by this Paragraph II. /\..3, including a detailed location map as Attachment 3.
The proposal shall include a market study prepared by an independent third party consultant, which includes an assessment of local market inventory, demand, pricing, and project marketability, or shall include a market assessment prepared
Addendum No. 1: RFP DES.2014.1 Page 2 of 6
utilizing third party data and identifying all sources of such data which assesses local market inventory, demand, pricing, and project marketability. Submit the information required by this Paragraph 11. A.3, as Attachment 3.
RESPONSES TO QUESTIONS RELATED TO THE RFP
1. Question: Can Public Housing Authorities (PHAs) or Community Redevelopment Agencies (CRAs) qualify as Developers? Response: HUD has confirmed that for the HOME Program a public agency (including a PHA or CRA) can participate individually acting as a Developer or can participate through ownership in an entity acting as a Developer.
2. Question: For second mortgages to homebuyers, will there be repayment with interest on these mortgages? Response: Second mortgages from homebuyers will not require repayment if the homebuyer maintains ownership and occupancy of the home as his/her principal place of residence for the entire Period of Affordability. If the homebuyer/owner sells, rents, or otherwise violates the terms of the mortgage, the principal and interest, if any, must be repaid.
3. Question: For second mortgages on rental projects, if a Developer gets a 40 year HUD loan, will the County extend its term to 40 years? Response: If the primary lender is unwilling to offer a term of 30 years or less, the County may consider a term longer than 30 years.
4. Question: Regarding subordinate financing for multi-family projects, will the HOME loan be a soft second mortgage or will hard payment of interest be required? Response: Although the County will consider balloon and interest only loans, the mortgage will be "hard payment" of interest and/or principal due in accordance with the structure established by the mortgage. The County is not offering cash flow loans through this RFP.
5. Question: If doing scattered site homeownership, how would you ever have a mixed income project? Response: Scattered site Single Family detached development (1 housing unit per structure) does not offer the opportunity for mixed income. Scattered site Single Family attached development (2 - 4 housing units structure) could offer a mixed income arrangement.
6. Question: Explain the definition of mixed income, in particular for rental, mixing public housing with Section 8 subsidized housing? Response: A Mixed Income Project is a housing project that contains a mix of subsidized affordable units and unsubsidized market-rate units. This definition applies to both public housing and non-public housing projects. Project-Based Section 8 funding is a subsidy to the housing unit, and would result in a subsidized/affordable housing unit. Tenant Based Section 8 funding is a subsidy to the tenant household, and unto itself would not result in a subsidized/affordable housing unit.
7. Question: How current must the required market study be? Addendum No. 1: RFP DES.2014.1 Page 3 of 6
Response: The RFP does not specify a timeframe in which the market study must have been prepared.
8. Question: Would it be allowable to submit a proposal without identifying the members of the development team? Response: No. The RFP requires the identification of the following development team members, at a minimum: Respondent, Developer, construction contractor, architect/engineer, and attorney.
9. Question: Is the Developer required to procure members of the development team? Response: No. Entities funded through the RFP will be treated as Developers, and consequently Federal procurement requirements do not apply.
10. Question: Will grants and improvement programs provided to end-users count towards leveraging? Response: Sources that fund costs in the project development budget may qualify as leveraging.
11. Question: Will there be involvement by DES with client eligibility and the income qualification of end-users? Response: For rental projects, the Developer will be required to income qualify tenants. DES will monitor tenant income qualifications and eligibility. For ownership projects, DES will review and approve homebuyer deals for income qualification, eligibility, affordability, and other requirements prior to closing.
12. Question: Is there a limitation on number of proposals that may be submitted, or can respondents submit more than one proposal? Response: A Respondent may submit proposals for more than one project.
13. Question: For rental properties, is there any special consideration given to projects that target Extremely Low Income (<30% AMI) beneficiaries? Response: The RFP gives no preference to projects targeting 30% AMI beneficiaries.
14.Question: Is there a cap on total development costs per unit? Response: No. However, Respondents are reminded of the maximum per-unit HOME subsidy amounts, and for ownership projects, the maximum value and sale price amounts for HOME-Assisted Housing Units. ·
15. Question: When calculating the 50% set-aside requirement, should the numbers be rounded up or rounded down? Response: When calculating required numbers of set-aside units, the number must always be rounded up to the nearest integer.
Addendum No. 1: RFP DES.2014.1 Page 4 of 6
EXHIBIT A
to
ADDENDUM No. "1"
to
Addendum No. 1: RFP DES.2014.1 Page 5 of6
RFP No. DES.2014.1
ADDENDUM ACKNOWLEDGEMENT FORM
to
Addendum No. "1"
to
RFP No. DES.2014.1
By signing this Form, Respondent acknowledges receipt of this Addendum No. "1" to RFP No. DES.2014.1
Respondents shall include this Acknowledgement Form as Attachment 20 to their proposal.
This Addendum consists of six (6) pages.
Respondent: ___________________ _
Name & Title: -------------------
Signed:
Addendum No. 1: RFP DES.2014.1 Page 6 of 6
Date: -------
The New South Bay Villas
A Request for HOME Funding
Submitted to
PBC Department of Economic Sustainability RFP DES.2014.1
by
New South Bay Villas, Ltd.
A Partnership between the Palm Beach County Housing Authority and Mccurdy Senior Housing Corporation
September 3, 2014 ATTACHMENT 3
REGISTRATION FORM
RFP DES.2014.1
HOME INVESTMENT PARTNERSHIPS PROGRAM
Palm Beach County Housing Department of Economic Sustainability (DES)
Respondents requesting a copy of RFP DES.2014.1 must complete this and submit this form to DES, providing all information prior to receiving the RFP document.
NO PROPOSALS WILL BE ACCEPTED FROM RESPONDENTS WHO DID NOT REGISTER WITH DES BY COMPLETING AND SUBMITTING THIS REGISTRATION FORM.
To receive the RFP package via email, submit this form to Carlos Serrano at [email protected]. This form may also be submitted in person at DES, 100 Australian Avenue, Suite 500, West Palm Beach, FL 33406.
Name: s ~"'._ 6) ~½~~ Title: ---------S~narurec:r+~ Date: ---------
NEW SOUTH BAY VILLAS
SCHEDULE OF ATTACHMENTS
RESPONDENT CERTIFICATION FORM
PROJECT DESCRIPTION
MARKET STUDY
CONTACT INFORMATION
ORGANIZATIONAL CHART
EXPERIENCE
SITE CONTROL
APPRAISAL
DEVELOPMENT PROFORMA
OPERATING PROFORMA
LITIGATION HISTORY
FUNDING COMMITMENTS
MUNICIPAL CONTRIBUTION
FINANCIALS
ZONING, LANDUSE, SERVICES
PROJECT SCHEDULE
PUBLIC DISCLOSURE
DRUG FREE WORKPLACE CERTIFICATION
GLADES REGION PREFERENCE
ADDENDUM #1 ACKNOWLEDGEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
ATTACHMENT 1
NEW SOUTH BAY VILLAS
RESPONDENT CERTIFICATION FORM
ATTACHED
EXHIBIT F: RESPONDENT CERTIFICATION FORM
RQNNIIJ5NI Gl=BilfJCADM EHN
By signing below, the ·., undersigned · Van Johnson as Executive Director of PallnBeacli-County Housing Auth.· (the Respondent), a Special District of State of FL. i.e. Florida corporation) hereby certifies that the undersigned is duly authorized to sign this Respondent Certification Form on behalf_ of the Respondent and that this Respondent Certification Form shaO be fully binding upon Respondent Respondent he'8f)y covenants and agrees to comply with the terms of RFP DES.2014.1, all related Federal Regulations, and related Addenda and to attempt to negotiate in good· faith with County the tenns of an agreement and will implement the response submitted by Respondent of the RFP. The Respondent further covenants and agrees that it has received all of the infonnatlon referenced in the RFP, that Respondent fully understands the same, 1hat Respondent completely and accurately completed the response submitted by Respondent pursuant to the RFP, that the information contained in such response submitted by Respondent is true and correct and that Respondent shaU be bound by the terms and conditions of the RFP and the covenants, agreements and representations made by Respondent herein and in the response submitted by Respondent to the RFP. ·
Dated Execution by Respondent:._9_l_3_ll_4 ________ _,,_ _ _,
By._Yoi&4_~-----S6YJ---· ---------Palm Beach County Housing Authority
RESPONDENT
Its: Executive Director SEAL
Signature
Van Johnson Print Signatory's Name
The fo~~espondent Certific:.tion f:~rm was acknowledged before me this Lday of · ~ , 2014 YA.n l"Qhn5't\ the lfff.Mtiv~ lltc.cbr of Paha heh~ liru,,S.1na, A-1¼1:hon¼ ~ • a ____________ (state and type of entity), who Is personally l('nown to me OR who produced f \1c,CI\.SC as identification and who did take
NOTARY PUBLIC
State of florz.t4t;.. at Large My Commission Expires:
Print Notary Name My Commission Expires: f:d,. 01., 201,l,
24
ATTACHMENT 2
THE NEW SOUTH BAY VILLAS SOUTH BAY, FLORIDA
PROJECT DESCRIPTION
August2014
Page 1 of 14
----------------
BACKGROUND:
Mccurdy Senior Housing was selected by the Palm Beach County Housing Authority in November 2013 to be the Authority's development partner in the complete renovation and integration of Marshall Heights and South Bay Villas neighborhoods located in the city of South Bay. Since then, the development team has diligently researched the funding available for both neighborhoods and examined the existing condition of the physical assets on both sites. In addition the development team has been actively involved with the Housing Authority on the structure of a two phased plan for the renovations at South Bay Villas to help maximize the use of Palm Beach County's Department of Economic Sustainability funding and ensure the compatibility of both independent renovation phases.
LOCATION il: f r.~ ·~~1.,-~ ____ ------:r' ,, I II -,~ ·,\H:i_/ ~ f ll' - ~
·""'--~-~----·.·•·---
Page 2 of 14
2.0 TYPE OF PROJECT
The new South Bay Villas consists of two existing properties: Marshall Heights Apartments and South Bay Villas. South Bay Villas is a substantial rehab developed in two independent phases, while Marshall Heights will be demolished and replaced with new construction. The current condition and anticipated redevelopment of each are discussed below.
South Bay Villas:
South Bay Villas is comprised of 65 apartments. These one, two and three bedroom units were built in 1987 using masonry construction on monolithic concrete foundations. The second floor of each building is constructed with concrete hollow core planks, and the roof is a conventional wood truss roof with asphalt shingles. The units are distributed in 8 buildings each with 8 apartments and a one bedroom apartment over a common laundry facility. Originally the northernmost two buildings, Buildings 1 and 2, each contained 4 three bedroom units and 4 two bedroom units; the remaining 6 buildings each contain 8 two bedroom units. At one point three of the 2 bedrooms units at South Bay Villas were converted into 1 bedroom units for various reasons.
The apartments at South Bay Villas are in need of significant work to remodel and repair to current standards. All units are boarded and sealed, without utilities or air conditioning. Several units have been stripped of copper and have extensive mold throughout. The required repairs include new AC units, extensive electrical wiring repair, new kitchens, bathrooms and mold remediation. Due to the extent of these repairs and the costs associated with them it is proposed to undertake a level 2 substantial rehab including a complete upgrade to all new building codes including Florida Green Building Certification to allow access to institutional financing that will be required to fund the needed repairs.
Marshall Heights Apartments:
Marshall Heights is a townhome style community originally comprised of 28 buildings offering 66 family units, a leasing office, and a laundry facility originally constructed in 1975. Of the 66 family units, 4 have since been demolished due to structural failure of the foundation systems leaving 62 units. These two story townhome units are built upon pile foundations with concrete block construction on the first floor and wood frame construction for the second floor. All units are currently occupied as public housing
Ul'lit~, .,, _ ..... ., .... --·····-·· ..
Due to the ongoing repair costs, current termite infestation, questionable foundations and core structural issues regarding wind load the development team proposes that Marshall Heights be demolished to make way for the new construction of 1 O new
Page 3 of 14
buildings consisting of 66 family apartments, new leasing office as well as on-site laundry facilities. The new buildings will be rebuilt closer to the parking to allow better access for the residents while preserving a green space to provide common area amenities such as BBQ's, playgrounds, and gathering areas.
3.0 DEVELOPMENT LAYOUT
The overall Development Layout, shown on the proposed conceptual Site Plan, creates a central landscaped boulevard that will serve not only as the entrance to the combined neighborhood but will also connect together pedestrian access to the community's amenities on site. The improved entrance will follow the existing entrance to Marshall Heights and will expand to include both the eastern drive of South Bay Villas and the western drive of Marshall Heights creating a wide quiet boulevard with landscaped dividers that is friendly for both vehicle and pedestrian access. Providing professionally designed landscaped divider at the south side of the parking for the existing day care, will allow the existing entrance to South Bay Villas to be closed creating a single point of
· entrance to and from the community and creating a greater sense of community. These actions will give the residents a safety and security. The new boulevard will open to a wide pedestrian plaza designed to tie both properties together, promoting pedestrian flow and gathering between both properties.
South Bay Villas site plan and building layout will remain largely intact with the exception of moving the parking on the eastern boundary to the other side of the street to accommodate the new boulevard entrance. Marshall Heights is projected to be rebuilt in 10 new buildings consisting of 66 family apartments, new leasing office and laundry amenities. The new buildings will be rebuilt closer to the parking to allow better access for the residents while preserving a green space to provide common areas for barbecuing as well as new recreational areas for children. The new buildings will be flats similar to the construction of South Bay Villas which will allow for accessible family units on the first floor with both sites tied together architecturally.
The existing child day care center located at the entrance of South Bay Villas is owned by the Authority and subleased through NOAH development to the current operator. The lease will be revisited, along with the overall financial strategy for the community to determine if the daycare center should be included in the overall development boundary. The child day care element would certainly increase the comprehensiveness of the Supportive Services Plan for the community.
4.0 ARCHITECTURAL STYLE
· ·· ··ThEfSouth BayVillas and Marshall Heights project's architecturarstyre ·is·caribbean- · · ·Bermudian. The windy, mostly treeless landscape is very similar.
Bermuda Architecture is greatly influenced by the British with its white washed stone buildings and colonial style architecture. It is both casual and elegant at the same time.
Page 4 of 14
The Caribbean influence is from the more bold colors than the Bermuda style. It is seen in the more tropical latitudes.
Both projects will be tied together by removing the fences and hedges, creating one 'village' of similar shape buildings. But the different colors will give an individuality to each building to which a family living there would not be associated with a large 'public project'.
5.0 BUILDINGS AND UNIT MIX
The new South Bay Villas consists of two existing properties: Marshall Heights Apartments and South Bay Villas. Marshall Heights will be demolished and 10 new buildings consisting of 66 family apartments will be constructed. South Bay Villas consists of 8 buildings each with 8 apartments and a one bedroom apartment over a common laundry facility. All 8 buildings will remain and undergo substantial rehab.
Based upon the proposed plan, the unit mixes of the combined South Bay Villas and Marshall Heights will consist of two, three and four bedroom units. A single one bedroom unit will remain at South Bay Villas to be used as a caretaker's residence. The overall number of three and four bedrooms units will also be increased. The development team feels this revised unit mix is representative of the desire to provide a modern family friendly community and represents a good mix for families of all sizes.
HOME funds will be spent on the demolition and new construction of 66 units at Marshall Heights, and substantial rehab of 49 units at South Bay Villas. HOME funds will NOT be utilized for the rehab of 16 units at South Bay Villas that are the delivetable for current DES funding to the PBC Housing Authority.
Page 5 of 14
The New South Bay Villas will have 115 HOME assisted apartment flats: 1 one bedroom; 44 two bedrooms; and 30 three bedroom units.
7 .0 SITE AMENITIES
The Development Team proposes to incorporate not only washer and dryer connections in each unit that can be used by tenants with their own washers and dryers, but also provide clean, modern, and affordable coin operated laundry facilities at each property for use by the residents. In addition, the play and recreation activities will be expanded by installing a new splash play area and playground for children in close proximity to the two community laundry facilities. A new common area along the east boundary of the property will be created with covered picnic tables and barbeque grills. An improved basketball court and play field will be constructed in the south east corner of the property that will allow greater visibility of the court from the boulevard for added security.
The substandard drainage and parking will be addressed by repaving all parking areas and raising the surface elevation to eliminate standing water and ponding after heavy rains. New signage, landscaping, irrigation and sidewalks will soften the overall neighborhood and provide a beautiful atmosphere and ambience for families to live.
8.0 STATUS OF PROJECT ACTIVITIES
Since its selection as co-developer by the PBC Housing Authority in October of 2013, Mccurdy Senior Housing Corporation has been active in performing predevelopment activities for the New South Bay Villas.
Phase One (South Bay Villas):
The PBC Housing Authority has been working with the Department of Economic Sustainability for the substantial rehab of 16 units at South Bay Villas. The Mccurdy Development Team has been selected for Phase Two .... the full redevelopment of the New South Bay Villas .... and has been monitoring the progress and activities of Phase One to help ensure a seamless transition between development teams. The Phase Two development schedule will ensure that all units at South Bay Villas will be "on-line" by 12/31/2016, consistent with funding agreements between the County and the Authority.
Page 6 of 14
Selection Of A Development Team:
Mccurdy and the Authority have reached out to local, well established and very reputable individuals in the affordable housing industry. Development Team members include:
• Royal Building Group, LLC, headed by Wally Sanger and Daniel Walesky, as the Project/Construction Manager;
• Allan Schnier, of AMS & Associates, as Financial Consultant; • Gardner Capital, Inc., of Missouri with local offices in Florida, as the Guarantor
of tax credits and bonds; • D. Stephenson Construction, Inc., founded by former NFL Dolphin star Dwight
Stephenson and headed locally by Joseph Sanches, has been selected as the General Contractor.
• Javin Walker of 2SBW & Associates will work with the General Contractor in local participation outreach;
• Song & Associates, Architects of West Palm Beach, as the lead in the Design Team;
• Jeff Trompeter of Civil Designs, Inc. as lead in Civil Engineering; • Brian Terry & Michelle Hoyland, of Land Design South, for Site Planning; • Len Henry of CVR Associates for 3rd party studies associated with HUD/Housing
Authority issues; and • Julie McGovern, of the law firm Reno & Cavanaugh PLLC, as Tax Credit
Counsel.
Additional development Team members will be identified as their needs arise.
Pre-Development Budget:
A pre-development budget has been established. The PBC Housing Authority has committed to funding the pre-development activities outlined below. The predevelopment budget will be adjusted as actual costs are invoiced or additional necessary activities are identified.
The pre-development budget thus far includes the following:
DESCRIPTION
RAD Analysis Physical Inspection Asbestos & HazMet Study
Specialty Engineering Consultants Meridian Appraisal Group Meridian Appraisal Group Song & Associates TBD Reno & Cavanaugh TBD Royal Building Group CVR Associates CVR Associates
2,950 3,875 9,575 5,310 3,500 3,500
100,000 15,000 50,000 2,500
40,000 18,000 32,000 50,000
359,760
A RAD Assessment intended to determine the feasibility of demolishing Marshall Heihts and converting public housing unit subsidies to project based vouchers was performed. The results of the Study demonstrate that the RAD process of conversion doesn't generate sufficient revenues to address the debt service for new construction, or even substantial rehab due to very low HUD published subsidy rates.
Physical Inspection & Property Needs Assessment:
A Physical Inspection and a PNA intended to assess the current condition and quantify the cost of necessary capital improvements for Marshall Heights and South Bay Villas was performed by SB Thomas Engineering. In order to qualify for Demolition approval from HUD, Marshall Heights needs to meet the definition of obsolescence and have short term capital needs of at least 57% of the projected Total Development Costs. The Cost Schedule of the PNA is currently being revised due to the results of the Structural Study.
Structural Assessment:
A Structural Study of Marshall Heights was performed by L TL & Associates to supplement the PNA and help determine whether a demolition or a disposition application is needed to be submitted. The results indicate that the current condition of
Page 8 of 14
Housing Units, and allow for the demolition of Marshall Heights to accommodate new
construction. The application is currently being prepared for submission.
9.0 OTHER PERTINENT ISSUES
Mixed Income Project:
The New South Bay Villas is a Mixed Income Project by virtue of its mix of subsidized
and market rate units.
Marshall Heights is currently 100% Public Housing units while South Bay Villas doesn't
have any designated units with rental subsidies. The Public Housing Rates and local
Market Rates are insufficient in generating enough revenues to address the financing
needs for the New South Bay Villas. A modified mix of public housing, market rate and
project based section 8 vouchers generates sufficient revenues to address all costs and
associated debt services. Local market rates are consistent with rates that target
households earning 60% of the Area Median Income. The breakdown of subsidized
units is as follows:
Marshall Heights: 33 Public Housing Units
32 Project Based Vouchers 1 Market Rate Unit w/o Subsidies
South Bay Villas: 65 Project Based Vouchers
For a total of: 33 Public Housing Units
Construction Phasing:
97 Project Based Voucher Units
_1 Market Rate Unit w/o Rental Subsidy
131 Total Units
The development team understands the need to be sensitive to the current occupants of
Marshall Heights and will endeavor to remodel the remainder of South Bay Villas prior
to commencing with demolition activities on the Marshall Heights site. The existing
entrarice to South Bay Villas will remain open during the reconstruction of Marshall
Heights to allow for separate tenant and construction entrances. Once the new
boulevard and buildings are completed at Marshall Heights, the parking surfaces will be
improved at South Bay Villas and the entrances will be consolidated to create a
common unified entrance to the community.
Page 10of 14
the exterior walls of Marshall Heights' buildings are not sufficient to provide safety in the event of a significant wind event, such as a hurricane. This information had required the PNA Cost Schedule to be revisited.
Environmental Phase 1:
An Environmental Phase 1 Study has been performed for the Site by Cardino ATC. The study revealed no significant environmental concerns that would prevent the redevelopment to proceed.
Asbestos & Hazmat Study:
An Asbestos and Hazardous Materials Study has been performed by Cardino ATC. The study revealed no significant hazardous materials or asbestos concerns that would prevent the redevelopment to proceed.
Geo-Technical Study:
Specialty Engineering Consultants has taken soil boring and performed inspections to provide a comprehensive Geo-Technical Study of both sites. The analysis of the soil borings demonstrates that the site contains muck to a depth of 6-8 feet. The study recommends the use of pilings or demucking those areas that will bear the weight of structures on the site.
Market Study & Appraisal:
A Market Study and Appraisal has been performed by Meridian Appraisal Group for the proposed New South Bay Villas. Considering the level 2 Substantial Rehabilitation of South Bay Villas and the Demolition & New Construction of Marshall Heights, the Appraisal supports the costs of the redevelopment. The Market Study recognizes the value of 100% rental subsidies that will be provided and the study supports the lease-up of the New South Bay Villas.
Demolition/Disposition Of Marshall Heights:
The Authority will be contracting with CVR Associates for the preparation and submittal - of a Demo/Dispo Application-forMarshall+-leights to HU D's SAG Unit in-Chicago:· 'fhe· ·· ·· .. · · ... ·-- ·· · -~-... ·
application is supported by the Structural Study, Geo-Technical Study Physical Inspection and Property Needs Analysis which have been performed. The Demo/Dispo approval will eliminate the Deed in Trust held by HUD, reduce the number of Public
Page 9 of 14
Local Participation:
As a local Palm Beach County Development T earn, we fully committed to Local and
Section 3 Participation and has set a target of awarding 20% or more of the construction
subcontracts to qualified local contractors. Key to achieving these targets will be the
local knowledge and experience of our general contractor team which includes both,
Royal Building Group and its principals Wally Sanger & Daniel Walesky, as Project/
Construction Manager, D. Stephenson Construction with Joseph Sanches as Executive
Vice-President, as well as 2SBW & Associates and its president Javin Walker. Mr.
Sanger has operated as a general contractor and construction manager for over 30
years in Palm Beach County and has an excellent reputation in charitable work and
mentoring of young men and women in the construction field. D. Stephenson
Construction, founded by former NFL Dolphin star Dwight Stephenson, is a well
established minority owned Construction Company with a track record of successes that
demonstrates their commitment to Section 3 and local participation programs. Mr.
Walker, President of 2SBW & Associates, is a lifelong resident of the Glades and as an
active general contractor in the community of South Bay, he brings a wealth of
relationships with local trades and an impressive ability to reach out to the community
and provide new opportunities to residents of the Glades. In addition the development
team has begun discussions with the Career Source (formerly Workforce Alliance) in
Belle Glade, and will participate in educational and mentoring activities to support the
continued growth of the local skilled labor force.· The deconstruction of South Bay Villas
may be opportunity as an internship site for local efforts at tradesmanship development
and increase local participation.
All three companies will work diligently to participate in the new Glades initiative by the
State College, School District and Career Choice for training of local workers for
construction job opportunities that will be created.
Supportive Services:
The New South Bay Villas will provide a wide range of Supportive Services tailored to
the working family tenant base of these properties. It is anticipated that the Community
Center for the City of South Bay located adjacent the properties will serve as a suitable
"Community Center'' for the new community as well as all the citizens of South Bay. All
services will be provided to residents of South Bay Villas and Marshall Heights without
charge, although some enhanced services may require a minimal service fee. ~-• •••~, ..__ ~..,,-~• A,,-,;•,;,,• ,,
Supportive Services offered will include, but will not be limited to:
Page 11 of 14
• CASE MANAGEMENT: Provision of one on one, and family advocacy for medical and financial benefits designed to move individuals and families toward greater independence and self-actualization.
• ACTIVITIES: An organized and supervised Activity Program designed to foster a sense of unity and identity as a community will be put in place that offers residents opportunities to congregate and interact through activities such as: Movie Night on the Green; Bingo; publishing a monthly newsletter for the property providing a schedule of activities as well as articles of interest; Outdoor play times to occupy children during times between school and the return of parents (not a day care center); Contests, Games, Competitions for all ages ... young and old.
• MEDICAL CARE COORDINATION: A Care Coordinator will interface between the Case Managers, the families & tenants, and the medical community in the Glades to offer residents regular medical care by medical professionals familiar with the area's needs. The Care Coordinator will provide referrals to medical professionals, help implement doctors' orders, arrange for prescription drug ordering and delivery, coordinate the services of home health care agencies, and the purchase of durable medical equipment. It is envisioned that the Community center provide a medical office and exam room on-site to provide convenience to residents.
• JOB READINESS & TRAINING: Supportive Service staff will work with the Career Source Office in Belle Glade for the provision of job readiness and job training opportunities ... on-site, within the Community Center. A Jobs Posting Board will be maintained that lists full and part time employment opportunities throughout the Glades area.
• FOOD BANK DISTRIBUTIONS: Supportive Service staff will work closely with the Food bank of PBC and other food pantries for the delivery and distribution of surplus Department of Agriculture food items to residents of the New Marshall Heights.
• INTERGENERATIONAL PROGRAMS: Supportive Services Staff will work with elders and agencies that serve seniors to establish a series of intergenerational programs that bring youth and elders together in a safe and controlled environment. The inter-facing of elders and youth form bonds that are lifelong and benefit both generations attain enhanced education, local knowledge and self-betterment. Examples include: the Foster Grandparents Program managed by the School District; a bio writing contest; take a Senior to School; Grandparent supervised play; Holiday singing; etc.
Page 12 of 14
• NUTRITIONAL COUNSELING & TRAINING: Many residents of the Glades have poor nutrition, diets and cooking practices that adversely affect the health of the community. The Medical Care Coordinator will work to bring a licensed dietician to the site on a regular basis for group and individual training on a variety of nutritional programs.
• RESIDENT REFERRALS: Case Managers and the medical care Coordinator will work together to assess individuals needs and provide a formal referral for the resident to the agency or entity that may be able to provide assistance. Examples include: dialysis; specialty physicians; specialized job training; job placement services; churches; DCF; Food Stamps (SNAP program); Social Security; etc.
• CHILD DAYCARE: Child day care services will be provided through a lease with the Mary Alice Fortin Family Development Center located at the entrance of South Bay Villas. The Authority currently owns the land and facility and may revisit the lease to ensure that resident of the SBV and MH receive consideration for services.
Financial Plan:
Phase 1 of South Bay Villas is proceeding as a Level 2 renovation and is underway. This phase of construction will be funded through a grant from Palm Beach County to the Housing Authority and directly through Housing Authority Funds. The New South Bay Villas combines South Bay Villas and Marshall Heights into a single development providing the critical mass required for securing optimal financing.
The Development Team investigated a competitive 9% tax credit application and determined that the development site will not meet threshold for Proximity to necessary services. Instead the team has elected to use a non-competitive 4% tax credit program that comes from the issuance of tax exempt bond financing issued by the Palm Beach County Housing Finance Authority. A Direct Placement of these bonds to Red Stone Company, a large tax exempt bond purchaser shortens the time frames to get to closing on permanent financing and reduces financing costs by over $1 million. This is a proven method that enables a low risk approach for obtaining financing and will allow for the complete renovation of all units at South Bay Villas in the shortest time possible. The gap in financing totals $1.2 million, and is the subject of this HOME funding application. HOME funds are applic~ble and appropriate to be spent on this mixed income, new construc;tioi1/substantial rehab redeveloptnenfin the heart of one of the neediest communities in Palm Beach County.
The mix of public housing and project based voucher subsidies help to guarantee the financing and project feasibility.
Page 13of 14
Key indicators in the overall financial plan include:
• Overall Development Costs:
• Developers Fee
• Sources: o Tax Credit Equity o Construction/Permanent Loan o County Loan (HOME) o RHF Funding o Deferred Developer Fee
• Operations: o Effective Gross Income o Total Operating Expenses o Net Operating Income o Net Cash Flow o Debt Service Ratio
$25,717,264. 3,094,118.
9,112,548. 14,000,000.
1,200,000. 750,000. 654,716.
2,172,714. 870,597.
1,302,117. 301,464.
1.30
The Financial Plan accomplishes the complete renovation of two existing Housing
Authority assets that are in substantial need of repair. It provides for the financing
through a low risk 4% bond issuance, and a permanent loan meeting the criteria of the
Lender. The development will provide more than adequate debt service coverage and a
continuous revenue stream to the Housing Authority after stabilization.
Concept drawing can be found within the Market Study, Attachment #3.
Page 14of 14
ATTACHMENT 3
NEW SOUTH BAY VILLAS
MARKET STUDY
ATTACHED
ERIDIA APPRAISAL GROUP
A MARKET ANALYSIS OF TME SOUTH BAY VILLAS APARTMENTS, A
RENT AND INCOME RESTRICTED COMPLEX TO BE LOCATED AT 1001 JASMINE COURT AND
110 HARRELLE DRIVE, IN THE CITY OF SOUTH BAY, PALM BEACH COUNTY, FLORIDA 33493
PREPARED FOR PALM BEACH COUNTY HOUSING AUTHORITY
3432 WEST 45TH STREET WEST PALM BEACH, FLORIDA 33407
PREPARED BY · ·· · MERIDIAN APPRAISAL G·ROUP, INC. ·
ROBERT VON, PRESIDENT STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 1604
CHRISTA B. SNYDER. ASSOCIATE APPRAISER STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 3178
August 29, 2014
Mr. Van Johnson, Executive Director Palm Beach County Housing Authority 3432 West 45th Street West Palm Beach, Florida 33407
1331 SUNDIAL POINT WINTER SPRINGS, FLORIDA 32708
TEL 407.875.6933 FAX 407.875.1061
Re: The rehabilitation and construction of a 131 unit affordable apartment project designated for families (general population) located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493
Meridian File No: 14-PFF
Dear Mr. Johnson:
As requested, we have prepared a market analysis for the new and rehabilitated South Bay Villas apartments. The South Bay Villas apartments will consist of two former projects: Marshall Heights and South Bay Villas. Currently, Marshall Heights is a 66-unit property located at 1001 Jasmine Court, South Bay, Florida 33493. These improvements are currently 100% occupied and are to be demolished and subsequently rebuilt. The existing South Bay Villas consists of a 65 unit apartment project located at 110 Harrelle Drive, South Bay, Florida 33493. These improvements are currently not occupied and are to be substantially rehabilitated. The new and rehabilitated improvements are to be known as South Bay Villas and will total 131 units, with one, two, three and four-bedroom unit types situated on a 10.64 acre site. The property will be considered a Class B improvement in the local area. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME~programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract~CC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
The subject property is further described and identified by both legal and narrative descriptions within the text of the following report.
The intended use of this report is for internal decision making. The intended user of this report is the Palm Beach County Housing Authority. No other use or users are intended.
The purpose of this market study is to provide:
1. A site analysis;
2. An improvement analysis;
3. A determination of Primary Market Area (PMA) for the purposes of demographic analysis;
4. A demographic analysis, including an Income Band Analysis and Capture Rate Analysis of the likely draw area;
5. Rental estimates for the subject as a restricted rate project;
6. Overall product conclusion concerning the subject's unit mix, amenities and unit features relative to its competition;
MR. VAN JOHNSON AUGUST 29, 2014 PAGE TWO
7. Estimate the average occupancy rate for the Primary Market Area (PMA);
8. Estimate an average absorption rate for the subject property.
In order to accomplish the previous objectives, we have conducted the following research and analysis:
1) Examination of the subject site, surrounding development patterns, demographics and other relevant factors that influence development potential.
2) Review of neighborhood, regional, sub-regional and competitive market area apartment market trends.
3) Identification and examination of specific competitive projects located within the subject market area.
4) Review and evaluation of the development concept for the subject to include: features, amenities, unit mix, unit sizes and proposed rental rates.
This market study is the result of this evaluation, together with supporting data and documentation, as of the date of this report, August 29, 2014.
Summary of Conclusions and Recnmmendations
1) The subject site is of a size and configuration that appears to be suited for a variety of developments, inclugiJ!g rental apartments. Overall, access and exposure are considered to be good for multi-family purposes. The location of the site has adequate access to schools, employment and healthcare facilities. All necessary utilities and services are available to the site to support the proposed development. Based on these investigations, we are of the opinion that the subject site is suitable for apartment development.
2) Based on discussions with a representative of the developer and a review of the building floor plans, we are of the opinion that the proposed improvements are well suited for their proposed use as apartments for the general population (families). Based upon our research on this product type, the subject will provide a superior product to the existing rental assisted housing supply.
The following is the subject's proposed unit mix.
Unit Type # Of Units Unit Size (S.F.) Total S.F. 1/1 -SB 1 573 573 2/1 - SB 56 755 42.280 3/1 - SB 8 893 7.144 3/2-MH 26 1.057 27.482 4/2-MH 40 1.169 46,760 Total/Avg. 131 948 124,239
The total living area within the units is 124,239 square feet, resulting in an average unit size of 948 square feet. The indicated density is 12.31 units per acre.
Common amenities will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield. Unit amenities will include refrigerators, oven/ranges, dishwashers, disposals, ceiling fans, washer/dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms.
MR. VAN JOHNSON AUGUST 29, 2014 PAGE THREE
3) The Primary Market Area (PMA) is defined as a 10-mile ring centered on the subject property. The area determination is based on data gathered in the Small Area Data (SAD) Case Study that can be found on the FHFC website. The study indicated that most affordable family projects receive about 2/3 to 3/ 4 of their tenants from within ten miles. The subject's PMA, consists of one like-kind property with a total of 714 units.
4) According to the demographic analysis, there is currently a sufficient number of households within the income band necessary to support demand for the subject's units, with a maximum Level of Effort of 54.9% in the five-mile ring, and lower at 49.4% in the five-mile ring and 20.7% in the 10-mile ring (Primary Market Area). The number ofincome-qualified renter households represents the largest pool of potential renters from this source; the subject would likely draw these tenants only if their current housing is inferior to the subject or at least equally desirable but more costly. The Capture Rates are moderate at 20. 7%, 8.5% and 7. 7% in the three, five and 10-mile market areas, respectively. The subject has a moderately low indicated Capture Rate in the three-mile market area as compared to the comparables, indicating that it is appropriately sized. Household growth of income-qualified renter households in the subject's 10-mile ring is expected to increase by 11 households annually over the next five years. Annual growth less than the project size is a negative demographic factor. The actual performance of the supply within the PMA indicates that the market is not over-supplied. Based on this analysis, it appears the subject project is an appropriate size relative to the number of income-qualified renter households in the market. Overall, the demographic analysis indicates a moderately favorable environment for the subject's development. According to the developer, the Palm Beach County Housing Authority currently has approximately 4,000 families on its waiting list, which indicates ample demand for the subject property.
5) Our conclusions of attainable restricted rents are summarized in the following chart.
6) The subject will offer a superior project relative to the rental assisted product within the PMA. The subject's number of units is typical of family properties and is appropriate for the depth of the market area. The subject's unit mix of one, two, three and four-bedroom units, with most concentration in the two, three and four-bedroom unit types is typical offamily income-restricted properties. The subject will offer superior project amenities relative to the comparables, as it will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield. The subject is similar to superior to the comparables in terms of unit features, as it will offer dishwashers, disposals, ceiling fans, washer/ dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms. The subject's finishes are estimated to be similar to superior to the comparables. With regard to the comparable rental assisted properties, the subject will be superior in most aspects as it will be essentially new and reflect current market tastes.
MR. VAN JOHNSON AUGUST 29, 2014 PAGE FOUR
7) The subject's PMA weighted average occupancy rate is 99%.
8) The subject will be constructed and rehabilitated in phases. First, the old South Bay Villas portion of the project is estimated to be complete from rehabilitation in January 2016. The existing tenants at the Marshall Heights portion will then move into the completed South Bay Villas portion. Construction for the Marshall Heights portion is estimated to start in June 2016 and be complete in March 2017. The Marshall Heights portion will consist of 10 buildings. We estimate that the buildings will receive Certificate of Occupancy throughout the construction period and tenants will move into the buildings as they are completed. Therefore, the subject in its entirety will be stabilized upon completion in or about March 2017.
The analyses, opinions and conclusions were developed and this report has been prepared in conformance with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute.
This letter of transmittal precedes the consultation report, further describing the property and containing the reasoning and most pertinent data leading to the final conclusions. Your attention is directed to the "Extraordinary Assumptions/Extraordinary Limiting Conditions," "General Assumptions," "General Limiting Conditions" and "Certification," which have been included within the text of this report.
Respectfully submitted, Meridian Appraisal Group, Inc. ~ ., .. rt,~I.J-
Robert Von, President State-Certified General Real Estate Appraiser RZ 1604
Christa B. Snyder, Associate Appraiser State-Certified General Real Estate Appraiser RZ 3178
RV:CBS:dmh
TABLE OF CONTENTS
CERTIFICATION ..................................................................................................................................... 1 EXECUTIVE SUMMARY....................................................................................................................... 2 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS.............................................................. 5 DEFINITION OF IMPORTANT TERMS ................................................................................................. 7 STATE LOCATION MAP ........................................................................................................................ 8 LOCATION MAP ...................................................................................................................................... 9 AERIAL TAX MAP ................................................................................................................................. 10 SUBJECT PHOTOGRAPHS ................................................................................................................... 11 SUBJECT PROPERTY DATA ................................................................................................................ 12 SITE PLAN .............................................................................................................................................. 14 SITE ANALYSIS ..................................................................................................................................... 15 FLOOR PLANS AND ELEVATIONS ..................................................................................................... 17 IMPROVEMENT ANALYSIS ................................................................................................................. 23 DEMOGRAPHIC ANALYSIS ................................................................................................................ 25 ABSORPTION ESTIMATE ..................................................................................................................... 38
ADDENDA APPRAISERS' QUALIFICATIONS ENGAGEMENT LETTER LEGAL DESCRIPTION 2014 RENTAL RATES AND INCOME LIMITS REGIONAL OVERVIEW APARTMENT MARKET OVERVIEW
14-PFF MERIDIAN APPRAISAL GROUP, INC.
CERTIFICATION
As the undersigned consultants, we hereby certify that to the best of our knowledge and belief:
• the statements of fact contained in this report (upon which the analyses, opinion and conclusions expressed herein are based) are true and correct.
• the analysis, opinions and conclusion in the report are limited only by the assumptions and limiting conditions and special assumptions, if any, set forth and are the personal, unbiased professional analyses, opinions and conclusions of the consultant.
• we have no present or prospective interest in the subject property and have no personal bias with respect to the parties involved.
• our engagement in this assignment was not contingent upon developing or reporting predetermined results.
• our compensation is not contingent upon the development or the reporting of a predetermined conclusion or conclusions that favor the cause of the client, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of this report.
• our analyses and opinions were developed and this report has been prepared in conformity with (and the use of this report is subject to) all regulations issued by the appropriate regulatory entities regarding the enactment of Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA) and any subsequent updates, the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Standards Board of the Appraisal Foundation, and the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• we have personally inspected the subject property and every comparable project included within this report.
• no one, other than the undersigned, prepared the personal unbiased professional analyses, conclusions and opinions concerning real estate that are set forth in this report unless and except as acknowledged in this report.
• we have performed within the context of the competency provisi.on of the Uniform Standards of Professional Appraisal Practice.
• Robert Von, President and Christa B. Snyder, Associate Appraiser, have not performed other real estate related services involving the subject property of this report within the three year period immediately preceding the acceptance of this assignment
Property Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Date of Report August 29, 2014
Certified by Meridian Appraisal Group, Inc.
/2~0-Robert Von, President State-Certified General Real Estate Appraiser RZ 1604
Christa B. Snyder, Associate Appraiser State-Certified General Real Estate Appraiser RZ 3178
14-PFF MERIDIAN APPRAISAL GROUP, INC. 1
EXECUTIVE SUMMARY
Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493
Site Description The subject site is generally rectangular in shape and contains 10.64 acres. The subject has approximately 496 feet of frontage along the south side of Palm Beach Road. Currently, the subject has two access points to each of the properties. After construction, access will be via one point along Palm Beach Road which is deemed adequate. The Marshall Heights portion of the subject property is zoned R-3, Multiple Family District; while the South Bay Villas portion is zoned R-1, Single Family Residential. The future land use for both parcels is Residential Low Density which permits a maximum density of six units per acre. The existing improvements represent a non-conforming use. We have assumed that the subject will be approved and developed as proposed.
Qualified Census Tract (QCT): Yes, 12099008302
Difficult to Develop Area (DDA): No, (West Palm Beach-Boca Raton HMF A)
Improvement Analysis The subject will consist of 131 apartment units within 19, two story apartment buildings.
The following is the subject's proposed unit mix.
Unit Type # Of Units Unit Size (S.F.) Total S.F. 1/1 -SB 1 573 573 2/1 -SB 56 755 42.280 3/1 -SB 8 893 7,144 3/2-MH 26 1,057 27.482 4/2-MH 40 1,169 46.760 Total/Avg. 131 948 124,239 SB = South Bay; MH = Marshall Heights
The total area within the units is 124,239 square feet, resulting in an average unit size of 948 square feet. The indicated density is 12.31 units per acre.
Unit amenities will include refrigerators, oven/ranges, dishwashers, disposals, ceiling fans, washer/dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms. Common amenities will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield.
Definitions of Primary Market Area The Primary Market Area (PMA) is defined as a 10-mile ring centered on the subject property. The area determination is based on data gathered in the Small Area Data (SAD) Case Study that can be found on the FHFC website. The study indicated that most affordable family projects receive about 2/3 to 3/ 4 of their tenants from within 10 miles.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 2
EXECUTIVE SUMMARY (CONT'D)
Demographic/Supply and Demand Analysis According to the demographic analysis, there is currently a sufficient number of households within the income band necessary to support demand for the subject's units, with a maximum Level of Effort of 54.9% in the fivemile ring, and lower at 49.4% in the five-mile ring and 20.7% in the 10-mile ring (Primary Market Area). The number of income-qualified renter households represents the largest pool of potential renters from this source; the subject would likely draw these tenants only if their current housing is inferior to the subject or at least equally desirable but more costly. The Capture Rates are moderate at 20.7%, 8.5% and 7.7% in the three, five and IO-mile market areas, respectively. The subject has a moderately low indicated Capture Rate in the threemile market area as compared to the comparables, indicating that it is appropriately sized. Household growth of income-qualified renter households in the subject's 10-mile ring is expected to increase by 11 households annually over the next five years. Annual growth less than the project size is a negative demographic factor. The actual performance of the supply within the PMA indicates that the market is not over-supplied. Based on this analysis, it appears the subject project is an appropriate size relative to the number of income-qualified renter households in the market. Overall, the demographic analysis indicates a moderately favorable environment for the subject's development. According to the developer, the Palm Beach County Housing Authority currently has approximately 4,000 families on its waiting list, which indicates ample demand for the subject property.
Restricted Rents Our conclusions of attainable restricted rents are summarized in the following chart.
Overall Product Conclusions Regarding Amenities, Unit Features, and Unit Mix The subject will offer a superior project relative to the rental assisted product within the PMA. The subject's number of units is typical of family properties and is appropriate for the depth of the market area. The subject's unit mix of one, two, three and four-bedroom units, with most concentration in the two, three and four-bedroom unit types is typical of family income-restricted properties. The subject will offer superior project amenities relative to the comparables, as it will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and play.field. The subject is similar to superior to the comparables in terms of unit features, as it will offer dishwashers, disposals, ceiling fans, washer/dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms. The subject's finishes are estimated to be similar to superior to the comparables. With regard to the comparable rental assisted properties, the subject will be superior in most aspects as it will be essentially new and reflect current market tastes.
PMA Occupancy Rate The subject's PMA weighted average occupancy rate is 99%.
Absorption Rate The subject will be constructed and rehabilitated in phases. First, the old South Bay Villas portion of the project is estimated to be complete from rehabilitation in January 2016. The existing tenants at the Marshall Heights portion will then move into the completed South Bay Villas portion. Construction for the Marshall Heights
14-PFF MERIDIAN APPRAISAL GROUP, INC. 3
EXECUTIVE SUMMARY (CONT'D)
portion is estimated to start in June 2016 and be complete in March 2017. The Marshall Heights portion will consist of 10 buildings. We estimate that the buildings will receive Certificate of Occupancy throughout the construction period and tenants will move into the buildings as they are completed. Therefore, the subject in its entirety will be stabilized upon completion in or about March 2017.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 4
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report has been made with the following general assumptions:
1. The legal description used in this report is assumed to be correct.
2. The appraisers have made no survey of the property and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property.
3. No responsibility is assumed for matters of legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable.
4. Information and data furnished by others is usually assumed to be true, correct and reliable. When such information and data appears to be dubious and when it is critical to the appraisal, a reasonable effort has been made to verify all such information; however, the appraiser assumes no responsibility for its accuracy.
5. All mortgages, liens, encumbrances, leases and servitude have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures rendering it more or less valuable. No responsibility is assumed for such conditions or for engineering that may be required to discover them.
7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report.
8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in the appraisal report.
9. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.
10. It is assumed that the utilization of the land and improvements will be within the boundaries or property lines or the property described and that there will be no encroachments or trespass unless noted within the report.
11. The dates of value to which the opinions in this report apply are reported herein. The appraiser assumes no responsibility for economic or physical factors occurring at some later dates that may affect the opinions stated herein.
12. Unless otherwise stated in the report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, of for any expertise or engineering knowledge-required... . - .... -.... -. -..... to discover them. The reader is urged to retain an expert in this field, if desired.
This appraisal report has been made with the following general limiting conditions:
1. The appraisers will not be required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made thereof.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 5
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (CONT'D)
2. Possession of the report, or copy thereof, does not carry with it the right of publication. It may not be used for any purposes by any person other than the party to whom it is addressed without written consent of the appraiser, and in any event only with proper written qualification and only in its entirety.
3. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for the land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.
4. No environmental impact studies were requested or made in conjunction with this appraisal, and the appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research or investigation.
5. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales or any other media without written consent and approval of the appraisers. Nor shall the appraiser, firm or professional organization of which the appraiser is a member be identified without written consent of the appraisers.
6. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing General Assumptions and General Limiting Conditions.
This report has been made with the following Extraordinary Assumptions and Limiting Conditions:
1. We have relied upon verbal representations provided by leasing agents, property managers, brokers and others regarding rental and occupancy rates and project-specific information for the comparable properties. We have assumed this information to be accurate and reserve the right to amend our conclusions if it is found that the information was misrepresented.
2. We have relied upon the developer's estimate for contract rents under the HUD HAP contract and ACC contract as presented herein. The actual rents will be set by HUD through a subsidy layering system, and the actual contract and contract rents were not available as of the date of this report. We have relied upon the developer's estimate of contract rents herein, and reserve the right to amend our conclusions if these rents change.
3. We have assumed that the subject will be developed as proposed.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 6
DEFINITION OF IMPORTANT TERMS
ffighest and Best Use1
The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.
Fee Simple Estate2
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
Leased Fee Estate3
An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.
Leasehold Estate' The interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.
Cost-Burden (CB) is the percent of income spent on housing which includes rent plus utilities. A common CB target for affordable housing is 30%.
Level of Effort (LOE) is Supply divided by Demand. If the supply of affordable housing within a defined geographic area is equal to 500 and the potential demand within that same defined geographic area equals 2,000, then the Level of Effort is 500/2,000 or 25%. Level of Effort defines how much of the potential demand has already been satisfied.
Capture Rate (CR) is just the individual subject units divided by Demand. If the subject contains 100 units and the potential demand is 2,000 then the Capture Rate is 100/2,000 or 5%. Capture Rate helps to define the size of the subject relative to the size of the market.
Remaining Potential Demand (RPD) is equal to Demand minus Supply. If the potential demand is 2,000 and the supply is 500 then the RPD is 2,000 minus 500 or 1,500. RPD helps to define how deep the remaining market is.
Growth of Income-Qualified Renter Households (~ IQRH). Potential demand currently is 2,000; however, five years from now the potential demand will grow to 2,500, indicating growth of 500 over the five-year period or an annual growth of potential demand of 100.
Definition Sources 1 The Appraisal of Real Estate, Appraisal Institute, 14th Edition, 2013, Pages 333
The Dictionary of Real Estate A.m>raisal, Appraisal Institute, 5th Edition, 2010, Page 78 The Dictionary of Real Estate Ap_praisal, Appraisal Institute, 4th Edition, 2002, Page 161. The Dictionary's sm Edition definition of leased fee interest (Page 111) is ''.A freehold (ownership interest) where the possessury interest has been granted to another party by creation of a landlord-tenant relationship (i.e. a lease)." While both are accurate, we consider the Dictionary's 4th Edition definition to be more descriptive and easily understood.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 7
14-PFF MERIDIAN APPRAISAL GROUP, INC. 8
14-PFF
LOCATION MAP
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MERIDIAN APPRAISAL GROUP, INC. 9
AERIAL MAP
14-PFF MERIDIAN APPRAISAL GROUP, INC. 10
SUBJECT PHOTOGRAPHS
WEST VIEW OF PALM BEACH ROAD; SUBJECT EAST VIEW OF PALM BEACH ROAD; SUBJECT ON LEFT ON RIGHT
VIEW OF MARSHALL HEIGHTS FROM PALM INTERIOR VIEW OF MARSHALL HEIGHTS BEACHROAD
INTERIOR VIEW OF SOUTH BAY VILLAS TYPICAL BUILDING SOUTH BAY VILLAS
14-PFF MERIDIAN APPRAISAL GROUP, INC. 11
SUBJECT PROPERTY DATA
Type The South Bay Villas apartments will consist of 131 new construction and rehabilitated rental units. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Legal Description The subject property consists of two separate parcels. The legal descriptions for the parcels per the last deeds of transfer can be found in the addenda of this report.
Ownership and Three-Year ffistory of Subject According to the Palm Beach County Tax Rolls, the subject property is currently owned by Palm Beach County Housing Authority. The Marshall Heights portion of the subject project last sold in January 1973 for $100,000. The South Bay Villas portion of the property last sold in February 2013 for $1,000,000 per 0.R. Book 25785, Page 1256. The seller was Noah Development Corporation, a non-profit corporation. There have been no other transfers of the property within the last three years.
Flood Zone According to the Department of Housing and Urban Development, FEMA has not completed a study to determine flood hazard for the selected location. Therefore, a flood map has not been published at this time and the applicable flood zone is indeterminate.
Zoning The Marshall Heights portion of the subject property is zoned R-3, Multiple Family District; while the South Bay Villas portion is zoned R-1, Single Family Residential. The future land use for both parcels is Residential Low Density which permits a maximum density of six units per acre. The existing improvements represent a non-conforming use. We have assumed that the subject will be approved and developed as proposed.
Assessment and Taxes Current Taxes The subject consists of two separate parcels and the 2013 taxes are calculated below.
Subject Ptoperty Rc,rl Est.rte 'Ln:cs
58-36-44-14-15-360-0020 & Parcel# 58-36-44-14-15-350-0020 Total Assessment $3 387.664 Exem-otion $3 387 664 Taxable Assessed Value $0
- -2013 Mill,,.,,e Rate $25.1727 2013 Gross Ad Valorem Taxes $0 Non Ad Valorem Taxes $363 Total Gross Taxes $363 Net Taxes w/ 4% Discount for -oavment in November $348 Net Taxes Per Unit $3
14-PFF MERIDIAN APPRAISAL GROUP, INC. 12
SUBJECT PROPERTY DATA (CONT'D)
Up to a 4% discount is available if taxes are paid in November, decreasing 1% per month. The 2013 taxes are paid; there are no delinquent taxes. Both properties are owned by the Palm Beach County Housing Authority and are exempt. With tax-exempt status, only non-ad valorem and personal property taxes apply. The subject has non-ad valorem taxes in the amount of $3 per unit. Personal property is estimated to be assessed at $260,000. This will result in a tax of $35 per unit. Total taxes as a restricted rate project is estimated at $38 per unit, or $4,978 annually.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 13
14-PFF
CONCEPTUAL SITE PLAN
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Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493
Access/Exposure Currently, the subject has two access points to each of the properties. After construction, access will be via one point along Palm Beach Road which is deemed adequate. No other access is available or necessary.
Area and Dimensions According to the Palm Beach County property appraiser website, the subject site contains about 10.64 acres. The site is generally rectangular in shape. The subject has approximately 496 feet of frontage along the south side of Palm Beach Road.
Topography and Drainage The subject's topography appears to be at or near road grade of Palm Beach Road. According to a project description provided by the developer, surface elevation is to be raised to eliminate standing water and ponding after heavy rains. We observed no apparent drainage problems when we inspected the subject site. However, we assume no responsibility for hidden or unapparent conditions beyond our expertise as appraisers.
Soil Conditions/Types A visual inspection by the appraisers of the soil revealed no apparent adverse conditions. We assume no responsibility for hidden or unapparent conditions beyond our expertise as appraisers.
Utilities and Services The following utilities providers serve the subject site. Water and sewer are extended to the site.
Water Palm Beach County Sewer Pahn Beach Countv Electricity Florida Power & Liizht Telenhone Various Police Palm Beach County Fire/Rescue Palm Beach County
Easements and Encroachments We are not aware of any atypical easements or encroachments encumbering the subject that would impede development. We assume typical drainage, public utility, and sanitary sewer easements are in place. We reserve the right to revise our report accordingly should it be found that any atypical easements or encroachments exist on the subject site.
Hazardous or Toxic Materials No hazardous or toxic materials were observed and none came to our attention during our physical property inspection. Please refer to Item 12 of the "General A.ssumptions" of this report for a full disclaimer. We were not provided with a Phase I Environmental Site Assessment for the subject site.
Surrounding Land Uses To the north is Palm Beach-Road;--aommereial .. and residential development, to·the south-is·vacant'land·-an'd····· ... -... ---·· ., ... · single family residential, to the east is single family residential and to the west is single family residential. In addition, a day care center fronts Palm Beach Road, just north of the existing South Bay Villas residential development and an educational facility is located as an out parcel between the South Bay Villas and Marshall Heights properties.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 15
SITE ANALYSIS (CONT'D)
Conclusion The subject site is of a size and configuration that appears to be suited for a variety of developments, including rental apartments. Overall, access and exposure are considered to be good for multi-family purposes. The location of the site has adequate access to schools, employment and healthcare facilities. All necessary utilities and services are available to the site to support the proposed development. Based on these investigations, we are of the opinion that the subject site is suitable for apartment development.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 16
TWO-BEDROOM/ONE BATH - SOUTH BAY - 755 S UARE FEET
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SOUTH BAY RENDERING
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14-PFF MERIDIAN APPR"'SAL GROUP, INC. 22
IMPROVEMENT ANALYSIS
The following data is based on the preceding site plan and floor plans, and information provided by the developer. It is noted that the subject will have one, one-bedroom floor plan; however, this floor plan layout was not available as of the date of the report.
Type and Size The subject will consist of 131 apartment units within 19, two story apartment buildings with surface parking.
The following is the subject's unit mix.
Unit Type # Of Units Unit Size (S.F.) Total S.F. 1/1 -SB 1 573 573 2/1 -SB 56 755 42.280 3/1 -SB 8 893 7,144 3/2-MH 26 1,057 27.482 4/2-MH 40 1.169 46,760 Total/Avg. 131 948 124,239 SB = South Bay; MH = Marshall Heights
The total rentable area within the units is 124,239 square feet, resulting in an average unit size of 948 square feet. The indicated density is 12.31 units per acre.
Common area amenities will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield.
Unit features will include refrigerators, oven/ranges, dishwashers, disposals, ceiling fans, washer/dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms.
Construction Details Based upon information provided by the subject developer and typical apartment projects, the subject's construction details are as follows:
Exterior Walls: Windows: Roof: Partitions: Party Wall: Lighting:
Heat & Air Conditioning: Flooring: Laundry: Other:
Concrete block with stucco Aluminum Sash Single Hung White flat concrete tile roofing Gypsum Board One-hour rated firewall between units Decorative bulb lighting fixture over bath vanities; flush mounted fluorescent fixtures in kitchens; ceiling mounted incandescent fixtures in baths, foyers and dining areas Package Heating and Cooling System Vinyl throughout except ceramic tile in bathrooms Washer/dryer hookups in units and two laundry facilities High speed internet access
General Layout and Efficiency · · · · .. · · · · · · ..... ., · ·· · .. · · -- · · --- · · ·· The subject's general design is good and consistent with newly constructed properties. The subject's unit mix is typical of comparable properties designated for families.
Age and General Condition The physical condition of the improvements will be essentially new upon completion. The economic life of the improvements is estimated at 50 years.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 23
IMPROVEMENT ANALYSIS (CONT'D)
Construction Quality We estimate that the subject is an average to good quality, Class C (concrete block) multifamily building per the Marshall Valuation Service definition. Interior finish is average to good quality.
Site Improvements The property will have property signage, concrete curbing, adequate lighting, and typical landscaping with irrigation. All utility services are extended to the site and should adequately service the subject. Surface parking spaces are to be located adjacent to the subject improvements.
Personal Property Personal property typically included in apartment projects consists of the appliances in each unit, mini-blinds and/ or vertical blinds in each unit, clubhouse/ common area furnishings and equipment, and other similar items. We estimate a contributory value of the personal property of $260,000.
Conclusion Based on discussions with a representative of the developer and a review of the building floor plans, we are of the opinion that the proposed improvements are well suited for their proposed use as apartments for the general population (families). Based upon our research on this product type, the subject will provide a superior product to the existing rental assisted housing supply.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 24
DEMOGRAPHIC ANALYSIS
Demographics of Market Areas We have analyzed demographic information for three, five and 10 mile rings centered on the subject property and Palm Beach County. The 10-mile ring is considered to be the subject's Primary Market Area (PMA).
The data used in this analysis is from a Household Trend Report performed by Claritas, Inc. We have profiled the population growth, household growth and income characteristics of the market areas. Claritas' data is considered some of the most accurate in the industry; it reflects 2010 Census data.
The rate of population growth was highest between 2000 and 2013 in the county, followed by the three-mile ring, a trend that is expected to continue through 2018.
The household growth rate was highest in the county between 2000 and 2013 followed by the three-mile ring. Projected household growth trends indicate the county will show the strongest rate of growth. The result will be positive household growth in all of the market areas due to the size of the population base. About 0.5% of the county's growth is projected to occur within three miles of the subject. About 0.6% of the county's growth is projected to occur within 10 miles of the subject.
The average household size for the market areas is as follows:
AVER.ACF HOUSUIOLD SIZE TREND MarketArea 2000 - 2013 2018 3-mile ring 3.32 3.33 3.31 5-mile ring 3.08 3.04 3.03 10-mile ring 3.16 3.12 3.11 Palm Beach 2.34 2.40 2.40
The average household size is largest in the three-mile ring (3.33 persons), followed by the 10-mile ring. The trend is toward slightly smaller average household sizes in the future in the three, five and 10-mile market areas and a similar average household size on the county level.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 25
DEMOGRAPHIC ANALYSIS (CONT'D)
The income characteristics of the market areas are outlined in the following charts.
The average and median household incomes are highest on the county level, a trend that is expected to continue through 2018.
Household Income Distnlmtion All of the ring market areas have a relatively high number of households in the lower income categories, as about 73% to 76% of households earn less than $50,000 annually. The following chart summarizes the proportion of households in each annual household income level. Note that the income ranges over $50,000 contains larger income increments than the lower categories.
Market Area. Te>tal HH in Market Area' Household Income Less than $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $199,999 $200 000 or more
H ()US E HO L D I NCO IV1 E lJ IS TR I H l JT l O N 2 () 1 3 3. 5 & 10-/V\ILF RINli'::i CENTHU·D ON
SOUTH f.AY VILLJ\S(-80 7208' E. 26(1{,3]" N) .. 3-Mi · . ,;5-Mk >2 9tci: .6735··• ..
We have estimated the number of households within the market areas that will earn enough income to afford the subject units, but not so much as to exceed the maximum allowable income under the Housing Credit, TaxExempt Bond, HOME, HUD HAP and ACC programs. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental
14-PFF MERIDIAN APPRAISAL GROUP, INC. 26
DEMOGRAPHIC ANALYSIS (CONT'D)
rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside. We have considered these 131 units in our analysis.
Under the subject's HUD HAP contract and ACC contract, 130 of the subject's units will have rental assistance and could potentially have no monthly rent. However, tenants will still incur living expenses, which we estimate at $300 per month for food, personal items, etc. Therefore, we estimate a lower limit of income at $3,600 annually.
The upper limit of income is based on the maximum allowable income (per income restrictions) for a household that would occupy the largest unit offered. The subject property is comprised of a mix of one, two, three and four-bedroom units and the upper income limit rent is 60% of AMI. However, based on our experience with projects with rental assistance, the maximum income of the tenant base is lower. Therefore we have used an upper limit rent of 50% of the AMI. We estimate a maximum of 1.5 persons per bedroom, so the upper limit is six persons in the four-bedroom units. The maximum income at 50% set-aside is $37,900 assuming 1.5 persons per bedroom.
Due to the increments of the available data, we estimated the proportionate number of households in the income bands. About 76% of the households fall between $3,600 and $15,000 income category. All of the households in the $15,000 to $34,999 income category is included in the income band. About 19.3% of households in the $35,000 to $49,999 category earn $37,900, or less.
The number of income-qualified households within the estimated income band is then multiplied by a propensity of renter-occupied housing; this figure is 39.9% for Palm Beach County. This estimate is based on the 2008 American Community Survey, which estimated tenure characteristics by income. The result is the number of income-qualified renter households in each market area.
Supply of Affordable Housing The supply of affordable housing is limited to existing and funded projects with rents based on income (rent assisted units) in the subject's market areas. These projects are considered to provide primary competition for the subject. The data was compiled from the list of affordable properties prepared by the Shimberg Center for Affordable Housing database. Within the projects we profiled, some units do not have rental assistance; the units without rental assistance were excluded. Affordable projects operating under the Housing Credit, HOME and other programs without rental assistance in the PMA were also excluded. It is noted, that Glades Diamond Housing, Glades Pioneer Terrace and Quiet Waters are elderly developments with rental assistance located in the subject's 10-mile ring. These projects either consist of studio and one-bedroom units, or solely one-bedroom units. As such, these developments are considered to not compete with the subject and we have excluded them from the supply. The only rental assisted competition in the subject's PMA is the Okee/Osceola Center. This center is comprised of 714 units designated for families and farmworkers, and receives rental assistance from the RD 515 program as well as the Belle Glade Housing Authority. This project is included in our supply analysis.
Competition from Market Rate Projects The subject's PMA has a supply of older market rate properties. Since these units do not have income or rent restrictions and do not have compliance periods and could leave the supply at any time they have not been included in this analysis. .. -- . ... __ ----- ..
Competition from Single-family and Condominium Rentals The affordable supply does not appear to have been significantly impacted by competition from single-family or condominium homes that have entered the rental market. Since these units do not have income or rent restrictions and do not have compliance periods and could leave the supply at any time they have not been included in this analysis.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 27
DEMOGRAPHIC ANALYSIS (CONT'D)
Demographic Analysis The following chart summarizes our demographic analysis for the subject property to include Level of Effort, Capture Rate and Remaining Potential Demand. Growth is presented later.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 28
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MAP WITH THREE, FIVE AND 10-MILE RINGS
MERIDIAN APPRAISAL GROUP, INC. 29
Income Band
Ll:Vl L 01· EHORf 2013 3. 5 & 10-MII r RIN<..,:, CE NH RFD ON -'iOUfH BAY VILIAS(-80.7208' E. 26.t1(J3l 0 N) Minimum - Attainable Gross Rent for Smallest Unit at Lowest Set Aside $300 per mo. Maximum - Income Limit for Lar est Unit Assum· 1.5 Person/Bedroom
Market Area ·. 3-Mi., Ring ~•Mi~. Ring . Total HH in Market Area 2013 2,910
6 735, . %in Inc. Household Income Band Qual. Cum. Cum.
Less than $15,000 76.0% 27.1% 20.6% 20.6% 32.4% 24.7% 24.7%
$15,000 to $24,999 100.0% 15.1% 15.1% 35.7% 14.7% 14.7% 39.4%
$25,000 to $34,999 100.0% 16.0% 16.0% 51.7% 15.2% 15.2% 54.6%
$35,000 to $49,999 19.3% 15.2% 2.9% 54.6% 13.4% 2.6% 57.2%
$50,000 to $74,999 0.0% 14.0% 0.0% 54.6% 12.1% 0.0% 57.2%
$75,000 to $99,999 0.0% 6.3% 0.0% 54.6% 5.9% 0.0% 57.2%
$100,000 to $124,999 0.0% 3.6% 0.0% 54.6% 3.6% 0.0% 57.2%
$125,000 to $149,999 0.0% 0.4% 0.0% 54.6% 0.9% 0.0% 57.2%
$150,000 to $199,999 0.0% 1.6% 0.0% 54.6% 1.2% 0.0% 57.2%
$200 000 or more 0.0% 0.7% 0.0% 54.6% 0.6% 0.0% 57.2% 100.0% 100.0%
% of Households in Income Band 54.6%
57.2%
Multiplied by Total Households 2.210.
6..lli Income-Qualified Households 1,589
3,852
Prop. for Renter-Occ. Housing for HH within the Band J.2..2.%
~ Income-Qualified Renter HH in 2013 (IQRH) 634 1,538 Existing and Funded, Competitive Affordable Apartments
The following chart summarizes the current supply of units (including any funded units and the subject property) in each of the areas surveyed.
~:t Mil iihNdhtpllllRIBSGUH~iiiihNMi~ Su l of Affordable Units 131 845 845
Therefore, the subject's Levels of Effort and Capture Rates in each of the market areas are summarized as follows.
For purposes of comparison, the chart on the previous page summarizes the Levels of Effort for various apartment markets throughout Florida.
In order to evaluate the subject's Levels of Effort and Capture Rates, we have compared them to other markets throughout Florida. The state of Florida is divided into Large, Medium and Small counties based on population. Palm Beach County is Large in size; however, the subject is located in a rural part of the county and has demographics more suited to Medium County demographics. Meridian Appraisal Group, Inc. conducted a market study that analyzed three demographic rings (three, five and 10-mile) for 93 Guarantee Fund projects throughout the state of Florida. Seven Medium Counties had multiple Guarantee Fund projects that are used for comparison to the subject.
The Florida Housing Finance Corporation ("Corporation") provided latitude and longitude coordinates for each of the Guarantee Fund projects. In addition, we received an "in-service" list from the Corporation with latitude and longitude coordinates for each project. This list includes all existing and funded projects that have received financing from any of the programs administered or monitored by the Corporation. This raw data was incorporated in a Mapinfo search program that was specifically designed for this project. In total, over 1,000 projects containing almost 170,000 units were plotted for this analysis. For each of the demographic indicators, the number of Corporation-sponsored units was summed for each of the three rings around each Guarantee Fund project.
Next, demographic data was obtained from iXPRESS for Mapinfo by Claritas. Estimates of the number of households by income band for 2009 and projections for 2014 were obtained for households within each of the three rings around each of the Guarantee Fund projects. In addition, occupancy rate data was obtained for each Guarantee Fund project.
For purposes of comparison, the chart on a previous page summarizes the results of this study, indicating the Levels of Effort, Capture Rates, Remaining Potential Demand and Growth of Income-Qualified Renter Households for various Large County markets throughout Florida and compares them to the subject's Levels of Effort, Capture Rates, Remaining Potential Demand and growth of Income-Qualified Renter Households.
Level of Effort The three-mile Levels of Effort (LOE) for the comparison counties range from 32 .0% to 8~ .~0/.'o_ £Omparecl to jJ:ie .. subject's three-mile LOE of 20. 7%. The five-mile LOEs for the comparison counties range from 14.8% to 62.4% compared to the subject's five-mile L9E of 54.9%. The 10-mile LOEs for the comparison counties range from 23. 7% to 43.8% compared to the subject's 10-mile LOE of 49.4%. The subject's Levels of Effort are most similar to the well-occupied properties' average Levels of Effort in the three-mile market area and moderately occupied properties in the five and 10-mile market area. The moderate Levels of Effort suggest adequate market depth considering the size of the existing and funded supply relative to the number of income-qualified renter households in the market areas.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 32
DEMOGRAPHIC ANALYSIS (CONT'D)
Capture Rate The Capture Rate (CR) for the comparison counties range from 13.0% to 28.8% compared to the subject's threemile CR of 20. 7%. The five-mile CRs for the comparison counties range from 6.3% to 15.0% compared to the subject's five-mile CR of 8.5%. The l0-mile CRs for the comparison counties range from 3.2% to 7.1% compared to the subject's 10-mile CR of7. 7%. The subject is generally more similar to the counties with strong occupancy rates. The three-mile Capture Rate of 20. 7% suggests the size of the subject property is appropriate relative to the number of income-qualified renter households in the market. A high Capture Rate suggests that a property will offer too many units for the depth of the market area.
Remaining Potential Demand Remaining Potential Demand (RPD) is the number of income-qualified renter households that are not housed in existing or funded affordable units. Residents of these households may live in housing developments funded under other programs or other forms of housing.
The three-mile RPO for the comparison counties range from 265 to 786 compared to the subject's three-mile RPO of 503. The five-mile RPO for the comparison counties range from 1,113 to 2,332 compared to the subject's five-mile RPO of 693. The 10-mile RPO for the comparison counties range from 2,560 to 8,853 compared to the subject's 10-mile at 867.
The subject's RPO indicates adequate potential demand in the three-mile market area, but is lower in the five and 10-mile market areas due to the rural nature of the PMA.
Demand from Household Growth We. have also considered projected household growth within the subject's income band. The analysis is generally the same as that for the current population. However, we have considered the future income band based on projections of income growth. The demographic data indicates that the median household income in Palm Beach County is expected to change by about -3.4% between 2013 and 2018. We expect the median hou$ehold income acco¢ing to the Florida Housing Finance Corporation to reflect a similar change, so the subject's future income band is estimated to range from about $3,477 to $36,601 by 2018 (current income band· changed by-3.4%). From the number of income-qualified renter households projected for 2018, we subtracted the income-qualified renter households in 2013 to indicate the number of potential tenants for the subject based on household growth. The following analysis summarizes our calculations of potential demand from household growth within the income band.
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Total HH in Market Area 2018 · . 6 816 1 - • 7 785 ,.
%in Household Income Band Cum. Cum. Less than $15,000 76.8% 28.4% 21.8% 21.8% 33.5% 25.8% 25.8% 32.2% 24.8% $15,000 to $24,999 100.0% 15.6% 15.6% 37.4% 15.2% 15.2% 41.0% 15.1% 15.1% $25,000 to $34,999 100.0% 16.3% 16.3% 53.7% 15.5% 15.5% 56.5% 15.6% 15.6% $35,000 to $49,999 10.7% 14.8% 1.6% 55.3% 13.0% 1.4% 57.9% 13.2% 1.4% $50,000 to $74,999 0.0% 13.3% 0.0% 55.3% 11.6% 0.0% 57.9% 11.8% 0.0% $75,000 to $99,999 0.0% 5.9% 0.0°/c, 55.3% 5.5% 0.0% 57.9% 5.8% 0.0% $100,000 to $124,999 0.0% 3.3% 0.0% 55.3% 3.3% 0.0% 57.9% 3.6% 0.0% $125,000 to $149,999 0.0% 0.4% 0.0% 55.3% 0.8% 0.0% 57.9% 0.9% 0.0% $150,000 to $199,999 0.0% 1.4% 0.0% 55.3% 1.1% 0.0% 57.9% 1.2% 0.0% $200 000 or more 0.0% 0.6% 0.0% 55.3% 0.5% 0.0% 57.9% 0.6% 0.0%
100.0% 100.0% 100.0% % of Households in Income Band 55.3% 57.9% Multiplied by Total Households ~ ~ Income-Qualified Households 1,679 3,981
Propensity for Renter-Occupied Housing for HH within the Band J.2..2% J.2..2%
Income-Qualified Renter Households in 2018 670 1,589 Less: Income-Qua!. Renter HH in 2013 !ill) .{Lill) Potential Demand from HH Growth next 5 years 36 51
Annual Potential Demand 7 10 Income Band• Increased from Current Levels Based on Proj. Median HH Income Growth
Projected 2013 Inc. Barut GrowthRate 2018 Inc. Barut
Minimum $3,600 -3.4% $3,477 Maximum $37 900 -3.4% $36 601
This analysis indicates the following annual increases in the number of income-qualified renter households in the subject's income band in each of the market areas.
The annual increase in the number of income-qualified renter households is positive in all three areas.
Annual growth greater than the size of the subject property is a positive demographic factor. The higher the annual growth in income-qualified renter households relative to the project size, the less the project has to rely on cannibalizing tenants from existing properties. If the annual growth in income-qualified renter households is less than the project size, then the complex must rely on tenants moving-from-existing projects, which would··· ,. ,. " . ., ... · lower the overall occupancy rate of the entire market and lower the expected stabilized occupancy rate of the subject property. The annual growth rate of income-qualified renter households in the Primary Market Area of 11 is smaller than the subject project with 131 units. This is a negative demographic factor.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 34
DEMOGRAPHIC ANALYSIS (CONT'D)
Conclusion of Supply and Demand Analysis According to the demographic analysis, there is currently a sufficient number of households within the income band necessary to support demand for the subject's units, with a maximum Level of Effort of 54.9% in the fivemile ring, and lower at 49 .4% in the five-mile ring and 20. 7% in the 10-mile ring (Primary Market Area). The number of income-qualified renter households represents the largest pool of potential renters from this source; the subject would likely draw these tenants only if their current housing is inferior to the subject or at least equally desirable but more costly. The Capture Rates are moderate at 20. 7%, 8.5% and 7. 7% in the three, five and 10-mile market areas, respectively. The subject has a moderately low indicated Capture Rate in the threemile market area as compared to the comparables, indicating that it is appropriately sized. Household growth of income-qualified renter households in the subject's 10-mile ring is expected to increase by 11 households annually over the next five years. Annual growth less than the project size is a negative demographic factor. The actual performance of the supply within the PMA indicates that the market is not over-supplied. Based on this analysis, it appears the subject project is an appropriate size relative to the number of income-qualified renter households in the market. Overall, the demographic analysis indicates a moderately favorable environment for the subject's development. According to the developer, the Palm Beach County Housing Authority currently has approximately 4,000 families on its waiting list, which indicates ample demand for the subject property.
PMA Occupancy Rate There is only one competitive project located in the subject's PMA, the Okee/Osceola Center. This center consists of714 units and is 99% occupied. Glades Diamond Housing, Glades Pioneer Terrace and Quiet Waters are rental assisted units, however, are all designated for the elderly and consist of studio and one-bedroom units. Those these projects are excluded from the PMA, they range in occupancy from 99% to 100% and maintain waiting lists. Further, the Marshall Heights portion of the subject property is currently 100% occupied and has an extensive waiting list.
Rental Rate Estimate The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under
14-PFF MERIDIAN APPRAISAL GROUP, INC. 35
DEMOGRAPHIC ANALYSIS (CONT'D)
the ACC contract, and one unit at the 60% AMI set-aside. Toe subject will have one, one-bedroom unit. This unit is estimated to attain the 60% AMI maximum rental amount, which is $593 net rent.
ACC Subsidy The subject will have ACC subsidies on 33 of its units. Toe 33 units encompass 16 of the three-bedroom units and 17 of the four-bedroom units at the Marshall Heights portion of the subject property. Toe rental amount for these units are as depicted below. These rates are based on information provided by the developer. In general, the tenant participation amount will vary and is based upon 30% of the tenant's adjusted household income. Toe ACC subsidy also will vary and may increase to supplement any units where the tenant participation amount is less than the amounts depicted below.
,\CC Average Tenant Contribution Unit T:n,e,, Number of Units Rental Amount 3BR/2BA-MH 16 $600 4BR/2BA-MH 17 $650 Total/Wei2hted Averue 33 $626 MH = Marshall Heiimts
HUD HAP Contract Rents The subject will have HUD HAP contract rents on 97 of the units. The tenant participation amount will vary and is based upon the greater of 10% gross income or 30% of the tenant's adjusted household income. The difference between the tenant participation amount and the contract rent will be paid through government subsidies. The projected contract rents under the HAP contract are depicted below. The number of units allocated to each unit type is provided via the developer's pro forma which is located in the addenda of this report. Toe contract rent is derived from taking 120% of the Fair Market Rent for each unit type less the utility allowance.
HUD HAP Contr,1ct Rents UnitTme· .· ,• Number of Units Contract Rent 2BR/1BA-SB 56 $1,208 3BR/1BA-SB 8 $1,752 3BR/2BA-MH 10 $1,752 4BR/2BA-MH 23 $2.098 Total/W eil!hted Averaae 97 $1,520 SB = South Bay· Marshall Heillhts
The total rental income attainable under these programs is presented in the chart below:
Unit Type Set Aside # Of Units Gross Rent 1/1 - SB 60%AMI 1 2/1 -SB HUD HAP 56 3/1 - SB HUD HAP 8 3/2-MH ACC 16 3/2-MH HUD HAP 10 4/2-MH ACC . . -~ -~- ~- ... 12 . . ~ ..
The subject will offer a superior project relative to the rental assisted product within the PMA. The subject's number of units is typical of family properties and is appropriate for the depth of the market area. The subject's unit mix of one, two, three and four-bedroom units, with most concentration in the two, three and four-bedroom 14-PFF MERIDIAN APPRAISAL GROUP, INC. 36
DEMOGRAPHIC ANALYSIS (CONT'D)
unit types is typical of family income-restricted properties. The subject will offer superior project amenities
relative to the comparables, as it will include a clubhouse, two laundry facilities, splash pad, playground, picnic,
basketball court and playfield. The subject is similar to superior to the comparables in terms of unit features, as
it will offer dishwashers, disposals, ceiling fans, washer/ dryer hookups, and vinyl flooring throughout except
ceramic tile in bathrooms. The subject's finishes are estimated to be similar to superior to the comparables.
With regard to the comparable rental assisted properties, the subject will be superior in most aspects as it will
be essentially new and reflect current market tastes.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 37
ABSORPTION ESTIMATE
We are of the opinion due to the current occupancy rates and shadow market supply from condo and singlefamily rentals that demand in the Palm Beach County apartment market is limited to sub-markets with high occupancy rates.
We spoke with leasing agents and reviewed FHFC occupancy reports to obtain absorption rate comparables summarized as follows.
Due to current market conditions, few projects have been developed over the past couple of years. The following chart illustrates historical absorption rates; only the most recent projects are considered reflective of current market conditions.
A vcrage l\lonthlv Absorption in Profiled Properties
Com la Name COUii ,, : ,. , , .
Indian Trace Lakeside Commons Pinnacle at Abb Park Pinnacle Palms Portofino Renaissance at San Marco a/k/ a Bear Lake San Marco Villas f/k/ a Venetian Isle San Marco Villas f/k/ a Venetian Isle
The absorption comparables indicate a range of 12 to 55 units per month. In garden and villa-style projects absorption occurs over the course of construction and tenants move into individual buildings as they are completed. The construction schedule for this product type and any delays between buildings impacts the absorption rate. Typically, a leasing office is opened up on site or a phone number is advertised approximately three months before the first units are available. The pre-leasing thus provides enough tenants to occupy the first building when completed and this continues as buildings are completed; individual buildings receive Certificates of Occupancy (COs) and tenants are moved into individual buildings as they are completed. With garden and villa-style products, a significant number of units are typically leased by completion. Mid-rise and high-rise projects typically receive one CO for the entire building and absorption does not start until all units are complete.
The subject will be constructed and rehabilitated in phases. First, the old South Bay Villas portion of the project is estimated to be complete from rehabilitation in January 2016. The existing tenants at the Marshall Heights
· portion willthen·move into the completed South Bay'Villas portion. Constfuctiori'for tlie'Maisliall Heights~· portion is estimated to start in June 2016 and be complete in March 2017. The Marshall Heights portion will consist of 10 buildings. We estimate that the buildings will receive Certificate of Occupancy throughout the construction period and tenants will move into the buildings as they are completed. Therefore, the subject in its entirety will be stabilized upon completion in or about March 2017.
14-PFF MERIDIAN APPRAISAL GROUP, INC. 38
ADDENDA
---------------
APPRAISERS1
Q1JALIFICATIONS
Q!)ALIFICATIONS OF ROBERT VON, PRESIDENT
BUSINESS ADDRESS Meridian Appraisal Group, Inc. 1331 Sundial Point Winter Springs, Florida 32708 Phone: 407.637.8705 Fax: 407.875.1061 E-mail: [email protected]
FORMAL EDUCATION California State University, Northridge May 1986, Bachelor of Science in Business Administration, Real Estate Finance
REAL ESTATE EDUCATION Has completed course work for admission to the Appraisal Institute and all necessary for State-Certification and continuing education. A partial list of course work is as follows:
Course I Seminars/ Continuing Education • Real Estate Appraisal Principles • Basic Valuation Procedures • Standards of Professional Practice - Part A • Standards of Professional Practice -Part B • Capitalization Theory and Techniques - Part A • Capitalization Theory and Techniques - Part B • Highest and Best Use and Market Analysis • Appraising Troubled Properties • Advanced Applications • USP AP Update • MAP Valuation Training for Third Party Appraisers
EXPERIENCE
2007 - Present
January 2004 - 2007
June 1998 - 2003
1994-1998
Meridian Appraisal Group, Inc. President and Principal Responsible for the acquisition, co-ordination and review of appraisal assignments on real property. Also responsible for the preparation of appraisal assignments on various real property with specialization in multi-family apartments and A&D projects throughout Florida.
Realvest Appraisal Services, Inc. President aitd Principal
Realvest Appraisal Services, Inc. Vice President and Principal Responsible for the acquisition, co-ordination and review of appraisal assignments on real property. Also responsible for the preparation of appraisal assignments on various real property with specialization in --·- ---- - - --- -- -multi-family apartments and A&D projects throughout Florida.
Pardue, Heid, Church, Smith & Waller, Inc. Commercial Manager and Commercial Real Estate Analyst Responsible for the preparation and review of appraisal assignments on various real property including vacant land, subdivisions, retail centers, office buildings, apartments, industrial properties and special use properties.
Q1JALIFICATIONS OF ROBERT VON, PRESIDENT (CONT'D)
1993-1994
1986-1993
CERTIFICATIONS &LICENSES
PROFESSIONAL AFFILIATIONS
AC#659364
Barnett Banlcs, Inc. Review Appraiser Responsible for reviewing reports for Special Assets and Corporate and Commercial Real Estate Department. Petformed all appraisal reviews for the CFCRC, a consortium of 12 lending institutions.
HomeFed Danie, FSB Senior Review Appraiser Responsible for the ordering and review of full narrative appraisal reports for the entire east coast portfolio. Assignments completed in 14 states and the District of Columbia
State-Certified General Real Estate Appraiser RZ 1604 Orlando Chamber of Commerce - Member Downtown Orlando Partnership - Member
Board of Directors - Florida Housing Coalition
STATE OF FLORIDA DEPARTMENT OP BUSINBSS AND PROFBSSIOHAL RBGULATION
Q!JALIFICATIONS OF CHRISTA B. SNYDER, ASSOCIATE APPRAISER
BUSJNESS ADDRESS Meridian Appraisal Group, Inc. 1331 Sundial Point Winter Springs, Florida 32708 Phone: 407.637.8710 Fax: 407.875.1061 E-mail: [email protected]
FORMAL EDUCATION Florida State University, 2005 Bachelor of Science, Real Estate, Accounting and Finance
REAL ESTATE EDUCATION Has completed all courses necessary for State-Certification and continuing education. A partial list of course work is as follows:
EXPERIENCE 2008 - Present
2005-2008
CERTIFICATIONS &LICENSES
AC#702986
Course/ Seminars/ Continuing Education • Analyzing Operating Expenses • Florida State Law for Appraisers • National USPAP • Appraisal Board II Course • Appraising from Blueprints and Specifications • Appraising Nursing Facilities • MAP Valuation Training for Third Party Appraisers
Meridian Appraisal Group, Inc. Associate Appraiser Responsible for the preparation of appraisal assignments on various real property including apartments and vacant land.
Callaway & Price, Inc. Associate Appraiser Responsible for the preparation of appraisal assignments for the firm on various real property including car wash, eminent domain, marina, regional mall, environmentally endangered lands (EEL), mobile home park, multi-family, office, retail, subdivisions, vacant land, warehouse and industrial properties.
State-Certified General Real Estate Appraiser RZ 3178
, STATE OF FLORIDA
DEPARTMENT OP BDSiffl!:SS AND PROPBSSIONAL REGULATION . FLORIDA REAL ESTATE APPRAISAL BD SEQ# L121212O0722 '
12 12 2012 000000000 RZ3178 The CBRTIPIB:D GBHERAL APPR.US:Blt:'1·. " I . •. Named below IS CERTIFIED '. ,. ·· t ~· ~ Under the provisions of Chapter: ~•. ·vs . .. , ,...,_ :::Expiration date, NOV 30, 2014 _ ·· · ,' , 4- . :'
Mr. Van Johnson, Executive Director Palm Beach County Housing Authority 3432 West 45,h Street West Palm Beach, FL 33407
133 I SllNDIAl l'UINT WINTER Sl'RINGS. FLORIDA 32708
n 1. 407.875.6933 FAX 407.875.1061
RE: Market Analysis for the South Bay Villas/Marshall Heights Apartments, Palm Beach County, ·Florida
Mr. Johnson:
Thank you for the opportunity to provide a market analysis on the above-referenced property. The following outlines the scope of services to be provided by Meridian Appraisal Group, Inc.
• The repo1t will be prepa1·ed i11 accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation.
• The report will include a site analysis, improvement analysis, an apartment market overview for the county, supply and demand analysis for the likely draw areas.
The total fee for the report is $3,500, with delivery of the report by September I, 2014. Our fee estimate includes the cost of one original copy and one digital copy, with each additional original at $125. Authorization to proceed with this assignment is considered confirmed upon receipt of a signed copy of this letter.
Items which will likely be necessary to complete the assignment include site survey, site plan, legal description, floor plans, building elevations, development timeline and any environmental or engineering :.1udies or repotts.
Should you request that we abandon this assignment during the progress of our work, billings will be rendered up to the date of our receipt ofa written request for such abandonment and shall immediately become due and payable. In the event of any dispute relative to this proposal, the prevailing party shall be entitled to the reimbursement of attorney's fees and costs. If the scope of services and the terms of this proposal are acceptable to you, please indicate acceptance of the terms by signature at the space provided and return one executed copy for our files along with the requested supporting' documentation.
We appreciate the opportunity to work with you on this assignment. Please feel free to contact me if you have any questions.
Best regards,
Meridian Appraisal Group, Inc. AGRF.ED AND ACCEPTED
Robert Von, President By: State-Certified General Appraiser RZ1604
'I'rJct- )6 o!: the. Tmm OF SOUTH Bl\Y, FLORIO!\, located in Section 14 1 '!o'~noh!.p t.4 sc·.icJ-., Range 36 East, according :.(.1 tl:e 1'.me~1ded Ph.':· ·c~ .Qaic Section excc,::ec! by tha l'lor.i.da State :>rl\inaqe L~t.t: ecf..pany and t:ilue in Plat Hook 7, page 46 1 ir. t!:e Office of ·1;.11a .,Clark of i:ho Circuit Co'Jrt o: Palm Boach County, Flo::ida; -·., StraJte·r/ ·&.o...,ever, to tc1xes subsequent to the year !.972; to all appl.icnble,qoverm.,mt:.al regulat1ons r1nd to thoso mat.t.ers shown in Plat·jook 6f page 15, and Plat llo~k 7, page 46, P'Jblic Records of Palll!··Be«ch county, Florida.
·1, ,-• I' ' \ ·.•. ;·
South Bay Villas Legal Description:
THE NORTH 635.69 FEET OF TRACT 35 OF THE AMENDED PLAT AND RESUBDIVISION OF SECrION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF THE TOWN OF SOUTH BAY, CITY OF SOUTH BAY, PALM BEACH COUNTY, FLORIDA~ AS RECORDED IN PLAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA. LESS AND EXCEPTING THE NORTH 33 FEET THEREOF~ AND ALSO LESS AND EXCEPTING THE FOLLOWING PARCEL OF LAND:
THE NORTI-I 183 FEET OF TRACT 35 OF THE AMENDED PLAT AND RESUBDIVISION OF SECTION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF THE TOWN OF SOUTH BAY. CITY OF SOUfH BAY, PALM BEACH COUNTY. FLORIDA, AS RECORDED IN PLAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, THAT IS LYING EAST OF THE SOlITHERL Y PROLONGATION OF THE EASTERLY RIGHT-OFWA Y OF NORTHWEST 9TH A VENUE.
2014 RENTAL RATES & INCOME LIMITS
Note: ·, _;Id harmless provisions of IRC Section 142(d){2)(E) mean that projects with at least one ,,ng placed in service on or before the end of the 45-day transition period for newly-released limits use whichever limits are greater. the current-year limits or the limits in use the preceding year.
HUD released 12/18/2013 FHFC Posted 12/27/2013
2014 Income Limits and Rent Limits Florida Housing Finance Corporation
Multifamily Rental Programs •· Except HOME and SHIP CWHIP Homeownership Program
Percentage Income Limit by Number of Persons in Household Rent Limit by Number of Bedrooms in Unit County (Metro) Category 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 Palm Beach County 25% 11,450 13,075 14,700 16,325 17,650 18,950 20,250 21,550 22.855 24,161 286 306 367 424 473 522
Florida Housing Finance Corporation {FHFC) income and rent limits are based upon figures provided by the United States Department of Housing· and Urban Development (HUD) and are subject to change. Updated schedules will be provided when changes occur.
REGIONAL OVERVIEW
REGIONAL OVERVIEW
The subject lies in Palm Beach County, which is located in the Treasure Coast region. The Treasure Coast Regional Planning Council includes Indian River, Saint Lucie, Martin and Palm Beach Counties in this region. Lying in Palm Beach County, the subject is also influenced by Broward and Miami-Dade Counties to the south.
Historically, Saint Lucie County has grown at the fastest pace, followed by Indian River County. St. Lucie County is expected to have the highest growth rate through 2018, followed by Palm Beach County. Future growth is expected to be positive and substantial in all of the counties in the region. Palm Beach County has the largest population base of the counties in the region. The absolute household growth projections for the next five years are as follows:
1\bsnl111c lfpuscbold (inn, 1 h
Couty Ab1ollate BB~ · AYaaaeJYear between 2013 ad 2011 .·.
Jadian River 2.207 441 St.Lucie 4,865 973 Martin 2,543 S09 PalmBeach 24,250 4,850 ~-": ~ & WW
The average household sizes for the market areas are as follows:
The average household size is largest in St. Lucie County (2.54 persons) followed by Palm Beach County. The trend is toward similar average household sizes in Indian River, Martin and Palm Beach counties and larger average household sizes in St. Lucie County.
REGIONAL OVERVIEW (CONT'D)
The income characteristics of the market areas are outlined in the following charts.
The median household income is lower than the average household income in all of the market areas. The household incomes are highest in Palm Beach County. Over the next five years the median and average household incomes are projected to be highest in Palm Beach County. Median and average household incomes are projected to decline over the next five years in all of the counties in the region.
HUD Median htcome · The 2014 HUD Median Incomes for the Treasure Coast counties are as follows.
-· I Count~•_ 2014 lfCD .\kdian Income
Indian River $54.700 Saint Lucie $56 900 Martin $56,900 Palm Beach $63,300
Employment and Industry The region has historically shown strong employment rates; however, starting in 2007 the unemployment rates began to rise as a result of the nationwide economic recession. This trend continued in 2008 and 2009 and for all but Saint Lucie County in 2010. In 2011 and 2012 unemployment rates decreased as the economy began to recover from the economic recession.
Unemployment rates continued to decline in 2013. All of the counties in the region and the state and nation had reduced average unemployment rates in 2013 as compared to 2012.
Unemployment rates for the first five months of 2014 were available. The average rates for 2014 Y'ID are lower than the average for 2013; however, the monthly rates have increased in some of the counties and on the state and national level from late 2013.
2014 YTD Unemployment Rates - l\ot Sc.L~on,illv Adjustl-'d --- - ---- - -- ~--~-~~--county Jan Feb Mar Apr May YTDAvg
Indian River 7.7% 7.7% 7.6% 6.9% 7.4% 7.5%
St. Lucie 7.7% 7.7% 8.1% 7.4% 7.7% 7.7%
Martin 6.6% 6.5% 6.6% 5.7% 6.1% 6.3%
Palm Beach 6.4% 6.4% 6.3% 5.6% 5.8% 6.1% Florida 6.3% 6.3% 6.4% 5.7% 6.1% 6.2% USA 7.0% 7.0% 6.8% 5.9% 6.1% 6.6% Source: Local Area Unemployment Statistics (LAUS)
Employment by industry is illustrated below.
lnlUaa Rlttr SaintLude Mud:n Palm&acb Flodda
Natural Resources and Mining 2.1% 0.4% 1.2% 0.8% 0.90%
Government 1.4% 0.7% 1.1% 0.60A, 1.1% Sowce: Eoteq,rise Florida
d=nodau
The region appears to have a reasonably diverse distribution of employment and does not appear to be overly dependent upon one industry.
REGIONAL OVERVIEW (CONT'D)
Transportation The region is well-serviced by roads, air transportation, bus services, railways and water routes of transportation as illustrated in the following chart.
Federal Hi wa s
State Highways
Railroads
State Road 60, State Road 68, State Road 70, State Road 605, State Road 61 I, State Road 615, State Road 707, State Road 712, State Road 713, State Road 716, State Road
778, State Road 76 State Road 441 State Road 710 State Road 80 Florida East Coast CRX Tri-Rail commuter in Palm Beach
Palm Beach International, Saint Lucie International, Vero Beach Municipal, North Coun Belle Glade Lantana Boca Raton
Port of Fort Pierce Port of Palm Beach rise Florida
Conclusion The Treasure Coast region has shown positive population and household growth; a trend that is expected to continue. Unemployment rates are showing decreasing trends. Transportation needs by road, air, rail and water are well met. Due to the positive growth trends and lower unemployment rates, we expect the region to continue to rebound from the economic recession.
APARTMENT MARKET OVERVIEW
APARTMENT MARKET OVERVIEW
The subject is located in South Bay which lies in the West Palm Beach-Boca Raton HMFA (Palm Beach County). The Reinhold Wolff New Rental Development report profiles recently completed and proposed apartments in Palm Beach County. The information in the following charts is from Reinhold Wolff.
Located in the West Palm Beach submarket, Paul Laurence Dunbar Senior, was funded under RFA 2014-103 (Application 2014-300S). This project is to have 99 units, will have an elderly demographic commitment and will operate under a HUD HAP contract. One other affordable project was funded in Palm Beach County under RFA 2013-003 (Application 2014-201C) known as Silver Palm Place. This project will have 120 units with a family demographic commitment and will have rental assistance on all units. It will be located next to the Paul Laurence Dunbar Senior complex on Division Avenue north of 15th Street in West Palm Beach.
New affordable development coming on-line within the next few months includes Village Square (Phase II, family) with 144 units in Delray Beach. It will have a mix of one, two, three and four-bedroom units. The application indicates this project will have 10% of its units at 28% AMI and 90% at 60% AMI. The same developer also plans Village Square Elderly (Phase I) in this area; it will be a three-story, 84-unit property with one-bedroom/one bath and two-bedroom/two bath unit types. The income limit is 6QO/o of AMI; the property will operate under a Section 8 project-based subsidy HAP contract. The project will be located on land ground leased from the Delray Housing Authority. The third phase of the Village Square development will consist of for-sale product, which is not planned to be developed in the near future.
Evernia Place (2011-165C) and La Joya Villages were the only other projects in the county on the 2011 funded list. Evemia Place will have 85 units (including one manager's unit) and will have an elderly (55+) demographic commitment. The application indicates this project will have 10% of its units at 28% AMI and 90% at 60% AMI. It is under construction and projected to be in July 2014. La Joya Villages, which is located in the Lake Worth area, will have 55 units and will be set aside for families. This project will have 25% of its units at 50% AMI and 75% at 60% AMI. According to the developer's projections, construction on this project is estimated to complete its first units in June 2014, with final completion in October 2014.
Not depicted in the Reinhold Wolff New Rental Development report is a new market rate project currently under construction at the northwest comer of Lake Worth Road and Boutwell Road in Lake Worth. This project, known as Village at Lake Worth, is to have 216 units and has an estimated first C/O date in late 2014 with an estimated completion date of March 2015.
Proitd N:uM.ILlt:adon/Dewloner
Dal:ota At Abacoa 3334 s. BismaJk Lane .Jvpit6 {Ea,twind~rdoomrnt)
Compsoo. Place 1831 R.emissance Common Bh1d. BO}'llton Beach {CODlDson AS$.)
Broadstoue At North Boca Village 1815 N. Federal Highway Boca Raton (Alliance Residential)
Alta COJl!l'SS 250 CcmgteSS Pm: Dmi"e Dekay Beach (Wood Partners)
Pad.:An 570 Cbristina Dr. Wellington CFutura Amnilifion Grmm)
NEW RENTAL DE"\UOPMENTS UNDER CONSlRUCTIONII.L~£-UP Pahn Beach County- R.rport For ht Qwu·m-. l0U
Sun·~y Conduct~ April,1014
Total Units Suhmarbt O<npitd Date Projttt
Area Planned Comnlried m Started T,-.-
1 190 190 111 611012 Mutet Rate
12 338 0 0 412013 Mamet Rate
15 386 386 244 912011 Mai:let Rate
l3 369 369 195 9/2011 Malket Rate
9A 268 268 81 10/2012 Mllli:et Rate
Ga.rat Dudonmtat Paramttft'$ RupOf Raq•
Unit T'\"Dt's ~.Ft.lJA OfRents
1.2&:3 772 - $1,355 -1,295 $1.705
1.2&3 725 - $1,200 -850 $1,400
1, 2 &: 3 727 - $1.3S5 -2.024 $2.600
1.2&3 537 - $1,096 -1,539 $2,123
1,2&3 800 - $1.205 -1,365 $1,855
'
Proittt Nal11f'il RUtiou/De,·elrin...:r
The Franklin At Delray 382 SE 12th road Delray Beach. Q.qewCenturi,·C . )
Palmetto Pak 120 E. P~o Paik Road Boca Raton (RAM)
Seabaun Cm.~ Apts. Phase ll 3501 S. Federal Highway Boynton Beach (HcusiD2 0rOUD)
Axis At Wellington Green W. side ofU.S. 441 just So. Of
Fomt Hill Bl,,u 'Q..Telliugton
(Bainbrid~ Co.)
Hamptons At ~&tlal Gardens SWC of Hood Rd.. &
Cmltal Boule,,,u-d Palm:Beach qatdens (ZF• .
t.ll.C)
NEW RENTAL D:E\llOPMEfU'S t~"DIR CONSTRUCTION/ll.-\5£-UP Pabn Bea~h County -RRport For l i;t Quarter, .?014
SUl'\·e~· Conducted April,.?0U
Total tTuits Submarktt Ouupitd Datt h-ojtrt
~TPa PlaDDtd C:Rmnlettd ,n :Started TTDe-
13 180 180 176 712012 Muket Rate
15 208 0 0 5/2013 Mamet Rate
11 148 148 111 11/2012 Mamet Rate
9A 273 273 205 4/2012 Mmket Rate
1 224 192 127 6.12012 Mm:et Rate
Gentral ~,·elopmtut l'ara-.ttn RagtOf Ra•
tTnitTTDtS ~ ... lit UA OfR•ats
1,2&3 857 - $1.389 -1,44:S $2.511
1,2&3 508 - Upscale 1,760
1.2&3 888 - $1.39.5 -1,719 $2.405
1,2 &3 838 - 1.215 -1,432 $1.954
1,2 &3 724 - $1.200 -1,646 $2,365
Proftd Na1"".ll.ocation/Dt-,·tlontr
Tht Allure At Abacoa Stadium Dm~,&
Parbide Drive Jupiter ~GJOUI>
CamdimAt Boca 131 S. Federal Highway Boca Raton (Camden l.i\rin._g)
Quantum Lake Villas
NEW RENT.-U. DE'\"ILOPMENTS L1IDER (:ONSlRUCTION/LL-\SE-UP Pabn Btach Coun~· - Report For ht Quarttr, !OU
Sun-ty Conducted April,.?OU
Total Units Subma1·bt Otcupitd Datt Projttt
Ana Planntd Comnleted ,n Sta11'N Tl'llt
1 304 0 0 6/2013 Marlcet Rate
15 261 0 0 5/2013 Man:et Rate
12 352 0 0 9/2013 Mm:et E. Gateway BJvd. & Qwmtumlakes Dr. Rate BQ}'llton B~ch (Ibe Olen CoDDlanies)
Manatee Bay Apts. Phase Il 11 80 0 0 9/2013 Mm:et 1632 N. Fed6al H\\')1. Rate BQ}'llton~ ~ Olen CoDll'lallies)
Alexander Lofts 5 85 0 0 1112013 Mmet Fem Street & S. Di"tie H\\'}'. Rate West Palm Beach (RAM) f
Jdferson at Pah»Beacb Gardens E. ofl-9:5 & W. ofW. P. Beach CBD West Palm Be.ach (Jefferson Aot. GrOUD)
Atlantic Commons Atlantic Ave., East of FL Turnpike Delray Beach (Alliance of Delray)
E\'ffllia Pia.a! 631 E1.~ Plilce West Palm Beach (Eastwincl Dev.)
NEW RL~AL DE\"'ELOPlUE:NTS t·NDER CONSTRUCTIONILL.\SI.-UP Palm Btach Coun~· - Rtpo1-t For ht Quarter, ?OU
Sun·tr Condutttd April,!OU
Total Units Submarktt Occupied Datt Projttt
.\rta Planned Comnlettd lll Starttd T,-nt
j 548 0 0 12/2013 MaJtet Rate
j 3.52 0 0 1/2014 MaJl::et Rate
13 395 0 0 3/2014 MaJtet Rate
5 85 0 0 11/2014 Ta.,: Ciedi1 Senior
Gntnl Dtnlooimnt Par.1~ttrs :Range-Of Rap
UnitT,._.s So.Ft.VA OfRt•""
1.2&3 UNK UNK
1,2&3 UNK UNK.
1.2&3 UNK UNK
1&2 740 - $640 -950 $770
APARTMENT MARKET OVERVIEW (CONT'D)
Affordable Housing Supply (All Programs)- Palm Beach County Palm Beach County has numerous projects operating under a variety of housing programs including, but not limited to, the following: Housing Credit, HUD, ELI, HOME, local and state bonds and SAIL. A summary of these projects as obtained from the Shimberg Center for Affordable Housing is located on the following pages. Note that some projects operate under the Housing Credit, SAIL and Bond programs without rental assistance; projects operating under the Rental Assistance, Section 515 and HUD programs have different income and/or rent criteria and do not compete directly with these projects.
nevetonmmt Nam• Cir...- .. Tota!Unlls AutUnlu ltHSiHUD RA Units Yr Bullt/Fvndcd 1Housln1< Prouamlal " . ~, "• -~ '·, ,, ... Ponulatlon Served Covenant ViDas Belle Glade 144 144 • 1988 Local Bonds Family !Glades Pioneer Terrace Bc:UcGlade 70 70 69 1999 Rental Assistance 1HUD I Section 202 Capital Adunce Elderly iGIJ~iamond Housing Belle Glade 65 64 64 1992 Rental Assistance.'HUD I Section 20~/223(1) Elderly Okete,'o.,ccola Ccnrer Belle Glade 714 713 235 1968 RerualAssistancc'RD I Scctlon514/516 Family I Farrnworlaer Quiet Warers Belle Glade 93 93 200S Housing Credits 9o/o I SAIL Family I Homeless IBocJ Islands East lloca Raton 52 52 1994 HUD Use Ag,eemcnt Family ishirlcy H. Gould House Boca Raton 101 IOI 100 1990 Rental Assistance,H U D I Section 202 Di=t Loan Elderly Weinberg House Boca Raton IOS 105 104 1998 Rental Assistance/HUD I Section 202 Capital Advance Elderly !Boynton Bay Boynton Beach 240 240 · 1990 Housing Cn:dits 4% I SAIL I Stau, Bonds Elder!:, I Fa mlly IClipper Co\~• Boynton Beach Boynton Beach 384 384 • Federal Deposil Insurance Corporation Family !Green Cay Village Boynton Beach 160 160 - 2007 Hous.ing CR:dits •,. I local Bonds I SAIL Family la COSla Ori11inaUy Known As Mahogany 8 Boynton Beach 328 66 • 1987 local Bonds Family Preserve At· Boynion Beach I Boynlon Beach 122 122 • 200<, CWHIP I HousingCredlts4~• I State Bonds Family IAubum Trace Delray Beach 1S2 IS2 • 1992 SAIL Famil} IGroves Of Dclr~y Delray Buch 158 158 · 1993 HousingCredits4°,. I HousingCredits9% I SAIL I State Bonds Elderly I Family In The Pine$ South Delray Beach 40 40 . 2000 SAIL Family I Fanuwoda:r Lala, Delray Delray Beach 404 404 · 1975 Housing Credits 4% I Local Bonds Elderly I Famil" l\'illage At llelray Delray Beach 144 144 - 2009 Housing Credits 9°, I State HOME I Tax Credit Assistance Program family ViUage Square Delray Beach 144 144 • 2012 Housing Credits 9'; Family I Link Chelsea Commons Grcenacn,s 209 104 • 1998 Housing Credits 4•~ I Local Bonds Family b,lonial Lakes Greenacres 120 120 2011 Housing Credits 4% I local Bonds Family ~upiter Homes CotJ> Dba Smokerise, Ltd Jupiter 18 18 II 1978 Rental Assistanoe/RD I Section SIS Famil) Seagrape Apts Jupiu,r 60 60 60 1980 Rental Assistance, RD I Seccion S 15 Elderly Stephenson Manor Oba Smokeris,, ltd Jupiter 32 32 32 1979 Rental Assistance 'RD I Section SIS Elderly lbird Housins 401 Dba Smokerlse, Ltd Jupiu,r 24 24 19 1977 RcntalAssistancc'RD I Section SIS Family Wood Duck Apts. Jupia,r 64 64 ss 1979 Rental Assistance/RD I Section SIS Famil·.· Venetian Isles I lake Park 288 288 . 2000 Guarantee I Housing Cm!its 4% I Section 542 I State Bonds Family Venetian Isles II Lake Park 112 112 2002 Guarantee I Housins CR:dits 4% I local Bond$ I SAIL I Section 542 Familv Celtic LakeWonh 8 8 Fcd<eral Deposit Insurance Corporation Family Congress Park Lake Worth 288 288 1993 HousingCtedits 9'i Family HK& KStreet Lake Worth 47 47 Federal Depo.it Insurance Corporation Family Lake Worth Towers Lake Worth 195 19S 1966 Elderly Housing Communiry loan I Section 202 Direct Loan Elderly Lak<:wood Gardens Lake Worth 6 6 Federal Deposit Insurance Corporation Family Marina Bay Apartments Lake Worth 192 192 1999 Guarantee I Housing Credits 4~, I Section S42 I Stale Bonds Famil} Palm Gardens LakcWonh 80 80 . 2006 Housing Cmlits 4o/o I Local Bonds I Rental Recovc,y Loan Program Family Pinc Run Villas LakeWonh 63 63 • 2012 Housing Credits 4!'. I Local Bonds Family Rl\ervlew House LakeWonh 160 160 • 1999 Housing Credics 4% I Local Bonds I SAIL Elderly !Villa Madonna LakeWonh 99 99 98 1998 Rental Assiitance1HUD I Section 202 Capital Advance Elderly ~ onhington Apls l.akeWonh 300 300 • 1995 Guarantee I Housing Credits 4~o I SAIL I Section 542 I Stale Bonds Family I Link Villas Ar Co,~ Crossing Lantana 94 94 • 1992 Housing Credi cs ~, I State HOME Family Amaryllis Gardens Pahokee 44 43 26 1991 Rental Assistance/RD I Section 514/516 Family I Farmworker Oo,eland Villas Pahokee 88 88 • 1990 SAIL Family I Farmworker Royal Palm Lakes Pahokee 42 42 • 199S Housing Credits 9% I SAIL Elderly I Family !Sugar Cane Villas Pahokee 87 87 78 1979 Housi03 Credits 9% I Rental Assistance/RU I Section SIS Family Mystic Woods I Palm Beach Gardens 71 ~J - 1992 Housing Credits~. I State HOME Family Mystk Woods II Palm Belch Garden• 92 92 • 1996 Housing Credits 4% I Slate Bonds Family Ponofino Apartments Palm Springs 270 270 • 2002 Extremely Low Income I Guaranr.., I Housing Cmllts •~• I SAIL I Section S42 I Stao: Bonch Family I Link Indian Trace Rh iera Beach 330 330 · 2001 Extremely Low lncom, I Guarantee I Housin• Credits 4io I Local Bonds I SAIL I Section S42 Family I Link
Onelonm,..t Name City TocalUnlts AatU.its . RHS/HUD RA Units YrBuilt/Fwulel Hnusfal! Pro-ls) Pom11atloa Senc4 S!Onybrook Apanments Riviera Beach 216 216 216 1971 Renlal Assislance.'HUD Family Villa Franciscan Riviera Bc1ch 85 85 84 1996 Rental Assistance/HUD I Section 202 Capital Advance Elderly (:ypress Manor Apa Dba Smokerise. Ltd Tequesta 62 62 48 1978 Renral Assist.ance/RD I Section SIS Family Ahcpa 18 Aparuncnlll West Palm llcJCh 98 98 98 1996 Rental Assislance.'HUO I Section 202 Capilal Advance Elderly Ballet \"illages I West Palm Beach ~9 49 1993 Housing Credits 9% I State HOMP. Family Ballet Villases II West Palm Beach 17 17 • 1995 State HOME Family Christian Manor West Palm Beach 200 200. 1973 HUD U$e Agreement El~rly Colony Park West Palm Beach 130 130 2001 Guarantee I Housing Credits 4% I Local Bond• I SA!L Family !Courtyard On flagler [West Palm Beach 58 58 • 1995 Housing llidilS 9% I SAIL Family El Cid ApanmenlS Wear Palm Beach 73 72 72 1980 Renlal rusistancerHUD Elderly Evernia Place Wear Palm Beach 84 84 • 2012 HollSi ng Credits 9% Elderly I Link Hamptan Court - Mangonia Parle W car Palm Beach 288 288 . 1999 Housing Credits 4% I Stare Bonds family Harris Music Lofts West Palm Beach 38 38 • 1993 Housing Credits~. Family Havohill Commons Phase IJ N 'k I Ba~·ben:y West Palm Beach 222 45 • 1987 Local Bonds Family Jay Village West Palm Beach 6 6 • Feder,,! Deposit Insurance Corporalion Family µkc Shore Wes1 Palm Beach 192 192 - 2003 Housing Credits 4° • I SAIL I State Bonds family Lakeside Commons West Palm Beach 99 99 • 2002 Housing Credits 9"o Family Live Oak Plantation West Palm Beach 218 218 • 1993 Housing Credi!B 9% I State HOME Family Madison Chase WCSI Palm Beach 230 230 • 2000 Housing Credits 4% I SAIL Family Malibu Bay West Palm Bach 264 264 • 2002 Guarancce I Hml!ina Credits 4% I Local Bonds I Section S42 Family Mallards landing West Palm Beach 163 163 • 2003 Housing Credits 4% I Loc:al Bonds Family Mangonia Residence West Palm Beach 252 252 · 1995 Housing Cr,,dits 9% I SAIL Elderly I Family Merry Place West Palm Beach 130 130 • 2005 Housing Credits 9% I SAIL Family Palm Beach County Group Home West Palm Beach 6 6 5 1984 Rental A.sistancc,'HUD I Section 202 Direct Loan Persons with Disabilities jPaJmGrove West Palm Beach ISO ISO 150 1974 Howing llidits 4% I Local Bonds I Rental Assistance/HUD I SAIL Family Pinnacle At Abbey Park West Palm Beach 160 160 • 2001 Guarantee I Housing Credits 4% I Local Bonds I SAIL I Section 542 family Pinnacle Palms West Palm Beach 152 1S2 - 2001 Housing Credits 4,, I Local Bonds I SAIL Elderly I family fluail Woods A1 Live Oak Plantation West Palm Be:1ch 72 72 . 1996 Housing CredilS 9% Family !Renaissance West Palm Beach 344 344 • 2003 Housing Credits 4% I Local Bonds I SAIL Family Rosemary West Palm Beach SJ 53 • 1998 Housing Credits 9% Family !Royal Poinciana Place West Palm Beach 144 144 • 1994 Housing Credits 9% I SAi L family ISaddlebrook West Palm Beach 192 192 - 1997 Hawing Credits 9% I Local Bonds [Family l,St. Andrew's Residence West Palm Beach 182 182 • 1968 ~on 202 Dir<et Loan Elderly l,St. Charles Place Manor West Palm Beuh II II II 2007 Rental Assistanc:e/HUD I Section 811 Capital Advance Elderly St. James Residences West Palm Beach 148 148 148 1981 Rental Assistance. 'HUD I Section 202 Direct Loan Elderly r,'illa Regina West Palm Beach IOo 106 106 2008 Rental Assistance/HUD I Section 202 Capital Advance Elderly r,'illage Crossing West Palm Beach 189 38 • 1986 Local Bonds Famil}' Village Place• West Palm Beach West Palm Beach 202 41 • 1998 Slate Bonds Family Waverly Apartments West Palm Beach 260 260 • 1998 Extn:mely Low Income I Gua.ran~ I Hou•ing Credits 4% I xction 542 I Sta1e Bond$ Family I Link Wed&cwood Apartments West Palm Beach 48 48 48 1978 Rental Assistance/HUD Elderly Wedgewood Apartments Phase II West Palm Beach 32 32 32 1979 Rental Assistance/HUD Elderly jWesqiatc Plaza West Palm Beach 80 80 - 2011 Housing Cri:dits 4% I Local Bonds Elderly I Family Windsor Park West Palm Be:1ch 240 240 · 1997 Extremely Lowlncome·1 Guarantee I HousingCredits4~o I Local Bonds Elderly I Link (Wood Lake West Palm Beach 224 224 · 1997 Housin2 Credits 4% I Local Bonds I SAIL Family
APARTMENT MARKET OVERVIEW (CONT'D)
Absorption Due to the economic recession, few projects were developed over the past couple of years. As economic conditions have improved, developer interest has increased and several new projects are under construction and proposed. The following chart illustrates historical absorption rates; only the most recent projects are considered reflective of current market conditions.
Lakeside Commons Pinnacle at Abbe Park Pinnacle Palms Portofino Renaissance at San Marco a/k/ a Bear Lake San Marco Villas f/k/a Venetian Isle I San Marco Villas f/k/a Venetian Isle II Lake Shore M Place Palm Gardens
Source: Field Surv b Meridian A raisal Grou , Inc. and FHFC Occu an
Area Median Income (AMI)
2003-04 2005
2003-04 2002-03
2004 2004-05 2003-04 2003-04 2005-06
2008 2008-09
2012 2012-2013
2013 2013
Avg. # of Units Absorbed Per Month
31 28 17 12 29 22 55 35 20 17 16
53 27 27 14
The HUD 2014 median household income for the West Palm Beach-Boca Raton HMF A (Palm Beach County) is $63,300. The historical AMI for the HMF A over the past couple of years is as follows:
The rent limits for existing properties are not allowed to fall below the previous year levels. The subject's MSA has special income/rent limits for projects placed in service prior to January 1, 2009 under the 2008 Housing Economic Recovery Act (HERA). The HERA income/rent limits are higher than those permitted in properties placed in service after this date.
APARTMENT MARKET OVERVIEW (CONT'D)
Fair Market Rents (FMR) We have found that within affordable projects throughout the state, that some of the tenants may be Section 8 voucher holders. The 2014 Fair Market Rents, as published by HUD, are as follows:
Section 8, or the Housing Choice Voucher Program, is a Federal housing program administered nationally by the Department of Housing and Urban Development (HUD) and locally by public housing authorities or other designated agencies and organizations. The Section 8 program provides rental payment assistance to qualifying tenants. In order to qualify for the Section 8 program, the applicant must be a low-income person with an income below 50% of the Area Median Income. In order to make rents affordable, the Section 8 program subsidies pay rent that exceeds 30% of the qualified applicant's rent. For example, if the landlord charges $500 per month for rent and the qualified applicant has adjusted monthly income of $1,000, the qualified applicant would pay $300 (30% of the adjusted monthly income). The remaining $200 would be paid through the Section 8program.
The Section 8 program is overburdened and it is difficult for new qualified tenants to receive assistance. Prospective recipients are often on waiting lists for years. Once a Section 8 voucher is obtained, the voucher is portable; the assistance recipient can take the voucher anywhere in the United States that has a public housing authority which can administer the voucher.
Conclusion The apartment market within Palm Beach County consists of a wide variety of unit types ranging from older subsidized housing, older market rent projects, newer affordable projects, and upscale projects. New units have been delivered into the market and absorption is positive. Overall, the outlook for apartments in the subject's market area and on the county level is favorable.
ATTACHMENT 4
... NEW SOUTH BAY VILLAS
CONTACT INFORMATION
Respondent
Co-Developer
Co-Developer
Guarantor
Legal Counsel
New South Bay Villas, LLC 306 SW 10th Street Belle Glade, FL 33430 (561) 722-6083 Contact: Joseph Glucksman, Member
Palm Beach County Housing Authority 3432 West 45th Street West Palm Beach, FL 33407 (561) 684-2160 Contact: Van Johnson, Executive Director
Mccurdy Senior Housing Corporation 306 SW 10th Street Belle Glade, FL 33430 (561) 722-6083 Contact: Joseph Glucksman, President
Gardner Capital, Inc. c/o Gardner Capital Development 8000 Maryland Avenue, Suite 910 St Louis, MO 63105 (314) 561-5900 Contact: Michael Gardner, Principal
Reno & Cavanaugh, PLLC 455 Massachusetts Avenue, NW, Suite 400 Washington, DC 20001 (202) 783-2800 Contact: Julie S. McGovern, Member
Continued on next page
General Contractor D. Stephen Construction, Inc. 401 West Atlantic Avenue, Suite 9 Delray Beach, FL 33444 (561) 910-9956 Contact: Joseph Sanches, Executive VP
Construction/Project Mgr Royal Building Group, LLC 9100 Belvedere Road, Suite 105 Royal Palm Beach, FL 33411 (561) 798-0901 Contact: Dan Walesky, Vice President
Local Minority Outreach 2 SBW & Associates 141 Dabou Loop Belle Glade, FL 33430 (561) 692-1432
Financial Consultant
Architect
Site Planning
Civil Engineer
Special Consultant
Contact: Javin Walker, President/CEO
AMS & Associates 10489 Mateo Court Boca Raton, FL 33498 (561) 289-4096 Contact: Allan Schnier, Principal
Song & Associates, ·Inc. 400 Australian·Avenue, &th Floor West Palm Beach, FL 33401 (561) 655-2423 Contact: Eugene Fagan Ill, Production Mgr.
Land designs South, Inc. 400 Columbia Drive, Suite 110 West Palm Beach, FL 33409 (561) 478-8501 Contact: Brian Terry, Principal
Civil Design, Inc. 312 9th Street West Palm Beach, FL 33401 (561 )659-5760
CVR Associates, Inc. 2309 So. MacDill Avenue, Suite 200 Tampa, FL 33629 (813) 223-3100 Contact: Len henry, Sr. VP
ATTACHMENT 5
NEW SOUTH BAY VILLAS
ORGANIZATIONAL CHART
ATTACHED
Guarantor
Gardner Capital Inc.
Financial Consultants
AMS + Associates
New South Bay Villas Redevelopment Organizational Chart
The Development Team assembled for the New South Bay Villas redevelopment has the experience and capacity to see the project through to completion as well as expend the requested HOME funds in accordance with time schedules and regulations. The Team has a proven track record of performance delivering quality affordable housing. The projects listed in this section are evidence of our capabilities to make the New South Bay Villas community a success. The resumes of our Team members demonstrate the extensive experience that individual members of the Team bring to the redevelopment initiative.
Co-developer Mccurdy Senior Housing Corporation, headquartered in Belle Glade, is located a short 10 minute drive from the project site, making oversight of the redevelopment of New South Bay Villas convenient. The Housing Authority maintains offices on-site at Marshall Heights. Minority contractor 2SBW & Associates, also located in Belle Glade, enables effective labor recruitment from the Glades area.
The Development Team includes:
• PBC Housing Authority: • Mccurdy senior Housing Corp.: • Reno & Cavanaugh, PLLC: • Royal Building Group, LLC: • D. Stephenson Construction: • 2SBW & Associates: • Song & Associates, Inc.: • Civil Design, Inc.: • Gardner Capital, Inc.: • AMS & Associates: • Red Stone Company: • RBC Capital Markets: • CVR Associates, Inc.:
Co-Developer Co-Developer Legal Counsel Project Manager General Contractor Local Outreach Architects Civil Engineering Guarantor Financial Consultant Tax Exempt Bond Financing Tax Credit Syndicator Special Consultant: HUD Issues
PROJECT PROFILE
DEVELOPMENT AND RESTORATION PROJECTS REBUILDING AMERICAN NEIGHBORHOODS WITH PROMISE
Profile of: Van Johnson, Executive Director of Palm Beach County Housing Authority, Florida
Van Johnson, Executive Director • telephone: (561) 684-2160 • fox: (561) 684-0183 • [email protected]
Development Project Profile for Van Johnson
Background of Mr. Van Johnson
Mr. Johnson has thirty (30) years continuous practice in the profession of Architecture, Planning, Real Estate Devel
opment and the Executive Administration of Public Housing.
His traditional education achieved in Architecture, Mr. Johnson provides leadership, stewardship and oversight of
agency federal grant programs, operations, finances and physical assets. He is currently serving at the pleasure of the
Board of Commissioners as corporate secretary/ treasurer. Executive manager of agency staff (50), consultants and
contractors. Serve as contracting officer and certifying official for federal, state, and county - housing related grants
and contracts. Principal-in-Charge of community redevelopment and housing revitalization programs.
Millennium and Centennial Place, Muncie, IN
Mr. Johnson recently completed the sustainable development of Millennium Place and Centennial Place in Muncie,
Indiana. Phase I of this comprehensive revitalization effort included, a phased demolition of the existing Munsyana
Homes, new construction of mixed-income housing (on and off site), and ancillary facilities enhancing and support
ing community sustainability. An existing site was transformed into a vibrant community with 200 rental units of a
total of 244 new units of mixed-density housing; the extra 44 units were converted to home ownership units, a new
urban community grocery store and a new recreation facility with space dedicated to community and supportive
services space were developed; and significant infrastructure improvements including gateway structures to-and
.from Downtown; as well as a linear park along the northern boundary of the site. Phase II included one- to four
bedroom apartment homes, 11 single family homes, and 10 duplex homes; of 600 to 1,302 square feet. Phase III in
cluded 35 affordable housing units of one- to four-bedroom apartment homes, 11 single family homes, and 10 duplex
homes; ranging from 600 to 1,302 square feet.
The 279 Unit Munsyana Homes Public Housing Development in Muncie, Indiana was formally designated by the
HUD' s Local Field Office as the most distressed housing development in Indiana. The development, constructed
prior to World War II, consists of antiquated, barracks style, inflexible, concrete block buildings built in a manner
which isolates the units from its surrounding "Industry" Neighborhood.
Formerly known as Park.view Apartments, an additional public housing complex was built in 1954 and demolished
March 2011. The site is now home to affordable single family houses, renamed Centennial Place.
The old Munsyana Homes Construction of Millennium Place The New Millennium Place
Palm Beach County Housing Authority Van Johnson, Executive Director
Pleasant View Gardens, Baltimore, MD
After receiving HOPE VI Funds in 1994, the master plan for the new Lafayette Courts, now called Pleasant View Gardens, was designed and built. The plan began with the assumption that the majority of the existing apartment buildings would be tom down and replaced with 228 rowhouses, a mid-rise building for the elderly, a daycare center, a recreation center, and a renovated and enlarged community building. Pleasant View Gardens was completed and inhabited by its new residents in September 1997. The project was designed in an interactive process with community residents, city agencies and the design team. An accelerated schedule, an ambitious and heretofore untried agenda, and a desire to replace a "project" with a neighborhood, all presented considerable design challenges. Residents then and since have testified that the completed project "lives up to its name."
Utilizing the principles of new urbanism, the new development replaces a high-rise apartment community with traditional Baltimore rowhouses. New pedestrian-scaled streets were introduced into the project site, subdividing the high-rise superblocks and creating residentially-scaled blocks and open spaces. A community square, the focal point of community activities, was located at the center of the site away from heavily trafficked streets. An existing community center, a new daycare center and recreation center, all located near the square, provide new community resources for Pleasant View Gardens residents.
Pleasant View Gardens has won the following awards: 1997 American Institute of Architects National Honor Award in Urban Design; 1996 American Society of Landscape Architects Awards Program Honorable Mention; Potomac Valley, Maryland Chapter American Institute of Architects Merit Award; and American Society of Landscape Architects Merit Award.
·- :.:i;·:"i~~:•:~1JJ .~~c=·- ·- --
~ .. ~-
,.t Pleasant View Gardens The New Pleasant View Gardens
The Former Lafayette Courts
Albemarle Square, Baltimore, MD
A short walk from downtown Baltimore and linked to historic Little Italy, Flag House Courts was redeveloped into a vibrant mixed-use, and mixed-income community. Rental, homeownership, and live-work units were designed with a consistent esthetic treatment that dissolves the stereotypes surrounding public housing. Housing density was reduced, allowing the introduction of planned open spaces. Blighted structures were demolished to create a rejuvenated environment. Safety and security were intrinsically planned into the neighborhood, and units were designed so that living areas face streets and public spaces. Creative plans fit comfortable units within the existing narrow lot widths. Working closely with the private developer, insightful solutions have created an appealing, communityoriented neighborhood.
The 11.3 acre site was demolished in favor of 141 new town homes for sale; 100 public housing rentals; 27 lease purchase town homes; 63 market rate rental apartments; 14,000 S.F. of new retail and 40,000 SF community/ recreation center; including renovations to existing K-8 Elementary School.
Palm Beach County Housing Authority Van Johnson, Executive Director
2
Initial construction of Lexington Terrace Demolition of Lexington Terrace The Redeveloped Townes at the Terraces
Townes at the Terraces, Baltimore, MD
The Townes at the Terraces is a family development that replaced the former Lexington Terrace public housing highrises. The $75.SM 17.5 acre neighborhood revitalization included demolition to offer 100 new town homes for sale; 203 rental town homes; and an 88 unit senior aparbnent building; 11,000 S.F. Drug Store and 41,00 S.F. Office Building; 28,000 S.F. Community /Recreation/Day Care Center, $6M K-8 New Magnet School Housing Authority of Baltimore Gty (HABC). Following New Urbanist principles, the Townes at the Terraces fits with its red-brick surroundings to form a mixed-income, mixed-use, neighborhood. Baltimore-style stoops mediate between private and public spaces. Many of the units have porches; all have private backyards and access to a park and public transportation.
The seal~, proportions and massing of old Baltimore rowhouses was deployed as a guide. In order to prevent them from looking like typical barracks-style public housing, the buildings were stretched upward by 60 inches, raising the floor slab by 30 inches and adding height to the attic.
The result is a new neighborhood that is totally integrated with and indistinguishable from its surroundings.
Palm Beach County Housing Authority Van Johnson, Executive Director
3
Quiet Waters 306 SW 10th Street Belle Glade, FL
Team Members Involved Mccurdy Senior Housing Corporation, Co-Developer Royal Building Group, General Contractor
Contact Person/Reference Edward Lowery, Director PBC Department of Economic Sustainability 100 Australian Ave., Suite 500 West Palm Beach, FL 33406 561.233.3602 [email protected]
Scope of Work • 93, furnished one bedroom residences • Spacious bathroom and kitchenette • Age 62 and up • On-site physicians office • Wellness center • Arts and crafts room • Computer lab • TV lounge • Beauty salon • Dining facility • Entertainment rooms • Prewired for cable television • Laundry facilities • Electric and water utilities included • Scheduled social & therapeutic activities • Emergency Call System in all units
Client Name Mccurdy Senior Housing Corporation
Project Size & Total Project Cost 93 units, $15.1M
Housing Type, Beneficiary Pool Garden Style Permanent Supportive Housing Age 62+ rent restricted to 30%/60% income
Construction Cost $9.3M
Project Duration Construction: August 2008 - September 2009 100% Capacity with waiting list
La Joya Villages Affordable Apartments 1105 6th Avenue South, Lake Worth, FL 33460
Team Members Involved
- -Royal Building Group, General Contractor
Contact Person/Reference Joan Oliva, Executive Director Lake Worth Community Redevelopment Agency 29 South J Street, Unit 1 Lake Worth, FL 33460 561.493.2550 [email protected]
Scope of Work • 55-unit affordable rental complex • NSP2, LIHTC, private developer funded • Developed in partnership with
the Lake Worth CRA • Will be FL Green Building Certified • 1.8 acre site • Section 3 Enforcement • Surpassed expenditure deadlines for
NSP2 thereby assisting LWCRA in meeting overall NSP2 expenditure requirement.
• Neighborhood Improvements Including: - new force-main - new sidewalks - relocating overhead power
lines to underground - neighborhood art studio
• Quality Amenities Including - tot lot with splash area - outdoor grilling area - community garden - on-site property management - Energy Star appliances
Client Name The City of Lake Worth Community Redevelopment Agency
Project Size & Total Project Cost 55 units, $10.6M
Housing Type, Beneficiary Pool Garden style apartments 100% (55 apartments) :S 60% AMI
Construction Cost $6.2M
Project Duration January 2013 - September 2014
Evernia Place Affordable Senior Housing 631 Evernia Place, West Palm Beach, FL
Team Members Involved Song+ Associates, Inc. Services Provided: Architecture Interior Design Master Planning Programming Construction Documents Construction Administration
Contact Person/Reference Jack Weir, President Eastwind Development Group 5604 PGA Boulevard, Suite 109 Palm Beach Gardens, FL 33418 561.370.6602
Experience
Scope of Work • 84-unit affordable senior rental complex • 7-story complex • Well appointed landscaping • Quality Amenities Including
- community lounge - business center - clothes care center - fitness center - large sundeck with swimming pool - grilling area - bocce court - wireless high speed internet in community areas
Client Name Jack Weir, President Eastwind Development Group 5604 PGA Boulevard, Suite 109 Palm Beach Gardens, FL 33418 561.370.6602 Project Size 84 units
Type of Housing One and two bedroom apartments
Construction Cost $4.2M
Project Duration Completion in 2014
Joseph S. Gluckman President
Qualifications
McCurdy Senior Housing Corporation
Joseph Glucksman has a unique understanding of government and has established strong public-private partnerships that have created funded programs to provide a high level of service to frail elders and disabled adults in need. Mr. Glucksman is the founder and president of several federally designated non-profit corporations offering housing and supportive services to seniors with special needs.
As President of Mccurdy Senior Housing Corporation, Joseph Glucksman has co-developed and is operating Quiet Waters, a 93-unit affordable independent senior rental community offering housing & supportive services in the rural community of Belle Glade. Quiet Waters is a national and state demonstration
project under the Robert Wood Johnson Foundation's Coming Home Program, the largest health care related private foundation in the nation.
South Florida Affordable Housing Corporation was dedicated to acquisition and redevelopment opportunities and worked closely with HUD to re-develop over 600 single and multi-family units in Florida. Florida Housing Corporation had provided up to 330 affordable assisted living beds in Palm Beach County.
Palm Beach Assisted Living had been used as an example by the State on how to mix special populations and layer public funding to provide quality services. Mr. Glucksman also served as the VicePresident of Development for Florida Community Assistance Housing Corporation, a large non-profit affordable housing developer. During his tenure, over 1,700 units were acquired, renovated leased and managed in South Florida.
Community Involvement PBC Library Advisory Board
Director, 1989-present Long Term Care Risk Retention Group
Florida International University CORE Trained ALF Administrator
Quiet Waters Senior Housing Facility located in Belle Glade
Joseph Glucksman . 1615 Hollyhock Road . Wellington, FL33414
SUMMARY OF EXPERIENCE
Joseph Glucksman has a diverse public-private background that includes 15 years in state and local government in Palm Beach County, 3 years in the community development industry, and 20 years as a non-profit housing developer/operator. The last 17 years have been dedicated to the development and operation of affordable assisted living and independent senior communities in South Florida. Mr. Glucksman is the founder and president of several federally designated non-profit corporations offering housing and supportive services to seniors with special needs. South Florida Affordable Housing Corporation was dedicated to acquisition and redevelopment opportunities and worked closely with HUD to re-develop over 600 single and multi-family units in Florida. Florida Housing Corporation had provided up to 330 affordable assisted living beds in Palm Beach County. Palm Beach Assisted living. had been used as an example by the State on how to mix special populations and layer public funding to provide quality services. As President of Mccurdy Senior Housing Corporation, Joseph Glucksman has co-developed and is operating Quiet Waters, a 93 unit affordable independent senior rental community offering housing & supportive services in the rural community of Belle Glade. Quiet Waters is a national and state demonstration project under the Robert Wood Johnson Foundation's Coming Home Program, the largest health care related private foundation in the nation. Mr. Glucksman also served as the Vice-President of Development for Florida Community Assistance Housing Corporation, a large non-profit affordable housing developer. During his tenure, over 1,700 units were acquired, renovated leased and managed in South Florida.
Joseph Glucksman has a unique understanding of government and has established strong public-private partnerships that have created funded programs to provide a high level of service to frail elders and disabled adults in need. He holds a Masters in Business & Public Administration with an emphasis in public-private partnerships is a licensed assisted living facility administrator and is active on community based and industry organizations that address the needs of seniors, homelessness, and literacy. Mr. Glucksman has been listed in the 2000-01 Who's Who for Executives, is a former Price-Waterhouse Awards finalist for Leadership, and has been recognized by local and state government for his community service. Mr. Glucksman has, or is currently serving on the PBC Library Advisory Board, as a Director on the PBC Housing Finance Authority, the Florida Homeless Coalition, the Florida Long Term Care Risk Retention Group as well as local religious and sports associated organizations.
OBJECTIVE:
JOSEPH S. GLUCKSMAN 1615 Hollyhock Road, Wellington, Florida 33414
(561) 722-6083
RESUME Building Successful Private - Public Partnerships.
EXPERIENCE: 2003 - Present President Mccurdy Senior Housing Corp. General Partner, co-developer and operator of Quiet Waters, a 93 unit affordable senior housing community in Belle Glade, Florida. A national Robert Wood Johnson Foundation and Florida DOEA demonstration project. Opened in 2009. ·
1998 - 2009 President Florida Housing Corporation 1991 -1998 Director of Operations So. Florida Affordable Housing Corp. Directed the redevelopment of the Palm Beach Assisted Living Facility, providing innovative housing & supportive services to economically disadvantaged adults with a focus on special populations. Boynton Beach Assisted Living Facility was added to its portfolio in May 2001. Revenues have grown from $1 million to over $4.5 milllon per year with over 100 employees and 330 beds. FHC sold its interest in all projects to focus on developing Quiet Waters in Belle Glade. 1992-1997 VP of Development Florida Community Housing
Assistance Corporation Responsible for the acquisition, renovation and management of multi-family properties for a large non-profit development organization in South Florida. Portfolio included 1,722 units in Florida. 1989-1993 Consultant/Project Leader Glucksman & Associates Provided professional consulting services to the land development industry with a focus on affordable housing issues. Created a non-profit organization that had developed over 500 units of affordable housing in Florida. Managed special projects for a major local community developer.
1987-1990 Exec. Assistant to the Co. Administrator, Palm Beach County Managed issues of countywide significance with business, municipal & community leaders.
1985-1987 Director of Operations PBC Private Industry Council, Inc. Directed a staff of 75 at 7 sites with a budget of over $12 million to provide training opportunities to economically disadvantaged and displaced workers. Increased dislocated workers placement 80% over previous years.
1977 -1985 Program Analyst Dept of Health & Rehabilitative Services Environmental Health Supervisor
Educated public & enforced Florida codes regarding public facilities. EDUCATION: Masters of Public Administration, FAU- Boca Raton, 1986 (Honors)
Bachelors in Science, FIU- Miami, 1975 CORE Trained ALF Administrator
CURRENT COMMUNITY SERVICE:
PERSONAL: 6/2011
PBC Library Advisory Board, Director, 1989 - present Long Term Care Risk Retention Group, Director, 2002 - 2008 Florida Assisted Living Affiliation, Director/Officer, 2002 - 2008 Florida Homeless Coalition, Director, 2004 Robert Wood Johnson/Florida Coming Home Project Selection, 2003
Married, two children
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R&C Attorney Julie S. McGovern is a Member whose practice focuses on affordable housing development and operation, with a concentration on public housing authorities and rural lending. Julie provides comprehensive representation in mixed-finance transactions, from negotiation of the development agreement, through multiple phased closings, and through regulatory and legal issues arising in operation of mixed-finance units.
Julie represents also clients on the use public housing funding streams such Operating, Capital, and HOPE VI and Choice Neighborhood Funds, both on their own and used
conjunction with low-income housing tax credits (LIHTC) and bonds, local loan programs, other_ HUD financing such as HOME and CDBG Funds, project based-vouchers, and FHA insured financing, as well as Federal Home Loan Bank's affordable housing program (AHP). She also has extensive experience in advising PHAs on the structuring and use of public housing affiliates, procurement, and conflict of interest, cross-cutting HUD requirements.
Education/Bar Admission • University of Pennsylvania School of Law, J.C. • University of Virginia, B.A. in English Literature and B.A. in Rhetoric & Communication Studies (graduated with distinction) • Admitted to District of Columbia, New Jersey, and Pennsylvania bars
Selected Recent Transactions • Advised a national non-profit with a $30 million loan fund that provides acquisition and predevelopment funds to rural
affordable housing developers, including funds from the HUD Self-Help Housing Opportunity Program (SHOP), the USDA Intermediary Relending Program (IRP), and from private foundations and individuals.
• Represented, on development and public housing issues, a housing authority with five HOPE VI projects and an active non-HOPE VI development program in overhauling an entire public housing portfolio. Managed all closings.
• Counseled a housing authority on environmental review, procurement, Davis-Bacon, Section 3, affiliates, and HUD mixedfinance in an ambitious program to expend, over a two-year period, Replacement Housing Factor funds and proceeds of bonds issued by its affiliate.
• Developer's counsel to project-based vouchers developed using tax credit equity, bond proceeds, local funds, and PHA funds. Negotiated all legal documents, formed owner and general partner, and advised on regulatory issues, such as subsidy layering, exception rents, and moving to work.
Speaking Engagements/Publications (sampling) • Speaker, ABA Form on Affordable Housing & Community Development Law Conference, Washington, DC, May 21-23,
2014. • Speaker, Rental Assistance Programs (Introduction to Project Based Vouchers), American Bar Association Forum on
Affordable Housing "Boot Camp", October 2013 • Speaker, RAD In Action, American Bar Association Forum on Affordable Housing, October 2013 • Moderator, Resolving Operational Concerns in Mixed-Finance Developments, National Association of Housing and
Redevelopment Officials, October 2012 • Moderator, Challenges, Rewards and Pitfalls - How to Make the Most of a Project-Based Voucher Program, National
Association of Housing and Redevelopment Officials, October 2012 • Moderator, Asset Management & Post Closing Legal Issues in PHIL/HTC Deals, ABA Forum on Affordable Housing and
Community Development Law, May 2012 • Co-editor, Navigating HUD Programs: A Practitioner's Guide to the Labyrinth, (American Bar Association, 2012). • Moderator, Public Housing Capital Funds in ARRA, Joint Session of HUD and the American Bar Association Forum on
Affordable Housing, May 20, 2009. • Speaker, Capital Funds In the American Recovery and Reinvestment Act of 2009, Housing and Development Law
Institute, May 7, 2009. • Co-Trainer, Understanding the Basics of Tax Credits: An Overview, NAHRO Professional Development Seminar, June
2009, March 2008 & October 2007 • Moderator, HUD Sec. 504 Accessibility Requirements and PHAs: Compliance and Enforcement, ABA Teleconference,
March 25, 2008 • Speaker, Asset Management: New Opportunities For Income Generation?, Florida Association of Housing and
Redevelopment Authorities Annual Meeting, August 24, 2007. • Co-author, "Sources of Capital: Public Housing Funds" (chapter in Developing Affordable Housing: A Practical Guide for
Nonprofit Organizations (Bennett L. Hecht 2d ed. 1999 and 3rd ed. 2006)). • Co-author, "Mixed-Finance Development: Privatizing Public Housing Through Public/Secure Development Partnerships"
(chapter in Privatizing Governmental Functions (Deborah Ballati ed., 2001)).
Awards, Community and Professional Activities • Governing Committee, American Bar Association (ABA) Forum on Affordable Housing and Community Development Law • Member, National Association of Housing and Redevelopment Officials
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The Old Post Office Washington, DC
Ocean Point Plaza Jersey City, NJ
Quinnipiac Terrace New Haven, CT
CAVANAUGH PLLC
Cornerstone Estates Detroit, Ml
The Hodge on 7' Washington, DC
Blumeyer Senior Housing St. Louis, MO
RENo&cAVANAUGH PLLC
Table of Contents
Firm Overview
Affordable Housing and Community Development
Commercial Real Estate
Commercial and FHA-Insured Lending
Tax-Incentivized Development
Energy Efficiency, Renewable Energy, Green Building and Sustainable Development ·
Policy, Regulation and Management Reform
Corporate Counsel
Litigation/Dispute Resolution
Our Work
R&C Attorneys
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RENo&cAVANAUGH PLLC
Firm Overview
Reno & Cavanaugh (R&C} is a national law firm that focuses on real estate, finance, economic development and affordable housing. From residential and mixed-use projects, to office buildings, shopping centers, and transit-oriented developments, R&C structures transactions to bring the full slate of public and private resources to bear. Founded in 1977 to improve housing and communities throughout the country, the firm has maintained this focus, while expanding its practice to include a broad range of real estate development, finance, regulatory, and legislative advocacy services.
The firm has represented clients engaged in some of the largest redevelopment efforts in the country, including Chicago's Plan for Transformation, economic development East of the River in Washington, D.C. and development in New Orleans, LA. Our firm has a wide variety of development- and financeoriented clients seeking to use national and local programs in innovative ways .. We represented a housing authority in one of two transactions cited by the U.S. Department of Housing and Urban Development (HUD} when creating the mixed-finance development process, which is used today to revitalize communities around the country. When the American Recovery and Reinvestment Act of 2009 (ARRA} invited private developers to join in competition with public entities for funding under the Neighborhood Stabilization Program 2 (NSP2}, we worked with private and public entities in their application for $30 million to acquire, rehabilitate, and redevelop foreclosed, abandoned, and vacant properties in the Nashville Metropolitan area.
From its inception, R&C has been at the forefront of housing and community development law and policy at a national level. Our firm has worked on nearly every major affordable housing legislative reform since 1977, including the HOPE VI program, the Quality Housing and Work Responsibility Act of 1998 (QHWRA}, the federal Low-Income Housing Tax Credit (LIHTC) program, the Moving to Work (MlW} program, the Choice Neighborhoods program, ARRA, and the Rental Assistance Demonstration (RAD), among others. R&C was involved with drafting and seeking passage of much of the legislation that defines the rural housing programs presently administered by the U.S. Department of Agriculture's Rural
Development Agency. Our attorneys have a working knowledge of the Community Reinvestment Act, and we actively engage with the U.S. Treasury's Community Development Financial Institutions Fund, forming and advising Community Development Financial Institutions (CDFls) and Community Development Entities (CDEs). Our attorneys worked on some of the first transactions involving the pledge of future housing authority Capital Funds to support the issuance of bonds. We regularly counsel our clients with respect to issues of green building and energy efficiency,
including: Energy Performance Contracts and Power Purchase Agreements and issues related to Renewable Energy and Alternative Energy Generation, Smart Growth, Transit-Oriented·Development and Sustainable Development. Our firm does not simply provide legal counsel; we seek to improve the lives of the people and the communities we serve across the country.
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Affordable Housin.g and Community Development
Negotiating complex finance matters for our clients is part of our daily work, as is structuring creative financing solutions to leverage scarce dollars as far as possible. Our attorneys have helped lead the way in applying private sector solutions to public agency challenges, including using annual public housing capital fund allocations to support long term bond financing, taking advantage of increased regulatory flexibility to utilize tax credits and addressing the regulatory issues necessary to combine these sources with traditional federal, state and local funding.
Westwood Development HUD-Supported Development - Over the years, R&C has developed stamforcl, Connecticut
strong working relationships with federal regulators, and part of the firm's expertise is in obtaining approval from HUD for unique and innovative financing arrangements. In mixed-finance transactional matters, R&C attorneys must devise creative solutions, setting up a melange of various sources of financing. Our attorneys concentrate on complex, multi-phased mixed-use real estate transactions involving all types of affordable housing funding sources, including, but not limited to, the following:
• State and Federal low-Income Housing Tax Credits • Bonds • Conventional Bank Loans • FHA Financing • Project-Based Vouchers (Section 8) • The Community Development Block Grant Program • The HOME Program • Historic Tax Credits (HTCs) • New Markets Tax Credits (NMTCs) • The Neighborhood Stabilization Programs (NSPs) • The Choice Neighborhoods Initiatives • Rental Assistance Demonstration (RAD) • The HOPE VI Program • Public Housing Capital Funds • Public Housing Replacement Housing Factor (RHF) Funds • Moving To Work Funds • Tax-Increment Financing (TIF) • The Federal Home loan Bank's Affordable Housing Program (AHP) • State Affordable Housing Trust Funds • Specialized HUD Development Programs • Rural Development
We assist clients in interpreting and complying with all federal requirements for these programs and funding sources as well as other requirements that govern public housing, and help clients navigate required approvals, such as subsidy layering and environmental.
HOME Funds. A large percentage of the transactions in which R&C participates involve the use of HOME funds. R&C attorneys are well-versed in HUD requirements relating to HOME, including the recently released final rule that incorporates some important changes in the HOME regulations. R&C attorneys represents our clients in negotiations with MDA as the participating jurisdiction and HUD CPD
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which operates the HOME program and work to ensure the project documentation is appropriately structured. R&C attorneys regularly assist clients in addressing thorny issues that can arise in the course of a transaction involving HOME funding. R&C attorneys are well aware of eligible uses of HOME funds, accompanying administrative requirements, and· the interplay of HOME and other funding sources such as LIHTC equity.
R&C attorneys are well versed in applicable 0MB circulars, including A110, A1222, A133, A87, as wen as applicable regulations, including 24 CFR Part 50, 24 CFR Part 58, 24 CFR Part 85 and the regulations governing the HOME program (24 CFR Part 92) and all other HUD programs. We have also defended clients in numerous IG audits and investigations, increasing our knowledge of and experience with applicable regulations, 0MB circulars and HUD handbooks.
R&C has also represented clients in NSP1 and NSP2 transactions which were a natural outgrowth of our history with the CDBG and HOME programs. R&C routinely negotiates agreements with respect to HOME funds and CDBG funds, and is frequently called upon to address complex issues related to these programs. A few examples illustrate the scope of these activities:
1. For example, R&C has worked on the implementation of federal housing and community development programs in over 50 cities, often dealing with remnants of the Urban Renewal Program and with the contemporary CDBG program. On behalf of the Anacostia Waterfront Corporation ("AWC"}, now a part of the District of Columbia Office of the Deputy Mayor for Planning and Economic Development, R&C attorneys advised on sub-recipient agreements with the District of Columbia Department of Housing and Community Development ("DHCD"}. R&C drew on its experience with agreements and standard organization of CDBG Programs in other jurisdictions to effectively carry out this task. The particular issues related to program income derived from Urban Renewal Program activities. R&C attorney Megan Glasheen has fully researched the Urban Renewal Program, particularly as it was folded into the broader CDBG program and its close-out in various jurisdictions. In conjunction with the CDBG regulations concerning program income, our advice integrated the guidance provided by the circulars issued by the Office of Management and Budget dealing with grant close-outs, the general HUD administrative requirements at 24 C.F.R. Part 85, and the CDBG handbooks and guidebooks issued by HUD. R&C attorneys are deeply familiar with these requirements and their relationships to other programs, while our national experience and networks provides us with a keen ability to provide a full range of options to our clients
2. In another situation, R&C successfully represented a "recipient' of HOME funds who was in danger of losing such funds after failing to meet its obligation deadline. While this entity had entered into a subrecipient agreement with respect to the HOME funds, R&C successfully argued that this entity was, in fact, the participating jurisdiction because of its role in administering the City's entire HOME program. R&C then argued that if a participating jurisdiction or State recipient owns the Project directly, the only requirement under 24 CFR 92.2 for making a "commitment' for such projects is that "the project has been set up in the disbursement and information system established by HUD, and construction can reasonably be expected to start within twelve months of the project set-up date."
We have learned that a thorough understanding of the HOME program and its derivation, is critical for properly structure transactions involving such funds.
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Commercial Real Estate
R&C's real estate services span all types of commercial enterprises, including shopping centers, office high-rises, largescale mixed-use and residential developments, single credit tenant developments such as pharmacies, hospital and medical office buildings, national retail stores and restaurants, and wireless tower and carrier infrastructure site development.
During the acquisition phase, R&C lawyers negotiate term sheets and structure financing, development incentives, and other deal terms to maximize the value of the transaction to the client and promote efficiency and collaboration with development partners. R&C lawyers also assist with the client's underwriting by providing a thorough review and abstract of applicable leases, Trump International Hotel, Old Post Office restrictions, easements, development agreements, and other Washington, DC
encumbrances on the property in question. R&C serves as agent through a number of national title insurance companies, and routinely evaluates title and survey matters on behalf of clients at the acquisition phase to identify and resolve potential issues.
If the acquisition involves a built and occupied site, R&C negotiates with existing tenants and other parties to resolve issues revealed during due diligence. Existing tenants can range from small business owners to national credit and anchor tenants attempting to exert control over the current and future development of the property, and R&C lawyers effectively work through issues unique to these varying perspectives. If, on the other hand, the acquisition involves raw land, R&C lawyers negotiate construction contracts and architect agreements and work hand-in-hand with the project engineer to confirm the title, survey, and other legal aspects of the site are consistent with the planned development.
R&C's services include purchase and master development agreements, long-term ground leases, reciprocal easements, condominium documents, loan and/or grant documents, and the associated closings. With regard to large-scale mixed-use developments, R&C's attorneys are experienced in preparing lot sale agreements for use with builders, developing comprehensive sets of declarations and restrictive covenants to govern communities whose occupants have divergent interests, and establishing underlying associations for homeowners (governing the residential portions) and landlord/tenants (governing the commercial portions) to support the overall community plan.
Following the acquisition and development phase, R&C's legal guidance continues with follow-up operational and property management matters, including lease renewals and terminations. R&C attorneys also assist clients with the refinancing and restructuring of existing debt structures, the financing associated with an acquisition, and the negotiation of forbearance agreements and other work-out scenarios where appropriate.
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Commercial and FHA-Insured Lending
Today, R&C's lender clients include the range of large commercial financial institutions and small community banks, as well as housing authorities, redevelopment agencies, and community development financial institutions.
FHA-insured lending has become increasingly prevalent in commercial transactions, and R&C represents lenders on FHAinsured loans in the contexts of acquisition, construction, substantial rehabilitation, and refinancing. Other areas of emphasis include Fannie Mae Freddie Mac USDA Rural The Village at Oak Street
D I d ·t d 1.~ . ' ' I Denver, CO eve opment, con u1 , an 1ie insurance company oan transactions.
With substantial lender and borrower experience, Reno & Cavanaugh attorneys understand the negotiable and non-negotiable elements of these transactions and the due diligence standards that must be satisfied, enabling them to take a proactive, problem-solving approach.
Representative transactions handled by R&C attorneys include: • Representation of a major life insurance company in its commercial mortgage lending program in
Maryland, Virginia, Pennsylvania, New Jersey, Delaware and the District of Columbia, with loans ranging from $2 - $75 million.
• Representation of two major life insurance companies in a variety of commercial mortgage loan transactions, from shopping centers to office buildings to single credit tenant retail, medical and office buildings. ·
• Representation of national lenders on commercial FHA transactions across the country, including the first FHA-insured NMTC and Historic Tax Credit (HTC) mixed-finance transactions incorporating the two-tiered lease structure.
• Representation of a lender in its conduit-lending (CMBS) program in Maryland, Virginia, Pennsylvania and the District of Columbia, with loans ranging from $2 million to $40 million.
• Representation of a Freddie Mac Seller-Servicer in its multifamily mortgage loan transactions in Tennessee and Arkansas.
• Representation of a major lender in sales-leaseback transactions throughout the United States, with loans ranging from approximately $10 million to $150 million.
• Representation of a major pension fund in the following transactions: • $76 million mezzanine loan to mixed-use condominium project in New York City. • Equity investment as a joint venture partner in an approximately $76 million retail development in
Seattle, Washington. • $29 million construction loan and tax-increment financing of a condominium project in Cook
County, Illinois. • Representation of national and regional banks in the following transactions:
• Agented syndications and participations ranging from $5 - $100 million. • $20 million credit facility for a first-of-its-kind commercial/retail project in an historic district of
Nashville, Tennessee. • Financing of the portfolio sale of one of the largest restaurant franchises in the Southeast.
In addition to the commercial finance expertise highlighted above, nearly all R&C lawyers concentrate in part on complex, often multi-phased mixed-use real estate transactions involving multiple funding sources and the full range of development issues. As a result, R&C lawyers are capable of analyzing legal issues from several vantage points to give lenders our best, most informed practical advice and representation.
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Tax-I ncentivized Development
Low-Income Housing Tax Credits
R&C attorneys have worked on transactions involving LowIncome Housing Tax Credits (LIHTCs) since the creation of the program. This representation includes all aspects of the transaction-developers (nonprofit, for-profit and verticallyintegrated with construction and management aspects), conventional lenders and investors, and public housing authority lenders. Virtually all of R&C's residential rental transactions involve the use of LIHTCs to leverage public housing funds in mixed-finance transactions. We provide assistance to clients from initial application through the compliance period on LIHTC transactions, which is especially The Laurel House relevant to public housing authorities that utilize self- Nashville, TN
development. R&C negotiates equity documents, including the partnership agreement, to ensure that they reflect the appropriate business terms and do not impose requirements that conflict with the other deal documents. We ensure that the overall financing scheme of each transaction complies with all federal requirements for LIHTC or mixed-finance projects. Because many R&C attorneys have accounting or business backgrounds, our attorneys also serve as an additional pair of eyes on financial issues and structuring pro-formas.
New Markets Tax Credits
R&C has been at the forefront of providing legal advice concerning the New Markets Tax Credit (NMTC) program in the community development field. In fact, our attorneys have been housing authority counsel for NMTC mixed-finance transactions initially approved by HUD. R&C was housing authority counsel for the first three NMTC mixed-finance transactions and served as Qualified Active Low-Income Community Business (QALICB) counsel for two of those three transactions.
R&C has also been engaged in a number of contexts to represent developers, public housing authorities and lenders in NMTC workouts. We have counseled a range of clients on the NMTC program, and our attorneys are frequent speakers on the program at industry conferences.
Energy Credits
R&C attorneys represent clients on a range of transactions involving energy retrofit, green investments and energy-related tax credits. We frequently work with energy credits in combination with other tax incentives such as LIHTCs or NMTCs. Our attorneys work with clients on renewable energy development to advance current practices and establish new standards for the future of affordable housing and community development. R&C advises clients on the financing and tax structuring of energy credits. We have worked with Solar Investment Tax Credits and have helped clients fund the installation of solar panels on existing and new developments. We have worked with permanent lenders to gain approval on energy funds and have dealt with the many complexities associated with the combination of funds at different housing sites.
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Payments In Lieu of Taxes
R&C attorneys represent clients utilizing the Payments in Lieu of Taxes (PILOT) program established at state or local levels for certain incentivized uses. · R&C helps structure PILOT programs for different states and localities that require creative solutions for nonprofit organizations, such as enabling them to
use alternate funding to continue housing programs. R&C has been active in policy discussions regarding HUD-endorsed PILOT programs, such as the Rental Assistance Demonstration, or "RAD" (formerly PETRA and TRA} program. We are engaged in policy matters in the real estate industry, often issuing client alerts with our opinions and voicing them at Regulations.gov, as well.
Historic Tax Credits
R&C has worked on preservation efforts involving Historic Tax Credits (HTCs} in cities across the
country. R&C has worked with HTCs, the HOME Program, and other funding sources to help for-profit and nonprofit developers apply HTCs to national and state-specific HTC projects: We have represented
clients in affordable housing, community developments and rental multifamily developments using HTCs. Many of the deals we work on include the layering of HTCs with other funding sources such as various types of tax credits, as well as lenders providing additional financing to such developments.
Tax-Exempt Bonds
Bond financing is particularly important when other means of financing are unavailable or insufficient.
The ability to employ bond financing can mean a project can get underway without losing time waiting for another financial resource. When incorporating bonds into the transactions involving various R&C clients, we carefully review the bond documents and related security and credit enhancement agreements to be sure that our clients' interests are protected while also complying with the various cross-cutting regulatory requirements. R&C also works with clients to determine appropriate sources and structuring for the collateralization of the bonds.
One of our firm's unique accomplishments has been our ability to find more innovative ways to finance
public housing revitalizations. R&C was one of the advocates for the change in the federal law that
permitted housing authorities to leverage their current and future capital funds to finance private debt for
development. After the law was passed, R&C attorneys were among the first to apply the new law and its innovative financing tool in transactions on behalf of housing authorities. These transactions involved the pledge of future housing authority Capital Funds to support the issuance of bonds-a financing technique that has greatly expanded the resources available to local agencies for redevelopment efforts.
Tax-Increment Financing
Tax-Increment Financing (TIF) structures are an important financial resource tool for districts in need of
growth or renewal. R&C lawyers are experienced in consulting on TIF issues as they relate to affordable
housing and commercial real estate. TIF utilizes state and local tax revenue to generate financing for
projects located in redevelopment authorities or jurisdictions. R&C helps structure TIF for different states
and localities that require creative solutions for financing economic development, such as enabling them
to use alternate funding to continue housing programs. We advise clients through the TIF process and on compliance with local, state and federal regulations.
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Energy Efficiency, Renewable Energy, Green Building and Sustainable Development
· Chimes International Campus Baltimore, MD
With our mind set on the future, R&C is committed to creating green and sustainable development solutions for our clients. R&C has assisted a number of clients in executing ambitious strategic plans to provide innovative green development. Green building concepts are equally important to our clients as they are to us. It is our goal to provide progressive services and solutions to clients who wish to create projects that integrate the principles of sustainable development and green building to improve the productivity and longevity of a development. Green building and sustainable development will allow our clients to become not just well~run conventional private or public agencies, but leading environmentally-forward real estate providers.
We do not just talk the talk, either. Our Washington, DC office received a LEED Silver designation for commercial interiors, and the DC office building received a LEED-Gold designation.
Energy Credits
As stated, R&C attorneys represent clients on a range of transactions involving Energy Retrofit and Green Investments, especially Energy Investment Tax Credits available under 26 USC § 48. We frequently work with energy credits in combination with other tax incentives such as Low-income Housing Tax Credits or New Markets Tax Credits (NMTCs). Our attorneys work with clients on renewable energy development to advance current practices and establish new standards for the future of affordable housing and community development.
R&C advises clients on the financing and tax structuring of energy credits. We have worked with Solar Investment Tax Credits and have helped clients fund the installation of solar panels on existing and new developments. We have worked with permanent lenders to gain approval on energy funds and have dealt with the many complexities associated with the combination of funds at different housing sites.
Transit-Oriented Development
Through the work that we do, we maintain a focus on thoughtful development. Our work is to build multifunctional developments and sustainable communities, and one way we do this is by advising clients on transit-oriented development. This type of development encourages transit-use and builds metropolitan centers and distinctive neighborhoods. It also includes compact, mixed-use developments near subway and/or train stations which could include properties such as living, office or retail spaces and civic or open spaces. In structuring transit-oriented developments, we work with clients based on their individual needs and the characteristics of .the area where the project site is imagined.
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Policy, Regulation and Management Reform
With our headquarters in Washington, DC, it is natural for us to be engaged in policy concerning housing and community development issues. Our deep knowledge of the federal housing programs, their operations and implementation means we can assess on a variety of housing policy and operations matters. R&C attorneys are frequently sought out to advocate for legislative reform, draft legislation and comment on regulatory issuances, often working on regulatory issues of HUD.
Where warranted, we have assisted our clients in challenging rules that were improperly issued by federal agencies. Additionally, .
R&C's expertise includes understanding the legal and policy issues ~=s~i~~:~. oc that often arise with an entity's affiliates and instrumentalities, as many of our clients use related entities to further their development activities.
In addition to the policy matters that we handle for our clients, we also regularly counsel on operational matters such as procurement, bid protests, board governance, Inspector General audits, general corporate concerns, executive and service contracting issues, Housing Choice Voucher problems, conflicts of interest, asset management and affiliates/instrumentalities.
R&C attorneys frequently advise on Uniform Relocation Act issues and requirements concerning acquisition and relocation. We work with public housing authorities on a host of federal issues, including appealing a PHAS score and relocation issues. We have also negotiated complex acquisition and relocation intergovernmental agreements (IGAs) with city agencies and worked on National Environmental Policy Act (NEPA), or environmental review, issues and fair housing issues.
Federal Rulemaking - Once legislation is enacted, R&C helps shape how the law works in practice, by participating vigorously in the administrative law process and by assisting its clients with program and policy implementation, as well as reform. R&C regularly deals with implementation issues surrounding HUD regulations and advocates for regulatory changes and have done similar work in the past on IRS, HHS, and DOT regulations. Our firm also assists clients through audits by the HUD Office of Inspector General (OIG) concerning procurement, use of federal funds, agency affiliates, and other matters reviewed by OIG or by HUD's Real Estate Assessment Center (REAC).
Conversions of Public Housing - R&C has extensive experience advising housing authorities on the intricacies of the public housing demolition/disposition process, as virtually every one of our public housing transactions involves a disposition or demolition of public housing property. We are familiar with the HUD approval processes and handle complex demolition and disposition matters and land transfers. We assist housing authorities with stand-alone demolition/disposition issues outside of the development context and advise on Uniform Relocation Act (URA) issues and implications concerning disposition, acquisition and relocation. Our advice is also frequently sought to address perceived impasses with HUD in the disposition approval process.
The initial public housing conversion process was a two-step process, but R&C has a leadership role in
discussions with the current HUD administration and Congressional leaders to enact legislation authorizing, simplifying and funding a new version of the conversion process. We are in fact working with a number of individual housing authorities who are pursuing such conversions. R&C worked with HUD,
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Congress, and a range of affordable housing groups to enact the Rental Assistance Demonstration (RAD), which allows for housing authorities to explore the potential successes of a more comprehensive program that converts public housing to Housing Choice Vouchers and allows borrowing against those subsidies in order to fund rehabilitatiop costs. R&C understands RAD program rules and policies and how to mesh those with existing affordable housing development and operating sources, so we can effectively assist in the preparation of solid RAD applications that can be effectively implemented. R&C will advise housing authorities on identifying properties that are good candidates for RAD, assist housing authorities in interpreting and applying RAD requirements, consult on preparation and submission of applications to HUD, and upon award, will prepare the applicable regulatory, financing and real-estate related documents to close on each RAD conversion as well as the other applicable financing.
Housing Choice Vouchers and Public Housing Reform - R&C works on a national level to track and contribute to the proposed policy and legislative changes that will affect the long-term and daily administration of the program. R&C attorneys are active participants in legislative working groups and work with HUD on the major revisions to the Housing Choice Voucher Program and its regulations.
We have worked on legal and policy issues related to the Housing Choice Voucher program and have extensive experience responding to Office of Inspector General (OIG) audits dealing with the Housing Choice Voucher Program, as well as helping clients structure development transactions to avoid problems with the OIG.
Housing authorities implementing Housing Choice Voucher programs face unique challenges and, with OIG audits, the program requirements are constantly shifting. R&C attorneys are very familiar with .the program regulations and requirements that govern the PBV program, and can advise on these issues. We have worked with many housing authorities and HUD field offices to ensure that housing authorities comply with the many program requirements yet are also able to take advantage of the program's flexibility.
Moving to Work (MTW) Demonstration Program - The MTW HUD process is one that intertwines legal and policy analysis. It relies on a thorough knowledge of the MTW program and what waivers HUD has granted or denied in the past-a knowledge R&C exemplifies. Since our advocacy for the program in 1996 when MTW was created, R&C has assisted the Council of Large Public Housing Authorities (CLPHA) and individual housing authorities on using their funding sources flexibly, with a minimum of HUD regulatory requirements to create more efficient housing programs in keeping with local needs.
Our MTW knowledge and experience includes the person who developed the MTW program, Stephen I. Holmquist, while he served as Special Deputy for Policy in the Office of Policy, Program and Legislative Initiatives at HUD. R&C has also represented clients in their efforts to gain full entry into the MTW program and often continues this representation to provide ~p-to-the-minute advice. In some cases, we negotiated with HUD over the terms of the MTW agreements and other critical issues, including the applicability of asset management to MTW sites and the permissible use of MTW funds beyond otherwise applicable statutory restrictions.
R&C attorneys have interpreted and responded to HUD comments and helped monitor a housing authority's MTW activities, particularly with respect to housing authority planning and reporting functions and to HUD's authority for reviewing housing authority activities. R&C also advises MTW participants who are considering plans for disposition or conversion of their public housing on items such as projectbased voucher provisions or limitations of the Housing Choice Voucher Program of the U.S. Housing Act of 1937 and MTW waivers.
10
RENo&cAVANAUGH PLLC
Corporate Counsel
R&C is general counsel to seven national organizations including a captive insurance company with seven affiliates and a national nonprofit with a development subsidiary. Our attorneys know corporate law. We advise these clients on board structure to prevent abuse or misuse of assets, proper use of any federal funding sources, establishing and maintaining arm's-length relationships with affiliates, corporate and affiliate best practices, and procurement requirements.
_;r
Our attorneys have a firm command of public procurement law Quinnipiac Terrace
and the law of Section 3 and of Minority and Women Business New Haven, CT
Enterprise contracting programs, and regularly draft agreements imposing applicable requirements to meet client goals. R&C attorneys are frequently brought in to help clients in management reviews or Office of the Inspector General reviews of particular procurement decisions. Our knowledge of federal programs and 0MB circulars enables us to advise clients on eligible uses of funds and to seek favorable rulings or opinions from HUD and other agencies.
Formation and Governance - Our firm works with clients on strategic planning and governance models that will guide them for the long term. R&C attorneys work with CEOs, executive directors, governing boards and other organizational leaders to shape effective governance structures for their organizations that will realize short-term and long-term goals. R&C helps clients develop policies for decision-making and delegation from the governing bodies to the executives. We train and advise our clients on board member fiduciary duties, conflicts of interest and effective delegation tools.
Employment and Executive Contracting - R&C helps clients establish personnel policies that meet their business and agency goals while still complying with laws such as those dealing with equal treatment, retirement benefits and family and medical leave. R&C has assisted clients with compensation issues, including the drafting of specialized employment consulting agreements to ensure a clear scope of work as well as clear remedies. Firm attorneys also provide assistance to our corporate clients in negotiating CEO and executive director employment agreements, terminating such agreements, evaluating performance and providing for compensation including deferred incentive compensation and bonuses.
Affiliated Entities - R&C counsels a number of public agencies working with affiliates formed to assist in public and affordable housing development, land acquisition, including complex issues of conflict of interest, procurement, and time and expense allocation.
11
RENo&cAVANAUGH PLLC
Litigation/Dispute Resolution
R&C takes a broad view of dispute resolution. When a dispute arises, we seek the most favorable and efficient solution for our clients, through negotiation, mediation, arbitration, litigation, and representation before governmental entities and regulatory bodies.
R&C has served as lead counsel or supporting counsel for clients such as public housing authorities, individuals, private developers, for-profit and nonprofit organizations, and governmental agencies in matters ranging from federal housing
laws and regulations, agricultural law, commercial credit, real estate development, and zoning, land use and subdivision issues.
Our attorneys have experience representing parties in federal court litigation in more than 20 federal court districts throughout the country, located in 18 states and the District of Columbia, in the United States Courts of Appeal for the Sixth, Eighth, Ninth and Tenth Circuits and in the United States Supreme Court. We have also served as counsel to court-ordered public housing receiverships in Chester, Pennsylvania; Chicago, Illinois; the District of Columbia; and Kansas City, Missouri.
We attempt to avoid litigation when possible, and we understand that most adversarial proceedings that our clients face are resolved in a forum other than a courtroom. We represent clients in all aspects of HUD Office of the Inspector General matters, ranging from responding to initial queries and attending exit interviews, to litigating the matter. We represent clients in administrative hearings and administrative law judge appeals before both HUD and the Farmer's Home Administration, as well as in GAO protests. Also, we routinely represent clients on zoning, land use and subdivision hearings and appeals, tax appeals, and not-in-my-back-yard (NIMBY) matters.
12
RENo&cAVANAUGH PLLC
Our Work
R&C knows there is no "one size fits all" answer to clients' challenges. We work to find individualized solutions for the long term. R&C has two main goals: to provide quality legal counsel and to make a meaningful difference in the communities we serve. R&C serves clients in the following areas:
American Recovery and Reinvestment Act of 2009(ARRA)
Buy American Issues (ARRA) HUD Regulatory Issues (ARRA) National Environmental Policy Act (NEPA) (Environmental Review) Post-Award Issues (ARRA)
Community Development Block Grant (CDBG) Program Community Development Entities (CDEs) Community Development Financial Institutions (CDFls) Community R~vitalization Act (CRA) Elderly Housing Development Energy Performance Contracts Energy Retrofit and Green Investments Fair Housing Issues Fannie Mae and Freddie Mac Products Federal Home Loan Bank Programs Federal Housing Finance Agency - REO Asset Disposition Federal Funding Approvals and Waivers FHA-Insured Financing Form (Design) Based Zoning Ground Leases Historic Tax Credits (HTC) HOME Program HOPE VI & Mixed-Finance Public Housing Development Housing Choice Voucher Program (formerly the Section 8 Program) Inspector General Investigations and Defense/Debarments Lease-Purchase Arrangements Leases-Office and Retail Local Counsel Opinions Low-Income Housing Tax Credit (LIHTC) Programs
13
Management Concerns of Housing Providers Mixed-Finance Public Housing Development Mixed-Income Communities Mixed-Use Developments Moving to Work Issues Native American Housing Programs Neighborhood Stabilization Program (NSP) New Markets Tax Credits (NMTC) New Urbanist Communities Nonprofit Organization Incorporation, Governance and Tax Issues Payment-in-Lieu-of-Taxes (PILOT) Structures Project-Based Vouchers (PBV) Power Purchase Agreements (PPAs) Public Housing Asset Management Public Housing Capital Funds (including Replacement Housing Factor Funds) Program Public Housing Capital Fund Financing Program (CFFP) Public Housing Operating Funds Program Public Housing Regulatory Issues Purchase and Sale of Business Procurement Issues/Bid Protests Real Estate Development and Financing Revolving Loan Funds Rural Housing Programs Section 202 Program Shared Equity Ownership and Financing Solar Investment Tax Credit Sustainable Development Tax: Federal and State Tax-Increment Financing (TIF) Arrangements Transit Oriented Development Uniform Relocation Act Requirements Workouts Zoning and Land Use
Wallace Sanger President
Qiialifications
Royal Building Group, LLC
Wally Sanger's 50+ years of construction experience as a builder, developer and innovator have been focused on quality and customer satisfaction.
Recipient of the prestigious Excalibur Award presented by The SunSentinel in 2007 for his entrepreneurial spirit and commitment to the community, Wally has established an organizational culture that emphasizes building quality and customer satisfaction as his highest priorities.
Wally's knowledge and experience combined with his endless desire to construct stronger and more energy-efficient buildings have made him a pioneer in the construction industry recognized throughout Florida and beyond. He has been continuously recognized locally for the high quality, energy efficiency, and sustainability of his buildings as well as for his community involvement.
Awards * BUILDER OF THE YEAR awarded by Gold Coast Builder Association. * Inductee to BUILDERS HALL OF FAME elected by Gold Coast Builders Association. * EXCALIBUR AWARD presented to the Business Leader of the Year awarded by the Business Development Board of Palm Beach County and sponsored by the Sun Sentinel. * ENERGY EFFICIENCY AWARDS: • 7 consecutive years BUILDER OF THE YEAR Award for Most Energy Efficient Home presented by BuildSmart division of Florida Power and Light. • 5 time Winner of AURORA AWARD for Energy Efficiency awarded at Southeast Builders Conference by Florida Home Builder Association.
• 4 time Parade of Homes Award winner presented by the Treasure Coast Builders Association
* Man of the Year awarded by the Rotary Club of Royal Palm Beach
,tq ROYALBUILPING
Dan Walesky Vice President
Qualifications
Royal Building Group, LLC
As a founding partner of Royal Building Group responsible for
Project Management and Site Supervision Mr Walesky brings a
range of project management experience spanning more than 10
years across several industries.
Mr Walesky started working with the Royal group of companies in 2005 as the Director of Research and Development after working in the field of Project management for both Ford Motor Company's Sustainable Mobility division and with Teledyne Energy System working as a project manager on advanced research projects for NASA. At the Royal Companies he quickly
moved up to become the Director of Manufacturing Operations where he supervised construction for projects with a combined value of over 250 million.
Mr Walesky has been invited to speak at several conferences about innovative and green construction technologies including the future of next generation classrooms and state of the art construction methods for building residential construction.
Since forming Royal Building Group with his partner Wallace Sanger Mr Walesky has directly overseen multiple commercial and residential projects and is currently serving as the construction manager for the La Joya Villages, a 55 unit affordable housing development in the city of Lake Worth.
Education B.S. Mechanical Engineering, Georgia Institute of Technology - Class of 2000 Graduate of Math Science and Engineering Magnet Program, Suncoast High School, Riviera Beach Florida - Class of 1996 Certifications LEED Accredited Professional
Profile Wally Sanger's 50+ years of construction experience as a builder, developer and innovator have been focused on quality and customer satisfaction.
Education Madison High School, Trotwood Ohio, Class of 1961
Certified General Contractor Certifications License number CGA 24856
SF and MF Residences- 1982-2011, $660 million, 3,000+ units
President and CEO-Royal Professional Builders
Crestwood Baptist Church, First Baptist Church of Royal Palm Beach, St Michael Evangelical Lutheran Church of Wellington -
President and CEO - Royal Companies
PBC Schools {2003 to 2010) $145 million Over 1 million sq. ft. Major Project President and CEO Royal Concrete Concepts Accomplishments Broward Schools {2003 to 2010) $38.S million 485dassroom units
President and CEO Royal Concrete Concepts
Quiet Waters Senior Living Center {2009)- $10.7 million 98 senior units
President and CEO Royal Concrete Concepts
Cheeca Lodge Resort and Spa {2009-2010)- $9.4 Million 64,280 sqft 4 star hotel
President and CEO Royal Concrete Concepts
Recipient of the prestigious Excalibur Award presented by The Sun-Sentinel in 2007 for his entrepreneurial spirit and commitment to the community, Wally has established an organizational culture that emphasizes building quality and customer satisfaction as his highest priorities.
Wally's knowledge and experience combined with his endless desire to construct stronger and more energy-efficient buildings have made him a pioneer in the
Career Experience construction industry recognized throughout Florida and beyond. He has been continuously recognized locally for the high quality, energy efficiency, and sustainability of his buildings as well as for his community involvement.
Wally has extensive experience in all construction delivery methods including CM.@Risk, Design-Build and Design-Bid-Build gathered during his 35 years of Building/Development
BUILDER OF THE YEAR awarded by Gold Coast Builder Association.
EXCALIBUR AWARD presented to the Business Leader of the Year awarded by the Business Development Board of Palm Beach County and sponsored by the Sun Sentinel.
Awards ENERGY EFFICIENCY AWARDS: 7 consecutive years BUILDER OF THE YEAR Award for Most Energy Efficient Home presented by BuildSmart division of Florida Power and Light. S time Winner of AURORA AWARD for Energy Efficiency awarded at Southeast Builders Conference by Florida Home Builder Association. 4 time Parade of Homes Award winner presented by the Treasure Coast Builders Association
WWW.ROY ALBU IL DING GROUP.COM
MCCURDY
SENIOR HOUSING PBCHA RFP: FY2013-DEV-001 - South Bay Villas
Dan Walesky Is an experienced Project Manager and founding partner of Royal Building Group who specializes In Innovative materials and methods of construction. B.S. Mechanical Engineering, Georgia Institute ofTechnology- Class of 2000 Graduate of Math Science and Engineering Magnet Program, Suncoast High School, Riviera Beach Florida - Class of 1996
LEED Accredited Professional.
Directly responsible for managing all operations for 180 acre modular construction facility in Okeechobee Florida, including engineering, scheduling, production, safety, and quality control including the following projects:
PBC Schools (2007 to 2010) Various Projects Broward Schools TPM (2009 to 2010) - $20 Million 3 new Schools Quiet Waters Senior Uving Center {2009)-$10.7 million 98 senior units Cheeca Lodge Resort and Spa (2009-2010)- $9.4 Millian 64,280 sqft 4 star hotel
- Royal Concrete Concepts - 2005-2011 Project Manager for the first ever residence certified to the LEED for homes rating
standard. -Royal Professional Builders - 2005-2007 Responsible for project management, design, and testing and reporting in support of
Engineering Model Prototype PEM Fuel Cell Contract with NASA's Glenn Research Center -Teledyne Energy Systems 20Q3a2005
Project Manager for Hydrogen detection system design and production for 2004 Ford Focus Fuel Cell Electric Vehicle - Ford Motor Company - 2000-2003
As a Founding partner of Royal Building Group responsible for Project Management and Site Supervision Mr Walesky brings a range of project management experience spanning more than 10 years across several industries. Mr Walesky started working with the Royal group of companies in 2005 as the Director of Research and Development after having worked for 5 years in the field of Project management for alternative energy system design and manufacturing. At the Royal Companies he quickly moved up to become the Director of Manufacturing Operations where he supervised all aspects of construction for projects with a combined value of over 250 million. Mr Walesky has been invited to speak at several conferences about innovative and green construction technologies including the future of next generation classrooms and state of the art construction methods for building residential construction.
: WWW.ROYALBUILDINGGROUP.COM
MCCURDY
SENIOR HOUSING PBCHA RFP: FY20l3-DEV-001 - South Bay Villas
September 30, 2013
General Contractor license
MCCURDY
SENIOR HOUSING
Qualifications
I S th Bay Villas PBCHA RFP: FY20l3-DEV-OO S;pt~!ber 30, 2013
Dwight Stephenson, President/ CEO/ QA QC CONSTRUCTION EXPERIENCE: 25 years
EDUCATION: University of Alabama Social Work and Physical Education St. Paul's College Honorary Degree - Doctor of Humanities
PROFESSIONAL AFFILIATIONS: The Lauderhill Business .Alliance Together Against Gangs (TAG) Dwight Stephenson Foundation United Cerebral Palsy, Board
Associated Builders and Contractors The Boys and Girls Club, Board
Florida Fish & Wildlife Conservation Commission
AWARDS: SunSentinel Excalibur Award 2011 African American Achievers Award 2011 Business Leader Magazine, 2008 Walter Payton/NFL Man of the Year, 1985
PROFILE:
Gerald R. Ford Legends Award 2011 Diversity Award, Urban League of Broward Walter Camp Man of the Year, 2006 Ultimate CEO Award 2011
Dwight co-founded D. Stephenson Construction Inc. with wife Dinah with a philosophy of providing quality service and products through instilling their own values of honesty and integrity. Dwight provides leadership, control for all field operations and supervision for all projects. Dwight has successfully completed many projects similar in size & scope and provides leadership for all field operations and supervision for all projects. He has a strong client base of repeat clients, including: Broward College, University of Miami, Florida Memorial University, the School Board of Broward County, the School District of Palm Beach County, the City of Lauderhill City Hall, including the City Hall - LEED Silver Certified (a l 0 year relationship), Broward Countywhich includes renovations of the Broward County Courthouse and Midrise totaling nearly $20 million (6-year relationship) and the Fort Lauderdale Hollywood International Airport (7 year relationship). Dwight's role for Quality Control includes ensuring that all D. Stephenson projects adhere to the project specifications and meet or exceed the highest levels of quality in the industry.
RELEVANT EXPERIENCE: • Henrietta Town homes, West Palm Beach, FL I $2 .5 Million • Opa-locka CDC Housing Renovations, Miami, FL - Various Properties • Carver Apartments & Shoppes, Miami, FL I $1 .2 Million • Marina Grande, Riviera Beach, FL • FMU Living ~nd Learning Residence Hall, Miami Gardens, FL I $12. 7 Million • City of Riviera Beach Marina District Redevelopment, Riviera Beach, FL • City of Opa-locka Helen Miller Community Center, Opa-locka, FL I 6,000SF I $2.5 Million • City of Lauderdale Lakes Library and Community Center, Lauderdale Lakes, FL I $6.2 Million • ULBC Community & Empowerment Center, Fort Lauderdale, FL I $28,000SF I $5 Million • City of Miramar Multi Service Complex & Fire Station, Miramar, FL I 38,000SF I $15.4 Million • City of Dania Beach Library, Dania Beach, FL I l 0,000SF I $3 Million I LEED Gold • Tyrone Bryant Branch Library, Fort Lauderdale, FL I l 0,000SF I $3.5 Million • Broward County Library Bond Program (Various Locations), Florida I $4 Million • Carver Ranches Library, Hollywood, FL I l 0,000SF I $1.5 Million • City of Lauderhill Library, Lauderhill, FL I l 0,S00SF I $2.3 Million • FLL-Hollywood International Airport - Ramp Rehabilitation Concourses D, E and F, Fort
Lauderdale, FL $4.4M
Dinah Stephenson, Sr. Vice President/ CAO CONSTRUCTION EXPERIENCE: 22 years
EDUCATION: Juris Doctorate (J.D.) 1988 Universi1y of Miami School of Law,
Bachelor of Science (B.S.) 1981 Universi1y of Alabama, Tuscaloosa, AL
AWARDS: African American Achievers Award 2011 SFBJ: Women Who Mean Business Honoree 1 00 Outstanding Women of Broward County
PROFESSIONAL AFFILIATIONS: The Florida Bar: Member City of Delray Beach: Public Employees Relations Commission Dwight Stephenson Foundation, Co-Founder, Board of Directors American Diabetes Association - Communi1y Leadership Board YMCA of Broward Coun1y - Association Board
PROFILE: As a Co-founder of D. Stephenson Construction, Inc; Dinah has over 20 years of experience in various aspects of construction and construction management, including contract negotiations, insurance issues, human resources management cmd development, and overseeing and handling of all legal issues. Dinah is responsible for daily management, including risk management, and general supervision of all administrative and legal functions of the company, including contract administration. Dinah also oversees workers compensation issues, business ethics, employee conduct, policies or issues related to drug and alcohol use, harassment and other personnel issues.
Some of Dinah's past experience includes: Dinah has practiced as a Real Estate Attorney with Scholl, Ticktin & Associates, as well as, her own private practice. She has been responsible for handling Real Estate acquisitions and feasibility analysis. She has had continuous involvement with Real Estate Management and Administration. Her practice has included all aspects of Real Estate Law, Guardianship, Corporate Law, Construction Law and General Practice. Formerly, as President of First Equity Title, LLC Dinah oversaw settlement service transactions from initial searches through post closing and issuance of title policies.
RELEVANT EXPERIENCE: • Henrietta Townhomes, West Palm Beach, FL I $2.5 Million • Opa-locka CDC Housing Renovations, Miami, FL - Various Properties • Carver Apartments & Shoppes, Miami, FL I $1 .2 Million • Marina Grande, Riviera Beach, FL • FMU Living and Learning Residence Hall, Miami Gardens, FL I $12. 7 Million • City of Riviera Beach Marina District Redevelopment, Riviera Beach, FL • City of Opa-locka Helen Miller Community Center, Opa-locka, FL I 6,000SF I $2.5 Million • City of Lauderdale Lakes Library and Community Center, Lauderdale Lakes, FL I $6.2 Million • ULBC Community & Empowerment Center, Fort Lauderdale, FL I $28,000SF I $5 Million • City of Miramar Multi Service Complex & Fire Station, Miramar, FL I 38,000SF I $15.4 Million • City of Dania Beach Library, Dania Beach, FL I 1 0,000SF I $3 Million I LEED Gold • Tyrone Bryant Branch Library, Fort Lauderdale, FL I 1 0,000SF I $3.5 Million • Broward County Library Bond Program (Various Locations), Florida I $4 Million
Joseph Sanches, Executive Vice President CONSTRUCTION EXPERIENCE: 30 years
EDUCATION: MBA in Management Baruch College, CUNY, New York, NY
BPS in Construction Management Pratt Institute, Brooklyn, NY
AAS in Construction Technology New York ~ity Technical College, Brooklyn, NY
LICENSES AND CERTIFICATIONS: Certified General Contractor - CGC 1521515 Leadership in Energy and Environmental Design
PROFILE:
Joseph is a results-oriented leader and project executive with over 30 years of experience successfully managing private and government organizations with program budgets of over $1 billion. Approximately 11 years experience in K- 12 business operations managing and working with a. large staff (almost 3,000 employees), working with principals, interacting with Board Members, fielding questions from the press and presenting to elected officials and the public. Active community participant who has been recognized by several prestigious board appointments and awards from community organizations. He is recognized as a leader in the industry and DSC relies on his capabilities. Joseph is a former member of the Board of Directors for the U.S. Green Building Council.
RELEVANT EXPERIENCE:
• Essex House Hotel, New York, NY I $80 Million
• Harlem Housing Renovation, New York, NY I $80 Million
• 200 West 57th Street Historic Renovation, New York, NY I $45 Million
• New York Marriot Marquis Hotel, New York, NY I $450 Million • Carver Apartments & Shoppes, Miami, FL I $1 .2 Million
• City of Riviera Beach Marina District Redevelopment, Riviera Beach, FL
• City of Opa-locka Helen Miller Community Center, Opa-locka, FL I 6,000SF I $2.5 Million • Florida Memorial University Science Annex, Miami Gardens, Florida I 121,986SF I $2 Million • Broward College Health Sciences Simulator Bldg., Davie, Florida I 65,000SF I $17.7 Million
• Dan Marino Foundation Vocational College, Ft. Lauderdale, Florida I 16,400SF I $1.2 Million • Florida Memorial University Science Annex, Miami Gardens, Florida I 121, 986SF I $2 Million • Carver Apartments and Shoppes Building, Miami, Florida I 10,400SF I $2.5 Million
• McClure Village, Pahokee, Florida I 16,000SF I $1.1 Million
• Electron Microscope & Autoclave, New York, NY I $3 Million
• Marriott Marquis Hotel, New York, NY I $450 Million
• Dan Marino Foundation Vocational College, Ft. Lauderdale, Florida I 16 ,400SF I $1 .2 Million • City of Opa-locka Helen Miller Center, Opa-locka, Florida I 6,000SF I $2.5 Million
Harry Darling, COO CONSTRUCTION EXPERIENCE: 30 years
EDUCATION: B.S. Accounting and Political Science Sunny Brockport College, New York
LICENSES AND CERTIFICATIONS: CPA Certification, New York CPA Certification, Massachusetts
PROFILE: Harry holds a bachelor's degree in Accounting and Political Science from the Sunny Brockport College. Harry has 30 years of experience in construction. He has managed projects of various sizes and complexities, giving him a breadth of experience that is an added value to D. Stephenson Construction, Inc. projects. Harry oversees the entire preconstruction phase and provides input on detailed cost control, value engineering and estimate analysis. He has a thorough knowledge of the subcontractor market and will work closely with the Team identifying the right subcontractors for your project.
RELEVANT EXPERIENCE: • Carver Apartments & Shoppes, Miami, FL I $1 .2 Million • Ritz Carlton Clubhouse and Spa, Palm Beach, FL • Abacoa Clubhouse, Jupiter, FL • Boca Country Cub, Boca Raton, FL • Addison Reserve Country Club, Delray Beach, FL • Hunters Run Country Club, Boynton Beach, FL • Abacoa Entry Feature, Jupiter, FL • Banyan Golf Club Clubhouse, West Palm Beach, FL • Kings Point Clubhouse and Entry Feature, Delray Beach, FL • The Seagate Beach Club, Delray Beach, FL • · Palm Beach Bath and Tennis Clubhouse, Delray Beach, FL • Villa Regina Senior Housing, West Palm Beach, FL • Montego Bay Condos, Miramar, FL • City of Riviera Beach Marina District Redevelopment, Riviera Beach, FL • City of Opa-locka Helen Miller Community Center, Opa-locka, FL I 6,000SF I $2.5 Million • Urban League of Broward County, Community & Empowerment Center, Ft. Lauderdale, FL • City of Dania Beach Nanofiltration Water Treatment Plant, Dania Beach, FL - LEED Gold • Palm Beach Cardiology • Palm Beach Cancer Institute • Palm Beach Ambulatory Surgery • Palm Beach Gastronomy Center • Palm Beach Surgery Center • Palm West Doctor's Lounge • Greenway Professional Center • Boynton Beach Cancer Center • North Broward Medical Center • Abbey Delray Health Center Assisted Living • Boynton Beach Medical Pavilion • Gardens Medical Park Phase II • Comprehensive Cancer Center • St. Mary's • Fairway Office Center II
John Gordon, Sr. Estimator CONSTRUCTION EXPERIENCE: 30 years
EDUCATION:
B.S. Science of Economics
Southern Connecticut State College
LICENSES AND CERTIFICATIONS:
Sure Track Expedition Certification
Expedition Primavera Certification
PROFILE:
As Senior Estimator for D. Stephenson Construction, John Gordon is responsible for managing and coordinating all aspects associated with estimating and project pre-planning services.
His duties include budget and detail estimating, value analysis, comparison and cost model reporting, cash flow analysis, and preliminary scheduling for design/build, general contractor and construction management assignments.
RELEVANT EXPERIENCE:
• Sterling House Alf's (6 properties), Various Locations, FL I $15 Million
• Seagate Residences, Delray Beach, FL I $26.4 Million
• Terrace Communities Assisted Living Facility, Tequesta, FL I $8.5 Million
• Tesoro Welcome Center, Port St. Lucie, FL I $4.6 Million
• Wellington Regional Vertical Expansion, Wellington, FL I $2.5 Million
• Wellington Regional Cancer Center Brain Lab, Wellington, FL I $2.4 Million
• Wellington Regional Central Energy Plant, Wellintong, FL I $11.5 Million
• Wellington Regioanl Cancer Center Renovation, Wellington, FL I $3.5 Million
• Wellington Regioanl Medical Arts Pavillion II, Wellington, FL I $5.8 Million
• Wellington Regional Medical Arts Pavillion Ill, Wellington, FL I $4.2 Million
• Wellington Regional Hospital Lobby Renovations, Wellington, FL I $255K
• The Women's Center at Wellington Hospital, Wellington, FL I $645K
• Palm Beach Surgery Center, Palm Beach, FL I $1 .8 Million
• Palm Beach Gastrological Surgery Center, Palm Beach, FL I $2.6 Million
• Jupiter Medical Center, Jupiter, FL I $3.5 Million
• Wellington Regional Medical Center NICU, Wellingotn, FL I $3.6 Million
• Vassalo Medical Office Building
• NYS Chiropractic College, Seneca Falls, NY I 1,400 units I $350K
• Dr. Ernie Soto Dental Group, Plantation, FL I 3,000SF I $280K
Steve Carlstadt, Superintendent CONSTRUCTION EXPERIENCE: 25 years
EDUCATION:
BSC -Applied Technology
Florida Institute of Technology
LICENSES AND CERTIFICATIONS:
Licensed Real Estate Agent
State of Florida Notary Public
PROFILE:
Steve has 25 years of construction industry experience and is a Florida State Licensed Real Estate Agent. He is responsible for day-to-day supervision and coordination of subcontractors and all construction activities, as well as assisting in the development and implementation of the schedule, site logistics plan, and quality control. Steve is also responsible for on site documentation including contractor's activity, and daily reports, safety incidents and unusual project conditions and/ or problems.
He will also be responsible for the preparation of daily construction reports, monitoring and documenting contractor's activity, manpower, weather and equipment on the site. He will also organize and conduct Weekly Subcontractor meetings and publish minutes.
RELEVANT EXPERIENCE:
• City of Dania Beach Paul DeMaio Library, Dania Beach, FL I $3 Million I LEED Gold • City of Fort Lauderdale Tyrone Bryant Branch Library, Ft. Lauderdale, FL I $3M • Imperial Point Library, Fort Lauderdale, FL I $SOOK • City of Lauderhill City Hall, Lauderhill, FL I $12 .8 Million I LEED Silver • Memorial Healthcare Systems Cancer Center West Renovation, Pembroke Pines, FL I $585K • Dan Marino Foundation Vocational College, Ft. Lauderdale, Florida I 16,400SF I $1.2 Million • Broward College Incubator HVAC System Improvement, Fort Lauderdale, FL I $787K • Broward College Door Hardware Upgrades, Fort Lauderdale, FL I $130K • Fort Lauderdale International Airport Expansion, Fort Lauderdale, FL I $11 Million • Coral Park Elementary School, Coral Springs, FL - $1.2 Million • Eagle Point Elementary School, Weston, FL - $890K • Meadowbrook Elementary School, Fort Lauderdale, FL-$500K • Collins Elementary School, Dania Beach, FL
• Driftwood Middle School, Hollywood, FL
Ty Stanley, Sr. Project Manager CONSTRUCTION EXPERIENCE: 10 years
EDUCATION:
Bachellor of Science in Construction Engineering Technology
Minor in Civil Engineering Technology
Florida Agricultural and Mechanical University
LICENSES AND CERTIFICATIONS: Florida Real Estate Sales Associate
PROFILE:
Tyquan has extensive knowledge of negotiated pricing elements and cost, reviewed and
processed NE and GC invoices and assisted with budget control on several projects. He has
experience with completing all of the final stages associated with closing .out projects. He
maintains a great client relationship while maintaining policy and procedural implementations.
He will be responsible for managing office duties and supervising fieldwork. Additional
responsibilities include developing scopes of work for bidding, the bidding process, contract
negotiations, submittal & shop drawing review, pay requisitions and change order request
processing, meeting minutes documentation, schedule analysis, RFI processing, and more. Ty
has managed projects of various sizes and challenging complexities, especially on technically
challenging operational campuses.
RELEVANT EXPERIENCE:
• • • • •
Carver Apartments & Shoppes, Miami, FL I $1.2 Million
City of Opa-locka Helen Miller Community Center, Opa-locka, FL I 6,000SF I $2.5 Million
Florida Meniorial University, New Living and Learning Residence Hall, Miami Gardens, FL
• FFlorida Memorial University Science Building, Miami Gardens, FL
• University of Miami, Interior Renovations, Miami, FL
• Belle Glades Elementary School, Belle Glades, FL
• Silver Shore Elementary School, Miramar FL
• American Intercontinental University, Weston FL
• University of Tampa Interim Soccer Stadium, Tampa, FL
• Fort Lauderdale High School, Fort Lauderdale, FL
• Western High School, Davie, FL
• Charlotte County Public School
• Wannado Kid City at Sawgrass Mills Mall, Sunrise, FL
PREVIOUS EXPERIENCE
2415 NW 158th STREET
D. Stephenson Construction provided construction management services for the PROJECTDESCRIPTION renovation of the existence residence at 2415 NW 158 Street, Miami Gardens,
FL. Neighborhood Housing in Opa Locke is the owner of the project.
D. Stephenson Construction, Inc. is providing Construction Management Services for the rehabilitation of the Carver Apartments and Shoppes in Miami. The scope of this project is to rehabilitate an existing three story mixeduse building that was constructed in 1925. The project involves selective demolition to remove existing building components and finishes which ultimately will be restored with new interior and exterior finishes and modern building components to provide approximately 3,900SF of commercial retail spaces on the first floor and 6,500SF of residencial spaces (10 apartment units) on the second and third floors. Property enhancements and amenities includes eight two-bedroom apartments units, two one-bedroom apartment units, four retail spaces at the ground level with aluminum storefront entries, brick paver walk-ways, separate dumpster enclosure, decorative canopies and window awnings, decorative hallway & stair railings, window treatments, residential appliances, on-site laundry facilities, central air conditioning and impact resistant windows.
Miami, FL
MTZ Carver, LLC 301 NW 9th Street Miami, FL 33136 Don D. Paterson I [email protected] I PH 954-829-7788 ------------------- -----------------
COMPLETION DATE November 2013
SIZE 10,400SF
COST $1.2M
ROLE Construction Manager
PREVIOUS EXPERIENCE
HENRIETTA TOWNHOMES
PROJECT DESCRIPTION
LOCATION
OWNER/CONTACT
COMPLETION DATE
SIZE
COST
ROLE
D. Stephenson Construction provided design and construction management services for this 11 unit project for
the New Urban Community Development Corp. Beach County. The scope of services included construction and
project closeout services. The 2.5 Million Dollar development began in September 2009 and was completed in
March 2010 which, included 11 Town Homes comprised of 2, 3 and 4 bedroom units. The units included ceramic
tile floors, impact windows, centrally monitored security system, French Doors, and new appliances.
Henrietta TownHomes is located at 1301 & 1307 Henrietta Avenue in historic Coleman Park downtown West
Palm Beach and will serve as an incubator for families working toward homeownership.
West Palm Beach, FL
New Urban Community Development Corp.
Chris Plummer I PH 561-310-1739
March 2010
16,000SF
$2.5M
Construction Manager
MCCLURE VILLAGE
PROJECT DESCRIPTION
LOCATION
OWNER/CONTACT
COMPLETION DATE
SIZE
ROLE
PREVIOUS EXPERIENCE
D. Stephenson Construction is providing Construction Manager as Adviser services for HTG McClure LLC. The
project consist of improvements to 2 duplex units and one single family residence. The scope also includes minor
site improvements, playground disassembly, storage and reassembly. D. Stephenson Construction helped HTG
and the Pahokee Housing Authority meet obligations to capture grant funding in short order, by federal expenditure
deadlines, under very challenging circumstances.
Pahokee, FL
HTG McClure, LLC 750 Malibu Bay Dr. West Palm Beach, FL 33401
"2" S.B. W. & Associates, Inc. 2005 - Present President
JAVIN L. WALKER
Belle Glade, FL
• Manage and oversee all aspects of company operations, maintenance, and administrative functions for commercial, industrial, and residential properties.
• Serve as the company legislative and regulatory liaison. • Enforce compliance of operations with personnel including administrative policies, procedures, safety
rules, and government regulations. • Read specifications such as blueprints and data to determine construction requirements. • Design and prepare proposals for construction costs, estimates, and specifications. • Develop new layouts, construction plans and contract documents for single family housing programs
and scattered sites. • Coordinate retail designers, architects, and consultants for the creation and maintenance of prototypical
construction and design.
Y2J Sports & Marketing 2002-2004 President
• Oversaw the overall operations of company.
Tampa,FL
• Directed organizations financial and budget activities to fund overall operations, maximized investment. opportunities and increase company efficiency.
• Tracked and reported on company financial portfolio annually. • Prepared company reports and budgets. • Communicated with project managers and other senior managers to ensure accurate resources. • Maintained excellent personal and team relations with senior management.
Professional Management, Inc. 1998-2001 Player Development
Columbia, SC
• Contacted collegiate representatives to arrange and schedule on-campus interviews with students. • Reached out to civic, social and other groups to provide information concerning job possibilities and
career opportunities. • Projected yearly recruitment expenditures for budgetary consideration and control.
EDUCATION
Jniversity of South Florida 1994 Tampa,FL Associates of Arts Degree - Minor Business Administration
:MEMBERSHIPS AND AFFILIATIONS
• Palm Beach County Workforce Alliance, Board Member • Ambassador of National Association of Minority Contractors, South Florida Chapter • National Association of Minority Contractors, South Florida Chapter - Member • Concerned Citizens of South Bay Florida, Inc., President • Building Trade Association, Member • Leadership Glades, Member • Kravis Center of the Palm Beaches, Annual Member • Glades Initiatives, Board Member • Black Village Voice - Board Member
PROJECTS
Hurricane Katrina 350 Homes Construction Management Finished ahead of schedule Disaster Relief/Remediation Under budget
Hurricane Wilma 500 Homes Construction Management Finished ahead of schedule Disaster Relief/Remediation Under budget
My Safe Florida 800 Homes Construction Management Finished ahead of schedule Wind Mitigation Under budget
;reentree South 150 Homes Construction Management Finished ahead of schedule Wind Mitigation Under budget
Scattered Sites In-Field Housing 44,800 SF Contractor Finished on time within South Bay, FL budget Constructing Residential Homes
Abidjan Estates 36,500 SF Contractor In- Progress Belle Glade, FL Constructing Residential Homes
Belmonte Inn 20,000 SF Construction Management Finished ahead of schedule Ft. Lauderdale, FL Under budget Commercial
R&B Properties 50,000 SF Construction Management Finished ahead of schedule Belle Glade, FL Under budget
Additional References Are Available Upon Request
Javin L. Walker Page2
~ Song + Associates, Inc. ~ .-\rchit~chm: • Pl;mnin~., lnltrinr I )i-5i~n
EDUCATION: Bachelor of Science in Architecture,
University of Illinois, 1977 Planning and Design of Public
PROFESSIONAL AFFILIATIONS: American Institute of Architects American Society of Interior Design 1st United Bank, Board of Directors wpbt2, Board of Directors
MCCURDY
SENIOR HOUSING
Young Song, AIA, ASID, PE Principal
Qualifications
Mrs. Song, founder and president of Song+ Associates, is an architect, engineer and interior designer with over 36 years of extensive experience in the planning and design of educational, commercial, office, mixed use, financial, medical and recreational facilities. Recognized for her creative concepts and functionally responsive designs, she has received numerous design awards and a myriad of accolades from public and private clients. Her extensive knowledge of building codes and constructability methods has contributed to her success in serving the needs of clients. Mrs. Song's unique combination of professional credentials, talent and experience, facilitates the successful execution of every project to the highest quality standards.
With a strong commitment to the community, she has served in many· organizations, including Economic Council of Palm Beach County-Board of Directors; Business Development Board of Palm Beach County; Early Learning Coalition of Palm Beach County, and many more. She was selected and appointed by the Governor to serve on the Palm Beach County Historic Preservation Board. She currently serves on 1st United Bank-Board of Directors and Public Television WPBT-2 Board of Directors. As a 30-year resident of Palm Beach County, Mrs. Song has dedicated herself to developing and supporting her community and is a recipient of South Florida Business Journal's 2010 Most Influential Women in Business Award and the 2008 Ultimate CEO Award, March of Dimes Women of Distinction Award and the Executive Women of the Palm Beaches Leadership Award.
SELECTED PROJECT EXPERIENCE Evernla Place Senior Living Facility, West Palm Beach, FL The project consists of 84 units composed of an equal ratio of 1 and 2 bedroom suites. All housing will be situated above a private resident parking garage with an anticipated total project height of 7 to 8 stories.
Evergrene Community Center, Jupiter, FL Evergrene is a 12,952 sf facility in an exciting neighborhood where nature and luxury walk hand-in- hand. The Tuscan style clubhouse reflects the style of the community it serves and continues an uncompromising commitment to nature.
Green Cay Wetlands, & Nature Center, Palm Beach County, FL Wetlands restoration of a 125-acre site. Services provided entailed programming, architectural design and construction administration. Project includes boardwalks, parking, interactive displays, and nature education center
Armory Art Center of The Palm Beaches, West Palm Beach, FL This historic building was saved from demolition by local artists, preservation activists, philanthropists and the Palm Beach County Cultural Council. Extensive restoration provided for increased hurricane protection and enhanced media technology and building systems.
South Florida Science Museum + Aquarium, West Palm Beach, FL Remodeling and expansion of the existing Science Museum to provide space for expanded and new exhibits including an aquarium and exhibit hall for traveling exhibits. The project included design coordination of all exhibits, signage, and displays. The project also provides new food service and dining areas as well as outdoor activity and exhibit space. The South Florida Science Museum is the second most visited science museum in the nation today.
Jenkins House, West Palm Beach, FL As part of the City of West Palm Beach's vigorous preservation efforts for the historic Northwest Neighborhood, the Jenkins House has been restored and renovated into a new African American Cultural Center to serve the local community. Song + Associates, like most professional organizations involved in the project, donated its services to this very important community project.
PBCHA RFP: FY2013-DEV-001 • South Bay Villas September 30, 2013
EDUCATION: Bachelor of Design, 1980, University
of Florida Bachelor of Architecture, 1984,
Louisiana Tech University
PROFESSIONAL EXPERIENCE: Joined Song+ Associates in 2013 28 Years with other firms
Mr. Fagan, a graduate of University of Florida and Louisiana Tech, has 33 years of experience in architectural design, project management, and construction documents. Cost affordability and constructability of the design is his main focus. To achieve this goal he uses the most advanced computer software and builds the buildings first in virtual reality. The virtual building can then be tested for wind loading, thermal dynamics, and costing. He also teaches these programs at Palm Beach State College.
SELECTED PROJECT EXPERIENCE Evernia Place Senior Living Facility, West Palm Beach, FL The project consists of 84 units composed of an equal ratio of 1 and 2 bedroom suites. All housing will be situated above a private resident parking garage with an anticipated total .project height of 7 to 8 stories.
South Florida Science Museum+ Aquarium, West Palm Beach, FL Remodeling and expansion of the existing Science Museum to provide space for expanded and new exhibits including an aquarium and exhibit hall for traveling exhibits. The project included design coordination of all exhibits, signage, and displays. The project also provides new food service and dining areas as well as outdoor activity and exhibit space. The South Florida Science Museum is the second most visited science museum in the nation today.
Riviera Beach CRA Master Plan, Riviera Beach, FL The project proposes plans to define and connect neighborhoods to improve community cohesiveness and encourage sustainable economic development. The project includes wayfinding/signage design, streetscape, zoning, traffic calming, maintenance and monitoring programs, and community gardens and parks within the CRA.
Manatee Observation and Ecological Education Center, Riviera Beach, FL Architectural study and subsequent recommendations for the restoration and integration of the Stambaugh Cottage Into the Ecological Education Center to be located south of the FPL Riviera Beach Power Plant.
PRO-BONO EXPERIENCE Low-Income Housing, City of Riviera Beach, FL New house designs for low income families.
Urban Planning, West Palm Beach, FL Urban planning for the North West district. Plans for a new 7th street and Tamarind Avenue community food store.
Low-Income Day Care Facility, FL
African Bible College, Uganda
Children's Summer Camp, Beirut, Lebanon
Licenses/Registrations
Architect License
STATE OF FLORIDA ,Dl:PAR:TMENT OF BUSINESS ANI) PROFESSIONAL.REGULATION
Qualifications
, BC>ARD,OF ARCf:IITECTURIS & 1NtERIOR:DE$lGN 1940 NORTH MONROE smeET . .. '
(8~0) 481"'.1395
TALLAHASSEE FL 3239g.:07a3 .
SONG &ASSOCIATES, INC; 400 AUSTRALIAN AVJ; 6TH FLOOR .. , Wl:ST PALM Bl;ACH FL 334015004
Congl'BtutaUonsl WIUt this license yp1,1 become one of .the (le81ly one rnUlion Flo~dllil18 lklfinsiildbythe: Department of BUsinesufl(I Pr:ofessloqat Regullillon •. Our p¢eaalonels arid bilslnes&$S range. . from ar:chili!cts I!> yiidlt brokera, rrom boxers to barbeque restaurants.. and lhiilY keep Floilda's economy strong.
Every dE!Y Wi:i\ilork to lmP'°'1811ie way we do l;!usineli8 irfordet'lb !,erve you better, FCJdnfonniltlOII about our services, plea~ lll9 onto ~.rnyflo'1dallcenae.c:0m. There you can find 11'.10f&·ll)ftiiniat/qn aboi.it CJur dlvlsionund the regulations thatlmpa~yo1;1, aub,crlbe to depailltieht newsletters and 1.eam more about the Department's lmflalivek · ·.
OurrriiBllio!I at the Department1s:U09nMEfflclent!y; Regulate Fairly'. We oqnstB!lllY slllve1i> slllV~. yo 01u belle .. r.~ that you can serve yaur custornelll, Thanlc you for dob19 buslnet1s in Floilda, and congratuJat10n11 on y011r new license!
/ ----·-•· .--·. ·-··- , .. _,. ____ ,, . . \
l !.. The Departm. · · .. ent of. .Stat$1·s. leading the commem~ratlon of Rorida's $0Dth annWersary ln 2O,1:t j -~ For more information; please gc,to www.VlvaFlonda.or:g. 1
PBCHA RFP: FY2013-DEV-001 - South Bay Villas September 30, 2013
Background
Jeff Trompeter has over 22 years of civil engineering experience. He was a member of the U.S. Navy's Civil Engineer Corps for 6½ years prior to entering private practice. Jeff has extensive experience with all facets of land development projects including design, permitting, and construction services. Jeff founded Civil Design Inc. in May of 2003 and continues to be the engineer of record for numerous commercial, residential and public sector projects throughout Florida & the Caribbean.
Representative Experience
City of Lake Worth, CRA Provided Civil Engineering services for the CRA Executive Director. The
, various projects developed included the beautification of the 10th Avenue North and 6th Avenue South City Gateways totaling $18M, sidewalk connectivity studies along with implementation of beautification and pedestrian connectivity improvements.
Urban Arts Lofts Lake Worth, CRA Fast-track design/build project for the Lake Worth CRA utilizing NSP 2 funds for 12 affordable artist housing units with considerable time and budget milestones, Lake Worth, FL.
La Joya Villages Fast-track design/bid/build project developed in conjunction with the Lake Worth CRA utilizing NSP 2 funds and tax credit financing for 55 affordable housing units with considerable time and budget milestones, Lake Worth, Florida
312 9th Street• West Palm Beach, Florida 33401
City of Lake Worth Public Works Contracted to perform City Engineer functions from 2004 to 2010. Responsibilities included performing reviews of site plan submittals for compliance with City drainage criteria (including storm-water modeling), miscellaneous projects review and construction administration.
City of West Palm Beach Contracted engineering services for the City on a task order basis including the Banyan City Garage FEMA grant money repairs and others.
Windsor Avenue Widening, City of West Palm Beach, CRA Provided Civil Engineering services for the Windsor A venue widening, utilities and beautification project.
Palm Beach School District Annual Civil Engineering consultant past 6 years. Have performed work on over 60 distinct school sites through the county including Lake Shore Annex in Belle Glade.
Continuing Services Contract Palm Beach County Annual consultant for PBC on a task order basis. Contract has included studies, design, permitting and construction phase services for various civil projects including roadways, utilities, drainage issues, irrigation (reclaim), etc.
Jail Expansion II Palm Beach County Design, permitting and construction phase services for Palm Beach County's largest bond initiative project to date, totaling close to $280M. Included three principal sites (Belle Glade, Central Detention Center and Gun Club Facility).
Tel: 561.659.5760 • Fax: 561.659.5772 • www.civil-design.com • CA 9664
T. Jeff Trompeter~ P.E. President
Professional Registrations: Professional Engineer
State of Florida PE No. 51045 LEEPAPBD+C
Years of Experience: 22
Education: Bachelor ofScience;
Civil Engineering, Minor in Mathematics
University of Florida 1990
Affiliations: Fellow,
American Society of Civil Engineers
President, Pahn Beach Branch American Society of Civil Engineers
2001-2002
Active Member, Florida Engineering Society & NSPE
FAU Civil Eng. Dept. Adv. Council, 2002-2007
GARDNER CAPITAL l NCO lll ll' 0 lllA'T E 0
Tax Credit Group
GARDNER CAPITAL, INC. Corporate Headquarters
1414 East Primrose, Suite 100 Springfield, Missouri 65804
Phone 417.447.1800 www.gardnercapital.com
Tax Credit Group
Corporate Headquarters Springfield Office Mark E. Gardner
1414 East Primrose, Suite 100 Springfield, Missouri 65804
GARDNER CAPITAL, INC. is a full-service tax credit syndicator with an emphasis on federal and state low income housing tax credits. For over 15 years GARDNER CAPITAL and its affiliates have been investing in affordable housing and historic preservation projects, resulting in the creation or preservation of thousands of housing units for low to moderate income families and seniors.
GARDNER CAPITAL provides superior service to clients, helping them manage risk while obtaining a competitive return on their investment. Our company goal is to deliver an efficient and seamless investment methodology while still providing the up-front and ongoing technical assistance required by our clients.
On a more global basis, GARDNER CAPITAL has a history of working closely with the communities in which we invest and teaming with local and national housing organizations to study and sponsor legislation geared at improving tax credit programs.
FUND MANAGEMENT
GARDNER CAPITAL affiliates play the role of General Partner of the tax credit funds in which our investors are limited partners.
Our fund level services include review and analysis of annual financial statements, tax returns, and timely fund performance reports. Upper tier fund agreements typically include an approval process, underwriting guidelines, and asset management
procedures, all negotiated in advance of the first investment transaction.
SENTINEL: TRANSACTION LEVEL PERFORMANCE REPORTING
GARDNER CAPITAL structures project performance monitoring to the needs of each investor. Reporting for financial
institutions typically includes quarterly asset reports and quarterly watch list reports. As a part of our all-in-one professional
services package, we provide valued clients with SENTINEL, a proprietary asset management and reporting program that
allows any investor 24/7 access to their respective portfolio data.
GARDNER CAPITAL has represented established investors with
extensive experience in tax credit investments as well as investors
who are making their first investment in the field. We have been
able to provide superior service to both types of investors.
"Gardner Capital has provided us with exceptional service with
respect to our housing tax credit needs. They are particularly adept at asset management and reporting. We like the fact that their size permits us to have a direct relationship with the most senior
members of the company, including the president, without having
to go through a multitude of institutionalized layers to get a response to an inquiry. 11
Greg Steffens President SOUTHERN BANK
"Gardner Capital has been a valuable partner to work with for all of Shelter's tax credit needs. We appreciate the passion, quality, commitment and attention to detail the entire Gardner Capital team brings to every aspect of their business."
"Gardner Capital is one of Great Southern Bank's most valued customers; with a relationship lasting over 20 years. We began construction financing for low income and historic tax credit
developments, all completed as planned in a highly professional
manner. Our relationship has now grown to include financing and
investments with Gardner Capital's tax credit syndication division. Gardner Capital has also provided tax credits investments
for the bank and we have been extremely pleased with that relationship as well."
Don W. Cowherd Managing Director, Ozarks Region GREAT SOUTHERN BANK
• Founded in 1993, a privately-held group of affiliated companies
• Seasoned management team with extensive industry experience
• Placed more than $500,000,000 through syndication with zero default rate
• Award-winning projects with development in over 55 communities
• All-in-one professional services: advisory, due diligence, legal, design & construction,
syndication, property management, asset management, and disposition
GARDNER AFFILIATED COMPANIES (Operations with over 100 employees in multiple states)
Gardner Capital. Inc.
Gardner Development. LLC
Gardner Housing. Inc.
Mid America Management. Inc.
GARDNER CAPITAL lNCORl'OllAfl:P
COMPETITIVE ADVANTAGE
Choose GARDNER CAPITAL as your tax credit syndicator to obtain
competitive industry pricing, yields, and equity contribution
schedules. Our team of professionals offers a broad scope of
industry experience from development to property management to
finance.
GARDNER CAPITAL understands the importance of a streamlined
syndication process, so we provide all-in-one services combined
with a flat organizational structure allowing for quick decisions and
swift execution. In addition, GARDNER CAPITAL utilizes in-house
counsel to further streamline execution and minimize transactional
costs.
TRACK RECORD
GARDNER CAPITAL provides innovative financing solutions to meet
the community and economic development needs of our partners
and those they serve.
To this end, GARDNER CAPITAL has established a proven track
record of excellence in affordable housing tax credit investment
management, syndicating more than $500,000,000 of federal and
state tax credits across the country.
SPECIALIZED EXPERTISE
In addition to our core business of syndicating federal and state tax
credits for historic and LIHTC housing projects, GARDNER CAPITAL
is expanding its industry-leading experience to provide investors
with opportunities to invest in projects generating New Market Tax
Credits, as well as Renewable Energy Tax Credits.
GARDNER CAPITAL INICOl!li'ORAfED
i.i ,GARDNER CA.Pl:TAL
Excellence in Low Income Housing Tax Credit Syndication
Trusted Partnership ... Proven Performance
Gardner Capital focuses considerable industry expertise on supporting the development of affordable housing and renewable energy facilities in the communities we serve.
Beyond providing equity capital, due diligence, construction and operating experience to projects in these sectors, Gardner also serves as a long term advisor and partner to third party developers and investors.
Affordable Housing Investment and Syndication
Since 1991, Gardner has developed, invested in and sponsored over $500 million of institutional equity to fund the development or preservation of approximately 4,000 affordable housing units in 55 communities. To date, our LIHTC properties have met or beaten investor projections. Our track record speaks to the depth of experience and the high integrity with which Gardner operates.
Gardner's steady presence in Georgia and Missouri has created a significant market share of the state housing tax credit activity in those states. Since 2009, Gardner has placed over $300 million of state housing and historic tax credit equity.
Gardner Capital is set apart from our competitors by the multi-faceted experience of our group as a developer and builder of LIHTC properties, a third party capital partner and consultant to other apartment developers, as legal counsel for LIHTC developers, and as a syndicator of equity for state and federal LITHC equity from our developer clients. Our team brings unique expertise to affordable housing that spans the entire life cycle of a deal, from due diligence through disposition of each property.
Federal LIHTC Syndication 1
U GARDNER CAPITAL
Our Track Record
Gardner's current portfolio comprises 74 LIHTC properties totaling over 4,000 affordable
housing units. Our conservative approach and considerable experience have led to a
track record that speaks for itself in the affordable housing industry.
• >90% of equity invested in 9% tax credits for new construction
• Average 56 units per community
• $5.4 million average equity invested per property
• 97% average occupancy
• 1. 73x average DSC ratio
• 18% aggregate ratio of Debt/Cost
• Portfolio average age 5.24 years since initial closing
• Past partnerships with 18 third party developers, properties in 6 states
• Zero foreclosures, zero tax credit recapture, and $0 of un-scheduled capital called from our investors
Gardner Capital is a trusted partner with deeply specialized expertise in LIHTC
underwriting and syndication. Our reliable performance as an investor, developer and
sponsor of affordable properties has helped to fuel Gardner's recent expansion from a
regional to a national scope equity sponsor and syndicator.
Century Towers - St Joseph, MO
Federal LIHTC Syndication 2
Springfield Commons - Springfield, MO
i.i GARDNER CAPITAL
Institutional Quality Asset Management
In addition to operating an integrated LIHTC property management company with over
2,500 Gardner and third party developer units in our current portfolio, Gardner Capital
has created •a proprietary SENTINEL asset management system, enabling our team to
operate in an efficient, paperless environment and to focus on exceptions to our risk
policies, rather than on compiling and analyzing data. Our upper tier quarterly reporting
is available via internet portal, and is customizable to the needs of our various investors.
Our Steadily Expanding Presence
Gardner Capital anticipates significant growth in its syndication activities in 2014 and
2015 in both state and federal housing tax credits spanning a 10-state footprint.
• Pending reservations through GCI and partners for over 1,750 LIHTC units
• 31 pipeline deals; 29 of which are 9% tax credits for new construction properties
• Gardner currently working in partnership with 12 third-party developers
• Planned syndication of over $130 million of federal LIHTC equity through 2015
• >$105 million of GA and MO state LIHTC and historic equity controlled in 2014
Our development and syndication efforts are focused regionally, with team members in
Missouri, Georgia, Texas and Florida. As we grow, Gardner remains focused on
conservative deals, controlling expenses and maintaining long term trusted partnerships.
mar , .
Franciscan Villa - St Louis, MO
Federal LIHTC Syndication 3
River Valley - Iola, KS
i.i GARDNER CAPITAL
The Gardner Capital Difference
As a former member of Missouri's tax credit allocation committee, Mark Gardner takes a
unique approach to sponsoring affordable housing deals; the company teams up with
various housing advocates to work on legislative efforts supporting tax credit programs.
Gardner Capital's long track record of successful investments enables our team to lend
expertise to developer and investor partners matched by very few other industry
leaders.
Our company is well-capitalized and conservative, having maintained low leverage and
a strong balance sheet. Gardner has provided capital support to many third party
developers and is able to structure or bridge capital to maintain a low deal risk profile.
We have in-house legal counsel to assist our developer partners with complex deal
issues.
Our proprietary Asset Management platform matches the capabilities of the largest
syndicators in the industry. We continuously improve our systems and procedures.
Key Gardner Capital, Inc. Contacts
Mark Gardner -Founder and President
Michael Gardner -Principal
Drew Goldman -Senior Vice President
Federal LIHTC Syndication 4
1414 E. Primrose, Suite 100 Springfield, MO 06854 (417) 447-1802 [email protected]
8000 Maryland Ave., Suite 910 St. Louis, MO 63105 (314) 561-5901
3344 Peachtree Rd. NE, Suite 2555 Atlanta, GA 30326 (404) 477-0903
i.i GARDNER CAPITAL
i.i GARDNER CAPITAL
TAX CREDIT EQUITY I DEVELOPMENT I MANAGEMENT SERVICES
Gardner Capital: A Fully Integrated Affordable Housing and Renewable Energy Investment Company
Gardner Capital, Inc. is a fully integrated affordable housing developer, investor and syndicator with a historical focus on
state and federal low income housing tax credits, as well as renewable energy production facilities. Beyond investing in
affordable housing and renewable energy production facilities by providing federal and state tax credit equity, Gardner
Seniors The. lack ofaffordable housing is a significant hardship for low-income households preventing them from meeting their other basic needs, such as nutrition and healthcare.'1
Mark Twain /-late/ Apartments Lobbv
Senior Living Hannibal, Missouri
I
Oaks Hotel Apartments Conference Room
Senior Living Excelsior Springs, Missouri
Where we are headed ... As we continue to expand our business, both fiscally and geographically, we have not forgotten the ideals that brought us this far .. . honoring our commitments and providing the best service in the industry.
Our developer clients and investors alike have come to understand that they can rely on us to follow through in good times and bad. And, while honoring commitments is vital, we understand that ease of execution is also crucial, particularly in the complex regulatory environment in which we operate.
Villas Downtown Excelsior Springs, Missouri
I 1:<.1r,T JIC'·,.iTU)':
, We have assembled a team with a broad scope of experience - from
development to property management to finance, and we have
in-house counsel to provide prompt, cost-effective legal advice
on documents, due diligence and compliance matters.
Due Diligence Many investors rely almost exclusively on us to coordinate
the due diligence process. Due dilligence begins with an extensive
underwriting analysis in order to evaluate the economic feasibility
of the proposed project, and includes a comprehensive tax credit
compliance review.
Asset Management Just as vital to a successful tax credit investment
is post-completion asset management to monitor a property's ongoing
financial performance and tax credit compliance. Our Asset Management
team reviews property financials, tracks insurance and taxes, and audits
for tax credit compliance - all summarized in concise periodic reports to
our investors.
Farmington Hills Community Center Winder, Georgia
Families A perfect storm of growing need and nsing costs has led to a critical shortage ofaffordable housing.3
/Vleadowv1ew Estates Community Center
Peculiar, fv1issouri
What we do ... Gardner Capital, and its affiliates, have been investing in affordable housing
and historic preservation projects and syndicating tax credits for over 15 years,
resulting in the creation of thousands of affordable housing units for
low to moderate income families and seniors.
We provide superior service to our clients, helping them manage risk while
obtaining a competitive return on their investment. Our goal is to deliver
an efficient and seamless investment methodology without sacrificing the
critical upfront and ongoing technical assistance demanded by our clients.
On a more global basis, Gardner Capital supports affordable housing by
working closely with the communities in which we invest, and by teaming
with local and national housing organizations to study and sponsor
legislation geared at improving and streamlining tax credit programs.
renter households
i.s in need of affordable housing. But despite the immense need,
the supply of low-cost
ren cal units is actually
shrinking as more units
are converted to serve
higher income tenants
or fall into distepair. 1
Detail of Frisco Station Apartments Senior Living
Joplin, IV/issouri
Allan M. Schnier President
Qualifications
AMS & Associates - Financial Consulting
Mr. Schnier has over 35 years ofreal estate experience, with the emphasis in multi-family affordable rental housing.
He has served as a Department Head in directing Palm Beach County's Housing and Community Development Department; he has worked for a real estate developer developing, building, and managing affordable rental housing; he has worked for various Lenders' (institutional and non-institutional), and he has worked for syndicators of Low Income Housing Tax Credits.
His excellent leadership, interpersonal, and communicative skills allowed him to build consensus in promoting and delivering affordable rental housing for those less fortunate.
In his various capacities during the last 35 plus years, Mr. Schnier was responsible for the creation and financing over 26,000 affordable multi-family rental units and raised approximately $500 million in equity through the Low Income Housing Tax Credit program. Mr. Schnier has shown throughout his professional career a fervent commitment to community service and helping low and moderate-income families.
As Director of Housing and Community Development for Palm Beach County and as a Deputy Director of Miami-Dade County's Office of Community and Economic Development, Mr. Schnier had been involved in formulating and writing public policy initiatives to create affordable housing.
Mr. Schnier has served on various Board of Directors of community service type organization and he is currently a Board of Director of the Palm Beach County Housing Leadership Council; and· Florida Coalition of Affordable Housing Providers. He has 2 Bachelor Degrees, one in Political Science and the other in Urban Planning, as well as a Master's Degree in the Science of Management.
RECENTLY CLOSED BOND TRANSACTIONS
$15,000,000 NEW CONSTR SAN MARCOS, TX
$4, I 00,000 FAMILY/ SECT 8 / REHAB PHOENIX, AZ
$ I 1,076,333 REHAB BELLINGHAM, WA
$4,500,000 FAMILY/ SECT. 8/ REHAB PITTSBURGH; PA
$16,000,000 REHAB WEST PALM, FL
$6,000,000 REHAB BUFFALO, NY
$1,538,380 REHAB FERNDALE, WA
$6,775,000 FAMILY/ SECT 8 I REHAB SUFFOLI<, VA
$6,500,000 SENIOR/ SECT. 8 / REHAB LOS ANGELES, CA
$5,704,940 FAMILY/ SECT 8 / REHAB DENVER, CO
$1,750,000 FAMILY/ SECT. 8 / REHAB FAYETTE, MS
$7,000,000 FAMILY/ SECT 8 / REHAB ST LOUIS, MO
$5,500,000 FAMILY/ SECT 8 I REHAB YAZOO Cl lY, MS
$564,072 REHAB BLAINE, WA
$2,901,720 SENIOR/ SECT 8 / REHAB PEORIA, IL
$6,768,870 REHAB BELLINGHAM, WA
JAMES D. SPOUND
212-277-6437
JSPOUl'lD(nlREDSTOl'JECO COM
$1,996,730 FAMILY/ SECT 8 / F,EHAB DENVER, CO
$923,028 REHAB BELLINGHAM, WA
$3,754,184 SENIOR/ SECT 8 / REHAB PEORIA. IL
$2,800,000 SENIOR! SECT 8 / REHAB BUFFALO, NY
$5,200,000 NEW CONSTR. LAKE WORTH, FL
$25,450,000 FAMILY/ PARTIAL SECT 8 / REHAB NEW ROCHELLE, NY
$6,725,000 FAMILY/ SECT 8 ! REHAB NEWPORT NEWS, VA
$14,800,000 FAMILY/ PARTIAL SECT 8 i NEW CONSTR. SAN ANTONIO. TX
$8,940,376 SENIOR/ FAMILY/ SECT 8 / REHAB PEORIA IL
$2,153,731 F,EHAB BELLINGHAM, WA
$4,963,310 SENIOR/ SECT 8 / REHAB DENVER, CO
$2,510,000 FAMILY/ SECT 8 ! REHAB NATCHEZ, MS
$2,902,720 SENIOR/ SECT 8 I REHAB PEORIA, IL
$1,025,586 REHAB SUMAS, WA
$2,135,000 FAMILY/ SECT 8 / REHAB HATTIESBURG, MS
CODY Z. LANGENESS
212-277-6427
CLANG ENE SStli,RE DS TON EC 0. COM
BRIAN A. RENZI
212-277-7249
LrnEN71(i, 1R.H)STONECO COM
INTRODUCTION
Red Stone Partners is · a privately held national real estate finance company focused on
providing innovative financial products to the affordable housing industry.
Red Stone's professionals combine extensive real estate experience and capital markets
expertise to originate, underwrite, structure, close and manage multifamily debt and equity
investments. Red Stone specializes in tax-exempt and affordable housing finance programs.
Red Stone is capitalized by investment partners including public corporations and institutional
money managers.
Red Stone provides innovative financial solutions to developers and owners who are acquiring,
refinancing or developing multifamily apartment properties.
Our products include:
• Tax Exempt Bond Financing
• Tax Credit Equity
• HUD I FHA Insured Lending
• Structured Finance
Red Stone has established itself as a leader in the field of affordable multifamily real estate
finance. Red Stone has one of the deepest and most experienced investment management
teams in the sector and has closed transactions with the nation's leading multifamily owners and
developers.
The goal of management is to provide the highest level of service to each of our clients and to
tailor financing programs to meet our clients every need.
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REDSTONE™
Red Stone Partners - TAX EXEMPT BOND FINANCING
Red Stone's financing programs are available for single transactions ranging from $5,000,000 to
portfolio transactions in excess of $350,000,000. Our programs are designed to provide
maximum loan proceeds, greater flexibility and certainty of execution. Most loans are closed
within 60 days or less, to meet the client's timeframe.
Products are available to fund new construction, acquisition and substantial rehabilitation or to
provide forward takeout commitments. Programs can be offered as either a fixed rate.or floating
rate execution.
Our programs are available for bond financed properties including:
• HUD Section 8, 221 (d)(3), and Section 236/IRP de-couplings
• Age Restricted/Senior rental housing.
Our core bond financing programs are described below:
Direct Bond Purchase
Red Stone is a direct purchaser of tax exempt revenue bonds. The proceeds of which are used
to finance the new construction, rehabilitation, acquisition, or refinancing of affordable
multifamily housing nationwide. Red Stone acquires both fixed and floating rate bonds.
Bond Credit Enhancement
Red Stone provides credit enhancement on tax exempt bonds for existing, recently completed
or to-be-built properties. This product may be used in connection with 4% LIHTC, 501 (c) 3 or
80/20 properties. Red Stone's credit facilities allow for simple substitution of existing letters of
credit, eliminating the time and cost of a bond refunding.
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REDSTONE™
EXPERIENCE
Red Stone Partners is managed by John Sokolovic and David Levine, two executives with
extensive experiences in multifamily housing finance. Prior to forming Red Stone, together,
they co-founded and managed two joiat ventures which originated in excess of $2.2 billion in
tax-exempt bond financings and experienced zero losses or defaults. The Red Stone
management team also includes five other professionals who were part of these two ventures.
John Sokolovic is Senior Managing Director and member of the Board
of Directors of Red Stone. Mr. Sokolovic is a co-founder of Red Stone
and is responsible for strategic planning and new business development.
Mr. Sokolovic was previously Managing Director/Chief Operating Officer
of Credit Re Mortgage Capital, LLC. Mr. Sokolovic was a co-founder of
this firm and its predecessor, CentRe Mortgage Capital, LLC. Both firms
were affiliates of The Related Companies, LP, where Mr. Sokolovic was
employed for 16 years, specializing in the financing and development of tax-exempt · and
affordable housing properties. Prior to joining Related, Mr. Sokolovic was with the accounting
firm of Kenneth Leventhal & Company. Mr. Sokolovic is a Certified Public Accountant and a
graduate of Queens College of the City University of New York with a Bachelor of Arts degree in
Accounting and Economics.
David T. Levine is Senior Managing Director and member of the Board
of Directors of Red Stone. Mr. Levine is a co-founder of Red Stone
where he directs the company's origination effort and co-heads new
product development for the firm. Mr. Levine was previously Managing
Director/Head of Origination of Credit Re Mortgage Capital, LLC. Mr.
Levine was a co-founder of this firm and its predecessor, CentRe
Mortgage Capital, LLC. Both firms were affiliates of The Related
Companies, LP, where Mr. Levine was employed for 14 years, specializing in tax exempt
financing and affordable housing transactions. Through these two firms and Red Stone, Mr.
Levine has participated in approximately $3.0 billion of tax-exempt bond financings. Mr. Levine
...,,,.._ ~ --- --- ..........
2GrandCentralTower I 140East45th Street,15th Floor I NewYork,NY10017 I 2122971800
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REDSTONE™
completed his undergraduate studies at Emory University and received a Master of Business
Administration from the Wharton School of the University of Pennsylvania.
James D. Spound is President of the Tax-Exempt lending platform of
Red Stone. Previously, Mr. Spound was a Senior Managing Director at
Centerline Capital Group (fka CharterMac and Related Capital
Company) and co-head of its commercial real estate division. He helped
establish Centerline's affordable housing lending practices including a
direct purchase program for tax-exempt bonds that originated in excess
of $3.0 billion of financings between 1998 and 2008. Mr. Spound also
led Centerline's expansion into GSE lending for affordable housing in which it also became a
market leader. Mr. Spound also spent 8 years as a public finance banker at Merrill Lynch & Co.
and Wachovia Capital Markets, was senior real estate consultant at Kenneth Leventhal &
Company and a project manager at New York City's Economic Development Corporation. Mr.
Spound earned a Bachelor of Arts degree from Brown University and a Master of Science in
Management from the Sloan School at the Massachusetts Institute of Technology.
Michael Ricci is Senior Vice President and Chief Financial Officer of
Red Stone, responsible for financial reporting. Mr. Ricci is a Certified
Public Accountant with 20 years experience in the real estate industry.
Prior to joining Red Stone, Mr. Ricci was Vice President and Controller of
Devon Properties Inc. where he was responsible for financial reporting.
Prior to Devon, Mr. Ricci was Assistant Controller of The Related
Companies, LP and was a member of the accounting firm of Kenneth
Leventhal & Company. Mr. Ricci is a graduate of Queens College of the City University of New
York with a Bachelor of Arts degree in Accounting.
2 Grand Central Tower 140 East45th Street, 15th Floor I New York, NY 10017 I 212 2971800
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REDSTONE™
Cody Z. Langeness is Managing Director of Red Stone, where he is
responsible for originating, financial underwriting, structuring and closing of
tax-exempt bond investments and managing Red Stone's investor
relationships. Cody received his Bachelor of Business Administration
degrees in both, Real Estate & Urban Land Economics and Finance, and
Investment Banking from the University of Wisconsin-Madison.
Brian Renzi is Vice President of Red Stone. Mr. Renzi assists in the
structuring and closing of bond financed affordable housing
transactions. He also conducts due diligence for these transactions. Mr.
Renzi received his Bachelor of Business Administration degree in Real
Estate & Urban Land Economics from the University of Wisconsin
Madison.
Christine Merrell is a Chief Underwriter of Red Stone and is responsible
for underwriting and asset management. Ms. Merrell was previously an
Asset Manager with Related Capital Company / CharterMac. During her
tenure with Related Capital / CharterMac she served as both a lender and
limited partnership representative, risk managing and monitoring a
portfolio including in excess of 12,500 affordable (LIHTC, Section-a, HOPE
VI) multi-family units. Prior to joining Related, Ms. Merrell spent six years
an Asset Manager with CreditRe Mortgage Capital, LLC and CentRe Mortgage. Capital, LLC,
both affiliates of the Related Companies. There she was accountable for a portfolio of
approximately 12,000 units in thirteen states. She was additionally responsible for conducting
due diligence and underwriting. Ms. Merrell brings to Red Stone over seventeen years
experience in both the market rate and affordable realms of multi-family housing. She holds a
Bachelor of Science degree in Business Administration from the University of Florida.
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REDSTONE™
Angela Smith is Vice President of Red Stone Partners, responsible for
due diligence and underwriting duties. Prior to joining Red Stone, Ms.
Smith was an independent consultant providing multifamily asset
management and underwriting services to clients including Summit
Equities, Phoenix Realty Group, Red Stone Partners, and Centerline
Capital. Previously, Ms. Smith was employed by Phoenix Realty Group
where she served as Vice President of Asset Management. Representing both General and Limited Partnership interests, she managed a portfolio of market rate and affordable properties in six states and Puerto Rico. Prior to this position, Ms.
Smith spent six years as Vice President of Asset Management for Related Capital (aka CharterMac Capital and Centerline Capital), representing General Partnership interests in the Real Estate Owned Division (REO). In this position she was responsible for the performance of a revolving national portfolio ranging from 25 to 45 LIHTC and HUD Section-a properties. Ms. Smith has over 25 years' experience in multifamily property and asset management, has a Certified Property Manager (CPM) designation from the Institute of Real Estate Management, and is a licensed Real Estate Broker in the State of Florida.
Kiki Mastorakis is Vice President of Red Stone, responsible for loam
servicing and asset management performance. Mrs. Mastorakis
completed her undergraduate studies at Fordham University and
received a Master of Science degree in Real Estate Finance and
Investment from New York University.
2 Grand Central Tower I 140 East45th Street, 15th Floor I New York, NY 10017 212 297 1800 www.redstoneco.com
Monika Astrom is an Underwriting Manager of Red Stone, responsible
for due diligence coordination with a focus on engineering and
environmental issues, as well as various aspects of asset management.
. Prior to joining Red Stone, Ms. Astrom was working for the underwriting
and asset management group of CreditRe Mortgage Capital, LLC.
Previous to CreditRe, Ms. Astrom was employed by the Swedish Office
of Foreign Affairs, working for the Consulate General of Sweden in New
York and the Embassy of Sweden in Beijing, China. Ms. Astrom is a graduate of Stockholm
University, Sweden, where she received a Bachelor of Arts in East Asian Studies and a Master
of Arts in Chinese Philosophy. Ms. Astrom also spent three years as a senior advanced student
in the Philosophy Department of Peking University, Beijing, China.
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REDSTONE™
Red Stone Equity Partners ·TAX CREDIT EQUITY
Red Stone Equity Partners, LLC is an affiliate of Red Stone Partners formed specifically to
invest in Federal tax credits and generate private equity investment for the production of
affordable rental housing for low- income families. Red Stone Partners was formed in 2003 with
capital provided by Prudential Real Estate Investors (PREI), a unit of Prudential Investment
Management and a business of Prudential Financial, Inc. PREI provides global real estate
investment capital and management services to institutional clients in the U.S., Europe, Asia
and Latin America.
Red Stone provides innovative and integrated financial solutions to developers and owners who
are developing, acquiring, or financing properties which qualify for:
• Federal Low Income Housing Tax Credits
• Federal Historic Tax Credits
• New Markets Tax Credits
• State Tax Credits.
Red Stone's professionals have extensive structuring, financing, and underwriting experience
within the tax credit industry. Additionally, Red Stone's high level of service, and its related
products offerings, complement its primary tax credit business. Related products include:
• Early Stage Capital (pre-allocation)
• Acquisition Financing
• Pre-Development Loans
• Combined Equity/Debt Executions in conjunction with Red Stone Partners
Red Stone Equity Partner's corporate headquarters are located in Cleveland, Ohio, with a
regional office in New York.
2 Grand Central Tower 140 East45th Street, 15th Floor I New York, NY 10017 I 212 2971800
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REDSTONE™
Red Stone Equity Partners - TAX CREDIT EQUITY
Profiles of Key Professionals:
Eric McClelland is President and Co-Founder of Red Stone Equity
Partners, LLC, where he has overall responsibility for the firm's strategic
planning, corporate development, and investment activities. Eric has 13
years of experience in real estate investment and LIHTC syndication and
has participated in the acquisition and syndication of approximately $2.5
billion of tax credit equity for numerous institutional clients. Prior to
starting Red Stone Equity Partners, Eric served as Director of Investor
Equity and Director of Acquisitions for a national tax-credit syndicator. His syndication
experience includes proprietary, regional, guaranteed, and national fund placements; and his
acquisitions experience includes LIHTC, mixed-income, historic, state, and variable rate debt
transactions. Eric is a member of the Tax Credit Coalition, the Housing Advisory Group, Urban
Land Institute ("ULI") and is also active with the National Housing and Rehabilitation Association
("NHRA"). Eric is a regular speaker at both national and state housing/real estate conferences.
Eric is a graduate of Baldwin Wallace College and the Cleveland Marshall Law School.
Larry Brattain is Director of Asset Management for Red Stone Equity
Partners, and is responsible for the oversight of all LIHTC property and
portfolio operations nationally. He participates in both the underwriting
and due diligence of all new transactions as well as the investment and
management committees for Red Stone Equity Partners. Prior to joining
Red Stone, Larry spent 15 years at RBC-Apollo Equity Partners and Key
Bank, where he had overall responsibility for the asset management
activities of both firms. Prior to Key Bank, Larry directed all property management operations
for Conifer Realty, a premier developer and manager of affordable housing properties in the
Northeast US and New York. Larry is a graduate of Assumption College in Worcester, MA, and
has been a Certified Property Manager (CPM) since 1982.
2 Grand Central Tower I 140 East 45th Street, 15th Floor I New York, NY 10017 I 212 2971800
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REDSTONE™
Robert Fein, Director, recently joined Red Stone Equity Partners and
assists Mr. McClelland with the day-to-day operations of Red Stone
Equity Partners' investment activity. Mr. Fein works closely,with outside
counsel in overseeing the acquisition of LIHTC projects and is directly
involved in all investor closings. Bob has over 20 years of real estate
experience and more recently, 9 years of syndication experience and
has participated in the acquisition and syndication of approximately $2
billion of tax credit equity. Prior to joining Red Stone, he served as Executive Vice President
and General Counsel of RBC - Apollo Equity Partners. Prior to Apollo, Mr. Fein practiced law
for over 12 years and was a partner with Kahn Kleinman. Bob serves on the board of directors
of the National Housing of Rehabilitation Association. He obtained his BSBA in Accounting from
The Ohio State University, where he also obtained his law degree.
Rob Vest is a Director for Red Stone Equity Partners assisting in the
development and management of investor relationships, the
development and management of developer relationships in the
Sountheast, and the overall management and inverstment decisions if
the firm. Rob has over 15 years of experience in real estate finance,
including 11 years of LIHTC syndication with over $1 billion of
transactions. Prior to joining Red Stone, he served as a Director of RBC
Capital Markets Tax Credit Equity Group, a Vice President of Acquisitions for Wachovia
Securities, and an analyst for Enterprise Social Investment Corporation. Rob is a graduate of
Davidson College and Kean Flagler Business School at the University of North Carolina.
2 Grand Central Tower I 140 East 45th Street, 15th Floor I New York, NY 10017 212 297 1800
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,I: RBC Capital Markets
• ®
Tax Credit Equity Group
RBC Capital Markets' Tax Credit Equity Group (TCEG) provides equity capital by utilizing the Low Income Housing Tax Credit (LIHTC), Historic Tax Credit, New Markets Tax Credit, and various state Tax Credit programs.
Our team of 90 professionals has raised over $5.2 billion of equity, representing more than 770 affordable housing and new markets developments nationwide. These experienced specialists identify strategic investments and design equity structures that serve the long term interests of all our partners, including investors, developers and public authorities. We provide investors with full asset management and reporting services during the investment life-cycle.
Key capabilities include: Low Income Housing Tax Credit Equity
• Investor Asset Management Services • State Tax Credit Equity • Historic Tax Credit Equity • New Markets Tax Credit Equity • Third Party Asset Management Services • Underwriting and Advisory Services
Syndications Group The syndications group enjoys deep relationships with the industry's most active developers and investors. We have expertise in fully leveraging the synergies that exist in matching the needs for affordable housing at the local level with the tax credit investment
National Footprinf
objectives of our investor clients. Our depth of talent in effectively structuring quality tax-advantaged investments, coupled with the strength ofRoyal Bank of Canada (RBC) in world-wide financial markets, makes us a premier tax credit syndicator.
TCEG's team of originators, underwriters and closing specialists works with developers nationwide to provide solid deal execution and follow-up through closing. We deploy substantial resources in all major markets to meet the dynamic development needs of affordable housing sponsors. Our capabilities include the flexibility to close a transaction with TCEG funding within a developer's timeframe.
Our mission is to find quality investment opportunities for our clients and our syndication platform is built on the principle of providing strategic diversification for tax credit investors. We are disciplined in maintaining dual distribution channels -looking to syndicate tax credit investments equally through proprietary funds as well as multi-investor funds. This balance allows us to provide flexible capital to meet the needs of our developer partners and to provide strong investment opportunities to our investor partners. In the last five years, we have worked with 38 different institutional investors and have closed on tax credit investment funds totaling over $2.37 billion.
98 tax credit funds covering more than 770 properties with over 64,000 units of affordable housing in 43 states, Washington D.C. and Puerto Rico
RBC CAPITAL MARKETS
TAX CREDIT FUNDS UNDER ADMINISTRATION'
$5.2
$3.4
1iiil • $ in Billions
Asset Management Expertise
Our asset management team is structured to effectively monitor
our entire portfolio of properties at any stage of the asset life-cycle.
Serving to protect yield and asset quality for both investors and
developers, we employ a diverse team of strong professionals
in four functional areas of expertise:
• Construction and Development • Investor Reporting • Stabilized Properties • Work-Out and Disposition Properties
The certified engineers, property managers, compliance analysts,
CPA's and attorneys who lead and work in these areas develop
valuable relationships with investor and developer clients. This
specialization strategy enhances our ability to deliver best in
class service.
1.888.875.9223 I rbccm.com/tceg
TAX CREDIT EQUITY GROUP
Housing Finance & Tax Credit Syndication
RBC Capital Markets' Housing Group is comprised of the Tax Credit
Equity Group and Housing Finance Group within Municipal Finance.
The Housing Finance team serves as Senior Managing Underwriter
to 20 State Housing Finance Agencies (HFAs). Together, our teams
provide a complete range of housing finance solutions to meet the
needs of developers, investors and state and local HFAs.
RBC Capital Markets RBC Capital Markets is a premier investment bank that provides a
focused set of products and services to corporations, institutional
investors and governments around the world. With more than 7,100
professionals, we operate out of 70 offices in 15 countries across
North America, the U.K., Europe, and the Asia-Pacific region.
We work with clients in over 100 countries around the globe to
deliver the expertise and execution required to raise capital, access
markets, mitigate risk and acquire or dispose of assets. According
to Bloomberg and Dealogic, we are consistently ranked among the
largest global investment banks.
RBC Capital Markets is part of a leading provider of financial
services, Royal Bank of Canada (RBC). Operating since 1869, RBC
is one of the top 15 largest banks in the world and the fifth largest in
North America, as measured by market capitalization. With a strong
capital base and consistent financial performance, RBC is among a
small group of highly rated global banks.
Royal Bank of Canada and RBC Capital Markets Key Facts3
• $812.6 billion in assets • $100.2 billion market capitalization, making it the 5th largest bank
in North America4
• Tier 1 capital ratio of 11.4% • $373.3 billion assets under management
• Global 100: Most Sustainable Corporations in the World
( 6th consecutive year) World Economic Forum
1. As of August 12, 2014 2. Source: RSC Capital Markets 3. AU financial Information is as of May 22, 2014, unless otherwise noted. 4. Bloomberg, as of August 12, 2014. This communication Is not an offer, solicitation, commitment
or recommendation to buy or sell any security. This communication is not, and under no circumstances should be construed as, a solicitation to act as securities broker or dealer In any jurisdiction by ~ny person or company that
Is not legally pennltted to carry on the business of a securities broker or dealer ln that Jurisdiction. All lnfonnatlon contained In this communication constitutes RBC Capital Markets' Judgment as of the date of this communication,
and Is subject ta change without notice and is provided in good faith but without legal responsibility. The material contained herein is not a product of any research department of RSC Capital Markets or any of Its affiliates. Nothing
herein constitutes a recommendation of any security or regarding any issuer; nor is it Intended to provide Information sufficient to make an Investment decision. The Information contained In this communication has been compiled
by RBC Capital Markets from sources believed ta be reliable, but no representation or warranty, express or implied, Is made by RBC Capital Markets, its affiliates or any other person as to Its accuracy, completeness or correctness.
RBC capital Markets is not acting as a fiduciary or as a municipal, financial, commodity or Investment adviser to the Obligated Person or any other person or entity. Toe information provided Is not intended to be and should not be
construed as •advice'" within the meaning of Section 15B of the Securities Exchange Act of 1934. Nothing In this communication constitutes legal, accounting or tax advice or individually tailored investment advice. This material
has been prepared without regard to the individual financial circumstances and objectives of persons who receive it and such Investments or seivices may not be suitable for all investors. Past perfonnance is not a guide to future
perfonnance, future returns are not guaranteed, and a loss of original capital may occur. Potential investors are advised to consult with their own legal, accounting, tax, financial and other advisors, as applicable, to the extent
appropriate. This document may not be reproduced, disclosed, distributed or summarized, whole orin part, to any third party without the prior consent of RBC capital Markets. To the fullest extent permitted by law neither RBC Capital
Markets, nor any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the infonnation contained herein. RBC Capital Markets Is a
registered trademark of Royal Bank of Canada. RBC Capital Markets is the global brand name for the capital markets business of Royal Bank of Canada and Its affiliates, including RBC Capital Markets, UC (member FINRA, NYSE and
Having successfully_ assisted and represented numerous PHAs in their. revitalization and development efforts for over a_ decade, CVR can delfyer _the expertise and vision_ you need for such engagements. We
. have managedovet $1 billion in HOPE VI Redevelopment projects,assurii:lg cotriplian~e with development _ -__ ·•-milestones andHUDtequireD1ents. Undetthe modernization and rapitalimproveineritptogr~s. CVR h.ts . _- •.- administered over $700 nilllion in propertyrehabilitation, providingproi:urem~t. contrilctadmhristration, . _. _- and construction manageJ:nent_services: · -
CVR Associates ha; ~~cces~fully man~ged Capital-Fund program activities for itsd.ients, ranging fu>m preparing mission statements and strategic plan development, to operational assessments and improvement plans, to direct trianagement of all modernization and development activities and programs.
Mixed Fin~nce Development Consulting & -P(oject Implementation CVR Associates has the.necessary talent arid experience to successfully assist
. with revitalization_aJid development effo$:Thesetvices we provide are specific - to.each client's uniquerieeds.Services include:· - -
» - -Developer partner selection -. -» Contract negotiation and ~nttact ov.efsighf . · » Devel«>pment of a:feaSJ"ble mixed financepi:ogrant_andbudget_ . » Prqm:ation of HUD -rental and/or home ownership prografu tenn. -
» Assuring compliance with HUD pro"gram and legal document requirements throughout the construction period
. ., .
HOPE VI Program Management Services CVRpersonnelhavebeeninvohedwiththeHOPEVlprogramsinceitsinceptlon and have ~cessfully managed all iJSPeds ofover a dorm HOPE VI projects . nationwide. By ex:clusiyelyrepresentingtheinterests of PHAs, CVR can focus on _
-delivering~ superior level of efficiency and ex:pertise. This approach continues' . to result in awanl-~winnjng projedsJor our clients. Services range froin issue~
Financial Advisory Services _ _ _ _ _ __ -cvRhas extensive experience in real estate financing, including:
>> •·- Low Inconie Housing TuxCredi~ in muitiple states » _ lfil and private mortgage tools · » · fyderal ilonidoan Bartkprowams If Tux increment Financing •. _--
)) • -. Section lOSLoimFfuancing _ _ _ » - HO~ CDBG and other localfirtancing. .
We have assisted in securing over $500 nilllion iri real estate financing for affordabie housing; CVR works closely witli PHAs in_ leveraging limited resources; includmg HOPE VI ftmds, ·capital Funds, an~ ,Replacement Housing Funds.
Modernization & Capital ,Program Administration
- - CVR works with large PHAs to manage and provide technical assistance in. -_ the management ofModemitation Programs. We have o~een the modern.,. 11.atioil of ~ore than 60,000unitswithbudgets exceeding $700 million. We do -
- it all~ develop capital plans bas~d oli physical needs assessments~ procure _ design andconstructi()nprofessionalsi and provide:reiated contract adminis- _- · tration services; arid capital p,rograin budget miuiagement Iii this. role,.CVlt
- -~suresthl!.tth~entirepro~esi from plaiming,~curemerit.andionstruc- · tiori~to closeout,;... IS perfui:med on time, ~thiri bud.get; and in:c:ompliance . . _-
CVR ASSOCIATES is a dynamic, results-oriented management
consulting firm comprised of accomplished professionals with
... ".pistinguished careers in the field ofaffordable housing. Founded
,1 1995, the CVR team offers real life experience and extensive
knowledge of both the public and private sector. CVR's focus
is to assist clients in realizing organizational efficiencies by
providing technical assistance and program management to
Public Housing and Housing Choice Voucher Programs.
FOUNDED on Experience BUILT
on Performance
Nith a clear vision of the client's goals and objectives, CVR forms a seamless working relationship built ontrustand cooperation,
CVR's dedicated consulting teams are committed to meeting our clients' needs. Our technical expertise, interpersonal skills, and understanding of the uniqueness of each organization enable us to effectively consult with agency personnel, agency clients, and community officials.
CVR ASSOCIATES specializes in providing management solutions for affordable housing programs including:
» Housing Choice Voucher Program ......................................................................................................................................................................................................
CVR is certified by the,General ~ervicesAdmiiiistratii>ii(~SAh>ftµ¢~.S.g9v.~entiis an llpproved .· contractor. to provide consuiting: services in the ar~~: ~fManijement Opemtionak an4 Business
Attached find the Warranty Deeds for South Bay Villas and Marshall Heights.
RETURN TO: Will Call Box 69/mmi THIS INSTRUMENT PREPARED BY: Gary Walk, Esq. Ciklin Lubitz Martens & O'Connell 20th Floor- 51S North Flagler Dr. West Palm Beach, Florida ~3401
THIS WARRANTY DEED made as of this _a. day of February, 2013 by NOAH DEVELOPMENT CORPORATION, a Florida non profit corporation, with an address at 601 Covenant Drive, Belle Glade, Florida 33430, hereinafter called the "Grantor", to PALM BEACH COUNfY HOUSING AUTIIORITY, a special district of the State of Flori~ with an address 3432 W. 45th Street, West Palm Beach, Florida 33407, hereinafter called "Grantee"; (Wherever used herein the terms "Grantor'' and "Grantee" include all the parties to this instrument and their respective heirs, legal representatives, successors and assigns, as the case may be.)
WIT·NESSETH:
That the Grantor, for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other valuable considerations, receipt whereof is hereby acknowledged, hereby grants, bargains, sells, aliens, remises, releases, conveys and confirms unto the Grantee, all that certain land and the improvements thereon located in the County of Palm Beach, State of Florida and more particularly described as follows:
THE NORTH 635.69 FEET OF TRACT 35 OF nm AMENDED PLAT AND RESUBDMSION OF SECTION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF THE TOWN OF SOUTH BAY, CITY OF sourn BAY, PALM BEACH COUNTY, FLORIDA; AS RECORDED IN PLAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, LESS AND EXCEPTING nm NORTH 33 FEET THEREOF; AND ALSO LESS AND EXCEPTING THE FOLLOWING PARCEL OF LAND:
1 CIKLIN LUBITZ MARTENS & O'CONNELL 20th Floor- 515 North Flagler Or., West Palm Beach, Florida 33401 Mmi 2/1 H:\WPDOCS\N439 - NOAH\50698-PBC HSO\CLGDOCS\W AR-DEED-SPECIAL.DOC
THE NORTH 183 FEET OF TRACT 35 OF THE AMENDED PLAT AND RESUBDMSION OF SECTION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF TIIB TOWN OF SOUTII BAY, CITY OF SOT.JIB BAY, PALM BEACH COUNTY, FLORIDA, AS. RECORDED IN PLAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNfY, FLORIDA, THAT IS LYING EAST OF TIIB SOUTHERLY PROLONGATION OF TIIE EASTERLY RIGHT-OFWAY OF NORTHWEST 9TII A VENUE.
nns conveyance is made subject to the following:
1. Zoning and/or restrictions or prohibitions imposed by governmental authority.
2. Real estate taxes and assessments levied after the year 2012.
3. All other covenants, conditions, restrictions, reservations, easements and other matters of record, if any, which may now affect the aforedescn'bed property, none of which are hereby reimposed.
TOGETHER with the improvements thereon and all the tenements, hereditaments and appurtenances thereto ~elonging or in anywise appertaining.
TO HA VE AND TO HOLD, the same in fee simple forever.
AND the Grantor hereby covenants with said Grantee that except as noted above, at the time of delivery of this Special Warranty Deed, the premises were free from all encumbrances made by the Grantor, except for taxes accruing subsequent to December 31, 2012 and that the Grantor will warrant and defend the same against the lawful claims and demands of all persons claiming by, through or under Grantor, but against none other.
IN WITNESS WHEREOF, the said Grantor bas hereunto set her hand and seal the day and year first above written.
In the presence of: NOAH DEVELO.-.ru;,.i., a Flori
2 C1KLIN LUBITZ MARTENS & O'CONNELL 20th Floor-515 North Flagler Dr., West Palm Beach, Florida 33401 Mmi 2/1 H:\WPDOCS\N439 - NOAH\50698-PBC HSG\CLGDOCS\WAR-DEED-SPECIAL.DOC
STATE OF FLORIDA
COUNTY OF PALM BEACH
Before me, the undersigned authority, personally came and appeared EDNA MCCLENDON, as President of NOAH DEVELOPMENT CORPORATION, a Florida non profit corporation, to me well known and known to me to be the individual described in and who executed the foregoing instrument and acknowledged to and before me that he executed said instrument for the purposes therein expressed as an due and lawful act of said corporation, by due and regular corporate authority.
. WITNESS my hand and official seal in the County and State last aforesaid this ~ dayofFebruary, 2013.
Notary Public, ~te of Florida at Large My commission expires:
3 CIKLJN LUBITZ MARTENS & O'CONNELL
20th Floor-SIS North Flagler Dr., West Palm Beach, Florida 33401 Mmi 2/1 H:\WPDOCS\N439 -NOAH\50698-PBC HSG\CLGDOCS\WAR-DEED-SPECIAL.DOC
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SCHEDULE "A" PARCEL l:
West half of Tract land the north half of the East half of Tract 5, Block 3, MODBL LAND COMPANY'S subdivision of Section 1, Township 44 south, Range 42 East, known as Palm Beach Plantations, according to the plat thereof on file in the Of e of the Clerk of the Circuit court in and for Palm Beach Cou , recorded in Plat Book JO, page 201
d ~,,sot running with the land for the purpose of ingress and ' ~ over and upon the north ten feet of the following desc ffl;:property:
The sou~h e of the east half of Tract 5 of Block 3, MODEL LAND co subdivision of Section 1, Township 44 South, Range 42 known as Palm Beach Plantations, according to the plat eof on file in the office of the Clerk of the Circuit Cour~~d for Palm Beach County, Florida, recorded in Plat Book~'%ge 20.
LESS the Nortn~et of the west half of Tract land of the North half of t~E•· half of Tract 5, Block 3, MODEL LAND COMPANY'S subdiv of Section 1, Township 44 South, Range 42 East, known as~ alm Beach Plantations, according to the Plat rec:orded in Pl~ok 10, page 20.
PARCEL 2: @ Tract 36 of the TOWN OF~ BAY, FLORIDA, located in Seetion 14, Township 44 South,~ 6 East, according to the Amended Plat of said Seetion exec · the Florida State Drainage Land Ccmpany and filed in ~.LJ~~l94- 7, page 46, in the Office of the Clerk of the Circuit . of Palm Beach County, Florida, ,;-,,~, LISS· the SOUi:h .4,oa .f.-t of '8&~~ 36.
SUBJECT, however, to taxes subs~ to the year 19721 to all applicable governmental regulat~~2to rastriations, reservations and easements of record (it ~g the intent hereof to reimpose the same), to that aar ortgage Indenture and Deed of Trust between Palm Beach Co ty Leased Housing Corporation, Inc., and Bay National Bank a~t Company, As Trustee, in the original principal :; __ f $4,415,000.00 as recorded in the PUblic Records of Palm Dpjta county, Florida and bearing Clerks Number /.:J '/:1',2, _and ~ ble Tax Receipt Number~714a1 1 and to that cer'taI'n Lease en Palm Beach county Leased Housing corporation, Inc.,~\~•~li!.-~~~~-m Beach County Housing Authority as recorded in the Pub le ds of Palm Beach County, Florida, and bearing Clerk's numbe~m.al:f:lr,,;
ROBERT VON, PRESIDENT STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 1604
CHRISTA B. SNYDER ASSOCIATE APPRAISER STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ 3178
September 2, 2014
Mr. Van Johnson, Executive Director Palm Beach County Housing Authority 3432 West 45th Street West Palm Beach, Florida 33407
1331 SUNDIAL POINT WINTER SPR1NGS, FLOR1DA 32708
TEL 407.875.6933 FAX 407.875.1061
Re: The rehabilitation and construction of a 131 unit affordable apartment project designated for families (general population) located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Meridian File No: 14-PFE
DearMr. Johnson:
As requested, we have made the necessary investigations and analyses to appraise the new and rehabilitated South Bay Villas apartment complex. The South Bay Villas apartments will consist of two former projects: Marshall Heights and South Bay Villas. Currently, Marshall Heights is a 66 unit property located at 1001 Jasmine Court, South Bay, Florida 33493. These improvements are currently 100% occupied and are to be demolished and· subsequently rebuilt. The existing South Bay Villas consists of a 65 unit apartment project located at 110 Harrelle Drive, South Bay, Florida 33493. These improvements are currently not occupied and are to be substantially rehabilitated. The new and rehabilitated improvements are to be known as South Bay Villas and will total 131 un,its, with one, two, three and four-bedroom unit types situated on a 10.64 acre site. The property will be considered a Class B improvement in the local area. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
The subject property is further described and identified by both legal and narrative descriptions within the text of the following appraisal report.
The purpose of this appraisal was to estimate the market value of the fee simple interest in the subject property as restricted by the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP and ACC programs. We have provided the values of the property upon competition and upon stabilization. The date of valuation is August 18, 2014. The date of completion is estimated at March 2017, the date of stabilization is estimated at in or about March 2017.
The intended use of this appraisal is for internal decision making. The intended user of this report is Palm Beach County Housing Authority. No other use or users are intended.
Market value, fee simple interest and other appraisal terms are defined within the text of the following appraisal report.
General Assumptions and Limiting Conditions concerning the valuation of the subject property can be found following this section of the report. This is an Appraisal Report prepared under Standards Rule 2-2(a) and performed under Standard Rule 1 of the Uniform Standards of Professional Appraisal Practice (USPAP).
MR. VAN JOHNSON SEPTEMBER 2, 2014 PAGE Two
We have formed the opinion that the market value of the fee simple interest in the subject property as restricted by the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP and ACC programs, upon completion, in or about March 2017, including $260,000 in personal property, and with market financing, based on market conditions prevailing on August 18, 2014, will be:
EIGHTEEN MILLION TimEE HUNDRED TWENTY mousAND DOLLARS ($18,320,000)*
We have formed the opinion that the market value of the fee simple interest in the subject property, as restricted by the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP and ACC programs, upon stabilization in or about March 2017, including $260,000 in personal property, and with market financing, based on market conditions prevailing on August 18, 2014, will be:
EIGHTEEN MILLION TimEE HUNDRED TWENTY mousAND DOLLARS ($18,320,000)* ·
* Please refer to the General Assumptions, General Limiting Conditions, Extraordinary Assumptions and Extraordinary Limiting Conditions on which this value estimate is based.
The following report was prepared in conformity with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. As such, it conforms to the Uniform Standards of Professional Appraisal Practice (USP AP) that became effective January 1, 2014. This report meets or exceeds the guidelines of Federal, Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI of FIRREA), as amended, as issued by the Office of the Comptroller of Currency.
Based upon the steps and investigations taken to appraise the subject property, we are of the opinion we have complied with the Competency Provision of USP AP, as required by the FIR.REA Act of 1989, as amended. This letter of transmittal precedes the appraisal report, further describing the subject property and containing the reasoning and pertinent data leading to the final value estimates.
Respectfully submitted, Meridian Appraisal. Group, Inc.
Robert Von, President State-Certified General Real Estate Appraiser RZ 1604
Christa B. Snyder, Associate Appraiser State-Certified General Real Estate Appraiser RZ 3178
RV:CBS:dmh
TABLE OF CONTENTS
CERTIFICATION ..................................................................................................................................... 1 EXECUTIVE SUMMARY ......................................................................................................................... 3 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS ................................................................ 5 DEFINmON OF IMPORTANT TERMS ................................................................................................. 7 STATE LOCATION MAP ......................................................................................................... .-............... 9 LOCATION MAP .................................................................................................................................... 10 AERIAL MAP ......................................................................................................................................... 11 SUBJECT PHOTOGRAPHS ................................................................................................................... 12 SUBJECT PROPERTY DATA ................................................................................................................ 13 SITE PLAN .............................................................................................................................................. 15 SITE ANALYSIS ..................................................................................................................................... 16 FLOOR PLANS AND ELEVATIONS ..................................................................................................... 18 IMPROVEMENT ANALYSIS ....................................... '. ......................................................................... 24 HIGHEST AND BEST USE ANALYSIS ................................................................................................. 26 MARKETABILITY AND EXPOSURE PERIOD .................................................................................... 28 VALUATIONPROCEDlJRE .................................................................................................................. 29 VALUATION SUBJECT TO INCOME AND RENTAL RESTRICTIONS .................................... 30 INCOME CAPITALIZATION ANALYSIS ............................................................................................. 31
ADDENDA APPRAISERS' QUALIFICATIONS ENGAGEMENT LETTER LEGAL DESCRIPTION 2014 RENTAL RATES AND INCOME LIMITS DEVELOPER'S PROFORMAS REGIONAL OVERVIEW APARTMENT MARKET OVERVIEW
14-PFE MERIDIAN APPRAISAL GROUP, INC.
CERTIFICATION
The undersigned appraisers hereby certify that to the best of their knowledge and belief:
• the statements of fact contained in this appraisal report (upon which the analyses, opinion and conclusions expressed herein are based) are true and correct.
• the analysis, opinions and conclusion in the report are limited only by the assumptions and limiting conditions and any extraordinary assumptions if any, set forth, and are the personal, unbiased professional analyses, opinions and conclusions of the appraisers.
• the appraisers have no present or prospective interest in the subject property and have no personal bias with respect to the parties involved.
• the appraiser's compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.
• the reported analyses, opinions and conclusions were developed and this appraisal report has been prepared in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Standards Board of the Appraisal Foundation. The use of this report is subject to all regulations issued by the appropriate regulatory entities regarding the enactment of Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA).
• we do not authorize the out-of-context quoting from or partial reprinting of this appraisal report and neither all nor part of this appraisal report shall be disseminated to the general public by the use of any public communications media without the prior written consent of the undersigned appraisers.
• use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• the undersigned President and Senior Appraiser certify that they have personally inspected the subject property and the comparables used within this report.
• no one other than the undersigned prepared the personal unbiased professional analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report unless and except as acknowledged in this report.
• the appraisers have performed within the context of the competency provision of the Uniform Standards of Professional Appraisal Practice.
• this appraisal assignment was not made, nor was the appraisal rendered, on the basis of a requested minimum valuation, specific valuation or an amount which would result in approval of a loan.
• As of the date of this report, Christa Snyder, Associate Appraiser has completed the Standards and Ethics Education Requirement of the Appraisal Institute for Associate Members.
• Robert Von, President and Christa B. Snyder, Associate Appraiser, have performed a market analysis involving the subject property of this report within the three year period immediately preceding the acceptance of this assignment.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 1
CERTIFICATION (CONT'D)
Property Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Date of Valuation and Date of Report The date of valuation for the subject is as of August 18, 2014, our most recent date of inspection of the subject property. The date of this report is September 2, 2014.
Final Value Conclusions*
1~--------··-----l--Ya!ttc __ E_sti1~1ated Market Value U on Com letion As Restricted Market Value, U on Stabilization, As Restricted
Interest Apprnised - . . .
Date of Value Estimated [
Value7' 1
March2017 March2017
$18,320 000 $18,320 000
-.. -------- -----1
* Please refer to the General Assumptions, General Limiting Conditions, Extraordinary Assumptions and Extraordinary Limiting Conditions on which this value estimate is based.
Certified by Meridian Appraisal Group, Inc.
/'Z~u-Robert Von, President State-Certified General Real Estate Appraiser RZ 1604
Christa B. Snyder, Associate Appraiser State-Certified General Real Estate Appraiser RZ 3178
14-PFE MERIDIAN APPRAISAL GROUP, INC. 2
EXECUTIVE SUMMARY
Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Type of Property The South Bay Villas apartments will consist of 131 new construction and rehabilitated rental units. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
Highest & Best Use The highest and best use in the "as if vacant" is multifamily development. The proposed improvements consist of multifamily housing that is generally consistent with the ideal improvements.
Site Description The subject site is generally rectangular in shape and contains 10.64 acres. The subject has approximately 496 feet of frontage along the south side of Palm Beach Road. Currently, the subject has two access points to each of the properties. After construction, access will be via one point along Palm Beach Road which is deemed adequate. The Marshall Heights portion of the subject property is zoned R-3, Multiple Family District; while the South Bay Villas portion is zoned R-1, Single Family Residential. The future land use for both p~cels is Residential Low Density which permits a maximum density of six units per acre. The existing improvements represent a non-conforming use. We have assumed that the subject will be approved and developed as proposed.
Qualified Census Tract (QCT): Yes, (12099008302)
Difficult to Develop Area (DDA): No, (West Palm Beach-Boca Raton HMFA)
Improvement Analysis The subject will consist of 131 apartment units within 19, two story apartment buildings.
The total area within the units is 124,239 square feet, resulting in an average unit size of 948 square feet. The indicated density is 12.31 units per acre.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 3
EXECUTIVE SUMMARY (CONT'D)
Unit amenities will include refrigerators, oven/rang~s, dishwashers, disposals, ceiling fans, washer/dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms. Comm.on amenities will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield.
Interest Appraised Fee Simple
Estimated Exposure Period 12months
Date of Valuation and Date of Report The date of valuation for the subject is as of August 18, 2014, our most recent date of inspection of the subject property. The date of this report is September 2, 2014.
Final Value Conclusions*
i ------! Value Estimated
Market Value U on Com letion As Restricted Market Value U on Stabilization As Restricted
* Please refer to the General Assumptions, General Limiting Conditions, Extraordinary Assumptions and Extraordinary Limiting Conditions on which this value estimate is based.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 4
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report has been made with the following general assumptions:
1. The legal description used in this report is assumed to be correct.
2. The appraisers have made no survey of the property and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the property.
3. No responsibility is assumed for matters oflegal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable.
4. Information and data furnished by others is usually assumed to be true, correct and reliable. When such information and data appears to be dubious and when it is critical to the appraisal, a reasonable effort has been made to verify all such information; however, the appraiser assumes no responsibility for its accuracy.
5. All mortgages, liens, encumbrances, leases and servitude have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management.
6. It is assumed that there are no hidden or unapparent conditions of.the property, subsoil, or structures rendering it more or less valuable. No responsibility is assumed for such conditions or for engineering that may be required to discover them.
7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report.
8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in the appraisal report.
9. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.
10. It is assumed that the utilization of the land and improvements will be within the boundaries or property lines or the property described and that there will be no encroachments or trespass unless noted within the report.
11. The dates of value to which the opinions in this report apply are reported herein. The appraiser assumes no responsibility for economic or physical factors occurring at some later dates that may affect the opinions stated herein.
12. Unless otherwise stated in the report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, of for any expertise or engineering knowledge required to discover them. The reader is urged to retain an expert in this field, if desired.
This appraisal report has been made with the following general limiting conditions:
1. The appraisers will not be required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made thereof.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 5
GENERAL AsSUMPTIONS AND LIMITING CONDITIONS (CONT'D)
2. Possession of the report, or copy thereof, does not carry with it the right of publication. It may not be used for any purposes by any person other than the party to whom it is addressed without written consent of the appraiser, and in any event only with proper written qualification and only in its entirety.
3. The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for the land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.
4. No environmental impact studies were requested or made in conjunction with this appraisal, and the appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research or investigation.
5. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales or any other media without written consent and approval of the appraisers. Nor shall the appraiser, firm or professional organization of which the appraiser is a member be identified without written consent of the appraisers.
6. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing General Assumptions and General Limiting Conditions.
This report has been made with the following Extraordinary Assumptions and Limiting Conditions:
1. We have relied upon verbal representations provided by leasing agents, property managers, brokers and others regarding rental and occupancy rates and project-specific information for the comparable properties. We have assumed this information to be accurate and reserve the right to amend our conclusions if it is found that the information was misrepresented.
2. We have relied upon the developer's estimate for contract rents under the HUD HAP contract and ACC contract as presented herein. The actual rents will be set by HUD through a subsidy layering system, and the actual contract and contract rents were not available as of the date of this report. We have relied upon the !ieveloper's estimate of contract rents herein, and reserve the right to amend our conclusions if these rents change.
3. We have assumed that the subject will be developed as proposed.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 6
DEFINITION OF IMPORTANT TERMS
Market V alue1
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specified date and passing of title from seller to buyer under conditions whereby:
• Buyer and seller are typically motivated; • Both parties are well informed or well advised and each acting in what they consider their own
best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
ffighest and Best U se2
The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum profitability. Alternatively, the probable use of land or improved property- specific with respect to the user and timing of the use - that is adequately supported and results in the highest present value.
Fee Simple Estate3
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and es cheat.
Leased Fee Interest4
An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.
Leasehold Interest' The interest held by the lessee (the tenant or renter) through a lease transferring the rights of use and occupancy for a stated term under certain conditions.
Going-Concern V alue6
1. The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern.
2. The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going-concern value when it exists and is recognizable.
"Bulk" Market V alue7
The value of multiple units, subdivided lots, or properties in a portfolio as though sold to a single buyer in one transaction. Sometimes called bulk sale value.
In some appraisal circles, this value estimate is known as "Bulk" value - the value of a property sold in bulk to one investor who intends to undertake the sellout of the individual units to those who will ultimately use them.
"Bulk" value appears to comply with the value requisites in the former Federal Home Loan Bank Board (FHLBB) Memorandum R-41c, Subtitle 15, Page 7.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 7
DEFINITION OF IMPORTANT TERMS (CONT'D)
"Report the market value to a single purchaser, as of the date of completion, for all properties, wherein a portion of the overall real property rights for physical assets would typically be sold to its ultimate users over some future period. Valuations involving such properties must fully reflect all appropriate deductions and discounts, as well as the anticipated cash flows to be derived from the disposition of the assets over time. Appropriate deductions and discounts are considered to be those which reflect all expenses associated with the disposition of the realty, as of the date of completion, as well as the cost of capital and entrepreneurial profit."
The topic of "bulk" value is also consistent with the Interagency Appraisal and Evaluation Guidelines (December 2, 2010) requirement that an appraisal "must analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non-market lease terms, and tract developments with unsold units".
Liquidation V alue8
The most probable price that a specified interest in real property is likely to bring under the following conditions: • Consummation of a sale within a short time period (we would add: "within a severely limited future
marketing period specified by the client"). • The property is subjected to market conditions prevailing as of the date of valuation. • Both the buyer and seller are acting prudently and knowledgeably. • The seller is under extreme compulsion to sell. • The buyer is typically motivated. • Both parties are acting in what they consider to be their best interests. • A normal marketing effort is not possible due to the brief exposure time. • Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. • The price represents the normal consideration for the property sold, unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.
Definition Sources I Title XI - Financial Institutions Reform Recoyezy and Enforcement Act of 1989 ("FIRREA"l, (Pub.L.No.101~73, Title XI, 103 Stat. 511
(1989); 12 U.S.C. 3310, 3331-3351, as subsequently amended; Interauncy Arumusal and Evaluation Guidelines dated December 2, 2010; The Arun:a,isal of Real Estate, Appraisal Institute, 14th Edition, 2013, Page 59 The Arun:a,isal of Real Estate, Appraisal Institute, 14th Edition, 2013, Page 333 The Dictionary of Real Estate Appraisal, Appraisal Institute, 5th Edition, 2010, Page 78 The Dictionary of Real Estate Arun:a,isal, Appraisal Institute, 4th Edition, 2002, Page 161. The Dictionary's 5th Edition definition ofleased fee interest (Page 111) is "A.freehold (ownership interest) where the possessory interest has been granted to another party by creation of a landlord-tenant relationship (i.e. a lease)." While both are accurate, we consider the Dictionary's 4th Edition definition to be more descriptive and easily understood. The Dictionary of Real Estate Arun:a,isal, Appraisal Institute, 4th Edition, 2002, Page 162. The Dictionary's 5th Edition definition ofleasehold interest (Page 111) is "The tenant's possessory interest created by a lease." While both are accurate, we consider the Dictionary's 4th Edition definition to be more descriptive and easily understood. The Dictionary of Real Estate Appraisal, Appraisal Institute, 5th Edition, 2010, Page 88 The Dictionary of Real Estate Appraisal, Appraisal Institute, 5th Edition, 2010, Page 24 The Dictionary of Real Estate Arun:a,isal, Appraisal Institute, 5th Edition, 2010, Pages 115-116
14-PFE MERIDIAN APPRAISAL GROUP, INC. 8
14-PFE MERIDIAN APPRAISAL GROUP, INC. 9
I . I _J
14-PFE
LOCATION MAP
·"' l fT1 ' .... i i!!j ··l ![
·:-======::::::===-======;,=,.:;11- r"': I
MERIDIAN APPRAISAL GROUP, INC.
! ~----- - ·-
10
AERIAL MAP
14-PFE MERIDIAN APPRAISAL GROUP, INC. 11
SUBJECT PHOTOGRAPHS
WEST VIEW OF PALM BEACH ROAD; SUBJECT EAST VIEW OF PALM BEACH ROAD; SUBJECT
14-PFE
ON LEFT ON RIGHT
VIEW OF MARSHALL HEIGHTS FROM PALM BEACHROAD
INTERIOR VIEW OF SOUTH BAY VILLAS
INTERIOR VIEW OF MARSHALL HEIGHTS
TYPICAL BUILDING SOUTH BAY VILLAS
MERIDIAN APPRAISAL GROUP, INC. 12
SUBJECT PROPERTY DATA
Purpose and Date of Appraisal The purpose of this appraisal was to estimate the market value of the fee simple interest in the subject property, as restricted by the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP and ACC programs~ We have provided the value of the property upon completion and upon stabilization. We have provided these values as a restricted rate property. The date of valuation is August 18, 2014. The date of completion is in or about March 2017, the date of stabilization is in or about March 2017.
Intended Use and Users of Appraisal The intended use of this appraisal is for internal decision making; this valuation assignment was developed consistent with the scope specified by Palm Beach County Housing Authority. The intended user of this report is Palm Beach County Housing Authority. No other use or users are intended.
Type The South Bay Villas apartments will consist of 131 new construction and rehabilitated rental units. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida 33493.
Scope of the Appraisal The scope of this appraisal included the analysis of market conditions for multifamily apartment buildings in the subject market. This analysis included investigations of existing and proposed developments that would impact upon the rental income/ expenses of the subject property, as well as an analysis of comparable properties' income and expense histories. Comparable rental data was gathered from personal property inspections and telephone interviews. Additionally, we have analyzed data gathered from comparable apartment building sales that were obtained from the county tax rolls and from other Florida markets with sales of similar apartment projects. We also compiled data from local planning and zoning departments, the county property appraisers' records, and other government departments.
As directed by the client, only the Income Approach was used to value the property as a restricted rate project. The Cost Approach and Sales Comparison Approach were not applied.
Legal Description The subject property consists of two separate parcels. The legal descriptions for the parcels per the last deeds of transfer can be found in the addenda of this report.
Property Rights Appraised The interest appraised in the property is the fee simple interest. The future leases on the subject property will not result in a leasehold value, so the value of the leased fee estate is estimated to be similar to the fee simple value estimate.
Ownership and Three-Year History of Subject According to the Palm Beach County Tax Rolls, the subject property is currently owned by Palm Beach County Housing Authority. The Marshall Heights portion of the subject project last sold in January 1973 for $100,000. The South Bay Villas portion of the property last sold in February 2013 for $1,000,000 per O.R. Book 25785,
14-PFE MERIDIAN APPRAISAL GROUP, INC. 13
SUBJECT PROPERTY DATA (CONT'D)
Page 1256. The seller was Noah Development Corporation, a non-profit corporation. There have been no other transfers of the property within the last three years.
There have been no other transfers of the property within the last three years.
Flood Zone According to the Department of Housing and Urban Development, FEMA has not completed a study to determine flood hazard for the selected location. Therefore, a flood map has not been published at this time and the applicable flood zone is indeterminate.
Zoning The Marshall Heights portion of the subject property is zoned R-3, Multiple Family District; while the South Bay Villas portion is zoned R-1, Single Family Residential. The future land use for both parcels is Residential Low Density which permits a maximum density of six units per acre. The existing improvements represent a non-conforming use. We have assumed that the subject will be approved and developed as proposed.
Assessment and Taxes Current Taxes The subject consists of two separate parcels and the 2013 taxes are calculated below.
Total Assessment $3,387 664 Exemption $3 387 664 Taxable Assessed Value $0 2013 Millruze Rate $25.1727 2013 Gross Ad Valorem Taxes $0 Non Ad Valorem Taxes $363 Total Gross Taxes $363 Net Taxes w/4% Discount for payment in November $348 Net Taxes Per Unit $3
Up to a 4% discount is available if taxes are paid in November, decreasing 1% per month. The 2013 taxes are paid; there are no delinquent taxes. Both properties are owned by the Palm Beach County Housing Authority and are exempt. With tax-exempt status, only non-ad valorem and personal property taxes apply. The subject has non-ad valorem taxes in the amount of $3 per unit. Personal property is estimated to be assessed at $260,000. This will result in a tax of $35 per unit. Total taxes as a restricted rate project is estimated at $38 per unit, or $4,978 annually.
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14-PFE
SOUTH BAY VU.A.SI MARSHALL HEIGHTS
CONCEPTUAL. SITE Pl.AN i;rtv 0, IQIUTl-1 s,.y, RQl!ICI"'
MERIDIAN APPRAISAL GROUP, INC. 15
SITE ANALYSIS
Location The subject property is located at 1001 Jasmine Court and 110 Harrelle Drive in the city of South Bay, Florida
33493.
Access/Exposure Currently, the subject has two access points to each of the properties. After construction, access will be via one point along Palm Beach Road which is deemed adequate. No other access is available or necessary.
Area and Dimensions According to the Palm Beach County property appraiser website, the subject site contains about 10.64 acres. The site is generally rectangular in shape. The subject has approximately 496 feet of frontage along the south side of Palm Beach Road.
Topography and Drainage The subject's topography appears to be at or near road grade of Palm Beach Road. According to a project description provided by the developer, surface elevation is to be raised to eliminate standing water and ponding after heavy rains. We observed no apparent drainage problems when we inspected the subject site. However, we assume no responsibility for hidden or unapparent conditions beyond our expertise as appraisers.
Soil Conditions/Types A visual inspection by the appraisers of the soil revealed no apparent adverse conditions. We assume no responsibility for hidden or unapparent conditions beyond our expertise as appraisers.
Utilities and Services The following utilities providers serve the subject site. Water and sewer are extended to the site.
Water Palm Beach Countv Sewer Palm Beach County Electricitv Florida Power & Liimt Telephone Various Police Palm Beach Countv Fire/Rescue Palm Beach County
Easements and Encroachments We are not aware of any atypical easements or encroachments encumbering the subject that would impede development. We assume typical drainage, public utility, and sanitary sewer easements are in place. We reserve the right to revise our report accordingly should it be found that any atypical easements or encroachments exist on the subject site.
Hazardous or Toxic Materials No hazardous or toxic materials were observed and none came to our attention during our physical property inspection. Please refer to Item 12 of the "Genera/Assumptions" of this report for a full disclaimer. We were not provided with a Phase I Environmental Site Assessment for the subject site.
Surrounding Land Uses To the north is Palm Beach Road, commercial and residential development, to the south is vacant land and single family residential, to the east is single family residential and to the west is single family residential. In addition, a day care center fronts Palm Beach Road, just north of the existing South Bay Villas residential development and an educational facility is located as an out parcel between the South Bay Villas and Marshall Heights properties.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 16
SITE ANALYSIS (CONT'D)
Conclusion The subject site is of a size and configuration that appears to be suited for a variety of developments, including rental apartments. Overall, access and exposure are considered to be good for multi-family purposes. The location of the site has adequate access to schools, employment and healthcare facilities. All necessary utilities and services are available to the site to support the proposed development. Based on these investigations, we are of the opinion that the subject site is suitable for apartment development.
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TWO-BEDROOM/ONE B.ATH - SOUTH BAY- 755 SQ1JARE FEET
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THREE-BEDROOWONE BATH - SOUTH BAY - 893 SQ1JARE FEET
The following data is based on the preceding site plan and floor plans, an4 information provided by the developer. It is noted that the subject will have one, one-bedroom floor plan; however, this floor plan layout
was not available as of the date of the report.
Type and Size The subject will consist of 131 apartment units within 19, two-story apartment buildings with surface parking.
The following is the subject's unit mix.
Unit Type Set Aside # Of Units Unit Size (S.F.) Total S.F.
The total rentable area within the units is 124,239 square feet, resulting in an average unit size of 948 square feet. The indicated density is 12.31 units per acre.
Common amenities will include a clubhouse, two laundry facilities, splash pad, playground, picnic, basketball court and playfield. Unit amenities will include refrigerators, oven/ranges, dishwashers, disposals, ceiling fans, washer/ dryer hookups, and vinyl flooring throughout except ceramic tile in bathrooms.
Construction Details Based upon information provided by the subject developer and typical apartment projects, the subject's construction details are as follows:
Exterior Walls: Windows: Roof: Partitions: Party Wall: Lighting:
Heat & Air Conditioning: Flooring: Laundry: Other:
Concrete block with stucco Aluminum Sash Single Hung White flat concrete tile roofing Gypsum Board One-hour rated firewall between units Decorative bulb lighting fixture over bath vanities; flush mounted fluorescent fixtures in kitchens; ceiling mounted incandescent fixtures in baths, foyers and dining areas Package Heating and Cooling System Vinyl throughout except ceramic tile in bathrooms Washer/ dryer hookups in units and two laundry facilities High speed internet access
General Layout and Efficiency The subject's general design is good and consistent with newly constructed properties. The subject's unit mix is typical of comparable properties designated for families.
Age and General Condition The physical condition of the improvements will be essentially new upon completion. The economic life of the improvements is estimated at 50 years.
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IMPROVEMENT ANALYSIS (CONT'D)
Construction Quality We estimate that the subject is an average to good quality, Class C (concrete block) multifamily building per the Marshall Valuation Service definition. Interior finish is average to good quality.
Site Improvements The property will have property signage, concrete curbing, adequate lighting, and typical landscaping with irrigation. All utility services are extended to the site and should adequately service the subject. Surface parking spaces are to be located adjacent to the subject improvements.
Personal Property Personal property typically included in apartment projects consists of the appliances in each unit, mini-blinds and/ or vertical blinds in each unit, clubhouse/ common area furnishings and equipment, and other similar items. We estimate a contributory value of the personal property of $260,000.
Conclusion Based on discussions with a representative of the developer and a review of the building floor plans, we are of the opinion that the proposed improvements are well suited for their proposed use as apartments for the general population (families). Based upon our research on this product type, the subject will provide a superior product to the existing rental assisted housing supply.
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HIGHEST AND BEST USE ANALYSIS
In order for a property to be at its highest and best use, it must be reasonably probable, legally permissible, physically possible, financially feasible and maximally productive. Consideration must be given to the individual characteristics of the land such as size, shape, accessibility, location and availability of necessary utilities. Specific attention must be directed toward the legal and permissible use and any probable modifications of that use. Finally, consideration must be given to the surrounding land uses and the current and future demand for property in the real estate market.
An analysis of the highest and best use of any property actually involves two separate studies:
(1) an analysis of the site as if vacant and ready to be put to its highest and best use and, (2) an analysis of the property as proposed to be improved.
& discussed below, the highest and best use of the subject site "as if vacant" is affordable apartments.
ASJFVACANT Legally Permissible Uses The first step in the highest and best use is to determine the legally permissible land uses considering the present zoning. The Marshall Heights portion of the subject property is zoned R-3, Multiple Family District; while the South Bay Villas portion is zoned R-1, Single Family Residential. The future land use for both parcels is Residential Low Density which permits a maximum density of six units per acre. Considering the surrounding uses, multi-family is the most compatible use. Currently, the subject is developed with 127 units on its 10.64 acre site and is developed to a density of 11.94 units per acre. The subject is proposed to be rehabilitated and reconstructed with 131 units, or to a density of 12.31 units per acre.
While the subject may be permitted to be developed with other uses, it is beyond the scope of this assignment to examine the potential for other'types of development on the subject site. Since the subject is developed with an affordable apartment project, its use is limited to affordable rentals. Therefore, in restricted rental scenario we have assumed continued apartment (rental) use and we have only examined the legal characteristics of development with this use.
Physically Possible Uses The subject site is of a size and configuration that appears to be suited for a variety of developments, including rental apartments. Overall, access and exposure are considered to be good for multi-family purposes. The location of the site has adequate access to schools, employment and healthcare facilities. All necessary utilities and services are available t9 the site to support the proposed development. Based on these investigations, we are of the opinion that the subject site is suitable for apartment development.
Logical and Economically Feasible Uses The attainable rental rates as a market rental project do not support the land and construction costs of a Class B project in the current economic environment. Therefore, development as a market rate project is not feasible for the site in the "as if vacant" condition at this time.
Based on the subject's funding through the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP and ACC programs, feasibility as an affordable rental community with restricted rental rates is possible.
Conclusion - "As If Vacant" Based on the physical, legal and logical tests of highest and best use, we narrowed the potential uses of the subject site in the "as if vacant" condition to development of an affordable rental community funded under the Housing Credit or other affordable housing programs.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 26
HIGHEST AND BEST USE ANALYSIS (CONT'D)
IDGHEST AND BEST USE-AS PROPOSED As discussed in the Improvement Data section, the subject improvements will consist of a 131 unit rental community with a mix of one, two, three and four-bedroom units.
Based on discussions with a representative of the developer and a review of the building floor plans, we are of the opinion that the proposed improvements are well suited for their proposed use as apartments for the general population (families). Based upon our research on this product type, the subject will provide a superior product to the existing rental assisted housing supply. The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the balance between the tenant contribution and the rental rate paid through government subsidies (rental assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under the ACC contract, and one unit at the 60% AMI set-aside.
The subject's restricted rents upon completion of rehabilitation and construction result in a positive net operating income. Therefore, development with an affordable apartment complex on the subject site, similar to the existing improvements, is considered the highest and best use as improved with government assistance.
Conclusion - ffighest and Best Use As Proposed The subject's improvements upon completion of rehabilitation and construction are of a quality similar to those concluded to be financially feasible with government assistance. Affordable apartment use is considered to be the mrucimally productive use of the site "as improved" with government assistance. Operating under the terms of the Housing Credit, Tax-Exempt Bond, HOME, HUD HAP, and ACC programs, the subject's improvements will be financially feasible and therefore, represent the highest and best use for the improvements. The development as developed is assumed to be in compliance with performance standards.
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MARKETABILITY AND EXPOSURE PERIOD
Introduction During the course of our research for this appraisal assignment we spoke with several real estate professionals involved in marketing and sales of rental projects similar to the subject improvements in order to understand the marketability of the subject property. We also surveyed representatives of various financial institutions to obtain their current lending criteria for properties similar to the subject structure. The information gained from these conversations is summarized below:
1) Who would be the typical purchaser of a property like the subject property?
The most likely purchasers of the subject as developed would be a regional or national investor.
2) What would be a typical selling commission?
A typical commission for this type of property would be between 2% to 4%. As the dollar amount of the transaction increases, the commission would decrease correspondingly.
3) What would be the expected marketing and exposure period?
An exposure period of 12 months from open to close would be typical. A marketing period of six to 12 months would be typical.
4) What type oflending criteria would be typical for the subject property?
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Typical permanent loan parameters for good quality projects are: an interest rate ranging from 300 to 450+ basis points above five to 10 year treasuries, a loan to value ratio of 75% to 80%; a five year balloon and a 20 to 30 year amortization period.
MERIDIAN APPRAISAL GROUP, INC. 28
VALUATION PROCEDURE
The valuation of real estate lends itself to the application of the three traditional approaches to value: the Cost Approach, the Income Approach and the Sales Comparison Approach.
The Cost Approach analyzes the relationship between value and cost as perceived by the investor. By applying this technique, the appraiser tends to estimate the difference in worth to a buyer between the property being appraised and a newly constructed site with similar utility. The application of this approach involves estimating a number of individual components such as land value, reproduction or replacement costs, entrepreneurial profit, and accrued depreciation. This technique is most applicable when appraising relatively new construction with a limited amount of accrued depreciation; however, it is also useful (but less effective) when appraising older structures.
The Sales Comparison Approach involves a detailed analysis and comparison of similar properties that recently sold in a similar or competitive market. When reduced to an appropriate unit of comparison, these transactions can be adjusted for pertinent differences such as time, market conditions, financing, location and/ or physical characteristics. If a sufficient number of sales are available, the resulting value indication is a reflection of the price a buyer is willing to pay for a property exhibiting characteristics similar to the subject. The interpretation of a number of indications of market price should lead to a logical estimate of market value.
The Income Approach is based on the premise that a prudent investor would pay no more for the subject property than for another investment with similar risk and return characteristics. Since the value of an investment can be considered equal to the present worth of anticipated future benefits in the form of dollar income or amenities, this approach estimates the present value of the net income that the property is capable of producing. This amount is capitalized at a rate reflecting risk to the investor and the amount of income necessary to support debt service for the mortgage requirement.
As directed by the client, only the Income Approach was used to value the property as a restricted rate project. The Cost Approach and Sales Comparison Approach were not applied.
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VALUATION SUBJECT TO INCOME AND RENT RESTRICTIONS
14-PFE MERIDIAN APPRAISAL GROUP, INC. 30
INCOME CAPITALIZATION ANALYSIS
We have estimated the value of the subject property as an affordable project with rent and income restrictions.
The subject will operate under the Housing Credit, Tax-Exempt Bond, and HOME programs as well as a HUD
Housing Assistance Payment (HAP) contract and Annual Contributions Contract (ACC). Under the HUD
HAP and ACC contracts, tenants will pay rental rates based on 30% of their adjusted monthly income with the
balance between the tenant contribution and the rental rate paid through government subsidies (rental
assistance). In cases where multiple affordable housing programs are in place, the most restrictive applies. For
the subject property, there will be 97 units operating under the HUD HAP contract, 33 units operating under
the ACC contract, and one unit at the 60% AMI set-aside.
Direct capitalization of a projected net operating income stream is applied to estimate the market value of the
subject property as though stabilized. The annual stabilized net operating income is divided by a market derived
overall capitalization rate to indicate a value estimate.
Rent.µ Rate Analysis ACC Subsidy The subject will have ACC subsidies on 33 of its units. The 33 units encompass 16 of the three-bedroom units
and 17 of the four-bedroom units at the Marshall Heights portion of the subject property. The rental amount
for these units are as depicted below. These rates are based on information provided by the developer. In general, the tenant participation amount will vary and is based upon 30% of the tenant's adjusted household
income. The ACC subsidy also will vary and may increase to supplement any units where the tenant
participation amount is less than the amounts depicted below.
ACC Average Tenant C::ontri_bution
Unit e · Number of Units 3BR/2BA-MH 16 $600 4BR/2BA-MH 17 $650
Total/Wei tedAvera e 33 $626
HUD HAP Contract Rents The subject will have HUD HAP contract rents on 97 of the units. The tenant participation amount will vary
and is based upon the greater of 10% gross income or 30% of the tenant's adjusted household income. The
difference between the tenant participation amount and the contract rent will be paid through government
subsidies. The projected contract rents under the HAP contract are depicted below. The number of units
allocated to each unit type is provided via the developer's pro forrna which is located in the addenda of this
report. The contract rent is derived from taking 120% of the Fair Market Rent for each unit type less the utility
Total/Weillhted Averaize 97 $1.520 SB = South Bay· Marshall Heillhts
Subject Units Set Aside for Tenants with Incomes at or Below 60% of the AMI The subject will have one, one-bedroom unit set aside for a tenant with an income at or below 60% of the area
median income (AMI). We estimate that this unit will achieve the maximum allowable rent, which is $593 net
rent.
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INCOME CAPITALIZATION ANALYSIS (CONT'D)
The total rental income attainable under these programs is presented in the chart below:
Therefore the subject's estimated potential gross income as restricted is estimated at $2,072,556.
Washer/Dryer Income The subject's units will have washer/dryer hookups; however, the developer will not offer washer/dryer appliances for lease. Therefore, no income is projected from this source.
Cable Income The subject units will be cable ready; however, the developer will not offer bulk cable to the residents. Therefore, no income is projected from this source .
. Ancillary Income Apartments typically earn additional income in the form of vending income, late charges, pet deposits, forfeited security deposits, etc. Market data indicates a typical ancillary income range of about 2% to 5% of the gross rental income. The subject property is to have two laundry facilities. We estimate ancillary income at $20 per unit per month, or $31,440 annually. This is about 1.5% of the potential gross rental income.
Rental Premiums At many apartments and rental projects, rental premiums are paid tenants for features such as top floor, conservation area frontage, water frontage, etc. As restricted, we expect no additional premiums.
Potential Gross Income Potential gross income is estimated at $2,103,996.
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INCOME CAPITALIZATION ANALYSIS (CONT'D)
Vacancy and Collection Loss There is only one competitive project located in the subject's Primary Market Area (PMA), the Okee/Osceola
Center. This center consists of 714 units and is 99% occupied. Glades Diamond Housing, Glades Pioneer
Terrace and Quiet Waters are rental assisted units, however, are all designated for the elderly and consist of
studio and one-bedroom units. Those these projects are excluded from the PMA, they range in occupancy from
99% to 100% and maintain waiting lists. Further, the Marshall Heights portion of the subject property is
currently 100% occupied and has an extensive waiting list.
Belle Glade Okee/Osceola Center 707
Projects with different demographics, in Lease-up, Under Construction, Confidential, or Unwilling to Participate in Survey
Total Units Less: Elderly, Confidential Occupancy or Unstabilized Occupancies
Total Stabilized Units Responding to Survey
Key:
Overall PMA Occupancy Rate (Stabilized Projects) Average Project Size Average Age
n/a = unwilling to participate in survey
Source: Meridian Appraisal Group, Inc. field survey
942 (228)
714
714 236
1992
Aug-14
Note: The year built for projects with multiple phases is the date of the first phase. The date of rehabilitated projects is the original
year built.
707
99% 707
As a restricted rate project with rental assistance, vacancy for the subject property is estimated to be low. Most
properties with rental assistance have waiting lists and units are typically only vacant during turn over. We
estimate an average occupancy rate for the subject over the holding period, with rental assistance, of 97.0%.
We estimate vacancy at 3.0% and collection loss at 1.0%. Total vacancy and collection is estimated at $84,160.
Effective Gross Income Subtracting the vacancy and collection loss from the potential gross income estimate results in an effective gross
income of$2,019,836.
Operating Expenses Operating expenses are deducted from the effective gross income, resulting in a stabilized net operating income.
We have relied on operating information from other restricted rent projects as well as the developer's pro forma.
Real Estate and Personal Property Taxes - The subject will be tax-exempt. With tax-exempt status, only non
ad valorem and personal property taxes apply. As discussed in the "Assessment and Taxes" section, we estimate
taxes, as a restricted project with tax-exempt status, at $38 per unit, or $4,978 annually.
Insurance - Insurance expenses increased dramatically in Florida following the active hurricane season in 2005;
rates have moderated somewhat in the past couple of years. The indications we have relied upon are
summarized as follows:
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INCOME CAPITALIZATION ANALYSIS (CONT'D)
· Source:
Sub·ect's Pro Forma
We place most weight on the subject's proforma and have concluded on an expense of $550 per unit, or $72,050
annually.
Water and Sewer - The subject will include trash and pest control in the base rent. The indications we have
relied upon are summarized as follows:
Sub"ect's Pro Forma
All of the expense comparables include water and sewer in the rents; whereas, the subject will not. The pro
forma includes all utilities. We are aware of market expense comparables that do not include water and sewer
in the rental rates which range from $245 to $467 per unit, with an average of $346 per unit. We place most
weight on these comparables and have concluded on an expense of $350 per unit, or $45,850 annually.
Electric and Gas - The subject has landlord-paid electric for the common areas. Tenants pay electric and gas
expenses for the occupied apartments. Similarly, the expense comparables include these expenses for common
areas only. The indications we have relied upon are summarized as follows:
The expense comparable in Palm Beach County with an expense of $1,234 per unit included electric expense
for the interior air conditioned hallways and corridors of the building. Placing most weight on the other expense
comparables, we have concluded on an expense of $200 per unit, or $26,200 annually.
Garbage Service - The subject will have landlord-paid trash removal expenses. The indications we have relied
upon are summarized as follows:
We place most weight on the expense comparables and have concluded on an expense of $100 per unit, or
$13,100 annually.
Repairs and Maintenance - The subject will experience repairs and maintenance expenses for basic upkeep.
Items such as appliance repairs are not refurbishment expenses, but are normal maintenance for an operating
apartment complex. The property will also experience replacement expenses for items such as air conditioners,
appliances, and carpeting, but these expenses are considered separately. The repairs and maintenance category
does not include grounds maintenance, or maintenance payroll, but does include turnover costs of painting and
decorating. The indications we have relied upon are summarized as follows:
14-PFE MERIDIAN APPRAISAL GROUP, INC. 34
INCOME CAPITALIZATION ANALYSIS (CONT'D)
We have given consideration to all of the data and concluded on an expense of $650 per unit, or $85,150 annually.
Grounds Maintenance/ Contract Services - A review of other known grounds maintenance/ contract services expenses in the Florida market indicates most properties reflect expenses ranging from $150 to $400 per unit annually. Other contract services include fire and safety, pest control, security and pool maintenance. The
indications we have relied upon are summarized as follows:
We place most weight on the subject's pro forma and have concluded on an expense of $250 per unit, or $32,750 annually.
Reserves (Allowance for Replacement of Short-Lived Items) - This expense category is a sinking fund used to annualize expenses for periodic replacement of appliances, air conditioning units, carpeting, resealing of
parking areas, etc. Items related to tenant turnover, such as repainting, have already been accounted for. In actual practice, few apartment owners maintain reserve accounts; however, it is prudent appraisal and
underwriting practice to consider the replacement allowance. Reserve requirements range from $100 to as high as $400 per unit annually, although most are between $200 and $300 per unit. The restricted expense comparables indicate reserve expenses between $0 and $838 per unit per year, with an average of$375 per unit. The subject's proforma includes reserves of$300 per unit. We conclude an expense of $300 per unit, or $39,300 annually.
Management Fee-The management fee estimate is an allocation of a fee to the management company and does not include salaries and commissions for on-site office personnel. Management fees are typically
considered on a percentage of the effective gross income basis. Based on our conversation with several
management companies, larger projects tend to cost less on a percentage basis than smaller projects, with a: typical range of 3% to 6% of the effective gross income. The indications we have relied upon are summarized in the following chart.
Sub"ect's Pro Forma $1146
Considering the subject's projected income level, we conclude an expense of 3.5% ofEGI, or $70,694 annually, which equates to $540 per unit. ·
Salaries and Payroll (On-Site Staff)- This expense category includes the salaries for both office (management
and leasing) and maintenance personnel, along with payroll expenses such as FICA, unemployment tax,
workers' compensation, and health insurance. The indications we have relied upon are summarized in the following chart.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 35
INCOME CAPITALIZATION ANALYSIS (CONT'D)
The subject property will also provide a wide range of supportive services to the tenants and will employ a service coordinator. We are aware of a project located in Jacksonville that operates under a HUD HAP contract and has a service coordinator included in the payroll expense. This comparable had a total salaries and payroll expense of $2,830 per unit. Placing most weight on this expense comparable, followed by the subject's pro forma, and tempered by the comparables depicted in the chart above, we conclude an expense at $2,100 per unit, or $275,100 annually.
Administrative and Office Expenses - This expense includes office supplies, telephone service for the office, postage, licenses, permits, etc. We included professional service fees such as legal and accounting fees in this category. The indications we have relied upon are summarized in the following chart.
Subject's Pro Fonna
It should be noted that restricted rate properties (like the subject) often have higher administrative expenses due to compliance with affordable housing programs and additional tenant services. Due to the numerous programs the subject will operated under and the additional services the subject will offer the tenants, we conclude an administrative expense of $500 per unit, or $65,500 annually.
Advertising and Promotion - The indications we have relied upon are summarized in the chart which follows.
Sub'ect's Pro Forma
As an affordable project with rental assistance, the subject is expected to maintain high occupancy rates and have a waiting list for prospective tenants. Therefore, advertising expenses are expected to be minimal. We estimate an expense of $50 per unit annually or $6,550 annually.
Total Expenses Total operating expenses are estimated at $73712221 which equates to $5,628 per unit and $5.93 per square foot annually which is within the range of the comparables.
Total Expenses
Source Avera e, Restricted Com s $6 565 $5,705 Sub'ect's Pro Forma $6 371
The subject's estimated expenses are within the range of the comparable properties and lower than the subject's proforma mainly due to lower estimated management, and repairs and maintenance expenses.
Net Operating Income The expense estimate was deducted from the effective gross income, resulting in a net operating income of $1,282,614.
CoooK<S......, $8,222 $46 $0.00 $0 so SO.DO S5,431 SU SO.DO included above so SO.DO S5,014 $26 $0.03 - $47,258 $263 $0.25 so so S0.00 $3,902 $17 $0.02 so so $0.00 Sl5,549 S81 SO.OS
""""" S55,956 $311 SO.JO $101,035 1526 $0.48 S192,643 $838 S0.77 so so SO.DO S38,544 1201 S0.19
Capitalization The final step in the direct capitalization technique is to divide the net operating income estimate by a market derived overall rate of return (OAR), or capitalization rate. The overall capitalization rate is estimated by several methods. The best method is by analysis of rates reflected by comparable sale properties.
Extraction From Sales We have provided capitalization rates from restricted properties that have recently sold which provide good indications of an overall capitalization rate for the subject property. The capitalization rate indications reflect deductions for an allowance for replacement of short-lived items (reserves for replacement), so the rate indications are consistent with the analysis of the subject property. The capitalization rate indications are as follows:
SALE Property County Sale Date OAR
1 Co-m-mander Place Orange Jun-14 6.08% 2 San Rocco fka Waterview Club Orange Feb-14 5.96% 3 Cricket Club Orange Jan-14 7.50% 4 Stirling I & II Broward Nov-13 6.75% 5 Ocean Pointe fka St. Lucie Place Martin Mav-13 7.50%
Average. Over All Rate . 6~-76%
The sales reflect overall capitalization rates of 5.96% to 7.50% with an average of 6.76%. All of the comparables were purchased for continued apartment use (no condominium conversion sales or fractured condominiums). We estimate that the subject's rate should be within the range. The data used for the extraction of the rates from the sales is considered reliable and the best overall rate indications available. All of the sales had significant amounts of time remaining on the Land Use Restriction Agreements. Therefore, the comparable improved sales provide a reliable indication of an overall capitalization rate for the subject.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 37
INCOME CAPITALIZATION ANALYSIS (CONT'D)
Investor Surveys The 2Q2014 PwC Real Estate Investor Survey is the most recent report available as of the date of this report. The national apartment market indicated a decrease in overall cap rates from the 1Q2014 survey as illustrated in the chart below. This overall cap rate was the lowest in the past 13 years.
The 2Q2014 PwC report indicates a range for overall rates nationwide of 3.50% to 10.00%, with an average of 5.59%, down 20 basis points from 1Q2014. The average has been below 6% since 2Q201 l. The range for the Southeast Region is 4.00% to 7.25% with an average of 5.55%, down 25 basis points from a year ago.
We also reviewed the 3Q2013 Survey of Emerging Market Conditions published by the University of Florida Bergstrom Center for Real Estate Studies. According to this survey, capitalization rates for apartments throughout Florida average 6.3%, up from 5.9% in the previous quarter. About 38.7% of respondents expect overall rates to rise and 3.2% expect them to fall.
14-PFE MERIDIAN APPRAISAL GROUP, INC. 38
INCOME CAPITALIZATION ANALYSIS (CONT'D)
Overall Capitalization Rate Trends
Apartments throughout Florida - Berg~trom Survey ~·-:.:·. '. Av .- Ca ·Rate
A third method of extracting an overall capitalization rate is by application of the Band of Investment technique.
This method involves the calculation of a weighted average capitalization rate based on the mortgage constant
(mortgage capitalization rate) and the equity dividend rate (equity capitalization rate). The application of this
technique requires the estimation of certain rates and ratios applicable to the mortgage and equity positions.
We have estimated the subject's permanent financing rate based on our conversations with Hartley Hall with
GMAC, Jim Garner with Alliance Realty Advisors and Robert Miller with CB Commercial. The typical term
is five to 10 years, with the rate tied to the corresponding T-Bill rate. The spread between the T-Bill rate and the
interest rate ranges from 300 to 400 basis points for Class "A" and 350 to 450+ for Class "B" and lower. The
key variables are the location and quality of the product and the financial strength of the developer. The 10
year T-Bill rate is around 2.5%. The typical loan-to-value ratio is 75%, with about one point charged for loan
origination. Loan amortization periods for properties like the subject have typically been about 25 years, with
balloon payments in five to 10 years.
We conclude a mortgage interest rate of 6.00%, a loan-to-value ratio (M) of 75%, amortization period of 30
years and a balloon payment in five years. These conclusions result in a mortgage constant (Rm) of 7 .19%.
The second component of the Band of Investment analysis is the estimation of the equity dividend rate for the
subject. Primary consideration was given to an investor survey for the estimation of the equity dividend rate.
Recent investor surveys indicate equity capitalization rates ranging from 7.50% to 10.50%. We have concluded
an equity capitalization rate (Re) of 8.00% for the 25% equity position.
The mortgage and equity position conclusions for the subject property are considered to be reasonable estimates.
An investor's financial position can substantially influence financing terms and investors have varying yield
expectations.
Based on the parameters concluded above, we calculated an indication of an overall capitalization rate by the
Band of Investment technique as follows: ·
X 8.00% = OAR Indication
Debt Coverage Ratio Another indication of a capitalization rate is derived by application of the Debt Coverage Ratio Formula.
Market data indicates lenders typically require debt coverage ratios ranging from 1.10 to 1. 35 for a property like
the subject. The lenders surveyed by the Appraisal Institute Research Department indicate an average debt
14-PFE MERIDIAN APPRAISAL GROUP, INC. 39
INCOME CAPITALIZATION ANALYSIS (CONT'D)
coverage ratio of 1.35 for loans of $5 million to $9.999 million. Loans for older properties are typically higher than the average; therefore, we conclude a debt coverage ratio of 1.3.
An overall capitalization rate by the Debt Coverage Ratio Formula is calculated as follows:
Conclusion of Overall Capitalization Rate The sales reflect overall capitalization rates of 5.96% to 7.50% with an average of 6.76%. The comparable improved sales provide the most meaningful capitalization rate indications for the subject property. The Band of Investment analysis indicates a capitalization rate of 7.4%, while the Debt Coverage Formula indicates 7.01 %. These mathematically derived rates provide only fair indications of an overall capitalization rate for the subject property. The investor surveys indicate a range of overall rates from 3. 75% to 10. 0% and provide support for the rate indications by the comparable improved sales.
Restricted properties typically have higher overall rates due to the increased risk from limitations on cash flow. The spread between market and restricted rate properties is dependent on factors such as the amount of time remaining on the restrictions and the suitability of the location of the property for a market rate development.
We conclude an overall capitalization rate for the stabilized income of 7 .00% for the subject property.
Upon Stabilization and Upon Completion Value Conclusion by Direct Income Capitalization The subject will be constructed and rehabilitated in phases. First, the old South Bay Villas portion of the project is estimated to be complete from rehabilitation in January 2016. The existing tenants at the Marshall Heights portion will then move into the completed South Bay Villas portion. Construction for the Marshall Heights portion is estimated to start in June 2016 and be complete in March 2017. The Marshall Heights portion will consist of 10 buildings. We estimate that the buildings will receive Certificate of Occupancy throughout the construction period and tenants will move into the buildings as they are completed. Therefore, the subject in its entirety will be stabilized upon completion in or about March 2017. Therefore, the "upon completion" value is essentially the same as the "upon stabilization" value.
Dividing the subject property's estimated net operating income by the estimated overall capitalization rate results in a stabilized market value as a restricted project. As the "upon completion" value is essentially the same as the "upon stabilization" value as discussed above, we estimate the value upon completion in or about March 2017 and upon stabilization in or about March 2017, as a restricted project of $18,320,000*.
* Please see Extraordinary Assumptions and Limiting Conditions.
GROSS POTENTIAL RENTS $2,072,556 AVG. UNIT SIZE: 948
OTHER INCOME W asher/Dtyer 0.0% $0.00 per month $0
Cable Income 0.0% $0.00 per month $0
Water/SewerReimb. 0.0% $0.00 per month $0
Ancillary Income 100.0% $20.00 per month $31,440 AVG. INC PER UNIT $1,318
Rental Premiums 0.0% $0.00 per month $0
TOTAL OTHER INCOME $31,440
GROSS ANNUAL INCOME $2,103,996 %OF $PER $PER
EG~ UNIT S.F.
LESS COLLECTION LOSS 1.0% $21,040
LESS VACANCY LOSS 3.0% $63,120
TOTAL VACANCY & COLL. LOSS 4.0% $84,160
EFFECTIVE GROSS INCOME $2,019,836 100.00% $15,419 $16.26
LESS OPERATING EXPENSES FIXED EXPENSES
R.E. & Personal Property Taxes $38 PER UNIT $4,978 0.25% $38 $0.04
Insurance $550 PER UNIT $72,050 3.57% $550 $0.58
SUBTOTAL - FIXED EXPENSES . $588 PER UNIT $77;028 .3.81% $588, $0.62
Water and Sewer $350 PER UNIT $45,850 2.27% $350 $0.37
Electric and Gas $200 PER UNIT $26,200 1.30% $200 $0.21
Garbage $100 PER UNIT $13,100 0.65% $100 $0.11
SUBTOTAL - UTILITIES. $650 PER UNIT $85,150. ·4.22%. $650 $0.69
Repairs and Maintenance $650 PER UNIT $85,150 4.22% $650 $0.69
Grounds Maintenance/Contract Services $250 PER UNIT $32,750 1.62% $250 $0.26
Reserves for Replacements $300 PER UNIT $39,300 1.95% $300 $0.32
SUBTOTAL -.MAJNI'ENANCE $1,200 PER UNIT $157,200 7,78% $1,200 $1.27
Management 3.5% OFEGI $70,694 3.50% $540 $0.57
Salaries and Payroll $2,100 PER UNIT $275,100 13.62% $2,100 $2.21
Administrative $500 PER UNIT $65,500 3.24% $500 $0.53
Advertising $SOPER UNIT $6,550 0.32% $50 $0.05
SUBTOTAL- MANAGEMENT/OFFICE $3,190 PER UNIT $417,844: . 20.69% $3,190 $3:36
TOTAL EXPENSES $737,222 36.50% $5,628 $5.93
NET OPERA TING INCOME $1,282,614 63.50% $9,791 $10.32
CAPITALIZED AT 7.00% $18,323,056
STABILIZED VALUE BY INCOME APPROACH $18,320,000 $139,847 per unit
LESS RENT LOSS DURING LEASE-UP $0 $147.46 per square foot
UPON COMPLETION VALUE BY INCOME APPROACH $18 320 000
14,.PFE MERIDIAN APPRAISAL GROUP, INC. 41
ADDENDA
APPRAISERS) QlJALIFICATIONS
Q!}AUFJCATIONS OF ROBERT VON, PRESIDENT
BUSINESS ADDRESS Meridian Appraisal Group, Inc. 1331 Sundial Point Winter Springs, Florida 32708 Phone: 407.637.8705 Fax: 407.875.1061 E-mail: [email protected]·
FORMAL EDUCATION California State University, Northridge May 1986, Bachelor of Science in Business Administration, Real Estate Finance
REAL ESTATE EDUCATION Has completed course work for admission to the Appraisal Institute and all necessary for State-Certification and continuing education. A partial list of course work is as follows:
EXPERIENCE
2007 - Present
January 2004- 2007
June 1998 - 2003
1994-1998
Course I Seminars I Continuing Education • Real Estate Appraisal Principles • Basic Valuation Procedures • Standards of Professional Practice - Part A • Standards of Professional Practice- Part B • Capitalization Theory and Techniques~ Part A • Capitalization Theory and Techniques - Part B • Highest and Best Use and Market Analysis • Appraising Troubled Properties • Advanced Applications • USP AP Update • MAP Valuation Training for Third Party Appraisers
Meridian Appraisal Group, Inc. President and Principal Responsible for the acquisition, co-ordination and review of appraisal assignments on real property. Also responsible for the preparation of appraisal assignments on· various real property with specialization in multi-family apartments and A&D projects throughout Florida.
Realvest Appraisal Services, Inc. President and Principal
Realvest Appraisal Services, Inc. Vice President and Principal Responsible for the acquisition, co-ordination and review of appraisal assignments on real property. Also responsible for the preparation of appraisal assignments on various real property with specialization in multi-family apartments and A&D projects throughout Florida.
Pardue, Heid, Church, Smith& Waller, Inc. Commercial Manager and Commercial Real Estate Analyst Responsible for the preparation and review of appraisal assignments on various real property including vacant land, subdivisions, retail centers, office buildings, apartments, industrial properties and special use properties.
1993-1994
Ql)ALIFICATIONS OF ROBERT VON, PRESIDENT (CONT1D)
Barnett Banks, Inc. Review Appraiser Responsible for reviewing reports for Special Assets and Corporate and Commercial Real Estate Department. Performed all appraisal reviews for the CFCRC, a consortium of 12 lending institutions.
1986-1993 HomeFed Bank, FSB Senior Review Appraiser Responsible for the ordering and review of full narrative appraisal reports for the entire east coast portfolio. Assignments completed in 14 states and the District of Columbia
CERTIFICATIONS
&LICENSES State-Certified General Real Estate Appraiser RZ 1604 Orlando Chamber of Commerce - Member Downtown Orlando Partnership - Member
PROFESSIONAL .AFFILIATIONS Board of Directors - Florida Housing Coalition
nus DOCUl11ENT HAS A COLORED BACKGROUNO. f111CROPnlNTING. l_ll\l~~.11\HK PA fFNTF.D PAPER
:AC#659364 STATE OF FLORIDA nEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
FLORIDA REAL ESTATE Al'PRAISAL BD SEQ#Ll2 ll0202907
The CERTIFIED GENERAL APPRAISER"',,. f''· . . · ~,,,. Named below IS CERTIFIED •·•,
71~: J ...-:_
tmder the pr=isions of Chaptea; -"J;- ]JTT ~ """iration date, NO¥ 30, 2014 -;;_ •·
DISPLAY AS REQUIRED BY LAW KEN LAWSON SECRETARY _,
Q!JALIFICATIONS OF CHRISTA B. SNYDER, ASSOCIATE APPRAISER
BUSINESS Ai:>ORESS Meridiart Appraisal Group, lrtc. 1331 Sundial Point Winter Springs, Florida 32708 Phone: 407.637.8710 Fax: 407.875.1061 E-mail: csny:[email protected]
FORMAL EDUCATION Florida State University, 2005 Bachelor of Science, Real Estate, Accounting and Finance
REAL ESTATE EDUCATION Has completed all courses necessary for State-Certification and continuing education. A partial list of course work is as follows:
EXPERIENCE 2008 - Present
2005-2008
CERTIFICATIONS &LICENSES
Course/ Seminars/ Continuing Education • Analyzing Operating Expenses • Florida State Law for Appraisers • National USPAP • Appraisal Board II Course • Appraising from Blueprints and Specifications • Appraising Nursing Facilities • MAP Valuation Training for Third Party Appraisers
Meridian Appraisal Group, Inc. Associate Appraiser Responsible for the preparation of appraisal assignments on various real property including apartments and vacant land.
Callaway & Price, Inc. Associate Appraiser Responsible for the preparation of appraisal assignments for the firm on various real property including car wash, eminent domain, marina, regional mall, environmentally endangered lands (EEL), mobile home park, multi-family, office, retail, subdivisions, vacant land, warehouse and industrial properties.
State-Certified General Real Estate Appraiser RZ 31 78
THIS OOCUMHH HAS A COLORED BJ\CKGAOUtJO • MICf-lOPA'INTING • UIJEMAl--iK PATEtflE(l PAPER
AC#702986 STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD SEQ#x.12121200722
The CERTIFIED GENERAL APPRAISER)•. t ·--;a·. Named below IS CERTIFIED . (. ,, · · _.,.,. _ Under the provisions of Chapter, f\'.7~PS. _ 1 •·., . Expiration date: NOV 30, 2014 _. ~i~l . •,:·•- ~ ::
RE: Appraisal for the proposed South Bsy Village/Marshsll Heights Apartments, Palm Beach
County, Florida
Gentlemen:
Thank you for the opportunity to provide an appraisal on the above-mentioned property. The following
outlines the scope of services le.> be provided by Meridian Appraisal Group, Inc.
• The appraisal assignment will estimate the current market value of the fee simple
interest in the property, as if complete and stabilized, assuming the provided Project
Based Rental Assistance rents, as of the date of valuation of the property.
• The appraisal report will consist of a limited appraisal reported in a restricted fonnat
and prepared under the Uniform Standards of Professional Practice, Standards Rule
2-2(c), and performed under Standards Rule 1.
• The total fee for the appraisal will be $3,500 with a delivery date of September I.
2014. Our fee estimate im.:ludes the cost of one original copy with each additional
copy at $200.
Authorization to proceed with this assignment is considered confirmed upon receipt of a signed copy of
this letter. Should you request us to abandon this assignment during the progress of our work, billings
will be rendered up to the date of our receipt of a written request for such abandonment and shall
immediately become due and payable. In the event of any dispute relative to this proposal, the prevailing
pa11y shall be entitled to the reimbursement of attorney's fees and costs.
If the scope of services and the terms of this proposal are acceptable to you, please indicate acceptance
of the tenns by your signature at the space provided below and retum one executed copy for our files.
We appreciate the opportunity to work with you on this assignment. Please feel free to contact me if
you have any questions.
Best regards,
Meridian Appraisal Group, Inc. AGREED AND ACCEPTED
Robert Von, President State-Certified General Appraiser RZ I 604
Date: -~&.,_,.ft~6--+/ ___ '1._0,__J1{'------i I
LEGAL DESCRIPTION
Marshall Heights Legal Description:
Tr.10(;'. ·~6 o!: the Tmm OF SOUTH BlU' 1 FLORIOTI., located in $fiction 14 1 Tti,moh!.p •~4 So·.i.tr. 1 Range 36 East, accori;ting to tl:e Ame~1ded Pl!!.~ ·0;;1 ,l(laic section excc11~ed by tho l'ior:..ca State Drn inaqe. L~t.C:. Ccj..l5a11y and filuc in Plat Book 7, page H, ir. tl~e Of:f:ice of ·i;,ha~lork of i.;ha Circuit Co:1rt O!: Palm Boach County, Flo~it'la;
• ,I '·
StraJ~'.C';:<hoh•ever; to ta)tes subsequent to thQ year l972f to all applicilb~e,,govarnt11.ei1tal re~ulations and to tho~e matt.er~ shown in Plat·!ook 6f page 15, and :Plat nook 7, page ~e, P~blic Records of PalllhBe.ich cou:n.t.y, Flotida.
\ > ~ ... ~-·'·•. 1
South Bay Villas Legal Description:
THE NORTH 635.69 FEET OF TRACT 35 OF THE AMENDED PLAT AND RESUBD1V1S10N OF SECTION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF THE TOWN OF SOUTH BAY, CITY OF SOUTH BAYt PALM BEACH COUNTY, FLORIDA; AS RECORDED IN PLAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA. LESS AND EXCEPTING THE NORTH 33 FEET THEREOF; AND ALSO LESS AND EXCEPTING THE FOLLOWING PARCEL OF LANO:
TIIE NORTI-I 183 FEET OF TRACT 35 OF THE AMENDED PLAT AND RESUBDIVISION OF SECTION 14, TOWNSHIP 44 SOUTH, RANGE 36 EAST AND PLAT OF THE TOWN OF SOUTII BAY, CITY OF SOUTH BAY, PALM BEACH COUNTY, FLORIDA, AS RECORDED IN !>LAT BOOK 7, PAGE 46, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, THAT IS LYING EAST OF THE SOlITHERLY PROLONGATION OF THE EASTERLY RIGHT-OFWA Y OF NORTHWEST 9TH A VENUE.
2014 RENTAL RATES & INCOME LIMITS
Note: -1 ]Id harmless provisions of IRC Section 142(d)(2)(E) mean that projects with at least onl ,lng placed in service on or before the end of the 45-day transitic;m period for newly-released limits use whichever limits are greater, the current-year limits or the limits in use the preceding year.
HUD released 12/18/2013. FHFC Posted 12/27/2013
2014 Income Limits and Rent Limits Florida Housing Finance Corporation
Multifamily Rental Programs -- Except HOME and SHIP
CWHIP Homeownership Program Percentage Income Limit QY Number of Persons in Household Rent Limit by Number of Bedrooms.in Unit
Florida Housing Finance Corporation (FHFC) income and rent limits are based upon figures provided by the United States Department of Housing· and Urban Development (HUD) and are subject to change. Updated schedules will be provided when changes occur.
DEVELOPER'S PRO-FORMA
Ncw&lllllh~Wlal Ol'WTINGPIIOJORM4
SquateMl!tt a Ul1ilo 131
2Q14Graq Ull¾I P,opo,tyNo< R ... -... Roni ,..__ Y•ar1 y,-2 Year3 Y-4 Yar.5 v ... s YoarT Y•1t:B YNt8 Ya,10 Yewl1 _,2 v..-11 Y..-1' Yow15
The subject lies in Palm Beach County, which is located in the Treasure Coast region. The Treasure Coast Regional Planning Council includes Indian River; Saint Lucie; Martin and Palm Beach Counties in this region. Lying in Palm Beach County, the subject is also influenced by Broward and Miami-Dade Counties to the south.
Historically, Saint Lucie County has grown at the fastest pace; followed by Indian River County. St. Lucie County is expected to have the highest growth rate through 2018, followed by Palm Beach County. Future growth is expected to be positive and substantial in a11 of the counties in the region. Palm Beach County has the largest population base of the counties in the region. The absolute household growth projections for the next five years are as follows:
Ahsolnle Household (,rowlh - -- -- - - -
COUJ1ty Absohttc HR Growth
A,-~age/Year between 2013 aad 2018
Indian River 2,207 441
St.Lucie 4,865 973
Martin 2,543 509
PalmBeach 24,250 4,850
Source· \" .... "·''
The average household sizes for the market areas are as follows:
The average household size is largest in St. Lucie County (2.54 persons) followed by Palm Beach County. The trend is toward similar average household sizes in Indian River, Martin and Palm Beach counties and larger average household sizes in St. Lucie County.
REGIONAL OVERVIEW (CONT'D)
The income characteristics of the market areas are outlined in the following charts.
The median household income is lower than the average household income in all of the market areas. The householci incomes are highest in Palm Beach County. Over the next five years the median and average household incomes are projected to be highest in Palm Beach County. Median and average household incomes are projected to decline over the next five years in all of the counties in the region.
HUD Median Income The 2014 HUD Median Incomes for the Treasure Coast counties are as follows.
--- ~------ ---- - - --- - - --- -- -----,
_ Count}_' __ 2014 HUD Median Income --- ---------- --- - ---------- -
Indian River $54,700 Saint Lucie $56,900 Martin $56,900 Palm Beach $63,300
Employment and Industry The region has historically shown strong employment rates; however; starting in 2007 the unemployment rates began to rise as a result of the nationwide economic recession. This trend continued in 2008 and 2009 and for all but Saint Lucie County in 2010. In 2011 and 2012 unemployment rates decreased as the economy began to recover from the economic recession.
Unemployment rates continued to decline in 2013. All of the counties in the region and the state and nation had reduced average unemployment rates in 2013 as compared to 2012.
REGIONAL OVERVIEW (CONT'D)
2013 Ye,ir-fo.D.itc· Um mplmmcul lLJl<"S Not Sc-c..1:,onalh \J1us,•cd - - - -- - -- ---
--- - -- ----
COIIDlJ Jan ,FdJ Mar Apr May Ju Jal Ang 5qt Oct Nm Dec ATgYJD
Unemployment rates for the first five months of 2014 were available. The average rates for 2014 YTD are lower than the average for 2013; however1 the monthly rates have increased in some of the counties and on the state
Jadustrv Indian River SaintLudc MaJtia PalmBcach Florlda
Natural Resout'ces and Mining 2.1% 0.4% 1.2% 0.8% 0.90%
Construction 12.2% 12.7% 12.1% 8.7% 9.5%
Manufilctnrina 2.7% 2.9% 3.7% 2.4% 3,0o/o
Trade, Transpoxtati011 and 19.1% 18.4% 20.6% 18.9% 23.0%
Utilities Infonnation -1.0o/o 1.5% 1.0% 1.5% 1.7%
Financial 10.7% 12,1% · 10.3% 11.7% 10.8%
Professional and Business 21.0% 23.1% 21.1% 25.3% 22.9%
Services
Education and Health Services 11.3% 11.6% 9.8% 11.9%, 10.6%
Leisure and Hospit.ality 8.1% 8.3% 8.9% 7.8% 8,6%
Other Services 11.5% 9.0% 11.4% 10.6% 8.7%
Govemment 1.4% 0.7% 1.1% 0.6% 1.1%
Source: Entetprise Florida
n/d=nodata
The region appears to have a reasonably diverse distribution of employment and does not appear to be overly
dependent upon one industry.
REGIONAL OVERVIEW (CONT'D)
Transportation The region is well-serviced by roads, air transportation, bus services, railways and water routes of transportation as illustrated in the following chart.
Federal Interstates Interstate 95, Florida Turnpike Federal Highways U.S. Highway 1. U.S. Hfohway 441
State R9ad60, State Road 68, State Road 70, State Road 605, State Road 611, State . State Highways Road 615, State Road 707, State Road 712; State Road 713, State Road 716, State Road
778, State Road 76, State Road 441, State Road 710,State Road 80 Railroads Florida East Coast, CRX, Tri-Rail (commuter in Palm Beach)
Palm Beach International, Saint Lucie International, Vero Beach Municipal, North Airoorts County, Belle Glade, Lantana, Boca Raton Deep Water Ports Port of Fort Pierce, Port of Palm Beach Source: Enterprise Florida
Conclusion The Treasure Coast region has shown positive population and household growth; a trend that is expected to continue. Unemployment rates are showing decreasing trends. Transportation needs by road, air, rail and water are well met. Due to the positive growth trends and tower unemployment rates, we expect the region to continue to rebound from the economic recession.
ATTACHMENT 9
NEW SOUTH BAY VILLAS
DEVELOPMENT PRO FORMA
ATTACHED
Electronic copy on attached disk.
Uses
Acquisition Costs Land Building Demolition Relocation Costs (temp) Acquisition cost 4 Acquisition cost 4 Acquisition cost 5 Acquisition cost 6 Acquisition cost 7 Other Acquisition Costs
Sub-Total
Hard Costs Site Work Building Construction (rehab & new) Amenities /FFE Contingency Performance Bond Contractor Overhead/Profit General Requirements
Sub-Total
Financing Costs Construction Period Interest Bridge Loan Interest Capitalized MIP Loan Financing Fees Permanent Loan Placement Fee Closing Costs - Construction Closing Costs - Permanent Title & Recording-Construction Title & Recording-Permanent PBCHFA Cost of Issuance Fees Underwriter (County & FHFC) FHA Exam Fee (0.30%) FHA lnspectlion Fee (0.50%) Structuring Agent (RBC) Negative Arbitrage Other-GSE Fee
Sub-Total
Syndlcator Fee Due Diligence Construction Advisory
The New South Bay Villas, Ltd. attests that it has not had any litigation in the past five (5) years involving any projects or any key personnel employed by New South Bay Villas, Ltd. or the principals of the General Partnership that would disqualify or prevent the development to proceed as projected.
Attached find a qualifying letter from legal counsel representing the PBC Housing Authority. Mccurdy Senior Housing Corporation has not been the subject of any litigation in the past 5 years.
September 2, 2014
Palm Beach County Department of Economic Sustainability I 00 Australian A venue Suite 500 West Palm Beach, FL. 33406
RE: Palm Beach County Housing Authority (PBCHA) Most Recent Five-Year Litigation History
. To Whom It May Concern:
Our office serves as General Counsel for the Palm Beach County Housing Authority (PBCHA). The following serves as our response to information requested by your firm concerning PBCHA's litigation history over the past five (S) years.
Since September 1, 2009, PBCHA has been involved in approximately 86 cases in Palm Beach County. State Court, the majority of which were eviction cases filed by PBCHA. There were two cases filed against PBCHA in this p.eriod, one was an auto negligence case, which was resolved in settlement and the other is a premises liability (residential) which is pending and will be set for a jury trial sometime between December 22, 2014 and February 27, 2015. PBCHA filed claims on its insurance policy for the latter two cases.
In the past five (5) years, two (2) cases were fiJed in federal court against PBCHA, both of which were subsequently dismissed.
To our knowledge there are no additional cases involving PBCHA.
Should you have any questions concerning the foregoing, please contact our office at (561) 656-1715.
a:7 __ Maxine . Cheesman, Esq. General Counsel Palm Beach County Housing Authority
cc: Van Jolmson, Executive Director (via electronic mail) Palm Beach County Housing Authority
5589 Okeechobee Blvd., Suite 103, West Palm Beach, Florida 33417 • Phone (561) 656-1715 • Toll Free (866) 451-9827 • Fax (561} 656-1854 E--mail: [email protected] • [email protected]
ATTACHMENT 12
NEW SOUTH BAY VILLAS
EVIDENCE OF FUNDING
Attached:
1. Commitment Letter from the PBC Housing Authority for project based rental assistance;
2. Commitment Letter from Red Stone Company for the purchase of tax exempt bonds; and
3. Commitment Letter from RBC Capital Markets for the syndication and sale of Low Income Housing Tax Credits.
PALM BEACH COUNTY HOUSING AUTHORITY
MMUTY- •--IIY
September 3, 2014
Joseph Glucksman, President McCurdy Senior Housing Corporation 306 SW 10th Street Belle Glade, FL 33430
Re: Commitment for Project Based Rental Assistance New South Bay Villas, South Bay, FL
Dear Mr. Glucksman:
The Palm Beach County Housing Authority and Mccurdy Senior Housing Corporation have entered into a partnership for the redevelopment of Marshall Heights and South Bay Villas located in South Bay, Florida.
The current development plan calls for the substantial rehab of 65 apartments at South Bay Villas, of which 16 units is the subject of a Phase 1 redevelopment effort by the Authority. It is anticipated that the 62 existing dwelling units at Marshall Heights will be demolished, with HUD's approval, to make way for the construction of 66 new apartments. The combined properties will be known as New South Bay Villas, consisting of 131 apartments, plus on-site amenities. The unit mix is illustrated below:
1
PALM BEACH COUNTY HOUSING AUTHORITY 3432 W. 45th Street
West Palm Beach, FL 33407 Office: 561.684.2160
Fax: 561.684.0183 www.pbchafl.org
South Bay Villas Marshall Heights Total
Beds Proposed Existing Proposed Existing Proposed Existing Proposed Proposed Units Units Units Units S.F. Units Units Change
The 131 units at New South Bay Villas will consist of mixed incomes and mixed rental assistance as follows:
Public Housing Subsidies: Project Based Vouchers: Market Rates Units: Total
33 Units 97 Units
1 Unit 131 Units
It is the intent of the Authority to provide project based rental assistance for all Public Housing and Project Based Voucher units. The delivery of project based rental assistance for the New South Bay Villas is a part of the Authority's Annual and 5 Year Plans, which were approved by the HUD Local Field Office.
The Palm Beach County Housing Authority offers this correspondence as a commitment to provide the New South Bay VIiias with project based rental assistance as Indicated above, subject to all HUD requlremen'ls as necessary.
Yours truly,
V OI>'\ ~S15111 Van Johnson, Executive Director
2
IRBC Capital Markets
Syndicator Equity Letter
August 18, 2014
Mr. Van Johnson, Executive Director Palm Beach County Housing Authority 3432 West 45th Street West Palm Beach, Florida 33407
Tu Credit Equity Group One Piedmont Town Center, Suite 420 4720 Piedmont Row Drive Charlotte, NC 28210
RE: New South Bay Villas / 131 units South Bay, Palm Beach County, Florida
Dear Mr. Johnson:
We are pleased to advise you that we have preliminarily approved an equity investment in a to-be-determined Florida Limited Partnership, the applicant for purposes HOME Funds and, for purposes of that application, the beneficiary of the equity proceeds described in this proposal ("Partnership"). The Partnership will own and operate an 131-unit family affordable housing community to be known as New South Bay Villas, located in South Bay, Palm Beach County, Florida This preliminary commitment is made based upon the financial information provided to us in support of your request, and under the following tenns and conditions:
Anticipated Housing Credit Allocation t.o be Purchased:
Syndication Rate:
Anticipated Total Equity To be provided:
Equity Proceeds Paid Prior t.o or simultaneous t.o closing the construction financing:
Equity Proceeds to be Paid Prior to Construction Completion:
Pay-In Schedule:
A t.o-be-determined Florida Limited Partnership, with a to-be-determined General Partner, of which the Palm Beach County Housing Authority and McCurdy Senior Housing Corporation own 51 % and 49%, respectively and RBC Tax Credit Equity, LLC ("RBC") as Investor Limited Partner with a 99.99% ownership interest in the Partnership.
$969,517•
$9,694,200 ($9,695,170 • 99.99%)•
$0.94•
$9,112,548•
$1,367,000• (min. 15%)
$1,367,000
Funds available for Capital Contributions #1: $1,367,000* be paid prior to or simultaneously with the closing of the construction financing.
Funds available for Capital Contribution #2 $5,467,529* upon construction completion.
Funds available for Capital Contribution #3 S1,822,510* concurrent with permanent loan closing.
Equity Proceeds Paid After
* All numbers are rounded to the nearest dollar.
New South Bay Villas August 18, 2014 Page 2 of2
Obligations of the Manager and Guarantor(s):
Incentive Mgmt Fee:
Cash Flow Split:
Residual Split:
Stabilization. $455,509*
Qperating Deficit Guaranty: the General Partner agrees to provide operating deficit loans to the Partnership for the life of the Partnership.
Development Completion Guaranty: The General Partner will guarantee completion of construction of the Project substantially in accordance with plans and specifications approved by RBC, including, without limitation, a guaranty: (i) to pay any amounts needed in excess of the construction loan and other available proceeds to complete the improvements; (ii) of all amounts necessary to achieve permanent loan closing; and (iii) to pay any operating deficits prior to the conclusion of Project construction.
Credit Adjusters: the Partnership will provide that, if in any year actual credits are less than projected credits, then the Investor Limited Partner shall be owed an amount necessary to preserve its anticipated return based on the projected credit.
The obligations of the General Partner shall be guaranteed by Palm Beach County Housing Authority and McCurdy Senior Housing Corporation, and any such other entity/individual deemed appropriate following (syndicator) due diligence review. The obligations of the developer shall be guaranteed by Gardner Development, Inc.
90%
Cash Flow to the Company shall be distributed as follows: a. To RBC in payment of any amounts due
as a result of any unpaid Credit Adjuster Amount b. To RBC in payment of Asset
Management Fees or any unpaid Asset Management Fee.
c. To the Operating Reserve to maintain the agreed upon minimum balance.
d. To the payment of any Deferred Developer Fee. e. To the General Partners to repay any Partnership loans. f. To the General Partners for Incentive Management
Fees. g. The balance, .01% to the General Partners and 99.99%
toRBC.
Any gain upon sale or refinancing shall be distnbuted as follows:
a. To RBC in payment of any amounts due because the Actual Credit is less than the Projected Credit, or there has been a recapture of Credit
b. To the payment of any unpaid Asset Management Fee.
c. To the Investor Limited Partner in an amount equal to any excess or additional capital contributions
* All numbers are rounded to the nearest dollar.
New South Bay Villas August 18, 2014 Page 3 of3
Replacement Reserves:
Asset Management Fee:
Other Terms and Conditions:
d. The balance of available cash for distribution, 90% to the General Partners and 10% to the Investor Limited Partner.
$300/unit/year increasing 3% annually.
$5,000 per year increasing 3% annually.
I) Successful award and allocation of Low Income Housing Tax Credits from the Florida Housing Finance Corporation.
2) Prior to closing, the General Partner must have a firm Commitment for fixed-rate permanent first mortgage financing with terms, conditions, and Lender acceptable to the Investor Limited Partner.
3) Prior to closing, the General Partner must have firm Commitments for all fixed-rate subordinate financing with terms, conditions and Lender acceptable to the Investor Limited Partner.
4) Receipt, review and approval of appraisal with incorporated madcct study, environmental and geological reports, plans and specifications, contractor and such other conditions which are customary and reasonable for an equity investment of this nature and amount
This preliminary commitment will expire on June 30, 2015 if not extended by RBC.
RBC wishes to thank you for the opportunity to become investment partners.
Sincerely,
David J. Urban Director
Agreed and Accepted this Day: :~~an;o\m ,LP • Inc, as its General Partner
By.~
Name: ~~ ~lu~ 01t>2 Title: ~\..t_r
Date: --;8 !r"""so,.l ........ rt ______ _ i J
* All numbers are rounded to the nearest dollar.
August 25, 2014
Mr. Van Johnson Executive Director Palm Beach County Housing Authority 3432 West 45111 Street West Palm Beach, FL 33407
Re: New South Bay Villas South Bay, FL 131 Units
Dear Mr. Johnson:
Red Stone Tax Exempt Funding, LLC ("Red Stone") is interested in submitting a financing proposal to purchase the tax-exempt multifamily housing revenue bonds associated with the acquisition, rehabilitation, and construction of Marshall Heights and South Bay Villas. Based on the information provided to Red Stone thus far, including the development proforma and stabilized estimations of annual expenses and net operating income, submitted by the Palm Beach County Housing Authority, McCurdy Senior Housing Corporation, and the Gardner Company (together the "Sponsor"), the proposed terms of the bond purchase are as follows:
Total Ta.x Exempt Bond Amount:• Permanent Ta.x E.xempt Bond Amount:
$16,000,000 $14,000,000 5.50% 16-17 Years 40Year Red Stone, an affiliate of Red Stone, or its designee 1.50% of Total Ta.x Exempt Bond Amount
*Enhanced with letter of credit provided by construction lender approved by Red Stone dunng construction & lea.up penod
All terms outlined above are subject to a complete due diligence review including, but not limited to, the following: Red Stone underwriter site visit, review of financial information, review of rental market information/data, third party appraisals, third party physical needs assessment and plan & cost reviews, third party environmental Phase I, review of all construction contracts, and complete legal diligence and review to be performed by Greenberg Traurig, LLP. Additionally, this financing proposal and the terms outlined are contingent upon the completion and ratification by Red Stone's Board of Directors of the property's due diligence review and bond market conditions at the time of closing.
Sincerely,
R<d s-Tax ~
B~ r
Vice President
CC: Allan Schnier
2 Grand Central Tower I 140 East 45th Street, 151h Floor I New York, NY 10017 www.redstonaco.com
212 297 1800
ATTACHMENT 13
NEW SOUTH BAY VILLAS
MATCHING MUNICIPAL FUNDS
This item is NOT APPLICABLE due to the project being located within the City of South Bay, a member municipality of the Palm Beach County HOME Program Jurisdiction.
ATTACHMENT 14
NEW SOUTH BAY VILLAS
FINANCIAL REPORTS
• Palm Beach County Housing Finance Authority
• Mccurdy Senior Housing Corporation
PALM BEACH COUNTY HOUSING AUTHORITY
Basic Financial Statements and Supplemental Information
Year ended September 30, 2013
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
MANAGEMENTS DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Statement of Net Position
Statement of Revenues, Expenses and Change in Net Position
Statement of Cash Flows
Notes to Basic Financial Statements
SUPPLEMENTAL INFORMATION
Financial Data Schedule
Schedule of Actual Program Costs and Advances
SINGLE AUDIT AND COMPLIANCE INFORMATION
Schedule of Expenditures of Federal Awards
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors' Report on Compliance For Each Major Program and on Internal Control Over Compliance Required by 0MB Circular A-133
Board of Commissioners Palm Beach County Housing Authority West Palm Beach, Florida
Report on the Financial Statements
255 S. Orange Ave. Suite 745 Orlando, FL 32801
Phone: 407-841-8841 Fax: 407-841-8849
We have audited the accompanying financial statements of the business-type activity of the Palm Beach County Housing Authority (the "Authorityn), as of and for the year ended Septernber 30, 2013, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well ··as evaluating the ove-ra11 presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority's business-type activity as of September 30, 2013, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority's financial statements as a whole. The accompanying financial data schedule and schedule of actual program costs and advances are presented for purposes of additional analysis as required by the U.S. Department of Housing and Urban Development, and are not a required part of the financial statements of the Authority. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements of the Authority. The supplemental information is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements asa whole.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 7, 2014 on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance.
May 7, 2014 Melbourne, Florida
3
~?l~~&~a?l(l#lt, (!P,,46 aMC Au«iat&t. Li!1'
Management's Discussion and Analysis
As management of the Palm Beach County Housing Authority (the "Authority"), we offer the readers of the Authority's financial statements this narrative overview and analysis of the financial activities of the Authority for the year ended September 30, 2013. We encourage readers to consider the information presented here in conjunction with the Authority's financial statements.
Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Executive Director, Van Johnson, Palm Beach County Housing Authority, 3432 West 45th Street, West Palm Beach, Florida 33407.
Financial Highlights
• The assets of the Authority exceeded the liabilities as of September 30, 2013, by $14,096,046 (net position).
• The Authority's cash balances as of September 30, 2013, were $2,951,044, representing a decrease of $1,654,532.
• The Authority earned revenue directly from the U.S. Department of Housing and Urban Development ("HUD") of $24,177,597, which includes funds for capital asset activities, and $1,187,484 indirectly from HUD passed through Palm Beach County.
• Public housing has maintained occupancy of 99% for the fiscal year. • Housing assistance payments for the Housing Choice Voucher program increased by
$985,232 from the prior year due to newly leased Project Based Vouchers and costs associated with the port-in vouchers.
Overview of Financial Statements
The financial statements included in this annual report are those of a special-purpose government engaged in a single business-type activity prepared on an accrual basis. Over time, significant changes in the Authority's net position serve as a useful indicator of whether its financial health is improving or deteriorating. To fully assess the financial health of any authority, the reader must also consider other non-financial factors such as changes in client hol!sehold composition, fluctuations in the local economy, HUD mandated program administrative changes and the physical condition of capital assets. The following statements are included:
• Statement of Net Position - this statement reports the Authority's assets, liabilities and net position at the end of the fiscal year. The reader may consider or view the Authority's net position as the difference between the Authority's rights (assets and deferred outflows of resources) and the Authority's obligations (liabilities and deferred inflows of resources).
• Statement of Revenue, Expenses, and Changes in Net Position - this statement presents information showing how the Authority's net position increased or decreased during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will result in cash inflows and cash outflows in the future periods.
4
Overview of Financial Statement (continued)
• Statement of Cash Flows - this statement presents information showing the total cash receipts and cash disbursements of the Authority during the current fiscal year. The statement reflects the net changes in cash resulting from operations plus any other cash requirements during the current year (i.e. capital additions, debt service, prior period obligations, etc.). The statement reflects the receipt or disbursement of cash that was obligated to or paid by the Authority in prior periods and subsequently received or paid during the current fiscal year (i.e. receivables and payables).
• Notes to the Basic Financial Statements - the notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided. These notes give greater understanding on the overall activity of the Authority and how values are assigned to certain assets and liabilities and the longevity of these values. In addition, notes reflect the impact (if any) of any uncertainties the Authority may face.
In addition to the basic financial statements listed above, our report includes supplemental Information. This information is to provide more detail on the Authority's various programs and the required information mandated by regulatory bodies that fund the Authority's various programs.
Financial Analysis
§tatem~nt gf ~et Position
2013 2012 NetChanse Current assets $ 3,311,251 $ 5,598,535 $ (2,287,284) Capital assets, net 14,713,713 14,366,246 347,467 Other noncurrent assets 425,014 2981109 126,905
Total assets $ 18,449,978 $ 20,262,890 $ {1,812,912} Current liabilities $ 1,126,698 $ 1,130,904 $ (4,206) Long-term debt 3,006,435 3,178,634 (172,199) Other noncurrent liabilities 220z799 170z712 50,087
Total liabilities 41353,932 4,480,250 {126,318} Net investment in capital assets 11,533,140 11,209,849 323,291 Restricted net position 185,976 1,173,558 (987,582) Unrestricted net position 2,376,930 3,3991233 {1,022,303}
Total net position 14,096,046 15,782,640 {1,686,594} Total liabilities and net position $ 18,449,978 $ 20,262,890 $ {1,812,912}
As noted earlier, net position may serve over time as a useful indicator of the Authority's financial position. In the case of the Authority, assets exceeded liabilities by $14,096,046 at the close of fiscal year 2013.
5
Financial Analysis (continued)
Current assets decreased by $2,287,284 primarily as a result of decreases in Section 8 Housing Choice Vouchers program's current restricted cash of $953,724 mostly due to the result of HUD policy changes which res\,Jlted in the Authority utilizing restricted cash to fund its housing assistance payments. There was an additional $226,061 reduction in unrestricted cash as a result of legislative sequestration for the Public Housing programs. Accounts receivable decreased primarily due to the forfeiture of a deposit receivable of $750,000 related to Belle Glades Apartments. The remaining decrease represents $423,065 in unrestricted cash as a result of the Authority's operating expenses.
Total liabilities decreased by $126,318 primarily as a result of payments made on long-term debt of $172,199. This decrease was offset by an increase in other noncurrent liabilities by $50,087 primarily due to an increase in the long-term portion of the Authority's family selfsufficiency rFSS") program escrow liability.
Net position - The difference between an organization's assets and its liabilities is its net position. Net position is categorized as one of three types.
1. Net investment in capital assets - the Authority's investment in capital assets, net of accumulated depreciation and related debt, is due to the capital asset and long-term debt activity.
2. Restricted - the Authority's net position whose use is subject to constraints imposed by law or agreement consisting primarily of HAP equity. As of September 30, 2013, the Authority had $185,976 of funds reserved as restricted net position which represents a decrease of $987,582 over prior year. This decrease is primarily attributable to a decrease in HAP equity of $1,001,547, offset by an increase of $13,965 in restricted cash in Banyan Club Apartments.
3. Unrestricted - the Authority's net position that is neither invested in capital assets nor restricted which change principally due to operations. These resources are available to meet the Authority's ongoing obligations to its residents and creditors.
By far the largest portion of the Authority's net position (approximately 80% percent) represents investment in capital assets less any related debt used to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services to its program participants. Although the Authority's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
At the end of the current fiscal year, the Authority is able to report positive balances in all three categories of net position. The same situation held true for its prior fiscal year.
6
Financial Analysis (continued)
Operating revenues: HUD operating revenues Tenantrevenue,net Otheroperatingrevenues Other operating grant revenues
Total operating revenues Operating expenses:
Administrative Tenant services Utilities Maintenance General Depreciation Housing assistance payments
Total operating expenses
Operating loss Nonoperating revenues (expenses):
Gain on disposal of capital assets Interest income Interest expense Casualty loss on capital assets
Total nonoperating revenues (expenses)
Change in net position before capital contributions and transfers
HUD capital grants Other capital grants
Changes in Net Position
2013
$ 24,038,504 2,692,337
985,700 46,475
27,763,016
2,755,296 159,087 204,225
2,688,855 1,478,853 1,041,923
22,137,081
30,465,320
(2,702,304)
2,747 (140,293) (92,081)
(229,627)
(2,931,931) 139,093
1,141,009
HUD NSP transfers out - Palm Beach County (34,765)
Change in net position Total net position -beginning
Total net position - ending
(1,686,594) 15,782,640
$ 14,096,046
2012
$ 24,256,924 $ 2,566,587
332,038 6,253
27,161,802
2,460,088 149,437 179,558
2,579,526 662,576
1,035,179 21,151,849
28,218,213
{1,056,411)
12,367 6,606
(147,404) (105,498)
(233,929)
(1,290,340) 397,528 631,385
(261,427) 16,044,067
Net Change
(218,420) 125,750 653,662 40,222
601,214
295,208 9,650
24,667 109,329 816,277
6,744 985,232
2,247,107
(1,645,893)
(12,367) (3,859) (7,111) 13,417
4,302
1,641,591 (258,435) 509,624
(34,765)
1,425,167 (261,427}
$ 15,782,640 $ (1,686,594)
Total Operating Revenues increased $601,214. The primary cause of the increase was due to fees earned in the amount of $587,040 from the completion of Westgate Plaza Apartments (an 80 unit project based complex). The remaining increase predominately represents additional revenue earned from the award of a ROSS Grant.
7
Financial Analysis (continued)
Total Operating Expenses are categorized by the Authority as administrative, tenant services, utilities, maintenance, general, depreciation and housing assistance payments.
Housing assistance payments increased by $985,232 primarily due to the lease up of 80 project based vouchers effective November 2012, increased leasing of 53 HCV vouchers and an increase in port-in vouchers.
General expenses increased by $816,277 in the current year primarily due to the write off of a deposit receivable of $750,000 related to Belle Glades Apartments.
Expenses incurred for administration increased by $295,208 in the current year primarily as a result of increases in costs associated with salary and benefits for additional staffing in the Central Office and Housing Choice Voucher program.
Capital Asset and Debt Activity
The Authority's net capital assets as of September 30, 2013, amount to $14,713,713. The investment in capital assets includes land, buildings and improvements, and furniture and equipment, offset by accumulated depreciation. The total increase in capital assets of $347,467 was due to additions to capital assets of $1,390,388 offset by current year depreciation expense of $1,041,923 and disposal of assets of $998.
The majority of the additions to capital assets relate to the purchase and rehabilitation of properties in South Bay, Florida for $1,013,646. This activity was funded by a Community Development Block Grant obtained through Palm Beach County, Florida.
Economic Factors
Significant economic factors affecting the Authority are as follows:
• Federal funding provided by Congress to the Department of Housing and Urban Development;
• Local labor supply and demand, which can affect salary and wage rates; • Local inflationary, recessionary and employment trends, which can affect resident
incomes and therefore the amount of rental income; • Natural disasters which can have a devastating impact on the local economy; • Inflationary pressure on utility rates, housing costs, supplies and other costs; and • Trends in the current housing market.
Conclusion
The Authority continues to face some uncertainty in federal funding provided by HUD. However, with the continued support of the Authority's valued staff, its visionary Board of Commissioners, and its community partners, the Authority will continue to provide excellent customer service to our residents and clients, and continue to function as a sustainable business within the Palm Beach County area.
In the Authority's continued efforts to accomplish their mission statement - the goal of sustaining self-sufficiency among low to moderate income residents - collaborating with key stakeholders will assist in meeting the economic challenges that face the Authority due to factors beyond their control. The Authority is presently engaged with several development projects that will meet these goals.
8
Palm Beach County Housing Authority
STATEMENT OF NET POSITION
September 30, 2013
ASSETS
CURRENT ASSETS Cash and cash equivalents - unrestricted Cash and cash equivalents - restricted Receivables, net Prepaid expenses Inventory, net
Total current assets
NONCURRENT ASSETS Cash and cash equivalents - restricted Capital assets, net Other assets, net
Total assets
LIABILITIES AND NET POSITION
CURRENT LIABILITIES Current portion of long-term debt Accounts payable Tenant security deposits Unearned revenue Family self-sufficiency participant escrows Other current liabilities
Total operating expenses 30,4651320 OPERATING LOSS (2,702,304}
NONOPERATING REVENUES (EXPENSES) Interest income - unrestricted 2,102 Interest income - restricted 645 Interest expense (140,293) Casualty losses on capital assets {92,081}
Total nonoperating revenues (expenses) {229,627} Change in net position before capital contributions and transfers {2,931,931}
CAPITAL CONTRIBUTIONS HUD capital grants 139,093 Other capital grants 1,1411009
Total capital contributions 1,280,102 TRANSFERS
NSP program income transferred to Palm Beach County {34,765} Change in net position (1,686,594)
Total net position - beginning 15,782,640
Total net position - ending $ 14,096,046
The accompanying notes are an integral part of this financial statement.
10
Palm Beach County Housing Authority
STATEMENT OF CASH FLOWS
Year ended September 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES HUD operating grants received Other operating grants received Collections from tenants Collections from other sources Payments to employees Payments to suppliers Housing assistance payments
Net cash used in operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES HUD capital grants received Other capital grants received Purchases of capital assets Payments on long-term debt Interest paid Casualty losses NSP program income transferred to Palm Beach County
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES Interest received
NET DECREASE IN CASH Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$ 24,072,535 46,475
2,701,376 1,439,865
(2,962,843) (4,370,176)
(22,046,308)
(1,119,076)
139,093 1,141,009
(1,389,390) (165,252) (136,817)
(92,081) (34,765)
(538,203)
2,747
(1,654,532) 4,605,576
$ 2,951,044
AS PRESENTED ON THE ACCOMPANYING STATEMENT OF NET POSITION: Cash and cash equivalents - unrestricted $ 2,279,356 Cash and cash equivalents - restricted - current 515,184 Cash and cash equivalents - restricted - noncurrent 156,504
$ 2,951,044
The accompanying notes are an integral part of this financial statement.
11
Palm Beach County Housing Authority
STATEMENT OF CASH FLOWS (continued)
Year ended September 30, 2013
RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES Operating loss
Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation (Increase) decrease in assets:
Receivables, net Prepaid expenses Inventory, net Other assets
Increase (decrease) in liabilities: Accounts payable Tenant security deposits Unearned revenues Family self-sufficiency participant escrows Other current liabilities
Net cash used in operating activities
$ (2,702,304)
1,041,923
506,701 22,914 20,549
(82,558)
207 4,686
(36) (23,930) 92,772
$ (1,119,076)
The accompanying notes are an integral part of this financial statement.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Reporting entity
The Palm Beach County Housing Authority (the "Authority"), a governmental agency, was created pursuant to Florida Statutes Chapter 421 by Palm Beach County, Florida (the "County"). The primary purpose of the Authority is to develop, acquire and operate safe, decent, sanitary, and affordable housing for low-income families in Palm Beach County in accordance with federal legislation and regulations.
The Authority's governing board consists of a five member Board of Commissioners (the "Board"), the members of which are appointed by the Governor of the State of Florida. The Authority is not a component unit of the County, as defined in Governmental Accounting Standards Board ("GASB") Statement No. 14, The Reporting Entity ("GASB No. 14"), as amended, as the Board independently oversees the Authority's operations.
The definition of the reporting entity as defined by GASB No. 14, as amended, is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government.
Some component units, despite being legally separate from the primary government, are so integrated with the primary government that they are in substance part of the primary government. These component units are blended with the primary government.
The Authority's operations include three blended component units which are included in the basic financial statements and consist of legally separate entities for which the Authority is financially accountable. The blended component units are as follows:
• Palm Beach County Housing Development Corporation, Inc. ("PBCHDC") • Palm Beach Housing Development, Inc. C-PBHD") • Palm Beach County Housing at Westgate, Inc. ("PBCHW")
All of these entities were created as Florida Non-Profit Corporations to assist the Authority in various residential rental and affordable housing development projects in the County (See Note B-10).
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. Government-wide and fund financial statements
The government-wide financial statements report information about the reporting government as a whole excluding fiduciary activities. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other non-exchange revenues. Businesstype activities rely, to a significant extent, on fees and charges for support.
Governments use fund accounting, whereby funds are organized into three major categories: governmental, proprietary and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses.
For financial reporting purposes, the Authority reports all of its operations as a single business-type activity in a single enterprise fund. Therefore, the government-wide and the fund financial statements are the same.
Enterprise funds are proprietary funds. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating activity generally arises from providing services in connection with a proprietary fund's principal activity. The operating revenues of the Authority consist primarily of rental charges to tenants and operating grants from the U.S. Department of Housing and Urban Development ("HUD"), and include, to a lesser extent, certain operating amounts of capital grants that offset operating expenses. ·
Operating expenses for the Authority include the cost of tenant services, utilities, protective services, general, administrative, maintenance, depreciation and housing assistance payments. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, except for capital contributions, which are presented separately.
When restricted resources meet the criteria to be available for use and unrestricted resources are also available for use, it is the Authority's policy to use restricted resources first, and then unrestricted resources, as needed.
3. Measurement focus and basis of accounting
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. The proprietary fund utilizes an economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery-),. financial position and cash flows. All assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3. Measurement focus and basis of accounting (continued)
Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The basis of accounting used is similar to businesses in the private sector; therefore, this fund is maintained on the accrual basis of accounting. Revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used,
4. Tenant revenue
As provided by GASB No. 34 and related guidance, tenant revenue is presented in the financial statements net of the bad debt expense for uncollectible amounts of $29,914.
5. Summary of programs
The accompanying basic financial statements include the activities of several housing programs subsidized by HUD at the Authority. A summary of each significant program is provided below.
Housing Assistance Programs
Housing Assistance Programs under Section 8 of the Housing and Community Development Act of 1974 utilize existing privately owned family rental housing units to provide decent and affordable housing to low-income families.
Included under these programs is the Housing Choice Voucher Program ("HCVP"). Funding of the HCVP is provided by federal housing assistance contributions from HUD for the difference between approved landlord contract rents and the rent paid by the tenants (referred to as Housing Assistance Payments or "HAP"). In addition, the Authority receives an administrative fee to cover operating expenses of the program. HUD provides funding for HAP and administrative fees based upon previous funding levels as reported within HUD's Voucher Management System. The program consists of both tenant-based and project-based vouchers. With tenant-based vouchers, the subsidy remains with the active tenant participating in the HCVP. With project-based vouchers, the subsidy remains with the active unit participating in the HCVP.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5. Summary of programs (continued)
Low Rent Public Housing Programs
Low Rent Public Housing Programs include the following: asset management projects ("AMPs"); Public Housing Capital Fund Program; and various related HUD grants including a Community Development Block Grant passed through from the County and a Neighborhood Stabilization Program grant passed through from the County.
The purpose of the public housing programs is to provide decent and affordable housing to low-income families at reduced rents. The Authority's public housing program consists of 490 units which are located in five geographic locations, including 44 units in scattered locations throughout Boynton Beach and Palm Beach County, Florida. The developments/units are owned, maintained and managed by the Authority.
Funding of program operations is provided by federal annual· contributions, operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition and other allowances). The developments/units are acquired, developed and modernized under the Capital Fund Program, as well as various other related HUD grants.
Central Office Cost Center
The Central Office Cost Center ("COCC") is a business unit within the Authority that generates revenue through fees for services from other Authority programs and activities.
Business Activities
Banyan Club Apartments ("Banyan Club") is a 148 unit, non-federally aided affordable housing complex owned by the Authority. The Authority has retained the services of Leased Housing Corporation, Inc., a related party (see Note B-10-a), to manage the property and is responsible for the operations of the apartments. Funding of the operations and the debt service requirements of Banyan Club is provided by tenant revenue.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net position
a. Cash and cash equivalents
For financial statement purposes, cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
b. Receivables
Receivables consist of revenues earned during the fiscal year and not yet received. Amounts due from HUD consist of grant revenue accrued for allowable program expenses not yet funded. Other government grants receivable consist of revenue earned for related costs incurred. Other receivables consist of tenant receivables, fraud recovery receivables for the housing assistance payments programs and reimbursement receivables from various parties in the normal course of business.
Tenant accounts receivable are being presented in the financial statements net of an allowance for doubtful accounts of $1,767, which is based on prior experience and estimated by management as receivables with overdue balances in excess of sixty (60) days. In addition, tenant fraud recovery repayment agreements are presented net of an allowance for doubtful accounts of $940, estimated by management based on account composition and prior experience. No allowance is established for HUD and other governmental receivables as management believes that these amounts are fully collectible.
c. Inventories
Inventories consist principally of expendable building materials and supplies held for use or consumption in the course of the Authority's operations. All inventories are valued on a first-in, first-out ("FIFO") basis. If inventory items fall below cost due to damage, deterioration or obsolescence, the Authority establishes an allowance for obsolete inventory. Based on management's experience with the types of items in inventory, an allowance for obsolescence of $1,097 is recorded as of September 30, 2013.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net position (continued)
d. Capital assets
The Authority's policy is to capitalize assets with a cost of $5,000 or more and a useful life in excess of one year. The Authority capitalizes the costs of site acquisition and improvement, structures, equipment and direct development costs meeting the capitalization policy. Capital assets are valued at historical cost, or estimated historical cost if actual historical cost is not available. Assets contributed by third parties are valued at fair market value on the date of contribution.
Depreciation has been provided using the straight-line method over the estimated useful lives, which range as follows:
Buildings and improvements Equipment
e. Other assets
15-40 years 3-5years
Other assets consist of loan closing costs of $86,894 associated with Banyan Club's mortgage loan and capitalized predevelopment costs of $214,348 related to the Authority's Belle Glade Gardens Project. Loan costs are amortized over the life of the loan using the straight-line method. Other assets are reflected in the statement of net position· net of accumulated amortization of $32,732. Amortization expense of $3,476 is included in interest expense. The remaining loan closing costs net of accumulated amortization of $54, 162 will be expensed during fiscal year 2014 in accordance with recently issued GASS Statement No. 65 (see Note A-10).
f. Accrued compensated absences
Full-time pennanent employees are granted vacation and sick leave benefits. Vacation leave is granted at varying rates depending on tenure with the Authority and can accrue to a maximum of 250 hours. After three months of service, employees in good standing are entitled to all accrued but unused leave upon separation from the Authority due to a reduction in work force. Employees with leave time in excess of 250 hours lose the excess leave benefits on the last day of the fiscal year unless utilized. Once per year, during the first pay period of the fiscal year, an employee may elect payment in exchange for accrued vacation leave in excess of ten (10) days. Such payments are made at the employee's current rate of pay. Sick leave is accrued at the rate of one (1) day per month, ·or a maximum of twelve (12) days per year. Any unused sick leave at year-end is carried over into the next fiscal year without limit. The estimated liability for vested leave benefits is recorded as a liability in the basic financial statements and the amount earned in any given year is recorded as an expense.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net position (continued)
g. Eliminations
i.) lnterprogram due to/from
Because the Authority's COCC is the common paymaster for the shared costs of most of the Authority's programs, cash may be temporarily advanced to other programs creating offsetting interprogram receivables and payables. As of September 30, 2013, $596,364 was eliminated.
ii.) Fee for service
The Authority's COCC internally charges fees to the AMPs and programs of the Authority in accordance with HUD's Asset Management Handbook. These charges include management fees, bookkeeping fees, asset management fees, and front-line service fees. For financial reporting purposes $1,210,388 of fee for service charges have been eliminated for the year ended September 30, 2013.
h. Net position
In accordance with GASB No. 34, as amended, total equity as of September 30, 2013, is classified into three components of net position:
i.) Net investment in capital assets
This category consists of capital assets (including restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, and improvements of those assets.
ii.) Restricted net position
This category consists of components of net position restricted in their use by ( 1) external groups such as grantors, creditors or laws and regulations of other governments; or (2) law through constitutional provisions or enabling legislation. The statement of net position of the Authority reports $185,976 of restricted net position which consists of $122,272 of Section 8 HAP reserves that are restricted for landlord rental payments (see Note B-8-b) and $63,704 related to Banyan Club reserves.
iii.) Unrestricted net position
This category includes all of the remaining net position that does not meet the definition of the other two categories.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Budgets
Budgets are prepared on an annual basis for each program/activity and are used as a management tool throughout the accounting cycle. Budgets are not, however, legally adopted nor required in the basic financial statement presentation.
8. Income taxes
The Authority is a governmental entity and is exempt from federal and state income taxes. The Authority's blended component units are not-for-profit organizations and, as such, are also not subject to federal and state income taxes. Accordingly, no provision for federal or state income taxes has been made in the financial statements.
9. Use of estimates
The preparation of financial statements in confonnity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ·
10. Impact of recently issued accounting principles
In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities, that establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This statement is effective for the Authority's September 30, 2014 fiscal year end. In response to this statement, management will be writing off the issuance cost associated with Banyan Club Apartments' mortgage loan (see Note A-6-e).
11. lmpainnent of long-lived assets
The Authority evaluates events or changes in circumstances affecting long-lived assets to detennine whether an impainnent of its assets has occurred. If the Authority detennines that a long-lived asset is impaired, and that the impainnent is significant and other-thantemporary, then an impainnent loss will be recorded In the Authority's financial statements. In the current year, the Authority did not recognize any loss on impainnent related to its long-lived assets.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B - DETAILED NOTES
1. Deposits
As of September 30, 2013, the Authority's cash and cash equivalents consist of cash of $2,951,044.
In accordance with GASB No. 40, the Authority's exposure to deposit and investment risk is disclosed as follows:
Interest Rate Risk. Interest rate risk is the risk that the relative value of a security will decline due to a change in interest rates. The Authority's policy to limit its exposure to declines in fair values of its investment portfolio is to only invest in HUD allowed investments and to monitor these investments. As of September 30, 2013, the Authority had no investments and, therefore, was not exposed to interest rate risk.
Credit Risk. Credit risk is the risk that a counterparty will fail to meet its obligations in accordance with agreed terms. It is the Authority's policy to follow the HUD regulations by only having direct investments and investments through mutual funds to direct obligations, guaranteed obligations, or obligations of the agencies in the United States of America. As of September 30, 2013, the Authority had no investments and, therefore, was not exposed to credit risk.
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. The Authority's policy for custodial credit risk requires collateral to be held in the Authority's name by its agent or by the bank's trust department. As of September 30, 2013, none of the Authority's total bank balance of $3,196,143 was exposed to custodial credit risk.
Restricted cash and cash equivalents
Cash and cash equivalents were restricted for the following purposes at September 30, 2013:
Current: Security deposits $ 175,282
122,272 63,704 46,068
107,858
Section 8 HAP equity Banyan Club reserves Family self-sufficiency participant escrows Unspent FEMA grant funds
Subtotal current Noncurrent:
515,184
Family self-sufficiency participant escrows 156,504
Total restricted cash $ 671,688 --------21
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B -DETAILED NOTES (continued)
2. Receivables, net
As of September 30, 2013, receivables, net consist of:
Tenant receivables Other government grants receivable Fraud recovery Developer fee from related party ( see note B-10-b) Due from HUD Other receivables
Total receivables Allowance for doubtful accounts - tenants Allowance for doubtful accounts - fraud
3. Capital assets
$
$
18,126 834
17,982 260,642 12,922 11,510
322,016 (1,767)
(940)
319,309
The additions to fixed assets in the current year include the purchase and rehabilitation of properties in South Bay, Florida of $1,013,646, installation of hurricane impact windows at various public housing properties under the CDBG program at a cost of $37,348, and the purchase and installation of a new fire alarm system at the Authority's Drexel public housing site totaling $90,790, various structural improvements and bathroom and kitchen modernization activity funded by the capital fund program totaling $123,512, and vehicle, software and other equipment purchases of $36,074.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B -DETAILED NOTES (continued)
3. Capital assets ( continued)
A summary of changes in capital assets. for the year ended September 30, 2013, is as follows:
Balance at Balance at Transfers in/ Transfers out/ September 30,
October 1, 2012 Additions Deletions 2013 Non-depreciable:
Land $ 5,418,674 $ 19,500 $ - $ 5,438,174 Construction in progress 89,018 89,018
Total non-depreciable 5,418,674 108,518 5,527,192 Depreciated:
Total accumulated depreciation {20,785,849} (1,041,923} {21,827,772} Capital assets, net $ 14,366,246 $ 348,465 $ {998} $ 14,713,713
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B • DETAILED NOTES (continued)
4. Other current liabilities
As of September 30, 2013, other current liabilities consist of:
Due to related party (see Note B-10-a) $ Accrued payments in lieu of taxes Accrued compensated absences Accrued salaries Accrued housing assistance payments Due to Palm Beach County Due to FEMA Accrued interest payable Other
On April 23, 2004, the Authority obtained a $4,500,000 mortgage note from a local financial institution to refinance an existing loan for Banyan Club. The note is secured by the assignment of leases and related rents. The note bears interest at an annual rate of 4.125% through April 23, 2014, at which time the interest rate will become variable, but at no time less than 4.125%. The note is payable in monthly installments through April 23, 2029.
As of September 30, 2013, the future principal maturities and estimated interest are as follows for the years ending September 30:
Conduit debt
2014 2015 2016 2017 2018
2019-2023 2024-2028
2029
Notes Payable
Principal $ 174,138
181,458 189,086 197,036 205,318
1,113,554
573,798 546,365
$ 3,180,753
Interest $ 127,931
120,610 112,982 105,033 96,750
346,789
57,752 10,570
$ 978,417
In 1998, the Palm Beach Housing Development Corporation, Inc. (an instrumentality of the Authority), issued Multifamily Housing Variable Rate Demand Revenue Refunding Bonds totaling $9,440,000 to provide financial assistance to private-sector entities for the acquisition, construction and equipping of multifamily residential housing facilities located in Riviera Beach and West Palm Beach, Florida. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Neither the County, the Authority, the Corporation nor any political subdivision thereof is obligated in any matter for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of February 2013, one of the underlying properties was sold and the total outstanding balance of the bonds was satisfied as a result of the sale.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B - DETAILED NOTES (continued)
6. Pension plan
The Authority offers a defined contribution plan created in accordance with Internal Revenue Service Code Section 401 (a) and administered by Lincoln Financial Advisors. All employees twenty-one years of age or above are eligible to participate in the plan after one year of continuous service. At September 30, 2013, there were 35 defined contribution plan members. Members do not contribute to the plan. The Authority's contribution is discretionary and determined on a yearly basis at a rate of 13. 75% of the plan participant's annual base salary for participants enrolled prior to October 1, 2007, and 6% for those participants enrolled thereafter. During the year ended September 30, 2013, the Authority contributed $161,502 to the Plan. The Authority's Board may amend provisions of the Plan. The Plan is held in a trust for the exclusive benefit of the participants and their beneficiaries; consequently, the Authority has no fiduciary responsibility and, therefore, the net assets of the Plan are not included in the Authority's financial statements.
7. Risk management
The Authority is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. As part of the Authority's risk management program, certain commercial insurance policies are purchased. In addition, the Authority joined Housing Authorities Risk Retention Group ("HARRGn), a public risk pool currently operating as a common risk management and insurance program. The Authority pays an annual premium to HARRG for its general insurance coverage. The agreement for formation of HARRG provides that it will be selfsustaining. through member premiums and will reinsure all other risks of loss, including workers' compensation and employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years, nor has there been any reduction in coverage in the current year.
8. Commitments and contingencies
a. Legal
The Authority is party to various pending or threatened legal actions arising in the normal course of operations. Although the outcome of these actions is not presently determinable, it is the Authority's opinion that any ultimate liability is not expected to have a material adverse effect on the Authority's financial position.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B - DETAILED NOTES (continued)
8. Commitments and contingencies (continued}
b. Grants and contracts
The Authority participates in various federally-assisted grant programs that are subject to review and audit by the granter agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a federal audit may become a liability of the Authority. As of the date of this report, management is not aware of any such examinations.
In accordance with HUD regulations, the amount of current year program subsidy received in excess of associated qualifying expenses of the Housing Choice Voucher program is presented as net program income or loss with the cumulative excess funding being reflected in restricted net position in the basic financial statements. As of September 30, 2013, the Authority had unspent cumulative excess HAP funding of $122,272 as restricted net position.
c. Funds awarded
The Authority receives funding from HUD through the Capital Fund Program to help subsidize the cost of project repairs, improvements and certain operating costs. Unspent awarded amounts available for future use as of September 30, 2013, for qualifying eligible expenditures totaled $527,208 for the Capital Fund Program and $344,617 for the Replacement Housing Factor Funds.
d. NSP Program Income
The Authority has a commitment to the County to pass along all program income earned through the Authority's use of NSP funds and its operations of NSP funded properties. During 2013, the Authority transferred $34,765 of program income to the County.
9. Concentrations
For the year ended September 30, 2013, approximately 83% of revenues are from HUD directly and indirectly.
The Authority operates in a heavily regulated environment. The operations of the Authority are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to, HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related costs and the additional administrative burden to comply with the changes.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B-DETAILED NOTES (continued)
10. Related party transactions
As further described in Note A-1, GASS Statement No. 14, as amended, requires a primary government to report as a component unit any entity for which it is financially accountable or over which it exercises control by its ability to impose its will on the entity. The Authority is not financially accountable for and does not exercise control over the operations of the entities listed below and as such they are not considered component units of the Authority.
a. Leased Housing Corporation, Inc.
Leased Housing Corporation, Inc. (the "Corporation"), is a not-for-profit 501 (c)(3) corporation whose purpose is to provide affordable housing for persons of low and moderate income and assist others in providing the same. The Corporation's Board members include current officers/employees of the Authority and one current Board member of the Authority and is therefore considered a related party of the Authority.
The Corporation provides additional financial resources to the Authority in the fonn of a monthly contribution. The Corporation provided total monthly contributions to the Authority in the amount of $90,058 for the fiscal year ended September 30, 2013. In addition to the monthly contribution, the Corporation provided additional financial support to the Authority by paying certain administrative costs in the total amount of $5,315 relating to staff meetings, travel, software licenses and various other expenses. During 2013, the Authority incurred expenses of $186,720 for office rent and $8,677 for management fees payable to the Corporation. During fiscal year 2012, the Corporation advanced $150,000 to the Authority to assist with an escrow deposit for the purchase of a multi-family apartment complex called Belle Glade Gardens. As of September 30, 2013, the Authority owed the Corporation a total of $150,000.
As of September 30, 2013, all of the homes purchased by the Authority under the Neighborhood Stabilization Program grant were rented to low-income tenants. The Authority entered into a contract to retain the services of the Corporation as management agent for the homes effective April 1, 2011 through February 28, 2016.
b. Westgate Plaza Apartments, LTD
Westgate Plaza Apartments, LTD (the "Partnership"), is a Florida limited partnership whose purpose is to provide 80 units of . affordable rental housing of which the Authority's blended component unit, Palm Beach Housing Development Corporation, Inc ("PBHDC"), is a co-developer. Under the terms of the agreement effective in July of 2011, PBHDC is to receive 30% of the developer fees payable from the
· Partnership. · As of September ·30, 2013, the Authority, through the blended component unit, recorded $578,040 in developer fees of which $317,398 was received. The Authority's remaining receivable of $260,642 was received subsequent to year end, in November 2013.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B • DETAILED NOTES (continued)
11. Financial data schedule
As required by HUD, the Authority prepares its financial data schedule in accordance with HUD requirements in a prescribed format which differs from the presentation of the basic financial statements. The schedule's format presents certain operating items as nonoperating such as depreciation expense, housing assistance payments and extraordinary maintenance expense. In addition, the schedule's format includes non-operating items as operating such as interest income, HUD capital revenue, gains and losses on the disposal of capital assets and interest expense. Furthermore, the schedule reflects tenant revenue and bad debt expense separately.
12. Leasing activities
The Authority is the lessor of dwelling units mainly to low-income residents. The rents under the leases are determined generally by the resident's income as adjusted for eligible deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by the lessee at any time or renewed every year. The Authority may cancel the lease only for cause. Revenues associated with these leases are recorded in the accompanying basic financial statements and related schedules within tenant revenue. Primarily all of the capital assets of the Authority are for these leasing activities except for administrative offices and equipment.
13.Subsequentevents
Management has evaluated subsequent events and transactions for potential recognition or disclosure through May 7, 2014, the date which the financial statements were available to be issued, and has determined that no material transactions have occurred that would warrant additional disclosure in the financial statements. 14. Segment information
Banyan Club Apartments. The Authority is pursuing financing options for Banyan Club Apartments. The mortgagee will rely on the revenues generated by the rental income of the apartments to fund the liability and will require separate financial information. Summary financial information for Banyan Club Apartments is presented as follows.
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B • DETAILED NOTES (continued)
14. Segment information (continued)
Condensed Statement of Net Position
~sets Current assets Capital assets, net Other noncurrent assets
- Total assets Liabilities
Current liabilities Noncurrent liabilities
Total liabilities Net position
Net investment in capital assets Resticted net position Unrestricted net position
Total net position
Total liabilities and net position
$ 840,584 2,167,329
54,162
$ 3,062,075
$ 273,687 3,006,435
3,280,122
(178,305) 63,704
{103,446} (218,047)
$ 3,062,075
Condensed Statement of Revenues, Expenses, and Changes in Net Position
Operating revenues and (expenses) Rental revenue $ 1,117,707 Other operating revenues 14,667 Depreciation (123,130) Other operating expenses {827,148}
Operating income 182,096 Nonoperating revenues and (expenses)
Interest expense (140,293) Transfers to the Authority {165,491}
Change in net position (123,688) Beginning net position {94,359} Ending net position $ ~218,047}
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Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2013
NOTE B-DETAILED NOTES (continued)
14. Segment information (continued}
Condensed Statement of Cash Flows
Net cash provided by (used in): Operating activities Capital and related financing activities
Net decrease in cash Beginning cash and cash equivalents
Cash receipts - prior years $ 782,151 $ 397,509 $ 171,701 $ $ 1,351,361 Cash receipts - current year 47,090 321,655 3881604 1921069 949,418 Cumulative as of September 30, 2013 829,241 719,164 560,305 192,069 2,300,779
COSTS Prior years 789,483 427,088 181,742 1,398,313 Current year 39,758 2921076 387?10 1951569 9151113
Cumulative as of September 30, 2013 829,241 719,164 569,452 195,569 2,313,426 RECEIVABLE DUE FROM HUD $ $ $ 9,147 $ 3,500 $ 12,647 SOFT COSTS
Prior years $ 578,023 $ 302,600 $ 102,022 $ $ 982,645 Current year 36,278 234,984 3091189 1951569 776,020 Cumulative as of September 30, 2013 614,301 537,584 411 211 195,569 1i758,665
HARD COSTS Prior years 211,460 124,488 79,720 415,668 Current year 3,480 57,092 781521 139,093
Cumulative as of September 30, 2013 214,940 181,580 158,241 554i761 CUMULATIVE HARD AND SOFT COSTS $ 829,241 $ 719,164 $ 569,452 $ 195,569 $ 2,313,426
The following RHF grants have been awarded and are unspent as of September 30, 2013:
SCHEDULE OF ACTUAL ROSS PROGRAM COSTS AND ADVANCES
Year ended September 30, 2013
PROGRAM
BUDGET
ADVANCES
Cash receipts - prior years Cash receipts - current year
Cumulative as of September 30, 2013
COSTS Prior years Current year
Cumulative as of September 30, 2013
RECEIVABLE DUE FROM HUD
SOFT COSTS Prior years Current year
Cumulative as of September 30, 2013
CUMULATIVE HARD AND SOFT COSTS
See independent auditors' report.
38
FL14P
191A012
$ 46,475
$ 46,475 46,475
46,475
46,475
$
$ 46475 46,475
$ 46,475
SINGLE AUDIT SECTION
39
Palm Beach County Housing Authority
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended September 30, 2013
Federal Grantor/Pass-Through Grantor/ Program or Cluster Title
Direct from the U.S. Department of Housing and Urban Development Low Rent Public Housing Section 8 Housing Choice Vouchers Public Housing Capital Fund Program Resident Opportunity and Supportive Services
Pass-through from Palm Beach County. Florida Community Development Block Grant (Disaster Recovery Program) Community Development Block Grant (Neighborhood Stabilization
Program)
TOTAL EXPENDITURES OF FEDERAL AWARDS
NOTE 1 • BASIS OF PRESENTATION
CFDA Number
14.850 14.871 14.872 14.870
14.228
14.218
Federal Expenditures
$ 946,688 22,315,796
915,113 46,475
24,224,072
128,138
1,012,871
1,141,009
$ 25,365,081
The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 0MB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program, CFDA No. 14.871, to be considered an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the amount of assistance paid by the Authority.
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners Palm Beach County Housing Authority West Palm Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities of the Palm Beach County Housing Authority (the "Authority"), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated May 7, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (Internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identifiect.···· · · ···
41 ·ra PrimeGlobal
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over compliance. Accordingly, this communication is not suitable for any other purpose.
BERMA~OPKINS WRIGHT LAHAM I l 'J ,\I' \ . " [ I J I ,\ 1 I -, l l f'
www.bermanhopkins.com
255 S. Orange Ave. Suite 745 Orlando, FL 32801
Phone: 407-841-8841 Fax: 407-841-8849
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY 0MB CIRCULAR A-133
Board of Commissioners Palm Beach County Housing Authority West Palm Beach, Florida
Report on Compliance for Each Major Federal Program
We have audited the Palm Beach County Housing Authority's {the "Authority") compliance with the types of compliance requirements described in the 0MB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Authority's major federal programs for the year ended September 30, 2013. The Authority's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the Authority's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Authority's compliance.
43 ~ PrimeGlobal
Opinion on Each Major Federal Programs
In our opinion, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal programs for the year ended September 30, 2013.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with 0MB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2013-001 and 2013-002. Our opinion on each major federal program is not modified with respect to these matters.
The Authority's response to the noncompliance findings identified in our audit is described in the accompanying corrective action plan. The Authority's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control Over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority's internal control over compliance with the types of requirements that could have a direct and materiar effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with 0MB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or sigriifica-nt deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
44
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of 0MB Circular A-133. Accordingly, this report is not suitable for any other purpose.
May 7, 2014 Melbourne, Florida
45
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Palm Beach County Housing Authority
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
September 30, 2013
A. SUMMARY OF AUDITORS' RESULTS
Financial Statements Type of auditors' report issued: Unmodified
Internal control over financial reporting: Material weakness identified? No Significant deficiency identified? None Reported
Noncompliance material to financial statements noted? No
Federal Awards Internal control over major programs:
Material weakness identified? No Significant deficiency identified? None Reported
Type of auditors' report issued on compliance for major programs:
• Section 8 Housing Choice Voucher - Unmodified • Low Rent Public Housing - Unmodified • Community Development Block Grant - Unmodified
Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of 0MB Circular A-133? Yes (2013-001 and 2013-002)
The programs tested as major programs are as follows:
• Section 8 Housing Choice Vouchers - CFDA No. 14.871 • Low Rent Public Housing - CFDA No. 14.850 • Community Development Block Grant- CFDA No. 14.218
The threshold for distinguishing type A and B programs was $760,952
Did the auditee qualify as a low-risk auditee? No
8. FINDINGS - FINANCIAL STATEMENTS AUDIT
None.
46
Palm Beach County Housing Authority
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
September 30, 2013
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS
2013-001 Eligibility Section 8 Housing Choice Vouchers - CFDA No. 14.871 Other matter required to be reported in accordance with 0MB Circular A-133
Condition: Out of a total tenant population of approximately 2,000 tenants, 40 tenant files were tested and the following files had exceptions:
• 4 files had applied an incorrect payment standard; • 3 files used an incorrect utility allowance; and • 1 file lacked documentation supporting income exclusion.
Criteria: 24 CFR 985.516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. The Authority's administrative plan also requires following proper procedures for determination of HAP and verification of income.
Cause: Reduced administration fees funded from HUD resulted in an increase caseload per case manager and less time for staff training, supervisor review and quality control on the recertification process.
Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect total tenant payments for rent and HAP to landlords.
Auditors' Recommendations: The Authority should correct the deficiencies noted in the tested files to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and accurate management reviews should continue to ensure staff is aware of acceptable procedures.
2013-002 Special Tests and Provisions -Waiting List Low Rent Public Housing - CFDA No. 14.850 Other matter required to be reported in accordance with 0MB Circular A-133
Condition: During our audit testing, we noted that the internal controls over waiting list were lacking for preventing improper additions to the waiting list and ensuring only those on the waiting list received an opportunity to be housed. Specifically, we noted the following issues:
• The system controls in place were allowing access to create a new tenant in the recertification screen, instead of only coming from the waiting list; • Applicants were not being selected in the correct order from the waiting list; and • Applicants marked as elderly on the one bedroom list were passed up and not automatically moved to the Drexel elderly list.
47
Palm Beach County Housing Authority
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
September 30, 2013
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS 2013-002 Special Tests and Provision .. Waiting List (continued)
Criteria: In accordance with 24 CFR 982, Subpart E, the Authority should follow the policies and procedures documented in its Admissions and Continued Occupancy Policy ("ACOP") for applicant eligibility to be added onto the waiting list as well as selecting applicants from the waiting list for the opportunity to be housed.
Effect: The Authority is not housing applicants, or giving the opportunity to be housed, in the proper order from the waiting list.
Cause: The Authority does not have adequate systems and controls in place to ensure the waiting list is proper1y maintained and conforms to the required standards.
Auditors' Recommendations: The Authority should implement systems and controls to adequately maintain a waiting list that ensures applicants are housed, or given the opportunity to be housed in the proper order. Better system controls, assessment of staff skill sets and continuing training should be considered as well.
D. SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
None.
48
ouNTY HOus. (Joe • •• ~G
i;c,.• ·.;;, PALM BE.ACH COUNTY HOUSING AUTHORITY
'. ""•:< •
•• . ': . QUAUTY HOMU • GOOD JOURNEY
May 7, 2014
. CORRECTIVE ACTION PLAN
U.S. Department of Housing and Urban Development
Palm Beach County Housing Authority (the "Authorityn) respectfully submits the following corrective action plan for the year ended September 30, 2013.
Name and Address of independent public accounting firm:
Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940
Audit period: October 1, 2012 - September 30, 2013
The findings from the September 30, 2013 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.
FINDINGS - FEDERAL AWARD PROGRAMS AUDIT
2013-001 Eligibility
Condition: Out of a total tenant population of approximately 2,000 vouchers, 40 tenant files were tested and the following files had exceptions:
• 4 files had applied an incorrect payment standard; • 3 files used an incorrect utility allowance; and • 1 file lacked documentation supporting income exclusion.
Auditors' Recommendation: The Authority should correct the deficiencies noted in the tested files to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and accurate management reviews should continue to ensure staff is aware of acceptable procedures.
49
PALM BEACH COUNTY HOUSING AUTHORITY 3432 W. 45'h Street
West Palm Beach, FL 33407 Office: 561.684.2160
Fax: 561.684.0183 www.pbchafl.org
2013-001 Eligibility {continued)
Action Taken:
Pursuant to the independent auditor's recommendations; we have corrected the deficiencies noted in the tested files to ensure proper compliance with the requirements related to tenant eligibility. In addition, we continue to incorporate training workshops on a bimonthly basis for all Housing Specialists. The training workshops include the following target areas:
• Proper rent calculations: a Income a Assets o Deductions o Proper payment standards o Proper utility allowance calculations
• Housing Choice Voucher Program Overview • HCV Updates • Workflow Process • EIV and PIC Discrepancies and Reports
Further, four team members were placed on a Performance Improvement Plan (PIP) as a result of the internal audit review. These team members' workflow processes are closely monitored through coaching and interactive support to ensure acceptable performance measures are increased and maintained. In addition, the new position of the Quality Assurance Specialist is scheduled to attend extensive training in auditing files. This will ensure that we have accurate management reviews throughout the fiscal year.
Designated timeline for completion is October, 2014. The responsible party to ensure the completion of this corrective action plan is Laila Darby, Housing Choice Voucher Director.
50
2013-002 Special Tests and Provisions - Waiting List
Condition: During our audit testing, we noted that the internal controls over waiting list were lacking for preventing improper additions to the waiting list and ensuring only those on the waiting list received an opportunity to be housed. Specifically, we noted the following issues:
• The system controls in place were allowing access to create a new tenant in the recertification screen, instead of only coming from the waiting list; • Applicants were not being selected in the correct order from the waiting list; and • Applicants marked as elderly on the one bedroom list were passed up and not automatically moved to the Drexel elderly list.
Auditors' Recommendation: The Authority should implement systems and controls to adequately maintain a waiting list that ensures applicants are housed, or given the opportunity to be housed in the proper order. Better system controls, assessment of staff skill sets and continuing training should be consi<:iered as well. Action Taken:
Pursuant to the independent auditor's recommendations, PBCHA is enhancing internal controls over multiple aspects of the Public Housing waiting list to insure that only those people on the waiting list, in proper order, receive an opportunity to be housed.
The Palm Beach County Housing Authority has added two new positions to increase oversight and administration of the Public Housing and Housing Choice Voucher Program waiting lists. On April 14, 2014 we added a Housing Compliance Officer to our staff as an additional layer of oversight. We are currently interviewing for a Housing Occupancy Specialist. The person in this position will administer the waiting list for both the Public Housing and Housing Choice Voucher Programs. Initially, and in accordance with all HUD - Asset Management Guidelines, they will transition the Agency to, and then impeccably maintain, a Site Based Public Housing waiting list. Additionally, they will audit, and administer the Housing Choice Voucher Program waiting list. Ongoing trainings and regularly scheduled supervisory meetings will insure compliance with all current and future, program guidelines. As an additional venue for training, the Palm Beach County Housing Authority is partnering with The Palm Beach County Office of Equal Opportunity, Fair Housing Center of the Palm Beaches, and Florida Rural Legal Services. During the past two months staff has attended three separate training events. PBCHA, in conjunction with the partners referenced above, have formulated a training curricula with additional events scheduled through the end of this year. The Palm Beach County Housing Authority currently utilizes Tenmast Software to run its Public Housing Program. Mr. Mark Lewis, President of Tenmast Software, is currently working on a revision to the software permissions structure, which will eliminate the ability to create a new tenant in the recertification screeri. · The Palm Beach County Housing Authority will regularly monitor their waiting lists, and software structure to insure full compliance with all program guidelines. Ms. Demetria Glass, Housing Compliance Officer will be the responsible party to ensure completion of this corrective action plan with a tentative deadline of November 2014.
51
If the Department of Housing and Urban Development has questions regarding this plan, please call Van Johnson, Executive Director at (561)684-2160.
Sincerely yours,
Vfk11~ Van Johnson Executive Director
52
PALM BEACH COUNTY HOUSING AUTHORITY
Basic Financial Statements and Supplemental Information
Year ended September 30, 2012
BERMAN§rOPKINS WRIGHT LAHAM
A
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information)
BASIC FINANCIAL STATEMENTS
Balance Sheet
Statement of Revenues, Expenses and Changes in Net Assets
Statement of Cash Flows
Notes to Basic Financial Statements
SUPPLEMENTAL INFORMATION
Financial Data Schedule
Schedule of Actual Capital Fund Program Costs and Advances
SINGLE AUDIT SECTION
Page
1
3
9
10
11
13
32
36
Schedule of Expenditures of Federal Awards 38
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 39
Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with 0MB Circular A-133 41
Palm Beach County Housing Authority West Palm Beach, Florida
255 S. Orange Ave. Suite 745 Orlando, FL 32801
Phone: 407-841-8841 Fax: 407-841-8849
We have audited the accompanying financial statements of the business-type activity of the Palm Beach County Housing Authority (the "Authority"), as of and for the year ended September 30, 2012, which collectively comprise the Authority's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fair1y, in all material respects, the respective financial position of the business-type activity of the Authority, as of September 30, 2012, and the respective changes in financial position and cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 4, 2013, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
1
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Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such infonnation, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary infonnation in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the infonnation and comparing the infonnation for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the infonnation because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of fanning an opinion on the financial statements that collectively comprise the Authority's financial statements as a whole. The accompanying financial data schedule and schedule of actual program costs and advances are presented for purposes of additional analysis as required by the U.S. Department of Housing and Urban Development, and are not a required part of the financial statements of the Authority. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements of the Authority. The supplemental infonnation is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The infonnation has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such infonnation directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In . our opinion, the infonnation is fairly stated in all material respects in relation to the financial statements as a whole.
April 4, 2013 Melbourne, Florida
2
~ 'ri'oµt,14 ~ & ~~41#
{!P/1~ 4114 /1440date4, LJ!.P
Management's Discussion and Analysis
As management of the Palm Beach County Housing Authority (the "Authority"), we offer the readers of the Authority's financial statements this narrative overview and analysis of the financial activities of the Authority for the year ended September 30, 2012. We encourage readers to consider the information presented here in conjunction with the Authority's financial statements.
Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Executive Director, Van Johnson, Palm Beach County Housing Authority, 3432 West 45th Street, West Palm Beach, Florida 33407.
Financial Highlights
• The assets of the Authority exceeded the liabilities as of September 30, 2012, by $15,782,640 (net assets).
• The Authority's cash balances as of September 30, 2012, were $4,605,576, representing a decrease of $1,641,495.
• The Authority earned revenue directly from the U.S. Department of Housing and Urban Development ("HUD") of $24,654,452, which includes funds for capital asset activities, and $631,385 indirectly from HUD passed through Palm Beach County.
• Public housing has maintained occupancy of 98% for the fiscal year. • Housing assistance payments for the Housing Choice Voucher program decreased by
$960,757 from the prior year due to a 4% decrease in vouchers administered by the Authority, as well as a slight decrease in the per unit cost incurred.
Overview of Financial Statements
The financial statements included in this annual report are those of a special-purpose government engaged in a single business-type activity prepared on an accrual basis. Over time, significant changes In the Authority's net assets serve as a useful indicator of whether its financial health is improving or deteriorating. To fully assess the financial health of any authority, the reader must also consider other non-financial factors such as changes in client household composition, fluctuations in the local economy, HUD mandated program administrative changes and the physical condition of capital assets. The following statements are included:
• Balance Sheet - this statement reports the Authority's assets, liabilities and net assets at the end of the fiscal year. The reader may consider or view the Authority's net assets as the difference between what the Authority owns (assets) and what the Authority owes (liabilities).
• Statement of Revenue, Expenses, and Changes in Net Assets - this statement presents information showing how the Authority's net assets increased or decreased during the current fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will result in cash inflows and cash outflows in the future periods.
• Statement of Cash Flows - this statement presents information showing the total cash receipts and cash disbursements of the Authority during the current fiscal year. The statement reflects the net changes in cash resulting from operations plus any other cash requirements during the current year (i.e. capital additions, debt service, prior period obligations, etc.). The statement reflects the receipt or disbursement of cash that was obligated to or paid by the Authority in prior periods and subsequently received or paid during the current fiscal year (i.e. receivables and payables).
3
Overview of Financial Statement (continued)
• Notes to the Basic Financial Statements - the notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided. These notes give greater understanding on the overall activity of the Authority and how values are assigned to certain assets and liabilities and the longevity of these values. In addition, notes reflect the impact (if any) of any uncertainties the Authority may face.
In addition to the basic financial statements listed above, our report includes supplemental information. This information is to provide more detail on the Authority's various programs and the required information mandated by regulatory bodies that fund the Authority's various programs.
Financial Analysis
Balanc~ Sheet
2012 2011 Net Chanae Current assets $ 5,598,535 $ 6,335,709 $ (737,174) Capital assets, net 14,366,246 13,916,361 449,885 Othernoncurrentassets 298,109 274,297 23,812
Total assets $ 20,262,890 $ 20,526,367 $ (263,4n) Current liabilities $ 1,130,904 $ 865,906 $ 264,998 Long-tenn debt 3,178,634 3,343,423 (164,789) Other noncurrent liabilities 170,712 272,971 (102,259)
Total liabilities 4,480,250 4,482,300 (2,050) Invested in capital assets, net 11,209,849 10,473,509 736,340 Restricted net assets 1,173,558 891,232 282,326 Unrestricted net assets 3,399,233 4,679,326 {1,280,093} ·.
Total net assets 15,782,640 16,044,067 {261,427} Total liabilities and net assets $ 20,262,890 $ 20,526,367 $ (263,4n)
As noted earlier, net assets may serve over time as a useful indicator of the Authority's financial position. In the case of the Authority, assets exceeded liabilities by $15,782,640 at the close of fiscal year 2012.
Current assets decreased by $737,174 primarily as a result of decreases in current unrestricted cash in the Authority's Banyan Club Apartments ("Banyan Clubn) and the Low Rent Public Housing Asset Management Projects (" AMPs"). Unrestricted cash in Banyan Club decreased primarily as the result of a current year increases in payments for modernization activity and maintenance contracts of approximately $221,000, as well as a $500,000 payment toward a $750,000 escrow deposit which the Authority needed toward the purchase of a multifamily apartment complex called Belle Glade Gardens. The full escrow deposit is reported as a ·current receivable· under the Central· Office Cost Center ("COCC"). Current unre-strictet:rcash ·1n the AMPs decreased by $1,139,883 primarily as a result of purchases of capital assets from operating reserves of $361,843, increases in general operating expenses including salaries and related benefits as a result of hiring additional employees and merit increases incurred during the year, as well as a decrease in operating subsidy received from HUD of approximately $442,000 as a result of a subsidy offset against the Authority's operating reserves.
4
Financial Analysis {continued}
Current liabilities increased by $264,998 primarily as a result of increases in amounts due to related parties and deferred revenue. Amounts due to Leased Housing Corporation, Inc. ("LHC"), a related party, increased by $150,082 as a result of an advance made to the Authority to assist with the escrow deposit of $750,000 toward the purchase of Belle Glade Gardens. Upon completion of the sale, the full escrow deposit will be returned to the Authority and $150,000 will be owed back to LHC. Deferred revenue increased by $66,042 primarily as a result of a FEMA grant review in which certain costs incurred in prior years were determined to be ineligible. Upon final close-out of the FEMA grant projects, the deferred revenue will either be applied to other eligible costs not previously reimbursed or will be paid back to FEMA. In addition, the Section 8 Family Self Sufficiency participant escrow accrued as of September 30, 2012 increased by $63,782 over prior year.
Long-term debt decreased by $164,789 due to payments made on principal due.
Other noncurrent liabilities decreased by $102,259 primarily due to a decrease in the longterm portion of the Authority's family self-sufficiency ("FSSn) program escrow liability.
Net assets - The difference between an organization's assets and its liabilities is its net assets. Net assets are categorized as one of three types.
1. Invested in capital assets, net - the Authority's investment in capital assets, net of accumulated depreciation and related debt, is due to the capital asset and long-term debt activity.
2. Restricted - the Authority's net assets whose use is subject to constraints imposed by law or agreement consisting primarily of HAP equity. As of September 30, 2012, the Authority had $1,173,558 of funds reserved as restricted net assets which represents an increase of $282,326 over prior year. This increase is primarily attributable to an increase in HAP equity of $336,088, offset by a decrease in restricted escrows related to Banyan Club Apartments of $53,762.
3. Unrestricted - the Authority's net assets that are neither invested in capital assets nor restricted which change principally due to operations. These resources are available to meet the Authority's ongoing obligations to its residents and creditors.
By far the largest portion of the Authority's net assets (approximately 71 % percent) represents investment in capital assets less any related debt used to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services to its program participants. Although the Authority's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
At the end of the current fiscal year, the Authority is able to report positive balances in all three categories of net assets. The same situation held true for its prior fiscal year.
5
Financial Analysis (continued)
Operating revenues: HUD operating revenues Tenantrevenue,net Other operating revenues Other operating grant revenues
Total operating revenues Operating expenses:
Administrative Tenant services Utilities Maintenance General Depreciation Housing assistance payments
Total operating expenses
Operating loss Nonoperating revenues (expenses):
Gain on disposal of capital assets Interest income - unrestricted Interest income- restricted Interest expense Casualty loss on capital assets Loss on impairment of other asset
Total Operating Revenues increased $525, 179. The primary cause of the increase was a 2% increase in HUD revenue comprised of a $654,326 increase in Section 8 revenue and a $198,840 increase in capital grant funding utilized for non-capitalized modernization activity. These increases were offset by a $441,929 decrease in operating fund subsidy as a result of the current year subsidy offset imposed .by HUD. Tenant revenue, net.of-bad debt,-increased $54,020 as a result of continued high occupancy in public housing and an increase in rental revenue received from tenants in the Authority's single-family homes purchased through the Neighborhood Stabilization Program grant. Additionally, the Authority received $94,662 in insurance recovery funds·for two public housing units damaged. Also, the Authority received $66,925 in Section 8 and low rent public housing fraud recovery revenue, representing an increase of $33,519 over prior year.
6
Financial Analysis (continued)
Total Operating Expenses are categorized by the Authority as administrative, tenant services, utilities, maintenance, general, depreciation and housing assistance payments.
Tenant services expenses increased by $122,545 primarily due to staffing of two Section 8 FSS program administration positions. In previous years, ah outside contract was paid for FSS program administration. In addition to the expenditures for the FSS positions, the Authority incurred payroll expense to employ a full-time resident services coordinator for the entire fiscal year.
Expenses incurred for maintenance increased by $182,475 in the current year primarily as a result of increases in non-capitalized improvements to Banyan Club.
Depreciation increased by $211,816 for the 2012 fiscal year. The change is primarily attributable to increases in depreciable fixed assets balances in the current and prior year as a result of increased capital grant activity.
Capital Asset and Debt Activity
The Authority's net capital assets as of September 30, 2012, amount to $14,366,246. The investment in capital assets includes land, buildings and improvements, and furniture and equipment, offset by accumulated depreciation. The total increase in capital assets of $449,885 was due to additions to capital assets of $1,485,065 offset by current year depreciation expense of $1,035,179 and disposals offully depreciated assets of $84,489.
The majority of the additions to capital assets relate to the purchase and installation of hurricane impact windows at various public housing properties at a cost of $631,385. This activity was funded by a Community Development Block Grant obtained through Palm Beach County, . Florida. Other additions include the purchase and installation of new air conditioning units at the Authority's Seminole Manor public housing site totaling $348,202, various structural improvements and bathroom and kitchen modernization activity at the public housing sites funded by the capital fund program totaling $304, 116, and vehicle and other equipment purchases of $201,362.
Economic Factors
Significant economic factors affecting the Authority are as follows:
• Federal funding provided by Congress to the Department of Housing and Urban Development;
• Local labor supply and demand, which can affect salary and wage rates; • Local inflationary, recessionary and employment trends, which can affect resident
incomes and therefore the amount of rental income; • Natural disasters which can have a devastating impact on the local economy; • Inflationary pressure on utility rates, housing costs, supplies and other costs; and • Trends in the current housing market.
7
Conclusion
The Authority continues to face decreases in federal funding provided by HUD as a result of congressional budget cuts, including the federal budget sequestration which took effect March 1, 2013, under the Budget Control Act of 2011. These budget cuts will greatly affect the services which housing authorities across the nation can provide to their clients. However, with the continued support of the Authority's valued staff, its visionary Board of Commissioners, and its community partners, the Authority will continue to · provide excellent customer service to our residents and clients, and continue to function as a sustainable business within the Palm Beach County area.
In the Authority's continued efforts to accomplish their mission statement - the goal of sustaining self-sufficiency among low to moderate income residents - collaborating with key stakeholders to achieve will assist in meeting the economic challenges that face the Authority due to factors beyond their control. The Authority is presently engaged with several development projects that will meet these goals.
8
Palm Beach County Housing Authority
BALANCE SHEET
September 30, 2012
ASSETS
CURRENT ASSETS Cash and cash equivalents - unrestricted Cash and cash equivalents - restricted Receivables, net Prepaid expenses Inventory, net
Total current assets
NONCURRENT ASSETS Cash and cash equivalents - restricted Capital assets, net Other assets, net
Total assets
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES Current portion of long-term debt Tenant security deposits Deferred revenue Family self-sufficiency participant escrows Other current liabilities
Total operating expenses 28,218,213 OPERATING LOSS {1,056,411)
NONOPERATING REVENUES (EXPENSES) Gain on disposal of capital assets 12,367 Interest income - unrestricted 5,112 Interest income - restricted 1,494 Interest expense (147,404) Casualty losses on capital assets {105,498}
Total nonoperating revenues (expenses) {233,929} Changes in net assets before capital contributions {1,290,340}
CAPITAL CONTRIBUTIONS HUD capital grants 397,528 Other capital grants 631,385
Total capital contributions 1,028,913 Change in net assets (261,427)
Total net assets - beginning 16,044,067 Total net assets - ending $ 15,782,640
The accompanying notes are an integral part of this financial statement.
10
Palm Beach County Housing Authority
STATEMENT OF CASH FLOWS
Year ended September 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES HUD operating grants received Other operating grants received Collections from tenants Collections from other sources Payments to employees Payments to suppliers Housing assistance payments
Net cash used in operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES HUD capital grants received Other capital grants received Purchases of capital assets Payments on long-term debt Interest paid Casualty losses
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES Interest received
NET DECREASE IN CASH Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
AS PRESENTED ON THE ACCOMPANYING BALANCE SHEET: Cash and cash equivalents - unrestricted Cash and cash equivalents - restricted - current Cash and cash equivalents - restricted - noncurrent
SUPPLEMENT AL DISCLOSURE OF NON-CASH INFORMATION
Trade-in value received on purchase of new vehicles
$ 24,310,338 6,253
2,584,656 381,018
(2,635,992) (4,333,496)
(21,116,330) (803,553)
350,575 613,087
(1,454,400) (158,141) (143,928)
(51,741) (844,548)
6,606
(1,641,495) 6,247,071
$ 4,605,576
$ 2,927,062 1,569,833
108,681
$ 4,605,576
$ 12,367
The accompanying notes are an integral part of this financial statement.
11
Palm Beach County Housing Authority
STATEMENT OF CASH FLOWS (continued)
Year ended September 30, 2012
RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES Operating loss
Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation Provision for bad debt
(Increase) decrease in assets: Receivables, net Prepaid expenses Inventory, net Other assets
Increase (decrease) in liabilities: Tenant security deposits Deferred revenues Family self-sufficiency participant escrows Other current liabilities
Net cash used in operating activities
$ (1,056,411)
$
1,035,179 44,124
(659,012) (54,566) (65,114)
(131,790)
1,914 21,481
(40,720) 101,362
(803,553)
The accompanying notes are an integral part of this financial statement.
12
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Reporting entity
The Palm Beach County Housing Authority (the "Authority"), a governmental agency, was created pursuant to Florida Statutes Chapter 421 by Palm Beach County, Florida (the "County"). The primary purpose of the Authority is to develop, acquire and operate safe, decent, sanitary, and affordable housing for low-income families in Palm Beach County in accordance with federal legislation and regulations.
The Authority's governing board consists of a five member Board of Commissioners (the "Board"), the members of which are appointed by the Governor of the State of Florida. The Authority is not a component unit of the County, as defined in Governmental Accounting Standards Board ("GASB") Statement No. 14, The Reporting Entity ("GASB No. 14"), as amended by GASB Statement No. 39, as the Board independently oversees the Authority's operations.
The definition of the reporting entity as defined by GASB No. 14, as amended, is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government.
Some component units, despite being legally separate from the primary government, are so integrated with the primary government that they are in substance part of the primary government. These component units are blended with the primary government.
The Authority's operations include three blended component units which are included in the basic financial statements and consist of legally separate entities for which the Authority is financially accountable. The blended component units are as follows:
• Palm Beach County Housing Development Corporation, Inc. ("PBCHDC") • Palm Beach Housing Development, Inc. ("PBHD") • Palm Beach County Housing at Westgate, Inc. ("PBCHW")
All of these entities were created as Florida Non-Profit Corporations to assist the Authority in various residential rental and affordable housing development projects in the County. During the year ended September 30, 2012, none of these entities had any activity.
13
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. Government-wide and fund financial statements
The government-wide financial statements report information about the reporting government as a whole excluding fiduciary activities. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Businesstype activities rely to a significant extent on user fees and charges for support.
Governments use fund accounting, whereby funds are organized into three major categories: governmental, proprietary and fiduciary. Each fund Is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues and expenditures/expenses.
For financial reporting purposes, the Authority reports all of its operations as a single business activity in a single enterprise fund. Therefore, the government-wide and the fund financial statements are the same.
Enterprise funds are proprietary funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating activities generally arise from providing services in connection with a proprietary fund's principal activity. The operating revenues of the Authority consist primarily of rental charges to tenants and operating grants from the U.S. Department of Housing and Urban Development ("HUD") and include, to a lesser extent, certain operating amounts of capital grants that offset operating expenses.
Operating expenses for the Authority include the cost of administrative, tenant services, utilities, maintenance, general operations, depreciation and housing assistance payments. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, except for capital contributions, which are presented separately.
When restricted resources meet the criteria to be available for use and unrestricted resources are also available for use, it is the Authority's policy to use restricted resources first, and then unrestricted resources, as needed.
3. Measurement focus and basis of accounting
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. The proprietary fund utilizes an economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. · Proprietary fund equity is classified as net assets.
Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The basis of accounting used is similar to businesses in the private sector, thus, these funds are maintained on the accrual basis of accounting. Revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used.
14
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3. Measurement focus and basis of accounting (continued)
For financial reporting purposes, the Authority considers its HUD grants associated with operations as operating revenue because these funds more dosely represent revenues generated from operating activities rather than nonoperating activities. HUD grants and other capital grants associated with capital acquisition and improvements are considered capital contributions and are presented after nonoperating activity on the accompanying statement of revenues, expenses and changes in net assets.
4. Tenant revenue
As provided by GASS No. 34 and related guidance, tenant revenue is presented in the financial statements net of the bad debt expense for uncollectible amounts of $44, 124.
5. Summary of programs
The accompanying basic financial statements indude the activities of several housing programs of the Authority. A summary of each significant program is provided below.
Housing Assistance Programs
Housing Assistance Programs under Section 8 of the Housing and Community Development Act of 197 4 utilize existing privately owned family rental housing units to provide decent and affordable housing to low-income families.
lnduded under these programs is the Housing Choice Voucher Program ("HCVP"). Funding of the HCVP is provided by federal housing assistance contributions from HUD for the difference between approved landlord contract rents and the rent paid by the tenants (referred to as Housing Assistance Payments or "HAP"). In addition, the Authority receives an administrative fee to cover operating expenses of the program. HUD provides funding for HAP and administrative fees based upon previous funding levels as reported within HUD's Voucher Management System. The program consists of both tenant-based and project-based vouchers. With tenant-based vouchers, the subsidy remains with the active tenant participating in the HCVP. With project-based vouchers, the subsidy remains with the active unit participating in the HCVP.
Low Rent Public Housing Programs
Low Rent Public Housing Programs include the following: asset management projects ("AMPs"); Public Housing Capital Fund Program; and various related HUD grants including a Community Development Block Grant passed through from the County and a Neighborhood Stabilization Program grant passed through from the County.
15
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5. Summary of programs (continued)
Low Rent Public Housing Programs (continued)
The purpose of the public housing programs is to provide decent and affordable housing to low-income families at reduced rents. The Authority's public housing program consists of 491 units which are located in five geographic locations, including 45 units in scattered locations throughout Boynton Beach and Palm Beach County, Florida. The developments/units are owned, maintained and managed by the Authority.
Funding of program operations is provided by federal annual contributions, operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition and other allowances). The developments/units are acquired, developed and modernized under the Capital Fund Program, as well as various other related HUD grants.
Central Office Cost Center
The Central Office Cost Center ("COCC") is a business unit within the Authority that generates revenue through fees for services from other Authority programs and activities.
Business Activities
Banyan Club Apartments ("Banyan Club") is a 148 unit, non-federally aided affordable housing complex owned by the Authority. The Authority has retained the services of Leased Housing Corporation, Inc., a related party (see Note B-10), to manage the property and is responsible for the operations of the apartments. Funding of the operations and the debt service requirements of Banyan Club is provided by tenant revenue.
6. Assets, liabilities and net assets
a. Cash and cash equivalents
For financial statement purposes, cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
16
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net assets (continued)
b. Receivables
Receivables consist of revenues earned during the fiscal year and not yet received. Amounts due from HUD consist of grant revenue accrued for allowable program expenses not yet funded. Other government grants receivable consist of revenue earned for related costs incurred. Other receivables consist of tenant receivables, fraud recovery receivables for the housing assistance payments programs and reimbursement receivables from various parties in the normal course of business.
Tenant accounts receivable are being presented in the financial statements net of an allowance for doubtful accounts of $967, which is based on prior experience and estimated by management as receivables with overdue balances in excess of sixty (60) days. In addition, tenant fraud recovery repayment agreements are presented · net of an allowance for doubtful accounts of $5,906, estimated by management based on account composition and prior experience. No allowance is established for HUD and other governmental receivables as management believes that these aniounts are fully collectible.
c. Inventories
Inventories consist principally of expendable building materials and supplies held for use or consumption in the course of the Authority's operations. All inventories are valued on a first-in, first-out ("FIFO") basis. If inventory items fall below cost due to damage, deterioration or obsolescence, the Authority establishes an allowance for obsolete inventory. Based on management's experience with the types of items in inventory, an allowance for obsolescence of $1,097 is recorded as of September 30, 2012.
d. Capital assets
The Authority's policy is to capitalize assets with a cost of $5,000 or more and a useful life in excess of one year. The Authority capitalizes the costs of site acquisition and improvement, structures, equipment and direct development costs meeting the capitalization policy. Capital assets are valued at historical cost, or estimated historical cost if actual historical cost is not available. Assets contributed by third parties are valued at fair market value on the date of contribution. . - . -- . - ..
17
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net assets {continued)
d. Capital assets (continued)
Depreciation has been provided using the straight-line method over the estimated useful lives, which range as follows:
Buildings and improvements Equipment
e. Other assets
15-40 years 3-5 years
Other assets consist of loan closing costs of $86,894 associated with Banyan Club's mortgage loan and capitalized predevelopment costs of $131,790 related to the Authority's Belle Glade Gardens Project. Loan costs are amortized over the life of the loan using the straight-line method. Other assets are reflected in the balance sheet net of accumulated amortization of $29,256. Amortization expense of $3,476 is included in interest expense.
f. Accrued compensated absences
Full-time pennanent employees are granted vacation and sick leave benefits. Vacation leave is granted at varying rates depending on tenure with the Authority and can accrue to a maximum of 250 hours. After three months of service, employees in good standing are entitled to all accrued but unused leave upon separation from the Authority due to a reduction in work force. Employees with leave time in excess of 250 hours lose the excess leave benefits on the last day of the fiscal year unless utilized. Once per year, during the first pay period of the fiscal year, an employee may elect payment in exchange for accrued vacation leave in excess of ten (10) days. Such payments are made at the employee's current rate of pay. Sick leave is accrued at the rate of one (1) day per month, or a maximum of twelve (12) days per year. Any unused sick leave at year-end is carried over into the next fiscal year without limit The estimated liability for vested leave benefits is recorded as a liability in the basic financial statements and the amount earned in any given year is recorded as an expense.
18
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. Assets, liabilities and net assets (continued)
g. Eliminations
i.) lnterprogram due to/from
Because the Authority's COCC is the common paymaster for the shared costs of most of the Authority's programs, cash may be temporarily advanced to other programs creating offsetting interprogram receivables and payables.
The interprogram receivables and payables net to zero and are eliminated for the presentation of the Authority as a whole. As of September 30, 2012, $589,234 was eliminated.
ii.J Fee for service
The Authority's COCC internally charges fees to the AMPs and programs of the Authority in accordance with HUD's Asset Management Handbook. These charges include management fees, bookkeeping fees, asset management fees, and front-line service fees. For financial reporting purposes $1,326,106 of fee for service charges have been eliminated for the year ended September 30, 2012.
h. Net assets
In accordance with GASB No. 34, total equity as of September 30, 2012, is classified into three components of net assets:
i.) Invested in capital assets, net of related debt
This category consists of capital assets (including restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, and improvements of those assets.
ii.) Restricted net assets
This category consists of net assets restricted in their use by (1) external groups such as grantors, creditors or laws and regulations of other governments; or (2) law through constitutional provisions or enabling legislation. The balance sheet of the Authority reports $1,173,558 of restricted net assets which consists of $1, 123,819 of Section 8 HAP reserves that are restricted for landlord rental payments (see Note B-8-b) and $49,739 related to Banyan Club reserves.
iii.) Unrestricted net assets
This category includes all of the remaining net assets that do not meet the definition of the other two categories.
19
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Application of FASS standards
GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, offers the option of following all Financial Accounting Standards Board ("FASB") standards issued after November 30, 1989, unless the latter conflicts with or contradicts GASB pronouncements, or not following FASB standards issued after such date. The Authority elected the option to not follow FASB pronouncements issued after November 30, 1989.
As noted in Note A-11-b below, the GASB issued Statement No. 62 in December 2010 which will supersede GASB Statement No. 20.
8. Budgets
Budgets are prepared on an annual basis for each program/activity and are used as a management tool throughout the accounting cycle. Budgets are not, however, legally adopted nor required in the basic financial statement presentation.
9. Income taxes
The Authority is a governmental entity and is exempt from federal and state income taxes. The Authority's blended component units are not-for-profit organizations· and, as such, are also not subject to federal and state income taxes. Accordingly, no provision for federal or state income taxes has been made in the financial statements.
1 0. Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
11. Impact of recently issued accounting principles
a. In November 2010, the GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus, to improve financial reporting for a governmental financial reporting entity. GASB Statement No. 61 modifies certain requirements for inclusion of component units in the financial reporting entity. GASB Statement No. 61 also amends the criteria for reporting component units as if they were part of the primary government in certain circumstances. This statement is effective for periods beginning after June ~ 5, 2012. Management is currently ev.aluating ... the impact of the adoption of this statement on the Authority's financial statements.
20
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
11. Impact of recently issued accounting principles (continued)
b. In December 2010, the GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-Nov~mber 30, 1989 FASB and A/CPA Pronouncements. GASB Statement No. 62 incorporates into the GASB's authoritative literature certain FASB accounting and financial reporting guidance issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements. This statement is effective for periods beginning after December 15, 2011. The adoption of GASB Statement No. 62 will not have any impact on the Authority's financial statements.
c. In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Oufflows of Resources, Deferred Inflows of Resources, and Net Position, which requires governmental and business-type activities to report net position rather than net assets, deferred outflows of resources, and deferred inflows of resources. GASB Statement No. 63 also changes the title of the statement of net assets to the statement of net position. GASB Statement No. 63 is effective for periods beginning after December 15, 2011. Management is currently evaluating the impact of the adoption of this statement on the Authority's financial statements.
12. Impairment of long-lived assets
The Authority evaluates events or changes in circumstances affecting long-lived assets to determine whether an impairment of its assets has occurred. If the Authority determines that a long-:lived asset is impaired, and that the impairment is significant and other-thantemporary, then an impairment loss will be recorded in the Authority's financial statements. In the current year, the Authority did not recognize any loss on impairment related to its long-lived assets.
NOTE B • DETAILED NOTES
1. Deposits
As of September 30, 2012, the Authority's cash and cash equivalents consist of cash of $4,605,576.
The Authority maintains its cash balance in bank deposit accounts which, at times, may exceed federally insured limits. The Authority's banks participate in the Federal Deposit Insurance Corporation ("FDIC"). All funds in a "noninterest-bearing transaction accounr are insured in full by the FDIC through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules. ·- · · - ---- ·- ---
21
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B -DETAILED NOTES (continued)
1. Deposits (continued)
In accordance with GASB No. 40, the Authority's exposure to deposit and investment risk is disclosed as follows:
Interest Rate Risk. Interest rate risk is the risk that the relative value of a security will decline due to a change in interest rates. The Authority's policy to limit its exposure to declines in fair values of its investment portfolio is to only invest in HUD allowed investments and to monitor these investments. As of September 30, 2012, the Authority had no investments and, therefore, was not exposed to interest rate risk.
Credit Risk. Credit risk is the risk that a counterparty will fail to meet its obligations in accordance with agreed terms. It is the Authority's policy to follow the HUD regulations by only having direct investments and investments through mutual funds to direct obligations, guaranteed obligations, or obligations of the agencies in the United States of America. As of September 30, 2012, the Authority had no investments and, therefore, was not exposed to credit risk.
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. The Authority's policy for custodial credit risk requires collateral to be held in the Authority's name by its agent or by the bank's trust department. As of September 30, 2012, none of the Authority's total bank balance of $5,038,372 was exposed to custodial credit risk.
Restricted cash and cash equivalents
Cash and cash equivalents were restricted for the following purposes at September 30, 2012:
Current: Security deposits $ 170,596 Section 8 HAP equity 1,123,819 Banyan Club reserves 49,739 Family self-sufficiency participant escrows 117,821 Unspent FEMA grant funds 107,858
Subtotal current 1,569,833 Noncurrent:
Family self-sufficiency participant escrows 108,681
Total restricted cash $ 1,678,514
22
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B - DETAILED NOTES (continued)
2. Receivables, net
As of September 30, 2012, receivables, net consist of:
Tenant receivables $ Other government grants receivable Fraud recovery Due from HUD Deposit receivable - Belle Glade Gardens Other receivables
Total receivables Allowance for doubtful accounts - tenants Allowance for doubtful accounts - fraud
3. Capital assets
$
10,482 18,298 35,121 46,953
750,000 6,794
867,648 (967)
(5,906)
860,775
A summary of changes in capital assets for the year ended September 30, 2012, is as follows:
Non-depreciable: Land
Depreciated: Buildings and improvements Equipment - dwelling Equipment - administrative
Total depreciated
Total capital assets
Less accumulated depreciation: Buildings and improvements Equipment - dwelling Equipment - administrative
Total accumulated depreciation
Capital assets, net
$
$
Balance at October 1,
2011
5,418,674
26,196,124 631,266
1,5051455
28,332,845
33,751,519
(18,217,525) (630,269) (9871365)
(19,835,159)
13,916,360
Balance at Transfers in/ Transfers out/ September 30,
Additions Deletions 2012
$ -1,283,703
201,362
1,485,065
1,485,065
(944,926) (1,398)
(88,855)
(1,035,179)
$ 449,886
$
$
- $ 5,418,674
27,479,827 631,266
(84,489) ____ 1, __ 622 ____ ,3_28_
(84,489) 29,733,421
(84,489) 35,152,095
84,489
84,489
(19,162,451) (547,178)
(1,076,220)
(20,785,849)
- $ 14,366,246 ===-======= The additions to fixed assets in the current year include the purchase and installation of hurricane impact windows at various public housing properties under the CDBG program at a cost of $631,385, the purchase and installation of new air conditioning units at the Authority's Seminole Manor public housing site totaling $348,202, various structural improvements and bathroom and kitchen modernization activity funded by the capital fund program totaling $304,116, and vehicle and other equipment purchases of $201,362. 23
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B - DETAILED NOTES (continued)
4. Other current liabilities
As of September 30, 2012, other current liabilities consist of:
Due to related party Accrued payments in lieu of taxes Accrued compensated absences Accrued salaries
· Accrued housing assistance payments Due to FEMA Accrued interest payable Other
5. Noncurrent liabilities
$
$
150,082 124,107 93,131 47,232 35,519 22,901 5,058
64,322
542,352
A summary of changes in noncurrent liabilities for the year ended September 30, 2012 is as follows:
Payable at Payable at October 1, September 30, Due Within
2011 Additions Reductions 2012 One Year Long-term debt:
On April 23, 2004, the Authority obtained a $4,500,000 mortgage note from a local financial institution to refinance an existing loan for Banyan Club. The note is secured by the assignment of leases and related rents. The note bears interest at an annual rate of 4.125% through April 23, 2014, at which time the interest rate will become variable, but at no time less than 4.125%. The note is payable in monthly installments through April 23, 2029; --- -- ---- ---- - - --
24
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE 8-DETAILED NOTES (continued)
5. Noncurrent liabilities (continued)
As of September 30, 2012, the Mure principal maturities and estimated interest are as follows for the years ending September 30:
In 1998, the Palm Beach Housing Development Corporation, Inc. (an instrumentality of the Authority), issued Multifamily Housing Variable Rate Demand Revenue Refunding Bonds totaling $9,440,000 to provide financial assistance to private-sector entities for the acquisition, construction and equipping of multifamily residential housing facilities located in Riviera Beach and West Palm Beach, Florida. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Neither the County, the Authority, the Corporation nor any political subdivision thereof is obligated in any matter for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2012, the total principal balance outstanding on the bonds was $2,045,000. After fiscal year end, one of the underlying properties was sold and the total outstanding balance of the bonds was significantly reduced as a result of the sale (see Note B-13-d).
25
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE 8-DETAILED NOTES (continued)
6. Pension plan
The Authority offers a defined contribution plan created in accordance with Internal Revenue Service Code Section 401 (a) and administered by Lincoln Financial Advisors. All employees twenty-one years of age or above are eligible to participate in the plan after one year of continuous service. At September 30, 2012, there were 36 defined contribution plan members. Members do not contribute to the plan. The Authority's contribution is discretionary and determined on a yearly basis at a rate of 13. 75% of the plan participant's annual base salary for participants enrolled prior to October 1, 2007, and 6% for those participants enrolled thereafter. During the year ended September 30, 2012, the Authority contributed $128,032 to the Plan. The Authority's Board may amend provisions of the Plan. The Plan is held in a trust for the exclusive benefit of the participants and their beneficiaries; consequently, the Authority has no fiduciary responsibility and, therefore, the net assets of the Plan are not included in the Authority's financial statements.
7. Risk management
The Authority is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. As part of the Authority's risk management program, certain commercial insurance policies are purchased. In addition, the Authority joined Housing Authorities Risk Retention Group ("HARRG"), a public risk pool currently operating as a common risk management and insurance program. The Authority pays an annual premium to HARRG for its general insurance coverage. The agreement for formation of HARRG provides that it will be selfsustaining through member premiums and will reinsure all other risks of loss, including workers' compensation and employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years, nor has there been any reduction in coverage in the current year.
26
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B - DETAILED NOTES (continued)
8. Commitments and contingencies
a. Legal
The Authority is involved in no material litigation as either plaintiff or defendant.
It was noted by management during the fiscal year ended September 30, 2011, that certain alleged illegal activity may have taken place in prior years by employees of the Authority's Section 8 department. Upon discovery, management immediately reported the alleged activity to the Inspector General of HUD, and an investigation is ongoing with the ultimate outcome not determinable as of the date of this report. The impact to the Authority is also undetermined.
b. Grants and contracts
The Authority participates in various federally-assisted grant programs that are subject to review and audit by the granter agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a federal audit may become a liability of the Authority. As of the date of this report, management is not aware of any such instances.
The Authority has received cumulative funding in excess of housing assistance payments and earned administrative fees through the Section 8 Housing Choice Voucher Program under the implementation of the Consolidated Appropriations Act 2004, Funding Provisions for the Housing Choice Voucher Program. As of September 30, 2012, the remaining Housing Choice Voucher HAP reserves of $1,123,819 as restricted equity subject to possible future recapture.
c. Funds awarded
The Authority receives funding from HUD through the Capital Fund Program to help subsidize the cost of project repairs, improvements and certain operating costs. Unspent awarded amounts available for future use as of September 30, 2012, for qualifying eligible expenditures totaled $1,089,098 under the Capital Fund Program, including Replacement Housing Factor Funds of $287,008.
27
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B • DETAILED NOTES (continued)
9. Concentrations
For the year ended September 30, 2012, approximately 89% of revenues and 8% of receivables are from HUD directly and indirectly.
The Authority operates in a heavily regulated environment. The operations of the Authority are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to, HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related costs and the additional administrative burden to comply with the changes.
1 O. Related party transactions
Leased Housing Corporation, Inc. (the "Corporation"), is a not-for-profit 501(c)(3) corporation whose purpose is to provide affordable housing for persons of low and moderate income and assist others in providing the same. The Corporation's Board members include current officers/employees of the Authority and one current Board member of the Authority and is therefore considered a related party of the Authority.
The Corporation provides additional financial resources to the Authority in the form of a monthly contribution. The Corporation provided total monthly contributions to the Authority in the amount of $96,640 for the fiscal year ended September 30, 2012. In addition to the monthly contribution, the Corporation provided additional financial support to the Authority by paying certain administrative costs in the total amount of $9,734 relating to staff meetings, travel, software licenses and various other expenses. During 2012, the Authority incurred expenses of $186,720 for office rent and $63,200 for management fees payable to the Corporation. During the year, the Corporation advanced $150,000 to the Authority to assist with an escrow deposit needed for the purchase of a multi-family apartment complex called Belle Glade Gardens (see Note B-13-b). As of September 30, 2012, the Authority owed the Corporation a total of $150,082.
As of September 30, 2012, all of the homes purchased by the Authority under the Neighborhood Stabilization Program grant were rented to low-income tenants. The Authority entered into a contract to retain the services of the Corporation as management agent for the homes effective April 1, 2011.
As further described in Note A-1, GASB Statement No. 14, as amended, requires a primary government to report as a component unit any entity for which it is financially accountable or over which it exercises control by its ability to impose its will on the entity. The Authority is not financially accountable for and does not exercise control over the operations of the Corporation and as such the Corporation is not considered a component unit of the Authority.
28
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B • DETAILED NOTES (continued)
11. Financial data schedule
As required by HUD, the Authority prepares its financial data schedule in accordance with HUD requirements in a prescribed fonnat. The schedule's fonnat excludes depreciation expense, housing assistance payments and extraordinary maintenance expense from operating activities, includes interest income, HUD capital grants revenue, gains and losses on the disposal of fixed assets and interest expense in operating activities, and reflects tenant revenue and bad debt expense separately, which differs from the presentation of the basic financial statements.
12. Leasing activities
The Authority is the lessor of dwelling units mainly to low-income residents. The rents under the leases are detennined generally by the resident's income as adjusted for eligible deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by the lessee at any time or renewed every year. The Authority may cancel the lease only for cause. Revenues associated with these leases are recorded in the accompanying basic financial statements and related schedules within tenant revenue. Primarily all of the capital assets of the Authority are for these leasing activities except for administrative offices and equipment.
13.Subseguentevents
Management has evaluated subsequent events through April 4, 2013, the date which the financial statements were available to be issued, and noted the following items to be disclosed.
a. Westgate Plaza Apartments
During the fiscal year ended September 30, 2011, the Authority partnered with Landmark Development Corporation to construct and develop Westgate Plaza Apartments (the "Apartments"), an 80 unit senior/elder1y affordable rental · apartment complex located in Palm Beach County.
As part of the development agreement, the Authority assigned 80 of its outstanding Section 8 housing choice vouchers to the project by entering into a HUD-approved project-based voucher housing assistance payments ("HAP") contract with Westgate Plaza Apartments, Ltd., the owner of the Apartments. The effective date of the HAP contract was October 7, 2011. Lease-up of the Apartments occurred in October 2012 .
.. _ ... ,. ·-·.--~ ., -·
29
Palm Beach County Housing Authority
NOTES TO BASIC FINANCIAL STATEMENTS
September 30, 2012
NOTE B • DETAILED NOTES (continued)
13. Subsequent events ( continued)
b. Belle Glade Gardens Apartments
During the year ended September 30, 2012, the Authority pursued the purchase of Belle Glade Gardens Apartments (the "Apartments"), an affordable rental apartment complex in the City of Belle Glade, Florida. The Authority has partnered with leased Housing Corporation, a related party, to create various entities to participate in the potential future rehabilitation of the Apartments. As of the date of this report, the Authority is actively pursuing financing for the project, including low income housing tax credits.
c. South Bay Villas Apartments
On February 6, 2013, the Authority purchased South Bay Villas Apartments (the "Apartments"), a 65-unit multifamily apartment complex, using $1,000,000 in Neighborhood Stabilization Program 3 ("NSP3") grant funding obtained from the County. The remaining balance of the NSP3 grant is approximately $408,000. The Authority plans to utilize these funds to assist in rehabilitation of the Apartments. Management is currently analyzing additional financing mechanisms with which to complete the rehabilitation and assist in ongoing operations of the Apartments.
d. Conduit debt satisfaction
Subsequent to September 30, 2012, a significant portion of the outstanding bonds payable which are disclosed as conduit debt in Note 8-5 were satisfied upon the sale of one of the under1ying properties.
e. Federal budget reductions
On March 1, 2013, a series of across-the-board federal budget reductions (the "sequestration") required under the Budget Control Act of 2011 went into effect. The full effect of the sequestration on the Authority is unknown; however, management is continually monitoring the funding available and has already anticipated many of these budget cuts in their current operations. They will continue to monitor their federal funding levels and work to find other means of funding in the coming years.
Federal Granter/Pass-Through Grantor/ Program or Cluster Title
Direct from the U.S. Department of Housing and Urban Development Low Rent Public Housing Section 8 Housing Choice Vouchers Public Housing Capital Fund Program
Direct from the Federal Emergency Management Agency Disaster Assistance Grant
Pass-through from Palm Beach County, Florida Community Development Block Grant (Disaster Recovery Program)
TOTAL EXPENDITURES OF FEDERAL AWARDS
NOTE 1 • BASIS OF PRESENTATION
CFDA Number
14.850 14.871 14.872
Federal Expenditures
$ 728,925 22,823,365
1,102,162
24,654,452
97.036' 6,253
14.228 631,385
$ 25,292,090
The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 0MB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program, CFDA No. 14.871, to be considered an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the amount of assistance paid by the Authority.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners Palm Beach County Housing Authority West Palm Beach, Florida
We have audited the financial statements of the business-type activity of the Palm Beach County Housing Authority (the uAuthority"), as of and for the year ended September 30, 2012, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated April 4, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of the Authority is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Au~ority's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be-- -material weaknesses, as defined above.
39
~ PrimeGlobal
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the detennination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Authority in a separate letter dated April 4, 2013.
This report is intended solely for the infonnation and use of management, the Board of Commissioners, others within the Authority, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Board of Commissioners Palm Beach County Housing Authority West Palm Beach, Florida
Compliance
We have audited the compliance of the Palm Beach County Housing Authority (the "Authority") with the types of compliance requirements described in the 0MB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Authority's major federal programs for the year ended September 30, 2012. The Authority's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Authority's management. Our responsibility is to express an opinion on the Authority's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Authority's compliance with those requirements.
In our opinion, the Authority complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2012.
41
~ PrimeGlobal
Internal Control over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Authority's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in Internal control over compliance is a deficiency, or combination of deficiencies, In internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
The purpose of this report is solely to describe the scope of our testing of compliance with the types of compliance requirements applicable to each of the Authority's major federal programs and to provide an opinion on the Authority's compliance, as well as to describe our testing of internal control over compliance and the results of that testing based on the requirements of 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organization, but not to provide an opinion on the effectiveness of the Authority's internal control over compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, in considering the Authority's compliance with requirements applicable to its major federal programs and on its internal control over compliance. Accordingly, this report is not suitable for any other purpose.
ApriI4,2013 Melbourne, Florida
42
g,e,u,ta,e?;oµuu ~ &~Gia. {!P/14 ad A~. il'P
Palm Beach County Housing Authority
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
September 30, 2012
A. SUMMARY OF AUDITORS' RESULTS
Financial Statements Type of auditors' report issued: Unqualified
Internal control over financial reporting: Material weakness identified? No Significant deficiency identified? No
Noncompliance material to financial statements noted? No
Federal Awards Internal control over major programs:
Material weakness identified? No Significant.deficiency identified? No
Type of auditors' report issued on compliance for major programs:
• Section 8 Housing Choice Voucher - Unqualified
Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of 0MB Circular A-133? No
The programs tested as major programs are as follows:
The threshold for distinguishing type A and B programs was $758,763
Did the auditee qualify as a low-risk auditee? No
B. FINDINGS - FINANCIAL STATEMENTS AUDIT
None.
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS
None.
43
Palm Beach County Housing Authority
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
September 30, 2012
11-1 Eligibility Section 8 Housing Choice Voucher - CFDA Number 14.871 Material Weakness in Internal Control Material Noncompliance
Condition: Out of a total tenant population of approximately 1,980 tenants, 10 tenant files were tested and numerous exceptions were noted.
Auditor's Recommendations: The Authority should correct the deficiencies noted in the tested files, as well as continue and expand upon its established quality control review procedures to ensure proper compliance with the requirements related to tenant eligibility.
As part of our review, we noted that the Authority implement the quality control reviews of tenant files beginning in the latter part of the fiscal year ended September 30, 2011. As a result, we observed significant improvements over prior year in the organization of all files reviewed. Further, we noted that the documentation of calculations performed and support obtained greatly improved in files reviewed for recertifications that occurred at the end of the year.
In order to provide a greater level of oversight to identify deficiencies in a timely manner, we recommend that the Authority significantly increase the quantity of independent monthly tenant file reviews performed. The monthly quality control review sample should include tenant files processed by all Housing Specialists, and the reviewer should test for compliance with all tenant file management requirements as established by the Authority's administrative plan. Ongoing staff training and timely management reviews should continue to ensure staff is aware of acceptable procedures. Also, skill sets, staffing, and case loads should be continually reviewed by management to ensure timely and accurate tenant management.
Current Year Status: As of September 30, 2012, this finding was cleared.
44
Fonn 8879-EQ IRS e-ff/e Signature Authorization for an Exempt Organization 0MB No. 1545-1878
Department of lhe T,-ury Internal Rellenue SeMc:e
For calendar year 2013, or fiscal year beginning ________ , 2013, and ending ________ , 20 __ _ • Do not send to the IRS. Keep for your records. • Information about Form 8879-EO and its instructions is at www.Jrs.gov/form8879eo. · ~@13 Name of exempt organization
Employer Identification number MCCURDY SENIOR HOUSING CORPO TION 56-2423539 Name and title of officer
•4fijH Type of Return and Return Information (Whole Dollars Only) Check the box for the return for which you are using this Form 8879-EO and enter the applicable amount, if any, from the return. If you check the box on line 1a, 2a, 3a, 4a, or 5a, below, and the amount on that line for the return being filed with this form was blank, then leave line 1b, 2b, 3b, 4b, or Sb, whichever is applicable, blank (do not enter -0-). But, if you entered -0- on the return, then enter -0-on the applicable line below. Do not complete more than 1 llne In Part I. 1a Form990checkhere • [xi b Totalrevenue,lfany(Form990,PartVlll,column(A),fine12) ••• 1b 232,930. 2a Form 990-EZ check here • ~ Total revenue, If any (Form 990-EZ. line 9) • • • • • • • • • • • 2b 3a Form 1120-POL check here • b Total tax (Form 1120-POL, Dne 22). • • • • • • • • • • • • 3b 4a Form 990-PF check here • b Tax based on investment income (Form 990-PF, Part VI, line 5). 4b Sa Form 8868 check here • b Balance Due (Form 8868, Part I, line 3c or Part II, line Be) • • • • • Sb
•ffljj• Declaration and Signature Authorization of Officer Under penalties of perjury, I declare that I am an officer of the above organization and that I have examined a copy of the organization's 2013 electronic return and accompanying schedules and statements and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that the amount In Part I above Is the amount shown on the copy of the organization's electronic return. I consent to allow my intermediate service provider, transmitter, or electronic return originator (ERO} to send the organization's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay In processing the return or refund, and (c) the date of any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit) enby to the financial Institution account indicated in the tax preparation software for payment of the organization's federal taxes owed on this return. and the financial Institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve Issues related to the payment. I have selected a personal ldentffication number (PIN) as my signature for the organization's electronic return and, if applicable, the organization's consent to electronic funds withdrawal.
Officer's PIN: check one box only [x) I authorize COHNREZNICK LLP
EROftrmname to enter my PIN
Enter five number9, but do not enter all zeros
as my signature
on the organization's tax year 2013 electronically filed return. If I have indicated within this return that a copy of the return is being flied with a state agency(ies) regulating charities as part of the IRS Fed/State program, I also authorize the aforementioned ERO to enter my PIN on the return's disclosure consent screen.
D As an off1cer of the organization, I will enter my PIN as my signature on the organization's tax year 2013 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/St_ate~rogram, I will enter my PIN on th~turn's disclosure consent screen.
1 00
\~
Officer's signature • \ ,--l( t-e..o • Date • 0 \ Certiflc Ion and
ERO's EFIN/PIN. Enter your six-digit electronic filing identification number (EFIN) followed by your five-digit self-selected PIN.
do not enter all zeros I certify that the above numeric entry is my PIN, which is my signature on the 2013 electronically flied return for the organization indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns.
ERO'sslgnaturv • -------------------------Date •-------------ERO Must Retain This Form • See Instructions
Do Not Submit This Form To the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see back of form.
JSA 3E16761.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F
Fonn 8879-EO (2013)
63-23555-7096
Return of Organization Exempt From Income Tax Form 990 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) ~@13 • Do not enter Social Security numbers on this form as it may be made public. Oepa..-nt of lhtt T,-.y
,, 1n1ama1 ~ Serw:e • Information about Form 990 and Its Instructions Is at www.Jrs.gov/fonn990. A For the 2013 calendar year, or tax year beginning , 2013, and ending I 20 D Employer identification number
C Name of organization B Clloo~W~ MCCURDY SENIOR HOUSING CORPORATION 56-2423539 ..- -Gllong<t Doing Busfness As - Number and slnlet (or P.O. box If mail Is not deUveracl to street address) I Room/suite E Telephone number
Namochengo -306 10TH STREET (561) 996-7040
lnitialrom SW - T.,.,._ City or town, state or province, country. and ZIP or foreign postal code - --return BELLE GLADE, FL 33430 G Gross receipts $ 232,930. - Applcallon F Name and address of principal officer: H(•l Is this a 9IDUI) return ror , cj Yu CJ No - pencling
wbordlnales? H(bJ ,., ... ....,......,.._ Yea No I Tax-exempt status: I X I so1(c)(3) I I so1<c> < )• (insert no.) I I 4947(&)(1) or I I s21 If "No,• anac:ti a 11st. (- lnslnlcllon•) J Websit&: • N/ A H(c) Group exemption number • K Fonn of organization: I X I Corporation I I Trust I I Association I I Other • IL Ye.-orrormallon: 20031 M Stateoflegaldomicile: FL -!.o [ii~- Summary
1 Briefly describe the organization's mission or most significant activities: _________ ----------------------------------§ ---------------------------------------------------------------------------------------e -----------• ------------------------------------------------------------------------I 2 Check this box • if the organization discontinued its operations or disposed of more than 25% of its net assets. 3 Number of voting members of the governing body (Part VI, line 1 a) .......... . . . . . . . ..... 3 5. .. 4 Number of independent voting members of the governing body (Part VI, tine 1 b) • • • • • 4 5. I . . . . . . ..... E 5 Total number of Individuals employed in calendar year 2013 (Part V, line 2a) • • . . . . . . . . . . . .. 5 0 > 6 Total number of volunteers (estimate If necessary) 6 ;; ...................... . . . . .. . u . c( 7a Total unrelated business revenue from Part VIII, column (C), line 12 ••• 7a 0 . . . ....... . . . ..... . b Net unrelated business taxable income from Form 990-T, One 34 . . . . . . . . . . . . . . . . .... . 7b 0
Prior Year Current Year a, 8 Contributions and grants (Part VIII, line 1h) •••••••••••••• . . . ...... 0 0 :I
9 Program selVice revenue (Part VIII, tine 2g) • • • • • • • • • • • • ·• • 79,000. 100,600. i . . ...... > 10 investment Income (Part VIII, column (A), lines 3, 4, and 7d). • • • • • • • 0 132,330. ! . . ..... 11 Other revenue (Part VIII, column (A), tines 5, 6d, Sc. 9c, 10c, and 11e) ••• . . . 0 0 ..... . 12 Total revenue • add lines 8 throuoh 11 (must eaual Part VIII, column IA), One 12) • • . . . 79,000. 232,930. 13 Grants and similar amounts paid (Part IX. column (A), lines 1-3) •••••••••• . 0 0 14 Benefits peid to or for members (Part IX. column (A), line 4) ••••••••• , •• . 0 0 Ill 15 Salaries, other compensation, employee benefits (Part IX, column (A). lines 5-10) ••••••• 119,278. 34,016. I 18a Professional fundraising fees (Part IX, column (A), line 11e) ••••••••••••••••• 7,368. 0 ! b Total fundraising expenses (Part IX, column (D), line 25) • _____________ 0 _____
17 Other expenses (Part IX. column (A), lines 11a-11d, 11f-24e) •••••••••••••• . . 31,663. 59,852. 18 Total expenses. Add lines 13-17 (must equal Part IX, column (A), line 25) • • ...... . . 158,309. 93,868. 19 Revenue less exoenses. Subtract line 18 from line 12 • • • • • • • • • • • • • •• • •• . . -79,309. 139,062. ;s5 Beginning of Current Year End of Year ji 20 Total assets (Part X, line 16) •••••••••••••••• . . . . ........... . 155,950. 135,324. i 21 """ •••- (Pa1 x. rme 26) ••••••••••••••• ... . . . . . . . . . . . . . 518,649. 358,961. a Net assets or fund balances. Subtract line 21 from line 20. • . . . . . . . . . . -.... -362,699. -223,637 • Signature Block
Under penalties of pel)ury, I declanJ that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complele. Declaration of preparer (other than officer) is based on all Information of which preparer has any knowledge.
Sign Here
• ~~~~~~~~~2.__ ______ ~_!JJ~O~g:!Jt~--Data
• Paid 0,eck if PTIN CHRISTOPHER N THOMAS , CPA
self-employed PO 0 18113 8 Preparer 1---------------....... "---------------'------~.....1.. ____ ....,_ _______ _ Use Only Firm's name •COHNREZNICK LLP Finn'sEIN • 22-1478099 Finn'saddress • s16 CONGRESS AVENUE SUITE 200 AU TIN TX 78701 Phonano. 512-494-9100
Fireparer's signature Date
May the IRS discuss this return with the preparer shown above? (see Instructions) • • X Yes No For Paperwork Reduction Act Notice, see the separate instrudions. Form 9 (2013)
JSA 3E1010 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
Fonn 8868 (Rev. January 2014)
Application for Extension of Time To File an Exempt Organization Return Department of the Treasuiy • FIie a separate application for each ratum. Internal Revenue Service • Information about Form 8868 and Its Instructions Is at www.Jrs.gov/formB86B.
0MB No. 1545-1709
• If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box • • • • • • • • • • • • • • • • • • X • If you are filing for an Additional (Not Automatic) 3-Month Extension, complete only Part II {on page 2 of this form). Do not complete Part II unless you have already been granted an automatic 3-month extension on a previously filed Form 8868. Electronlc filing {e-file). You can electronically file Form 8868 If you need a 3-month automatic extension of time to file (6 months for a corporation required to file Form 990-T), or an additional (not automatic) 3-month extension of lime. You can electronically file Form 8868 to request an extension of time to file any of the forms listed in Part I or Part II with the exception of Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, which must be sent to the IRS in paper format (see instructions). For more details on the electronic filing of this form, visit www.irs.gov/efile and click on e-file for Charities & Nonprofits. •4ffli• Automatic 3-Month Extension of Time. Only submit original (no copies needed}. A corporation required to file Form 990-T and requesting an automatic 6-month extension - check this box and complete Part I only • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D All other corporations (including 1120-C filers), partnerships, REM/Cs, and trusts must use Fonn 7004 to request an extension of time to file income tax returns.
Enler filer'• tdentifvlna number, - ln•tructlons Type or print File by Iha due date for filing your return. See Instructions.
Name of exempt organization or other filer, see instructions.
MCCURDY SENIOR HOUSING CORPORATION Number, street, and room or suite no. If a P.O. box, see instructions. 306 SW 10TH STREET
City, town or post office, state, and ZIP code. For a foreign address. see instructions. BELLE GLADE, FL 33430
Employer identification number (EIN) or
56-2423539 Social security number (SSN)
Enter the Return code for the return that this application is for (file a separate appflcation for each return) • • • • • • • • • • • • L2l!J Application Return Application
Return Is For
Code ls For Code Form 990 or Form 990-EZ 01 Form 990-T {coroorationl 07 Form 990-BL
02 Form 1041-A 08
Form 4720 (Individual) 03 Form 4720 (other than individual) 09
Form 990-PF 04 Form 5227
10 Form 990-T (sec. 401 (a) or 408(a) trust) 05 Form 6069
11 Form 990-T (trust other than above) 06 Form 8870
12 • The books are In the care of • -MCCURDY - SENIOR HOUSING CORP ----------------------------
Telephone No. •_ 561 _996-7040 ___________ FAX No. •_________________________ D • If the organization does not have an office or place of business in the United States, check this box • • • • • • • • • • • • • •• • • If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) ------..--.- • If this is for the whole group, check this box •••••• • 0 . If it is for part of the group, check this box ••••••• • LJ and attach a list with the names and EINs of all members the extension Is for. 1 I request an automatic 3-month (6 months for a corporation required to file Form 990-T) extension of time until _____ . _____ 08/15_, 20 14 _, to file the exempt organization return for the organization named above. The extension is for the organization's return for: :EJ ~:!e~~~::;~~~:~ __ :r _______________ , 20 ___ ,and ending ___________________ , 20 __ -· 2 If the tax year entered in line 1 is for less than 12 months, check reason: 0 Initial return O Final return n Chanae in accountina oeriod 3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits. See instructions.
3a $ b If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any ~f.1.mdable credits and estimated tax p·ayments made. Include any prior year overpayment allowed as a credit. 3b $ C Balance due. Subtract line 3b from line 3a. Include your payment with this form, If required, by using EFlPS (Electronic Federal Tax Payment System). See instructions. 3c $ Caution. If you are going to make an electronic funds withdrawal ( direct debit) with this Form 8868, see Fonn 8453-EO and Form 8879-EO for payment instructions.
0
0
0
For Privacy Ac;t and Paperwork Reduction ~ Nottce, SH Instructions. JSA
Form 8868 (Rev. 1-2014)
3F8054 2.000 73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
l:ffijjjjj Statement of Program Service Accomplishments Check if Schedule O contains a response or note to any line in this Part Ill
Page2
• 1 Briefly describe the organization's mission: AFFORDABLE HOUSING
2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0 Yes [fil No If "Yes." describe these new services on Schedule O.
3 Did the organization cease conducting, or make significant changes in how it conducts, any program services? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0 Yes CR] No If "Yes,~ descnbe these changes on Schedule O.
· 4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes: complete Schedule A • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? ••••••••• 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes, H complete Schedule C, Part I . • • • • • • • • • • • • • • • • • • • • • . • . . . 4 Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501 (h) election in effect during the tax year? If "Yes, H complete Schedule C, Part I/. • • • • • • • • • • • • • • • • • • • • • 5 Is the organization a section 501(c)(4}, 501(c)(5), or 501(c)(6) organization that receives membership dues. assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes: complete Schedule C, Part Ill ••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes, H complete Schedule D, Part I • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • . • • • • • 7 Did the organization receive or hold a conservation easement, Including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes,• complete Schedule D, Part JI. • • • • • • • • • 8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes, H complete Schedule D, Part Ill • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 9 Did the organization report an amount in Part X, line 21, for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes,• complete Schedule D, Part IV • • • • • • • • • • • • • • • • • • • • • • • • • • • 10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes,• complete Schedule D, Part V • • • • • •• 11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable.
a Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If "Yes,• complete Schedule D, Part VI • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • b Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X. line 16? If "Yes," complete Schedule D, Part VII • • • • • • • • • • • • • • • • • c Did the organization report an amount for investments-program related in Part X. line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII. • • • • • • • • • • • • • • • • d Did the organization report an amount for other assets in Part X. line 15 that Is 5% or more of its total assets reported in Part X, line 16? If "Yes: complete Schedule D, Part IX • • • • • • • • • • • • • • • • • • • • • • • • • • e Did the organization report an amount for other liabilities in Part X. line 25? If "Yes,• complete Schedule D, Part X f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under AN 48 (ASC 740)? If 'Yes,• complete Schedule D. Part X • • • • • • 12 a Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes: complete Schedule D, Parts XI and XII • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • b Was the organization Included in consolidated, independent audited financial statements for the tax yea'? If 'Yes,• and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional • • • • • • • • • • • • • • 13 Is the organization a school described in section 170(b)(1)(A)(ii)? ,,-Yes," complete Schedule E •••••••••• 14 a Did the organization maintain an office, employees, or agents outside of the United States? ••••••••••••• b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? lf"Yes:complete Schedule F. Parts I and IV • •••••••••• 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If "Yes,• complete Schedule F. Parts II and IV • • • • • • • • • • • • • • • • • • • • • • 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If "Yes,• complete Schedule F, Parts Ill and IV • • • • • • • • • • • • • • • • 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11 e? If "Yes, H complete Schedule G, Part I (see instructions) • • • • • ·• • • • • • 18 Did the organizatiorfrepoffmore than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1 c and 8a? If "Yes/ complete Schedule G, Part II • • • • • • • • • • • • • • • • • • • • • • • • • • • • 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes,• complete Schedule G, Part Ill • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 20 a Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H • • • • • • • • • • • • • b If "Yes" to line 20a did the oraanization attach a coov of its audited financial statements to this return? • • • , • • JSA
3E1021 1.000 73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
Page 3
Yes No
1 X 2 X
3 X
4 X
5 X
6 X
7 X
8 X
9 X
10 X
-.
11a X
11b X
11c X
11d X. 11e X
11f X
12a X
12b X 13 X
14a X
14b X
15 X
16 X
17 X
18 X
19 X 20a X 20b Form 990 (2013)
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990•(r20_1_3_) ~-------:-~---~-~~---:--~-"""."."" ________________________ Pag __ e_4 Checklist of Reaulred Schedules (continued)
Yes No 21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or government on Part IX, column (A), line 1? If "Yes,• complete Schedule I, Patts I and II • • • • • • • • • • • • • • • 21 X 22 Did the organization report more than $5,000 of grants or other assistance to individuals in the United States on Part IX, column (A), fine 2? If "Yes,· complete Schedule I, Patts I and II/ • • • • • • • • • • • • • • • • • • • • • • 22 X 23 Did the organization answer "Yes• to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes.• complete Schedule J • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 23 X 24 a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was Issued after December 31, 2002? If "Yes,• answer lines 24b through 24d and complete Schedule K. lf"No:go to line 25a . •••.•....••.•.•••.••••.•••.• 24a X b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?. • • • • • • 1-2_4_b--+---+--c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,_2_4_c _____ _ d Did the organization act as an "on behalf of' issuer for bonds outstanding at any time during the year'? • • • • •• ,_2_4_d ___ _ 25 a Section 501 (c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I. • • . • • • • • • • • • • • • • • • 25a X b Is the organization aware that it engaged In an excess benefit transaction with a disqualified person In a prior year. and that the transaction has not been reported on any of the organization's prior Fonns 990 or 990-EZ? If "Yes,• complete Schedule L. Patt L • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 25b X 26 Did the organization report any amount on Part X. line 5, 6, or 22 for receivables from or payable to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If so, complete Schedule L, Part II. • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 26 X 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes,• complete Schedule L. Patt II/. • • • • • • • • • • • • • • 27 X 28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee? lf"Yes, • complete Schedule L. Patt IV. • • • • • • • 28a X b A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L. Patt N. • • • • • • • • • • • • • . • • . • . • • • • • • • • • • • • . • • • • • • . • • • , • • • • • • • . 28b X c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof} was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L. Patt IV. • • • • • • • • i-:2;;;;.8'-'ca..+---+--x_ 29 Did the organization receive more than $25,000 in non-cash contributions? ff "Yes,• complete Schedule M i-,.=2 .... 9-+----+--X_ 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes,• complete Schedule M • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • _3_0-+----+--x_ 31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I • •••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ,__31---i----t--x_ 32 Did the organization seU, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes,• complete Schedule N, Part II • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1--3=..;2=--4_--+-_x_ 33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301 . 7701-3? If "Yes," complete Schedule R. Patt I • • • • • • • • • • • • • • • • • . • • ..,__33--+_--+-_X_ 34 Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Patt II, Ill, or IV, and Patt V, line 1 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ..,__34--+_-+_x_ 35 a Did the organization have a controlled entity within the meaning of section 512(b)(13)? •••••••••••••• 1-3 __ 5-'-a ___ x_ b If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes,•complete Schedule R, Patt V, Jine 2 • ••••• i-:3'-'5"""b ___ _ 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If "Yes,• complete Schedule R, Patt V. line 2 • • • • • • • • • • • • • • • • • • • • • • • • • • ,__36--+_---t-_X_ 37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnershiR for fe~eral income tax purposes? If "Yes,• complete Schedule R, Part VI . • • . . • • • • • • • • • • • . . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i----37----x-38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 b and 19? Note. All Fonn 990 filers are reauired to comolete Schedule O • • • . • • • • • • • • • • • • • • • • • • • • • 38 X
JSA
3E1030 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F
Form 990 (2013)
63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990 (2013) •fiifi Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule O contains a resoonse or note to any line in this Part V • • • • • • • • • .
Page 5
.n Yes No 1 a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. • • • • • • • • • I 1 a I 0 b Enter the number of Forms W-2G included in line 1 a. Enter -0- if not applicable ••••••••• I 1 b I 0 c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners?. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,____,.,.__, __ 1c .x 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax I I Statements, filed for the calendar year ending with or within the year covered by this return • 2a 0 b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? 2b Note. If the sum of lines 1 a and 2a is greater than 250, you may be required to e-fi/e (see instructions) • • • • • • • 3a Did the organization have unrelated business gross income of $1,000 or more during the year? •••••••••• 1---1,--.--1,---Xb If "Yes,• has it filed a Form 990-T for this year? If "No" to line 3b, provide an explanation in Schedule O • • • • • • • 1---1,--.--1,---
3a 3b 4a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial 4a
account)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i------+---+--x_ b If "Yes; enter the name of the foreign country: •------------------------------------------See instructions for filing requirements for Form ID F 90-22.1, Report of Foreign Bank and Financial Accounts. ·::•'•
5a Sa Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? •••••••• l-"---4--+--X_
5b b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? X
5c c If "Yes" to line 5a or 5b, did the organizati~m file Form 8886-T? •••••••••••••••••••••••••••• i--.c.--1--+-&a Does the organization have annual gross receipts that are normally greater than $100,000, and did the
6a organization solicit any contributions that were not tax deductible as charitable contributions? • • • • • • • • • • • 1-----,1----1-x_ b If "Yes," did the organization include with every solicitation an express statement that such contributions or
7 Organizations that may receive deductible contributions under section 170(c). a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods 7a
b If "Yes." did the organization notify the donor of the value of the goods or services provided? •••••••••••• t--~----c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • l--'-"--1--+-.x_ d If "Yes," indicate the number of Forms 8282 filed during the year • • • • , • • • • • • • • • • • '~7-"'d_,l.__ ___ __,
7c
7e e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? X
7f f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? • , ••• t----11----1-x_
7g g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? X
7h h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? X 8 Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring
.... ,.
8 organization, have excess business holdings at any time during the year? • • • • • • • • • • • • • • • • • • • • • •• t--'---!,--lf-,.--9 Sponsoring organizations maintaining donor advised funds.
a Did the organization make any taxable distributions under section 4966? • • • • • • • • • • • • • • • • • • • • • •• l-"---1------,--.b Did the organization make a distribution to a donor, donor advisor, or related person? • • • • • • • • • • • • • • • • i-----,t--...,.-!--
9a 9b 10 Section 501(c){7) organizations. Enter:
a Initiation fees and capital contributions included on Part VIII, line 12 •••••••••••••• l1-1_o_a-1I ____ _
1·
b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities •••• ~1_0_b~-----< .. 11 Section 501(c)(12) organizations. Enter:
a Gross income from members or shareholders • • • • • • • • • • • • • • • • • • • • • • • • • • 1-1;;...1;..;;a'-l-____ -1 b Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) • • • • • • • • • • • • • • • • • • • • • • • • • • • .._1;...1...c;;b~-----1 12a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? ... 1_2_a ___ _ b If "Yes," enter the amount of tax-exempt interest received or accrued during the year ••••• l,._1;..;2;;.;;b:..Jl ____ --1 13 Section 501(c)(29) qualified nonprofit health insurance Issuers. a Is the organization licensed to-issue quaiifled heaitll plans in more than one state? ....................... 1_3_a-1---1---Note. See the instructions for additional information the organization must report on Schedule 0. b Enter the amount of reserves the organization is required to maintain by the states in which I I the organization is licensed to issue qualified health plans • • • • • • • • • • • • • • • • • • • • 1-1:...:3;.;;:b+------1 c Enter the amount of reserves on hand • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,._1;;..;3;;..;c;...&.., ____ -+---t---t-----:c:-14 a Did the organization receive any payments for Indoor tanning services during the tax year? ••••••••••••• 1-1:...4"-'a:.+---+--x_ b If "Yes." has it filed a Form 720 to reoort these oavments? If "No • orovide an exolanation in Schedule O • • • • • • 14b JSA
Fann 990 (2013) 3E 1040 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
Form 990 (2013) MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Page 6 iiM•/4• Governance, Management, and Disclosure For each "Yes" msponse to lines 2 through 7b below, and for a "No" response to line Ba, 8b, or 1 Ob below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response or note to any line in this Part VI • • • • • • • • • • • • • • • • • • • • • • • • Of] Section A. Govemlna Bodv and Manaaement
1a Enter the number of voting members of the governing body at the end of the tax year ••••• If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule 0.
1a •
b Enter the number of voting members included in line 1 a, above, who are independent • • • • • ~1_b ____ -1' 2
3
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? •••••••••••••••••••••••••••••••• Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? •• 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?. • • • • • 5 Did the organization become aware during the year of a significant diversion of the organization's assets?. • • • 6 Did the organization have members or stockholders? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body?. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • b Each committee with authority to act on behalf of the governing body? • • • • • • • • • • • • • • • • • • • • •• 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at
2
3 4 5 6
7a
7b
8a Sb
the oraanization's maillna address? If "Yes,• orovlde the names and addresses in Schedule O • • . • • • • • • • • 9
Yes No
X
X
X
X X
X
X
X X
X Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) 1 Oa Did the organization have local chapters, branches, or affiliates? •••••••••••••••••••••••••• b If "Yes." did the organization have written policies and procedures governing the actiVities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? • • • 11 a Has the organization proVided a complete copy of this Form 990 to all members of its governing body before filing the form? • b Describe in Schedule O the process, if any, used by the organization to review this Form 990. 12a Did the organization have a written conflict of interest policy? If "No," go to line 13 ••••••••••••••.• b Were officers, directors, or trustees. and key employees required to disclose annually interests that could give rise to conflicts? • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes,• describe in Schedule O how this was done • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • 13 Did the organization have a written whistleblower policy? •••••••••••••••••••••••••••••• 14 Did the organization have a written document retention and destruction poUcy? •••••••••••••••••• 15 Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official ••••••••••• , • ••••• • • • • b Other officers or key employees of the organization • • • • • • • • • • • • • • • • • • • • • • • • • • • , • • • • • If "Yes· to line 15a or 15b, describe the process in Schedule O (see instructions). 16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ••••••••••••••••••••••••••••••••• , ••• , ••• b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law. and take steps to safeguard the organization's exempt status with respect to such arrangements? • • • • • • • • • • • • • • • • • • • • • • • • • Section C. Disclosure
10a
10b 11a
12a
12b
12c 13 14
15a 15b
16a
16b
Yes No
X
X
X
X
X X
X
X X
X
17 18
List the states with which a copy of this Form 990 is required to be fded •------------------------------------Section 6104 requires an organization to make its Forms 1023 {or 1024 if applicable),.99.0, and 990-T (Section 501(c)(3)s only) available for public lns~tion. Indicate how you made these available. Check all that apply. • Own website LJ Another's website [Kj Upon request O Other (explain in Schedule 0) 19
20
Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. State the name, physical address, and telephone number of the person who possesses the books and records of the organization: • w.:cURDY SENIOR IIOUSI'HG COR~ J06 Sil 10TH s·rREET BELLE G.LADE, FL 334.30 561-99?-7040 JSA
3E1042 1.000
73632P A26J 6/24/2014 3 : 18 : 41 PM V 13-5 F 63-23555-70963
Fenn 990 (2013)
Form 990 (2013) MCCURDY SENIOR HOUSING CORPORATION 56-2423539 e 7 Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check if Schedule O contains a response or note to any line in this Part VII • . . . • . . • . • . . • • • • • • . • • • D , .,, Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees la Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year.
• List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. • List all of the organization's current key employees, If any. See instructions for definition of "key employee.• • List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee} who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations. • List all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. • List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization. more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons.
0 Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (C)
(A) (B) Position (D) (E) (F) Name and lltle Average (do not check more than one Reportable Reportable Estimated hours per box. unless person Is both an compensation compensation from amount of week111stani officer and e director/trustee) from related other houra for o- - 0 i CD :C "Tl the orgenizations compensation , :, :,
i 3 415" 0 (W-2/1099-MISC) from the
rafaled Q, Q.
I organization organlzallons i~ CD ll • (W-2/1099-MISC) organization below dolled i i la and related ,2 I!. l i organizations
line) <II 2 Ii'
f CD
l {VJAMES_LAKATOS __________________
-------TRUSTEE X 0 0 0 _f~BARBARA BELL-SPENCE ____________ -------SECRETARY X C 0 0 _{~)MARY_QUINN _____________________
f-------TRUSTEE X 0 0 0 _{-!)STEVEN BRUH ____________________ -------TRUSTEE
X 0 0 0 _f~JEAN_CHASE _____________________
-------TREASURER X 0 0 0 _fl!)JOSEPH_GLUCKSMAN _______________ 20.00 -------OFFICER X 24,000. 0 150,796. _fl) _______________________________
Name and title Average Position Reportable Reportable Estimated
hours per (do not check more than one compensation compensation from amount of week(llslany box. unless person is both an from related other
hours for officer and a director/trustee l the organlzaUons compensation related o- :i 0 .f ~~ "Tl organization (W-2/1099-MISC) from the ... ::, 0
2:~ ., :=: "ti Cl I organlzalfons I [ CD oi" (W-2/1099-MISC) organiZation
below dotted a g- i 1; and related line)
g !!. organizations 2 !!. l 3
i 5 'i ::, CD f UI
i ---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
---------------------------------- -------
·-------------------------------- ------
---------------------------------- -------
1b Sub-total • 24,000. C 150,796. . . . . . . . . . . . . . . . . . c Total from continuation sheets to Part VII, Section A . . . . . . . . . • 0 C 0 d Total (add llnes 1b and 1c) . . . . . . . . . . . . . . . . . . - . . • 24,000. 150,796.
2 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization • o
3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes: complete Schedule J for such individual •••••••••••••••••••••••••• 3
4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If "Yes/ complete Schedule J for such Individual • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 4
5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual .. ,_.
for services rendered to the organization? If "Yes," complete Schedule J for such oerson ................ 5 Section B. Independent Contractors
1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year.
(A) (B) (C)
Yes
--X
Name and business address Description of services Compensation
2 Total number of Independent contractors (Including but not limited to those listed above) who ..
received more than $100,000 in compensation from the organization • 0
No
·-X
X
JSA 3E1055 1.000 Form 990 (2013)
73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
Form 990 (2013) MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Page9 l@Jqjjj Statement of Revenue
Check if Schedule O contains- a response or note to any line in this Part VIII • • • • • • . . . . . ..... . ... ... Jxl . ·. .
SJ!! 1a Federated campaigns • . 1a cc I! ::, b Membership dues 1b C, 0 . . . . ·! C Fundraising events . . . . . . . 1c ~ :a
0= d Related organizations • . . . . . 1d .;E e Government grants (contributions) • 1e c- . oW - .. f All other contributlons, gills, grants, - ID ::, .c
:@5 and similar amounts not Included above 1f -C,:, g Noncash contributions included In Jines 1a-1f: $ Oc
J 2a MANAGEMENT FEES 531390 b CONSULTING INCOME 531390 i C
fl) d E • .. .. c:n f All other program service revenue • • • • • 0 ..
II Total. Add lines 2a-2f • • • • • • • • • • • .• D. . . . . . . . 3 Investment income (including dividends, interest, and
other slmllar amounts) •• A.TJ'.{\,.~ftM~~T .1 ••••• . . • 4 Income from Investment of tax-exempt bond proceeds . . • 5 Royalties • • . . . . . . . . . ..... . . . . . . . . .• (i) Real (ii) Personal 6a Gross rents • . . . . . .
b Less: rental expenses • . . C Rental income or (loss) . . d Net rental income or (loss) • . . . . . . .. . ..... •
7a Gross amount from sales of (l)Securilies (ii) Other
assets other than inventory b Less: cost or other basis
and sales 8lq)eflses . . . C Gain or (loss) • • • • • • d Net gain or (loss) .... . . .. ............. • a, Ba Gross income from fundraising ::,
C events (not including $ G> > of contributions reported on line 1 c). a,
0:: See Part IV, line 18 a .. ......... . . G> b Less: direct expenses •••••••• . . b .c - C Net Income or (loss) from fundraising events • ....... • 0 9a Gross income from gaming activities.
See Part IV, line 19 ........... a b Less: direct expenses • • • • • • • • • • b C Net income or (loss) from gaming activities. • ....... •
10a Gross sales of inventory, less returns and allowances • • • • • • • • • a
b Less: cost of goods sold • • • • • • • • • b C Net income or (loss) from sales of Inventory • . . . . . . . • Miscellaneous Revenue Business Coda
11a
b C
d All other revenue • • • • • • • . . . . e Total. Add lines 11a-11d ... . . . . . . . ....... • 12 Total revenue. See instructions . . . . . . . . . . . . . ..
JSA 3E10511.000
(A) Total 1911811U8
0
1-600.
99 000.
100 600 •
132 330.
0
0
0
0
0
0
0
0
212 9~n.
73632P A26J 6/24/2014 3:18:41 PM V 13-SF
(B) (C) (D) Related or Unrelated Re11811ue exempt business excluded from tax function ,-ue under sections re-enue 512-514
.
:,
1-600.
99 000.
. · ..
132 330 •
..
... ·,
·.
-cc-cc
'·
.,
·~ .·
1no ~oo. 132. ·no . Fann 990 (2013)
63-23555-70963
Form 990 (2013) MCCURDY SENIOR HOUSING CORPORATION 56-2423539 •4fiiki Statement of Functional Expenses Page 10 Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Check if Schedule O contains a response or note to any line in this Part IX .... . . . . . . . . . . . . . . ..... I I Do not include amounts reported on lines 6b, Tb, (A) (B) (C) (D) 8b, 9b, and 10b of Part VIII. Totel expenses Program S8IVice Management and Fund raising eicpenses general BJCpenses emanses 1 Grants and other assistance lo governments and
organizations in the Untted Stales. See Pert IV, line 21 a 2 Grants and other assistance to Individuals, in
the United States. See Part N, line 22 • • • • • • a 3 Grants and other assistance to governments,
organizations, and individuals outside the United States. See Part IV, lines 15 and 16. • • • C
4 Benefits paid to or for members • • • • • • • • • C 5 Compensation of current officers, directors,
trustees, and key employees .......... 24,000. 24,000. 6 Coml)«lsation not Included above, to disquaHfied
persons (as defined under section 4958(1)(1)) and persons described In section 4958(c)(3)(B) C ......
1 Other salaries and wages • • • • • • • . • • • • C 8 Pension plan accruals and contributions (include section
401 (kl and 403(b) employer contributions) • . . . C 9 Other employee benafrts • • • • • • . .. .. . a
a Management . . ... . .. . . . . . . . . C b Legal .............. . . . . . . 11,352. 11,352. c Accounting .................. 7,808. 7,808. d Lobbying ................... C e Professional fundralslng services. See Part IV, line 17. C f Investment management fees ......... C
g Other. (ff fine 119 amount exceeds 10% of fine 25, colurm (A) amoun~ list fine 11g e,cpenses on Schedule O.). • • • (
12 Advertising and promotion • • • • • • • • • • • a 13 Office expenses •••• It ••••••• It ••• C 14 Information technology. ..... . . . .. a . 15 Royalties •••••••••••••••••••• a 16 Occupancy .................. a 17 Travel ••••••••••••••••••••• C 18 Payments of travel or entertainment expenses
for any federal, state, or local public officials C 19 Conferences, conventions, and meetings .... C 20 Interest ................. . . 1,143. 1,143. 21 Payments to affiliates •••••••••••••• 0 22 Depreciation, depletion, and amortization • • • • 8,340. 8,340. 23 Insurance ••••••••••••••••••• 14,745. 14,745. 24 Other eicpenses. Itemize expenses not covered
above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A} amount. list line 24e expenses on Schedule 0.) aLICENSES _____________________
158. 158. bDUES &_SUBSCRIPTIONS _________ 215. 215. cMISCELLANEOUS EXPENSES _______ 15,241. 15,241. dDONATIONS ____________________ 850. 850. e All other expenses _________________ 25 Total functional upenses. Add lines 1 through 24e 93,868. 93,868. 26 Joint costs. Complete this line only ff the
organization reported In column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here • D if following SOP 98-2 (ASC 956•720) • • • • • • • C
JSA
Fonn 990 (2013) 3E1052 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F 63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990 (2013)
Page 11 • !liT•---- Balance Sheet
Check if Schedule O contains a resoonse or note to anv line in this Part X • • • . • • • • • • • • • • • • • • • • • I NI (A) (8) Beginning of year End of year 1 Cash - non-interest-bearing • • • • • • • • • • • • • • • • • • • • • • • • • • • 113,166. 1 101,903.
• • • • • a • • • • • • • • • • • I • • • I I I I • I I 5,256. 4 3,733. 5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L
0 5 0 6 Loans and other receivables from other dis
0
quaiified penion; ("aa' d~fin~· u~Jei s~tion. 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501 (c)(9) voluntary employees' beneficiary 0
Ill organizations (see Instructions). Complete Part II of Schedule L. • , • • • • • • • •• 6 0 - 7 Notes and loans receivable, net • • • • • • • • • • • • • • • • • • • • • • • • • C 7 0
other basis. Complete Part VI of Schedule D 10a 41,698. b Less: accumulated depreciation. • • • • • • • • • 10b 12,510. 37,528. 10c 29,188. 11 Investments - publicly traded securities .................... 11 0 12 Investments - other securities. See Part IV, line 11 • • • • • • • • • • • • • • • 12 500. 13 Investments - program-related. See Part IV, ffne 11 .............. 13 0 14 Intangible assets • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 14 0 15 Other assets. See Part IV, line 11 • • • • • • • • • • • • • • • • • • • • • • • • 15 0 16 Total assets. Add lines 1 throunh 15 <must =ual line 34) •••••••••• 155,950. 16 135,324. 17 Accounts payable and accrued expenses. • • • • • • • • • • • • • • • • • • • C 17 0 18 Grants payable • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • C 18 0 19 Deferred revenue ................................ 19 0 20 Tax-exempt bond liabilities ........................... 0 20 0 I 21 Escrow or custodial account liability. Complete Part IV of Schedule D 21 0
.... 22 Loans and other payables to current and former officers, directors, :.a trustees, key employees, highest compensated employees, and :3 disqualified persons. Complete Part II of Schedule L • • • • • • • • • • • • • • 485,925. 22 334,656. 23 Secured mortgages and notes payable to unrelated third parties • • • • • • • a 23 0 24 Unsecured notes and loans payable to unrelated third parties. • • • • • • • • C 24 0 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D ••••••••• • •••••••••••••••••••••••• 32,724. 25 24,305. 26 Total liabilities. Add lines 17 throuah 25 • • • • • • • • • • • • • • • • • • • • 518,649. 26 358,961. Organizations that follow SFAS 117 (ASC 958), check here • LJ and Ill complete lines 27 through 29, and lines 33 and 34. 3
C 27 Unrestricted net assets 27
I'll ............................. i\i 28 Temporarily restricted net assets •••••••••••••••••••••••• 28 al -g 29 Permanently restricted net assets • • • • • • • • • • • • • • • • • • • • • • • • 29 ::, Organizations that do not follow SFAS 117 (ASC 958), check here • W and u. .. complete lines 30 through 34 . 0 Ill 30 Capital stock or trust principal, or current funds • • • • • • • • • • • • • • •• C 30 0 -GI
Paid-in or capital surplus, or land, building, or equipment fund 31 0
Ill 31 Ill ........ c( 32 Retained earnings, endowment, accumulated income, or other funds •••• -362,699. 32 -223,637. -CP 33 Total net assets or fund balances -362,699. 33 -223,637. z ........................ 34 Total liabilities and net assets/fund balances. • • • • • • • • • • • • • • • •• 155,950. 34 135,324.
Form 990 (2013)
JSA 3E1053 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F 63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990 (2013)
liffli3• Reconciliation of Net Assets Check if Schedule O contains a res onse or note to an line in this Part XI
1 Total revenue (must equal Part VIII, column (A), line 12) ••••••••••••••••••••••• 2 Total expenses (must equal Part IX, column (A). One 25) • • • • • • • • • • • • • • • • • • • • • • • 3 Revenue less expenses. Subtract line 2 from line 1 • • • • • • • • • • • • • • • • • • • • • • • • • • 4 Net assets or fund balances at beginning of year (must equal Part X, fine 33, column (A)) ••••• s Net unrealized gains (losses) on investments ••••••••••••••••••••••••••••• 6 Donated services and use of facilities • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7 Investment expenses • • • • • • • • • • • • • • • • ·• • • • • • • • • • • • • • • • • • • • • • • • • • 8 Prior period adjustments • • • • • • • • • • • • • • • • • • • • • • • • • , • • • • • • • • • • • • • • 9 Other changes in net assets or fund balances (explain In Schedule 0) • • • • • • • • • • • • • • • • 10 Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33 column B •••••••••••••••••••••••• , ••• , •••••• , •••••••••
1 2 3
4 5 6 7 8 9
10
Page 12
232,930. 93,868.
139,062. -362,699.
0 0 0 0 0
-223,637. Financial Statements and Reporting Check if Schedule O contains a response or note to any line in this Part XII • • . • • . • • • • • • . • • • • . • n
1 Accounting method used lo prepare the Form 990: 0 Cash CE] Accrual D Other ------If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule 0. 2a Were the organization's financial statements compiled or reviewed by an independent accountant? •••••• If "Yes," check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: D Separate basis O Consolidated basis O Both consolidated and separate basis b Were the organization's financial statements audited by an independent accountant? •••••••••••••• If "Yes," check a box below to indicate whether the financial statements for the year were audited on a s~rate basis, consolidated basis, or both:
LJ Separate basis D Consolidated basis D Both consolidated and separate basis c If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibiHty for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight proe9ss or selection process during the tax year, explain in Schedule 0. 3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and 0MB Circular A-133? ••••••••••••••••••••••••••••••••••• b If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the re<1uired audit or audits, eXJ)lain why in Schedule O and describe any steps taken to undergo such audits.
JSA 3E1054 1.000
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Yes No
2a X
2b X
2c
3a X
3b Form 990 (2013)
SCHEDULE A (Form 990 or 990-EZ)
Public Charity Status and Public Support oMe No. 1545-0047 Complete If the organization Is a section 501 (c)(3) organization or a section 65lrt)' 13 4947(a)(1) nonexempt charitable trust. ~WI Department of the Treasury Internal Rewnue Service
• Attach to Form 990 or Form 990-EZ. • Information about Schedule A (Form 990 or 990-EZ) and Its Instructions Is at wwwJrs.govlform990. Ooen to Public
Inspection Name of the organization Employer Identification number MCCURDY SENIOR HOUSING CORPORATION
56-2423539 Reason for Public Chari Status All o anizations must com lete this part. See instructions. The organization is not a private foundation because it Is: (For lines 1 through 11, check only one box.) 1 ~ A church, convention of churches, or association of churches described in section 170(b)(1)(A)(I). 2 A school described in section 170(b)(1)(A)(II). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(lli). 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(lii). Enter the s O ~~s~~=~~;:;oe~ ::r::t:~e~he-benefito(a col~ge-or ""iin1v"ars1tyo~;d-oro-pe~at~by_a_gove~nmentatunitdescnbedin section 170(b)(1)(A)(lv). (Complete Part II.} 6 D A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 7 D An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vl). (Complete Part II.) 8 D A community trust described In section 170(b)(1){A)(vl). (Complete Part II.) 9 [K) An organization that normally receives: (1) more than 33113 % of Its support from contributions, membership fees, and gross receipts from activities related to its exempt functions - subject to certain exceptions, and (2) no more than 33113 % of its support from gross investment income and unrelated business taxable income (leliS section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part Ill.) 10 D An organization organized and operated exclusively to test for public safety. See section 509(a)(4). 11 D An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described In section 509(a)(1) or section 509(a)(2). See section 509,!!li3). Check the box that describes t~pe of supporting organization and complete lines 11 e through 11 h. a LJ Type I b D Type II c LJ Type Ill-Functionally integrated d D Type Ill-Non-functionally integrated e D By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). f If the organization received a written determination from the IRS that it is a Type I, Type II, or Type Ill supporting organization, check this box. • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • . • • • • • • • • • D g Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(I) A person who directly or Indirectly controls; either alone or together with persons described in (ii) and (iii) below, the governing body of the supported organization? •••••••••••••••••••••••• (ii) A family member of a person described in (i) above? • • • • • • • • • • • • • • • • • • • • • • • • • • • •• (iii) A 35% controlled entity of a person described in (i) or (ii) above? • • • • • • • • • • • • • • • • • • • • •• h Provide the following information about the supported organizatlon{s).
11g(I)
11g(ll)
11g(III)
Yes No
X X X
(I) Name of supported (ll)EIN (ID) Type of organization (Iv) Is lhe (v) Did you notify (vi) Is the (vii) Amount of monetary organization (described on lines 1-9 organization in the organization organization In support above or IRC section col. {I) listed In In col. (I) of your col. (I) organized (see Instructions)) your gowmlng
support? lnlhe U.S.? ~---"' Yes No Yes No Yes No
(A)
JSA
(B)
(C)
(D)
(E}
Total For Paperwork Reduction Act Notice, see the lnB1rUctlons for Form 990 or 990-EZ.
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Form 990 or 990-EZ) 2013
Page 2 1Qftj111 Support Schedule for Organizations Described in Sections 170(b)(1}(A)(lv) and 170(b}(1)(A)(vl) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part Ill. If the organization fails to qualify under the tests listed below, please complete Part Ill.). ect1on u S A.P bl icSunnort Calendar year (or fiscal year beginning In) • (a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) 2013 (f) Total
-1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") • • • • • •
2 Tax revenues levied for the organization's benefit and either paid to or expended on Its behalf • • • • • • •
3 The value of services or facilities furnished by a governmental unit to the organization without charge • • • • • • • 4 Total. Add lines 1 through 3 ••••••• 5 The portion of total contributions by
,. each person (other than a governmental unit or publicly ,. supported organization) included on line 1 that exceeds 2% of the amount shown on llne 11, column (f), • • • • • • 6 Public sunoort. Subtract llne 5 from line 4.
Section B. Total Su ort Calendar year (or fiscal year beginning in) • i---(,_a._) 2_0_0_9_-t-__.(b__.)_2_0_10--+-"-'(c.,_) """20c..1;..;1_-+-__,;;;d c.:2:.;;0c.:1=2-+---..:.:!e;!..) .:;2.:..01.:.:3::.__~-l:.f)!...T:.:o:::tal=---7 Amounts from line 4 ..•.••..•• i------t------+------+-----+-------1------
8 Gross income from interest, dividends, payments received on securities loans, rents, royalttes and income from similar sources ••••••••••••••••• t------t--:-----+------+-----+------+-----9 Net Income from unrelated business activities, whether or not the business is regularly carried on •••••••••• t------+-----t------+-----~------1------10 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part N.) ••••••••••• t------+------+------f-----+------1-------11 Total support. Add lines 7 through 10 •• '----~-'---~--l--.;.-----.....L.------1---.----;_J_-----12 Gross receipts from related activities, etc. (see instructions) • • • • • • • • • • • • • • • • • • • • • • • • • • t..1u2...,_ ________ _
13 First five years. If the Fonn 990 is for the organization's first. second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here .••.•..•• , .••••••...••••.•.••.•••••..••••••.•• • n
14 Public support percentage for 2013 (line 6, column (f) divided by line 11, column {f}) • • • • • • • • 14 % 15 Public support percentage from 2012 Schedule A, Part II, line 14. • • • • • • • • • • • • • • • • • • 15 % 16a 33113% support test -2013. If the organization did not check the box on line 13, and line 14 is 33113% or more, check
this box and stop here. The organization qualifies as a publicly supported organization • • • • • • • • • • • • • • • • • • • • • 0 b 33113% support test -2012. If the organization did not check a box on line 13 or 16a, and line 15 ls 331130/oor more, check this box and stop here. The organization qualifies as a publicly supported organization • • • • • • • • • • • • • • • • • • 0 17a 10%-facts-and-clrcumstances test - 2013. If the organization did not check a box on line 13, 16a, or 16b. and line 14 is 10% or more, and if the organization meets the "facts-and-circumstances• test, check this box and stop here. Explain in :;g:~~za~~o: .. ~e. o.r~a~i~~ti~~ ~~~ts. t~~ ~f~c~s~a-~~~~~~~~~•. t~s~ .• ~ ~r~~n'.z~t'.o~ ~~a~i~e~ .a~ ~ ~~~Ii~~ ~u_P~o-rt~~ D b 1 0o/o-facts-and-circumstances test • 2012. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the "facts-and-circumstances• test, check this box and stop here. Explain in Part "! h~w the organization meets the "facts-and-circumstances" test. The organiz~tion qualifies as a public!~ D supported organization • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
18 Private foundation. lfthe organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see • instructions • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
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Schedule A (Form 990 or 990-EZ) 2013
63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Form 990 or 990-EZ) 2013 Pege 3 14Mjjj1 Support Schedule for Organizations Described In SffCtion 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) Section A. Public Sunnnrt
Calendar year (or fiscal year beginning In) • (a)2009 {b) 2010 (c) 2011 (d)2012 (e)2013 (f) Total 1 Gifts, grants, contfibulions, and membership fees received. (Do not include any "unusual grants.") 0 14 688, 52 564. 0 ( 67 252. 2 Gross receipts from admissions, merchandise sold or services performed. or facilities furnished In any activity that is related lo the organizatiOn's tax-ellllmpl pull)OSe • • • • • • 243 228. 85 335. 16 079. 79 000. 100 600. 524 242. 3 Gmss receipts from activilies that are not en unrelated trade or business under section 513
0 4 Tax rewnues levied for the organization's benefit and either paid to or expended on Its behalf • • • • • • •
0 5 The value of services or facilities furnished by a governmental unit to the organization without charge • • • • • • •
0 6 Total. Add lines 1 through 5, ••• , •• 243 2.28. 100 023. 68 643. 79 000. 100 600. 59L 494. 7a Amounts included on lines 1, 2, and 3 received from disqualified persons • • • •
0 b Amounts Included on lines 2 and 3
received from other than dlsquallffed persons that exceed the greater of $5,000 or 1 % of the amount on line 1 3 for the year
0 C Add lines 7a and 7b, •••••••••• 0 8 Public support (Subtract line 7c from
line 6.) ••••••••••••••••• 591 494. Section B. Total Su ort
Calendar year (or fiscal year beginning In) • (a)2009 {b)2010 (c)2011 {d)2012 (e)2013 (f)Total 1--...:....:'------t---'-'-:.......--+-_.:.;:.!..=.:...;.;__+-....!.::!..::.::...:.::_-1-...,.!::!..::.:.:..:~-+--___!c!..'...:::.:::....-_
9 Amounts from One 6. • • • • • • • • • • 243 220. 100 023. 68 643. 79 ooo. 100 600, 591 494. 10a Gross income from interest, dividends, t--__,=t.!:,:;.::c:t--~=-=::.!j---_;;~=4----~?L.\::l!.!!.=l---~~~l--__;~<-!.l!c!.t. payments received on securities loans,
rents, royalties and income from similar soorces •••••••••••••••• ·i-------t------+------+-----+---~13~2~33~0~.,_ _ __,1~3~2~3~3~0.
b Unrelated business taxable Income (less section 511 taxes) from businesses
acquired after June 30, 1975 •••••• 1-----~1-------+------+-------4-------1-------~o c Add lines 10a and 10b , • , ••• , , , 1--------t------+--------1------+---.:.:l3::!2=33~0:;•1-----'l;:3~2t.:3!::3~0. 11 Net income from unrelated business
activities not included in line 1 Ob, whether or not the business is regularly carried on • • • • , • , , ••••••• 1------"'!0 _____ 4 _____ 4-____ __,"l--------"l--------"-o 12 Other income. Do not Include gain or loss from the sale of capital assets (Explain In Part IV.) ••••••••••• 1-------+-----..... ------+-----+------1------13 Total support (Add lines 9, 10c, 11, and 12.) , ••• , , , • , •• , , , , • 243 228. JOO 023. 68,643. 79 000. 232 930. 723,824. 14 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501 (c)(3) organization, check this box and stop here • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • D Section C. Com utation of Public Su ort Percenta e
15 Public support percentage for 2013 (line 8, column (t) divided by line 13, column (t)). • • 15 81. 72 % 16 Public support percentage from 2012 Schedule A, Part Ill, line 15 • • • • • • • • • • • • 16 98. 90 % Section D. Com utation of Investment Income Percenta e 17 18
Investment income percentage.for 2013 (line 1 Oc, column (f) divided by line 13, column (f)) • • • • • 17 18 • 2 8 % Investment income percentage from 2012 Schedule A, Part Ill, line 17 • • • • • • • • • • • • • • • • • • • • 18 1.10 % 19a 331/3% support tests • 2013. If the organization did not check the box on line 14, and line 15 is more than 331/3%, and line 17 ts not more than 331/3 %, check this box and stop here. The organization qualifies as a publicly supported organization • CR] b 331/3% support tests -2012. If the organization did not check a box on line 14 or line 19a, and line 16 Is more then 331/3o/o. and line '\8 is not more than 331/3 %, check this box and stop hare. The organization quallfies as a publicly supported organization • Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions • 20 JSA 3E1221 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F Schedule A (Form 990 or 990-EZ) 2013
63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Form 990 or 990-EZ) 2013
Page 4 •=iffj@ Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part 111, line 12. Also complete this part for any additional information. (See instructions).
SCHEDULED (Form 990) Supplemental Financial Statements • Complete if the organization answered "Yes," to Form 990, Part IV, line 6, 7; 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. • Attach to Form 990.
0MB No. 1545-0047
~@13 Department of the Treasury Internal Rl!Vllnue S8!Vlce • Information about Schedule D (Form 990) and Its Instructions is at www.lrs.govHorm990.
Open to Public Inspection Name of the organization
Employer Identification number MCCURDY SENIOR HOUSING CORPORATION 56-2423539
1 2 3 4
5
6
1
2
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered •Yes" to Form 990, Part IV, line 6. (a) Donor adVised fundS (b) Funds and other accounts Total number at end of year •••••••••••
Aggregate contributions to (during year) .... Aggregate grants from (during year) ••••••• Aggregate value at end of year. • • • • • • • • • Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? • • • • • • • • • • • D Yes D No Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferrin im ermissible rivate benefit? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D Yes D No Conservation Easements. Com lete if the or anization answered "Yes" to Form 990 Part IV. line 7.
Prese~ation of land for ~ublic use (e.g .• recreation or education) D Preservation of an historically important land area
P§r ose(s) of conservation easements held by the organization (check an that apply).
Protection of natural habitat D Preservation of a certified historic structure Preservation of open space Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
a Total number of conservation easements • b Total acreage restricted by conservation easements • • • • • • • • • • • • • • • • • • • • • • c Number of conservation easements on a certified historic structure Included in (a) • • • • • • d Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register. • • • • • • • • • • • • • • • • • • • • • • • •
Held at the End of the Tax Year 2a
2b
2c
2d 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the taxyear •-----------------4 Number of states where property subject to conservation easement is located • ________________ _ 5 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations. and enforcement of the conservation easements it holds? ••••••••••••••••••••••• D Yes O No 6 Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year 7
8
9
1a
b
2
a b
• -----------------Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year • $ -----------------Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B) (i) and section 170(h)(4)(B)(ii)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D Yes D No In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the or anizatlon's accountin for conservation easements. Organizations Maintaining Collections of Art, Historical Treasures, or Qther Similar Assets. Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, educa_tion. or re.search in furtherance of public service, provide, in Part XIII, the text of the footnote to its finanetal statements that descnbes these items. If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (I) Revenues included in Form 990, Part VIII, rine 1 ••••••••••• • • • • • • • • • • • • • • • • • • • $ ____________ _ (Ii} Assets included in Form 990, PartX •••••••••••••••••••••••• , • • • • • • • • • • • $ ------------If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: Revenues included in Form 990, Part VIII, line 1 •••••••••••••••••••••••••• , • • • • • $ ____________ _ Assets included In Form 990, Part X •••••••••••••••••••• • • • • • • • • • • • • • • • • • • $ For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule D (Form 990)2013 JSA
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule O (Form 990) 2013
Page 2 i:ffiljnj Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) 3 Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its
collection items (check all that apply):
: H :~~;~~~==~::h : a ~~~;ror exchange programs ----------------------c D Preservation for future generations
4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part Xiii.
5 During the year, did the organization solicit or receive donations of art, historical treasures. or other similar assets to be sold to raise funds rather than to be maintained as art of the or anization's collection? • • • • • • Yes No Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? • • • • • • • • • • • • • • , • • • • • , • • • • • • • • • • • • • • • • • • • • • • • D Yes O No b If "Yes." explain the arrangement in Part XIII and complete the following table:
Amount C Beginning balance .................................. 1c d Additions during the year .............................. 1d e Distributions during the year • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1e f Ending balance • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1f 2a Did the organization include an amount on Form 990, Part X, Une 21? ...................... LJ Yes HNo b If "Yes,· explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII. • • • • • • • •
. Endowment Funds. Comolete if the oraanization answered "Yes" to Form 990, Part IV, line 10 . (a) Current year (b) Prior year (c) Two years back (d) Three years back 1a Beginning of year balance • • • •
b Contributions • • • • • • • • • • • C Net investment earnings, ·gains,
and losses ••••••••••••• d Grants or scholarships • • • • • • e Other expenditures for facilities
and programs ••••••••••• f Administrative expenses • • • • • g End of year balance • • • • • • • •
2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi-endowment • % b Permanent endowment • % c Temporarily restricted endowment • % The percentages in lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by:
(I) unrelated organizations • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • (II) related organizations • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • • • • • • • • • • • • • b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? • • • • • • • • • • • • • • • • • • 4 Describe in Part XIII the intended uses of the organization's endowment funds.
(e) Four years back
Yes No 3a(I) 3a(II 3b
i:IMIUI Land, Bulldirms, and E~ulfcment. ''Y • to F 990 p rt N r 11 s F 990 p rt X r e 10 Comolete if t e oroaniza on answered es orm I a , Ine a. ee orm . a m Description of property (a) Cost or other basis (b) Cost or othef basis (c) Accumulated (d) Book value (Investment) Cother! deoreclatlon 1a Land •••••••••••••••••••••
b Buildings .................. C Leasehold improvements, • • • • • • , • , d Equipment ................. 34,098. 10,230 23,868. e Other ••••••••.•••••••••••• 7,600. 2,280 5,320. Total. Add lines 1 a through 1e. (Column (d) must eaua/ Form 990, Part X, column (B), line 10(c).) • ••••• • 29,188.
Schedule D (Form 990) 2013
JSA 3E12B9 2.000
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MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule D (Form 990) 2013
Page 3 i@Jiiii Investments - Other Securities.
Complete if the organization answered "Yes" to Form 990 Part rv line 11 b See Form 990 Part X line 12 I I
I . (a) Description of security or category (b) Book value (c) Method of valuation: (including name of security)
Cost or end-of-year market value {1) Financial derivatives . . . . . . . (2) Closely-held equity interests . . . . . . (3) Other ______________________________ (A)
-- (Bl --------------------------------__ (C) -------------------------------__ JDl ________________________________ __ JE) -------------------------------__ JF) --------------------------------__ JG}--------------------------------(H) Total, (Column (b) muat equal Form 990, Pslt X, col. (B) line 12.J • . Investments - Program Related •
, . , . Complete if the organization answered "Yes" to Form 990 Part rv line 11c See Form 990 Part X line 13 (a) Description of investment (b) Book value (c) Method of valuation:
Cost or end-of-year market value (1} (2) (3) (4) (5) (6) (7) (8} (9)
Total. (Column (bJ muat equal Fonn 990, Part X, col (8) flM 13.) • -~•tt••·- Other Assets.
. . . Complete If the organization answered "Yes" to Form 990, Part N line 11d See Form 990 Part X line 15 (a) Description
(b) Book value (1) (2) (3) (4) (5) (6} (7) (8) (9)
Total. (Column (b) must equal Form 990, Part X, col. (BJ line 15.J • ••••••••••••••••••••••••• • . Other Liabilities . Complete if the organization answered "Yes" to Form 990, Part rv. line 11e or 11f. See Form 990, Part X, line 25.
1. (a) Description of liability (b) Book value •.' {1) Federal income taxes .. (2) DEPOSITS
500. (3)DUE TO CAPITAL ONE VISA 1,070. (4)DUE TO PNC BANK (5)DUE TO MCCURDY CENTER GP (6)LOAN PAYABLE- SOUTHEAST TOYOTA 22,735. {7) (8) (9)
Total. (Column (b) must equal Form 990, Part X. col. (BJ line 25.) • 24,305. 2. Liabllity for uncertain tu positions. In Part XIII. provide the text of the footnote to the organization's financial statements that ~s ~ organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided 1n Part XIII JSA
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule D (Form 990) 2013 i:ffijfJ• Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete If the organization answered "Yes" to Form 990, Part N, line 12a. 1 Total revenue, gains, and other support per audited financial statements • • , • • • • • • • . • • • • • • ,___1 _______ _ 2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .•••••.••••••••••••••. ,__2a _______ _, b Donated services and use offacilities • • • • • • • • • • • • • • • • • • • • • • i-=2b~-------1 c Recoveries of prior year grants. • • • • • • • • • • • • • • • • • • • • • • • • • _.2c-1--------1 d Other (Describe in Part XIII.) ••••••••••••••••.•••••••••• ,__2d__. ______ -1 e Add lines 2a through 2d • • • • • • • . • . • • • • • • • • • • • . • . • . . • • • • • • • • • . . • • • . • ........ 2a _______ _ 3 Subtract line 2e from line 1 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1--3--1-------4 Amounts included on Form 990, Part VIII, line 12, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b • • • • • • • 1--4a~-------1 b Other (Describe in Part XIII.) • • • • • • • • • • • • • • • • • • • • • • • • • • • ,__4b__. ______ -1 c Add lines 4a and 4b ..•............•.•••.•..•....•........•....•• _.4c-i--------Total revenue. Add 6nes 3 and 4c. This must e ual Form 990, Part I, line 12.) • • • • • • • • • • • • • • 5 Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered "Yes" to Form 990, Part IV, line 12a.
1 Total expenses and losses per audited financial statements • • • • • • • • • • • • • • • • • • • • • • • • 1--1--1-------2 Amounts included on line 1 but not on Form 990, Part IX. line 25: a Donated services and use of facilities • • • • • • • • • • • • • • • • . . • • • • 1--2a~-------1 b Prior year adjustments • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i-=2b~-------1 c Other losses i-=2c-"-+-------1 d Other (Describe .in.Pait Xiii.) • • . • • . . • • • • . . • • • . • . • • . . • . . • 2d e Add lines 2a through 2d ~ • • • • • • • • • • • • • • • • • • • • • • • • • • ---------1 2e 3 Subtract line 2e from line· 1 · : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : t--3--1-------4 Amounts included on Form 990, Part IX, line 25, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b • • • • • • • i-=4a~-------1 b Other (Describe in Part XIII.) • • • • • • • • • • • • • • • • • • • • • • • • • • • ,.__4b__. ______ -1 Add lines 4a and 4b
i-=4..:c.c-+--------Total ex enses. Add lin~s '3. a~d 4c: 0
This must e. uaiFomr 990, Part,: line 1 B/ : : : : : : : : : : : : : 5 Su lemental Information. Provide the descriptions required for Part II. lines 3, 5, and 9; Part Ill, lines 1a and 4; Part IV, fines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.
Compensation Information 0MB No. 1545-0047 For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees • Complete if the organization answered •v-.• to Form 990, Part IV, line 23. • Attach to Form 990. • See separate instructions. .
~@13 Oeparlmenl of 111• Treasury Internal RewnllBSerke • Information about Schedule J (Form 990) and Its Instructions is at www./rs.govHorm990.
Open to Public Inspection Name of the organization
MCCURDY SENIOR HOUSING CORPORATION Employer Identification number
56-2423539
1 a Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Fonn 990, Part VII, Section A, line 1 a. Complete Part Ill to provide any relevant Information regarding these items.
8 First-class or charter travel 8 Housing allowance or residence for personal use Travel for companions Payments for business use of personal residence Tax indemnification and gross-up payments Health or social club dues or initiation fees Discretionary spending account Personal services (e.g., maid, chauffeur, chef) b If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No." complete Part Ill to
Yes No
explain • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • ,__1_b--i----1---2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all directors, trustees, and officers, including the CEO/Executive Director, regarding the items checked in line 1 a? • • • • • • • • • • • . . • • • • • • • • • • . • • • • • • • • • • • • • • • . • • • • • • • • • • • • . • . • • . • 1--2'--l--+---3 Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used bya related organization to establish compensation of the CEO/Executive Director, but explain in Part Ill. § Compensation committee § Written employment contract Independent compensation consultant Compensation survey or study Form 990 of other organizations X Approval by the board or compensation committee 4 During the year, did any person listed in Form 990, Part VII, Section A, line 1 a, with respect to the filing organization or a related organization: a Receive a severance payment or change-of-control payment? • • • • . • • • • • • • • • • • • • • • • • • • • • • • b Participate in, or receive payment from, a supplemental nonquaHfied retirement plan? •••••••••••••• c Participate in, or receive payment from, an equity-based compensation arrangement? •••••••••.•••• If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part Ill.
Only section 501(c)(3) and 501(c)(4) organizations mustcomplete lines 5-9. 5 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of:
4a X
4b X
4c X
a The organization? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i----::.5a~_......__x_ b Any related organization? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,___sb ____ x_ If "Yes" to line 5a or 5b, describe in Part Ill. 6 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of:
a The organization? ••.•••• ; • • • • . • • . • . . . • • • • • • • • • • • • • • • • . • • • . • • • l-"6-'-a-+----1--X-b Any related organization? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,__6_b--i-----1--x_ If "Yes" to line 6a or 6b, describe in Part Ill. 7 For persons listed in Fonn 990, Part VII, Section A, line 1a, did the organization provide any non-fixed payments not described in lines 5 and 6? If "Yes,• describe in Part Ill • • • • • • • • • • • • • • • • • • • • • • • • 1--1___,1----1-x_ 8 Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes." describe in Part Ill •••••••••••••••••••••••••••••••••• • • • • • • • • • • • • • • • • • • • • • • 9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .••••••••••••••••••••••••••••••••• • • •
8 X
9 For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule J (Form 990) 2013
JSA
3E1290 1.000 73632P A26J 6/24/2014 3:18:41 PM V 13-SF 63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539
Page2
Schedule J (Form 990) 2013
fijjj Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (I) and from related organizations, described in the
instructions, on row (ii). Do not list any Individuals that are not listed on Form 990, Part Vil.
Note. The sum of columns (B)(i)-(iii) for each listed Individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that
Individual.
(A) Name and TIiie
JOSEPH GLUCKSMAN 1 OFFICER
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
JSA 3E1291 1,000
73632P A26J 6/24/2014
(B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and
i@ijj• Supplemental Information Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1 b, 3, 4a, 4b, 4c, Sa, Sb, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information.
JSA
3E1505 1.000 73632P A26J 6/24/2014 3:18:41 PM V 13-SF
Sc;hedule J (Form 990} 2013
63-23555-70963
SCHEDULEL Transactions With Interested Persons (Form 990 or 990-EZ) • Complete if the organization answered "Yes" on Form 990, Part IV, line 25a, 25b, 26, 27, 28a,
28b, or 28c, or Form 990-EZ, Part V, llne 38a or 40b.
Department of lhe Treasury lnlemal Re1181lue Service
Name of the organization
• Attach to Form 990 or Form 990-EZ. • See separate instructions. • Information about Schedule L (Form 99D or 990-EZ) and its Instructions is at www.lrs.gov/l'onn990.
Employar ldentltlcatlon number
MCCURDY SENIOR HOUSING CORPORATION 56-2423539
Excess Benefit Transactions (section 501(c)(3) and section 501(c)(4) organizations only). Complete if the organization answered "Yes• on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1 (a) Name of disqualified person (b) Relationship between disqualified person (c) Description of transaction ~~
and organization Yes No (1) (2) (3) (4) (5) (6) 2 Enter the amount of tax incurred by the organization managers or disqualified persons during the year
under section 4958 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • $ _____ _ 3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization •••••••••••••• • $ _____ _
j@jj• Loans to and/or From Interested Persons. Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a or Form 990, Part N, Une 26; or if the organization reported an amount on Form 990, Part X. line 5, 6, or 22.
(a) Name of interested person (b) Relallonship (c) Pu,pose of (d) Loan lo or (e) Original (t) Balance due 19) In default'j (h) Approved (I) Written with organization loan from the principal amount by board or agreement?
ATTACHMENT 1 o~? committee?
To From Yes No Yes No Yes No (1) (2) (3) (4) (5) (6) (7) (8) (9)
(10)
Total ........................................ • $ 334,656. . Grants or Assistance Benefiting Interested Persons . Complete If the organization answered "Yes• on Form 990, Part N, line 27.
(a) Name of interested person (b) Relationship between Interested (c) Amount of assistance (d) Type of assistance (e) Purpose of assistance parson and the organization
(1) (2)
(3) (4) (5) (6) (7)
(8) (9)
(10) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
JSA 3E12971.000
73632P A26J 6/24/2014 3: 18: 41 PM V 13-5F
S1:hedule L (Form 990 or 990-EZ) 2013
63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539
Schedule L (Fonn 990 or 990-EZ) 2013 Page2
•itMU•a Business Transactions Involving Interested Persons.
(1)
(2) (3)
(4)
(5)
(6) (7)
(8)
(9)
10 .
JSA 3E1507 2.000
Complete H the organization answered "Yes• on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between (c) Amount of (d) Description of transaction (e) Shamgof interested person and the transaction organization's
organization IIMlllues?
Yes No
Supplemental Information Provide additional information for responses to questions on Schedule L (see Instructions).
73632P A26J 6/24/2014 3: 18: 41 PM V 13-5F Schedule L (Form 990 or 990-EZ) 2013
63-23555-70963
MCCURDY SENIOR HOUSING CORPORATION 56-2423539
Schedule L (Fonn 990 or 990-EZ) 2013
iiffljtJj Business Transactions Involving Interested Persons. Page2
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c. (a) Name of interested person (b) Relationship between (c) Amount of (d) Description of transaction (e) Shamg of interested person and the transaction organization's organization 19¥9nues?
Yes No (1)
(2) (3)
(4)
(5) {6)
{7)
(8\ (9) 10 . Supplemental Information
Provide additional information for responses·to questions on Schedule L (see instructions).
ATTACHMENT 1 SCHEDULE L, PART II
NAME
JOSEPH GLOCKSMAN
JSA 3E1507 2.000
RELATIONSHIP PURPOSE
OFFICER DEFERRED COMP
TO FROM ORIGINAL
X
BALANCE DUE Y N Y N Y N
334,656. X X X
73632P A26J 6/24/2014 3:18:41 PM V 13-SF Schedule L (Form 990 or 990-EZ) 2013
63-23555-70963
SCHEDULEO (Form 990 or 990-EZ)
Department of Iha Tniasmy Internal R.-ua Sef1lic8
Supplemental Information to Form 990 or 990-EZ Complete to provide Information for responses to specific questions on Form 990 or 990-EZ or to provide any additional lnfonnation. • Attach to Form 990 or 990-EZ.
0MB No. 1545-004 7
~@13 Open to Public Inspection Name of the 01ganiZation
MCCURDY SENIOR HOUSING CORPORATION Employer Identification number
56-2423539
FORM 990, PART VI, SECTION B, LINE 12C
FORM 990, PART VI, SECTION B, LINE 12C
THE BOARD OF DIRECTORS MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY.
FORM 990, PART VIII - INVESTMENT INCOME
(A)
TOTAL (B)
RELATED OR
ATTACHMENT 1
(C)
UNRELATED DESCRIPTION
DIVIDEND INCOME
REVENUE EXEMPT REVENUE BUSINESS REV.
132,330.
TOTALS 132,330.
FORM 990, PART X - PREPAID EXPENSES AND DEFERRED CHARGES DESCRIPTION
PREPAID EXPENSES
TOTALS
ATTACHMENT 2
(D)
EXCLUDED REVENUE
132,330.
132,330.
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule O (Form 990 or 990-EZ) (2013) JSA 3E1227 1.000
73632P A26J 6/24/2014 3:18:41 PM V 13-5F 63-23555-70963
WORD OF FAITH CDC
D. PART Ill - SECTION 3 - METHOD OF PAYMENT Delete the last sentence of this Section and replace it with the following:
"All reimbursement requests for payments made by the Agency in connection with the expenditure of the Revised Additional Allocation ($473,985.89) shall be submitted by Agency to the County no later than August 31, 2015.
Reimbursement requests for payments made by the Agency in connection with the balance of HOME funds available pursuant to this Agreement ($529,398.66) shall be submitted by the Agency no later than June 30, 2015".
E. EXHIBIT A.1 - SECTION I.A - PROJECT SERVICES Add the following language after the first paragraph:
"The Agency shall utilize the Revised Additional Allocation to complete ongoing HOME activities and purchase/rehabilitate at least two (2) additional single family properties pursuant to the terms and conditions contained herein, thereby bringing the number of units funded by this Agreement to a minimum of five (5) single family properties".
F. EXHIBIT A.1 - SECTION I.F - PERFORMANCE BENCHMARKS Add the following Subsection 7 to the end of this Section:
"7. The expenditure of the Revised Additional Allocation shall be subject to the following timeframes:
A. Acquisition of Property: The Agency shall complete the acquisition of at least two (2) additional properties no later than January 31, 2015.
B. Completion of Rehabilitation of Existing and Additional Properties: The Agency shall complete the rehabilitation of existing and additional properties and shall have received a certificate of occupancy or a certificate of completion for the rehabilitation work from the building department with jurisdiction over these properties, no later than June 30, 2015.
C. Expenditure of Revised Additional Allocation Funds: In order to receive 100% of the $473,985.89 designated as the Revised Additional Allocation for property acquisition, rehabilitation, and other eligible costs as specified herein, the Agency shall submit its requests for reimbursement from HOME funds no later than August 31, 2015.
D. Occupancy by Eligible Beneficiaries of Additional Properties: The Agency shall complete the occupancy of the additional properties by eligible beneficiaries approved by the County no later than December 31, 2015".
G. EXHIBIT A.1 - SECTION I.M. 7 - CONVERSION TO RENTAL PROPERTY Add the following language to the end of this Section:
"Any property acquired and/or rehabilitated by the Agency through this Revised Additional Allocation that has not been sold by the Agency, and occupied by a purchaser approved by the County by September 30, 2015, shall be leased or leased with an option to buy according to the rental and lease-purchase requirements herein by December 31, 2015.
Page 2
MCCURDY SENIOR HOUSING CORPOAATION Description of Property
Beginning Ending MA Current-year Basis Basis for Accumulated Accumulated Me- ACRS CRS 179 Current-year Reduction deoreclatlon deoreciatlon deoreclatlon thn~ Conv. Life class class expense depreciation 7 600. 760. 2 280. SL 5.000 l 520.
34 098. 3 410. 10 230. St 5.000 6 820.
41 698. 4 170. 12 510. 8 340 .
41 698. 4 170. 12 510. I 8 3~0 .
Ending Accumulated Accumulated Current-year amortization amortization Code Life amortization
63-23555-70963
Mccurdy Senior Housing Corporation 306 SW 10th Street
Belle Glade, Florida 33430
NOTE TO 2013 TAX RETURN: SALARY OF OFFICER
In 2013, Joseph Glucksman as President, voluntarily reduced his base salary to $24,000, due to the stabilization of Quiet Waters.
Form 990: Part VII on page 8 and page 2 of Schedule J: Part II: List of Officers & Directors and Highest Compensated Employees itemize Mr. Glucksman's compensation as $24,000 in base salary and $150,796 in other compensation. The "other compensation" is the total accrued salary & bonuses paid in fiscal year 2013. The accrued salary and bonuses were earned during a period of years when Mccurdy Senior Housing Corporation had no revenues.
Form8879-EQ
Department d Iha Tr-,,y Internal R-SeMce
IRS e-fi/e Signature Authorization for an Exempt Organization For calendar year 2012, orfiscalyewbeglnning ________ • 2012. and ending ________ , 20 __ _
• Do not send to the IRS. Keep for your records.
0MB No. 15-45-1878
~@12 Name of exempt organization Employer Identification number M CURDY SENIOR HOUSING CORPORATION 56-2423539 Name and title of offlcel'
•iftj• Type of Return and Return Information (Whole Dollars Only) Check the box for the return for which you are using this Form 8879-EO and enter the applicable amount, if any, from the return. If you check the box on line 1a, 2a, 3a, 4a, or Sa, below, and the amount on that line for the return being filed with this form was blank, then leave line 1b, 2b, 3b, 4b, or Sb, whichever is applicable, blank (do not enter -0-}. But, If you entered -0- on the return, then enter -0-on the applicable line below. Do not complete more than 1 line in Part I.
2a Form 990-EZ check here • b Total revenue, if any (Form 990-EZ, line 9) • • • • • • • • • • • 2b 7 9 , 0 0 0 •
1a Form 990 check here • ~Total revenue, if any (Form 990, Part VIII, column {A), line 12) • • • 1b 3a Form 1120-POL check here • b Total tax (Form 1120-POL, line 22). • • • • • • • • • • • • 3b 4a Form 990-PF check here • b Tax based on Investment Income (Form 990-PF, Part VI, Hne 5). 4b Sa Form 8868 check here • b Balance Due (Form 8868, Part I, line 3c or Part II, line Be) • • • • • Sb •=tfflii• Declaration and Signature Authorization of Officer Under penalties of perjury, I declare that I am an officer of the above organization and that I haw examined a copy of the organization's 2012 electronic return and accompanying schedules and statements and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that the amount in Part I above is the amount shown on the copy of the organization's electronic return. I consent to allow my intermediate service provider. transmitter, or electronic return originator (ERO) to send the organization's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay in processing the return or refund, and (c) the date of any refund. If appficable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of the organization's federal taxes owed on this return. and the financial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions
. involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related tt> the payment. I have selected a personal identification number (PIN) as my signature for the organization's electronic return and, if applicable, the organization's consent to electronic funds withdrawal.
Officer's PIN: check one box only [x) 1 authorize COHNREZNICK LLP l11314lal41 to enter my PIN as my signature EROflnnname
Enter five numbe,.., but do not enter 111 zel'OII on the organization's tax year 2012 electronically filed return. If I have indicated within this return that a copy of the retum is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program. I also authorize the aforementioned
ERO to enter my PIN on the return's disclosure consent screen. 0 As an officer of the organization, I will enter my PIN as my signature on the organization's tax year 2012 electronically filed return.
If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I will enter my PIN on the return's disclosure consent screen.
ERO's EFIN/PIN. Ente \ r six-digit eteJi:toam.ic filing Identification number (EFIN) followed by your five-digit self-selected PIN.
do not enter all zeros I certify that the above numeric entry is my PIN, which is my signature on the 2012 electronically filed return for the organization indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-fi/e Providers for Business Returns.
ERO'ssignature • ------------------------Date •-------------ERO Must Retain This Form - See Instructions Do Not Submit This Form To the IRS Unless Requested To Do So Jr Paperwork Reduction Act Notice, see back of form.
Fonn 8879-EO (2012)
JSA 2E1676 1.000
73632P A26J 4/30/2013 1:46:49 PM V 12-4.5F 63-00208248-5
(except black lung benefit trust or prlvatll foundation) • Sponeorlng organization• of donor advlled funda, organizations that opel'ltll one or more hoepltal facllltlN, and certain controlling organlzatlone aa defined In MCtlon &12(bK13) must ftle Form 990 , ... 1natruct1on1). All other org1nlz1tlon1 with 9,011 receipts Isa thin $200,000 Ind total UHta lea than $600,000 Open to Public
Inspection Department al the T-.ry at the and of the yur ~ay UH this form. 1ntama1 R_,ua SeM:a • The o,pi,mlfllM may have m - • capy a/this,_.,, m atisly Alflt reporting requirements. A For the 2012 calendar ear, or tax ear be lnnl , 2012, and endln B Check If applk:lbla:
Adcll'NI change
Name change
Initial relum
Terminated
i i
MCCURDY SENIOR HOUSING CORPORATf.[ON Number and street (or P.O. box, if mai is not deliwred to address)
306 SW 10TH STREET City or town, state or country, and ZIP + 4
Room/suite
,20 D Employer Identification number
56-2423539 E Telephone number
( 561 ) 996-7040 F Group Exemption
11ca11on endll1 BELLE GLADE FL 3 3 4 3 0 Number • G Accounting Method: Cash X Accrual Other (specify) • ___________ H Check • X if the organization is not I Website: • ---.--....... ---...-....... ----------.------....-~- required to attach Schedule B J =~ ~ • insert no. 527 (Form 990, 990-EZ. or 990-PF).
if the organization is not a section 509(a)(3) supporting organization or a section 527 organization and its gross receipts are normally not more than $50,000. A Form 990-EZ or Form 990 return is not required though Form 990-N (a-postcard) may be required (see instructions). But if the organization chooses to file a return, be sure to file a complete return.
L Add lines Sb, 6c, and 7b, to line 9 to determine gross receipts. If gross recelpta ant $200,000 or more, or If total assets (Part II, line 25, column (B) below) are $500,000 or more, file Form 990 instead of Form 990-EZ • • • • • • • • • • • • • • • • • • 7 9, 0 0 0 •
Revenue, Expenses, and Changes In Net Assets or Fund Balances (see the instructions for Part I) Check if the organization used Schedule O to respond to any question in this Part I • . • • • • • • • • • • • • • fx7 1 Contributions, gifts, grants, and similar amounts received • • . . . . . . • • . • • • . . . . . . • • • _1 __________ _ 2 Program service revenue including government fees and contracts • • • • • • • • • • • • • • • • • • ...,_2;;....1-----------3 Membership dues and assessments ••••••••••••••••••••••••••••••••• _3 __________ _ 4 lnvestmentincon,e ..•••..•..••••.•....•••••.••..••..•.•.... 1--4.;._+-----------5 a Gross amount from sale of assets other than Inventory • • • • • • 1_s_a_l _________ ---1
b Less: cost or other basis and sales expenses • • • • • • • • • • • I 5b I 0 c Gain or (loss) from sale of assets other than inventory (SUbtract line Sb from line 5a) • • • • • • • • • • _s_c_. _________ _
6 Gaming and fundralslng events a Gross income from gaming (attach Schedule G if greater than
s1s,ooo> •••••••••••••••••••••••••••• 1-s_a_l _______ --t b Gross income from fundraislng events (not induding $ of contributions
from fundraising events reported on line 1) (attach Schedule G if the sum of such gross income and contributions exceeds $15,000) • • l_s_b __ l ________ _
c Less: direct expenses from gaming and fundralslng events • • • • l,__&c__.l ________ ----1 d Net Income or (loss) from gaming and fundralSing events (add lines 6a and 6b and subtrad
b Less: cost of goods sold • • • • • • • • • • • • • • • • • • • • • I 7b I 0 c Gross profit or (loss) from sales of inventory (SUbtrad line 7b from line 7a) • •
Grants and similar amounts paid (list In Schedule 0) • • • • • • • • • • • • • • • • • • • • • • • • • Benefits paid to or for members • • , • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Salaries, other compensation, and employee benefits • • • • • • • • • • • • • • • • • • • • • • • • • Professional fees and other payments to independent contractors • • • • • • • • • • • • • • • • • • • Occupancy, rent, utilities, and maintenance ••••••••••••••••••••••••••••• Printing, publications, postage. and shipping • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Other expenses (describe in Schedule 0) •••••••••••••• ~7'~fl. f . . ; ....... ·. Total expenses. Add lines 10 throuah 16 ••••••••••••••••••••••••••• Excess or (deficit) for the year (Subtract line 17 from line 9) •••••••••••••••••••••• Net assets or fund balances at beginning of year (from line 27, column (A)) (must agree with end-of-year figure reported on prior year's return) • • • • • • • • • • • • • • • • • • • • , • • • • • • Other changes In net assets or fund balances (explain In Schedule 0) • , • • • • • • • • • • • • • • • Net assets or fund balances at end of year. Combine lines 18 through 20 • • • • • • • • • • • • • •
For Paperwork Reduction Act Notice, see the separate Instructions.
JSA 2E1008 1.000
6d
7c 8 9
10 11 12 13 14 15 16· 17 18
19 20 21
73632P A26J 4/30/2013 1:46:49 PM V 12-4.5F 63-00208248-5002
79,000. 79,000.
119,278. 7,368.
556.
··•· --31, 107. 158,309. -79, 309.
-283,390.
-362,699. Form 990-EZ (2012)
Fom, 8868 (Rev. January 2013)
Application for Extension of Time To File an Exempt Organization Return 0MB No. 1545-1709
Department al the TrNSUry Internal R--.ue SerJtce • FIie a separate application for each return. • If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box • • • • • • • • . • • • • • • • • • • X • If you are filing for an Additional (Not Automatic) 3-Month Extension, complete only Part II (on page 2 of this form). Do not complete Part I unless you have already been granted an automatic 3-month extension on a previously filed Form 8868.
· Electronic filing (e-ftle). You can electronically file Form 8868 if you need a 3-month automatic extension of time to file (6 months for a corporation required to file Form 990-T), or an additional (not automatic) 3-month extension of time. You can electronically file Form 8868 to request an extension of time to file any of the forms listed in Part I or Part II with the exception of Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, which must be sent to the IRS in paper format (see instructions). For more details on the electronic filing of this form, visit www.irs.gov/efile and click on &-file for Charities & Nonprofits. 1:ffll11 Automatic 3-Month Extension of Time. Only submit original (no copies needed). A corporation required to file Form 990-T and requesting an automatic 6-month extension - check this box and complete Part I only • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D All other corporations (including 1120-C filers), partnerships, REM/Cs, and trusts must use Form 7004 to request an extension of time to file income tax returns. em., fller'a ldentlfvlna number, ... Instruction•
Type or print Fffe by the due date for filing your retum.See Instructions.
Name of exempt organization or other filer, see instructions. Employer Identification number (EIN) or
MCCURDY SENIOR HOUSING CORPORATION Number, street. and room or suite no. If a P.O. box, see Instructions. 306 SW 10TH STREET
City, town or post office, state, and ZIP code. For a foreign address, see Instructions. BELLE GLADE, FL 33430
56-2423539 Social security number (SSN)
Enter the Return code for the return that this application is for (file a separate application for each return) • • • • • • • • • • • • LQW Application Return Appllcatlon Return ls For Code Is For Code Form 990 or Form 990-EZ 01 Form 990-T (corporation) 07 Form 990-BL 02 Form 1041-A 08 Form 4720- (individual) 03 Form 4720 09 Form 990-PF 04 Form 5227 10 Form 990-T {sec. 401 (a) or 408{a) trust) 05 Form 6069 11 Form 990-T (trust other than above) 06 Form 8870 12
• The books are in the care of • MCCURDY SENIOR HOUSING CORP
Telephone No. • 561 996-7040 FAX No. • ___________ _ • If the organization does not have an office or place of business in the United States, check this box • • • • • • • • • • • • • • • • D • If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) -----...--...-- . If this is for the whole group, check this box • • • • • • • D . If it is for part of the group, check this box. • • • • • • • LJ and attach a list with the names and EINs of all members the extension is for. 1 I request an automatic 3-month (6 months for a corporation required to file Form 990-T) extension of time
until 08/15 , 2012_, to file the exempt organization return for the organization named above. The extension is for the organization's return for: • [X] calendar year 20 !±.._ or • D tax year beginning __________ , 20 __ • and ending __________ , 20 __ .
2 If the tax year entered in line 1 is for less than 12 months, check reason: D Initial return D Final return D Change in accounting period
3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax; less any nonrefundable credits. See instructions.
b If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any refundable credits and 3a $
estimated tax payments made. Include any prior year overpayment allowed as a credit. 3b $ C Balance due. Subtract line 3b from line 3a. Include your payment with this form, if required, by using EFTPS
(Electronic Federal Tax Payment System). See instructions. 3c $
.. ·. ---
Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO for payment Instructions. For Privacy Act and Paperwork Reduction Act Notice, see Instructions.
JSA
2F8054 2.000 73632P A26J 5/9/2013 3:28:19 PM V 12-4.6F
Form 8868 (Rev. 1-2013)
63-00208248-5002
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990-EZ (2012)
Page 2 1:iffljj• Balance Sheets (see the instructions for Part II) Check if the or anization used Schedule O to res uestion in this Part II • • • • • • • • • • • • • • • • • . • x
(A) Beginning dyear (B) End dyeer cash, savings,andinvestments •••• ATTACBMEblT. 3 ..•..... _____ 1_0_7 __ ,_7_3_4_._1--2=2 _____ 1_1_3 __ ,_1_6_6_. _ --' Land and buildings •••••••••••••••••••••••••••••• i----------0--+-=2""3+-_____ 3_7"-, _52_8_. _ 24 Other assets (describe in Schedule O) • ~'f'f ~91:l~~t;JT . 1 ........ ______ 1_5_0 __ , _6_91_. ___ 2 __ 4 ______ 5"""',_2_5_6_._ 25 Total assets •••••••••••• , •••• , , ••••••••••.••• ______ 2_5_8 __ , _4 2_5_. ___ 2 __ 5 _____ 1_5_5-',_9_5_0_._ 26 TotalllabUltles (describe in Schedule O)-P..TT-P..<;l;l~~r-n· . !;i ••••• , •• _____ 5_4_1 __ ,_8_1_5 ___ 1--2~6-____ 5_1_8 __ ,_6_4_9_. _ 27 Net assets or fund balances (line 27 of column (B) must a ree with line 21 • • - 2 8 3, 3 9 0 • 27 - 3 6 2 , 6 9 9 • Statement of Program Service Accomplishments (see the Instructions for Part HQ
Check if the organization used Schedule O to respond to an uestion in this Part Ill • • • What is the organization's primary exempt purpose? PRE-DEVELOPMENT ACTIVITIES Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. In a clear and concise manner, descnbe the services provided, the number of persons benefited, and other relevant information for each program title. 28 LOW INCOME RENTAL_HOUSING _____________________________________________ _
Expenses (Required for section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts; optional for others.)
158,309.
29a
30a
Grants$ If this amount includes f n rants, check here ••••••• • 31a Total program service expenses (add lines 28a through 31a) ••••••••••••••••••••••• • 32 158,309. List of Officers, Directors, Trustees, and Key Employees List each one even if not compensated (see the instructions for Part IY1._ Check If the organization used Schedule O to respond to any question In this Part IV • • • • • • • • • • • • • • • • • • • • • • • I X I (a) Name and title
(d) Health beneli!S, contrtbutlons to employee (a) EsUmated amount~
benefit plans, and other compensation deferred c:omperlNliOn
Fonn 990-EZ (2012) 63-00208248-5002
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Form 990-EZ(2012) Page 3 •ifij,j Other Information (Note the Schedule A and personal benefit contract statement requirements in the
instructions for Part Check if the or anization used Schedule O to res ond to an uestion in this Part V. Yes No
33 Did the organization engage in any significant activity not previously reported to the IRS? If "Yes," provide a detailed description of each activity in Schedule O • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • t--3"""'3'--+-_+-x_
34 Were any significant changes made to the organizing or governing documents? If "Yes," attach a conformed copy of the amended documents If they reflect a change to the organization's name. Otherwise, explain the 34 X change on Schedule O (see Instructions) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
35 a Did the organization have unrelated business gross income of $1,000 or more during the year from business activities (such as those reported on lines 2, 6a, and 7a, among others)? • • • • • • • • • • • • • • • • • • • • • 35a X
b If "Yes," to line 35a, has the organization filed a Form 990-T for the year? If "No," provide an explanation in Schedule O • • • t--3_5_b ___ _ c Was the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization subject to section 6033(e) notice,
reporting, and proxy tax requirements during the year? If "Yes," complete Schedule C, Part Ill • • • • • • • • • • 35c X 36 Did the organization undergo a liquidation, dissolution, termination, or significant disposition of net assets
during the year? If "Yes," complete applicable parts of Schedule N. • • • • • • • • • • • • • • • • • • • • • • • • 36 X 37 a Enter amount of political expenditures, direct or indirect, as described In the Instructions • '"'3;..;;7..;;a'-'--------1•·
b Did the organization file Form 1120-POL for this year? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 38 a Did the organization borrow from, or make any loans to, any officer, director, trustee, or key employee or were
any such loans made in a prior year and still outstanding at the end of the tax year covered by this return? • • • b If "Yes," complete Schedule L, Part II and enter the total amount involved. • • • • • • • i,;:3:,::;8::;b;.,i..._ _____ 4 ",,~;n
39 Section 501(c)(7) organizations. Enter. a Initiation fees and capital contributions included on line 9 • • • • • • • • • • • • • • • • f--3;....;;9..;;a-+-_____ -1
b Gross receipts, included on line 9, for public use of club facilities • • • • • • • • • • • • ,_3""'9_b...._ ______ 1c,;:.;.~;c::;i 40 a Section 501 (c)(3) organizations. Enter amount of tax imposed on the organization during the year under.
section 4911 • ______ ; section 4912 • ______ ; section 4955 •-------b Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in any section 4958 excess benefit
transaction during the year, or did it engage in an excess benefit transaction in a prior year that has not been reported on any of its prior Forms 990 or 990-EZ? If "Yes," complete Schedule L. Part I •••••••••••••
c Section 501(c)(3) and 501(c)(4) organizations. Enter amount of tax imposed on organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 ••••••••••••••••••••••••••••••••••• •
d Section 501(c)(3) and 501(c){4) organizations. Enter amount of tax on line 40c reimbursed by the organization • • • • • • • • • • • • • • • • • • • • • • • • • • • •
e All organizations. At any time during the tax year, was the organization a party to a prohibited tax shelter transaction? If ''Yes," complete Form 8886-T • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 40e X
41 List the states with which a copy of this return is filed •-------------------------42 a The organization's books are in care of • ~ff~~.I?~---~-;-~-~.9.~.-~P.t!.~~!'!~ .. S:~~-~ Telephone no. • ·---~~~::~~~=2-~-~-~----······--·
Located at • 306 _SW_ lOTH __ STREET_ BELLE. GLADE, .. FL·························· ZIP+ 4 • .... 33430 ___________ ..----.---b At any time during the calendar year, did the organization have an interest in or a signature or other authority over Yes No
a financial account in a foreign country (such as a bank account, securities account, or other financial account)? 42b X If ''Yes," enter the name of the foreign country: •--------------------See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
c At any time during the calendar year, did the organization maintain an office outside the U.S.? • • • • • • • • • 42c X If ''Yes," enter the name of the foreign country: •---------------------
43 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-EZ in lieu of Form 1041 - Check here ••••••••••• • D and enter the amount of tax-exempt interest received or accrued during the tax year • • • • • • • • • '---'-43.C......,~--.....---..---
44a Did the organization maintain any donor advised funds during the year? If ''Yes," Form 990 must be completed instead of Form 990-EZ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
b Did the organization operate one or more hospital facilities during the year? If "Yes," Form 990 must be
c Did the organization receive any payments for indoor tanning services during the year? ••••••••••••• d If ''Yes" to line 44c, has the organization filed a Form 720 to report these payments? If "No," provide an
explanation in Schedule O • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 45 a Did the organization have a controlled entity within the meaning of section 512(b)(13)? ••••••••••••• 45 b Did the organization receive any payment from or engage in any transaction with a controlled entity within the
meaning of section 512(b)(13)? If "Yes," Form 990 and Schedule R may need to be completed instead of Form 990-EZ (see instructions). • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 45b X
JSA
2E1029 1.000
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Form 990-EZ (2012)
63-00208248-5002
MCCURDY SENIOR HOUSING CORPORATION 56-2423539
Form 990-EZ (2012) Page 4 Yes No
46 Did the organization engage, directly or indirectly, in political campaign activities on behalf of or in opposition
to candidates for ublic office? If ''Yes," com lete Schedule C, Part I • • • • • • • • • • • • • • • ·• • • • • • • • • • 48 X
Section 501(c)(3) organizations only All section 501(c)(3) organizations must answer questions 47-49b and 52, and complete the tables for lines 50 and 51 Check if the or anization used Schedule O to res uestion in this Part VI •••••••.••••.• D
47
48 49a
Did the organization engage in lobbying activities or have a section 501(h) election in effect during the tax Yes No year? If "Yes," complete Schedule C, Part II ••••••••••••••••••••••••••••••••••••• , ..... 4_7 ___ x_ Is the organization a school as described in section 170(b){1){A)(ii)? lf"Yes," complete Schedule E •••••••• .... 4 ... 8'-"'"" __ x_
b 50
Did the organization make any transfers to an exempt non-charitable related organization? •••••••••••• '""4_9_a __ -t---x_ If "Yes," was the related organization a section 527 organization? •••••••••••••••••••••••••• ,._4'-'9_b...._ _ _.__ Complete this table for the organization's five highest compensated employees (other than officers, directors, trustees and key
emolovees) who each received more than $100 000 of comoensation from the organization. If there is none enter "None."
(a) Name and title at each employee (b)Awrage (c) Reporteb(e n\~iHeathba1allls. (a) Estimated amount at hours per week com l8tion con n utlans to emp\oyae
paid more than $100,000 devoted to oosltlon (Forms =1099-MISC) benlfl!.~~~dilfaila1 other compensation
f Total number of other employees paid over $100,000 ••••••• • -~-1 ___ ___, __ 51 Complete this table for the organization's five highest compensated Independent contractors who each received more than
S 100 000 of comoensation from the oraanization. If there is none enter "None."
(a) Name and addreaa of each Independent c:onlraclor paid more than s100,ooo (bl Type at senrice (c) Compenaalion
d Total number of other independent contractors each receiving over $100,000. • • • _ ___, _________ ___, __ _ 52 Did the organization complete Schedule A? Note: All section 501(c){3) organizations and 4947(a){1)
nonexempt charitable trusts must attach a completed Schedule A. • • • • • • • • • • • • • • • • • • • • • • • • 00Yes D No Under penalties of pflljury, I declmw that I ha\19 examined this return, Including accompanying schedules and statements, and to the best of my knowledge and belief, It Is true, correct, and complela. ecl11rat1on of preparer (other than officer) Is based on all information of which preparer hell eny knowledge.
Sign Here
Paid Print/Type prepare!'& name Preparer's signature
Preparer CHRISTOPHER N. THOMAS, Use Only Firm's name • COHNREZNICK LLP
Finn'saddros • 816 CONGRESS AVENUE, SUITE 200 AUSTIN, TX 78701
Date
Date 5 13 2o
Check • if PTIN
self-:einployed P00181138
Flnn'sEIN • 22-1478099 Phone no, 512-494-9100
May the IRS discuss this return with the preparer shown above? See instructions •••••••••••••••••••• • X Yes No
JSA
2E10311.000 73632P A26J 4/30/2013 1:46:49 PM V 12-4.5F
Form 990-EZ (2012)
63-00208248-5002
SCHEDULE A (Form 990 or 990-EZ) Public Charity Status and Public Support
0MB No. 15-45-0047
l)epartment r:I the TrNSUry 1temal R811811ue Service
Complete If the organization Is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.
• Attach to Form 990 or Form 990-EZ. • SN separate Instructions.
~@12 Ooen to Public
Inspection
~•me of the organization
MCCURDY SENIOR HOUSING CORPORATION Reason for Public Chari Status All or anizations must com
Employer Identification number
56-2423539 See instructions.
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
2 A school described in section 170(b)(1)(A)(il). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(lii),
1 ~ A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).
4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(lil). Enter the
hospital's name, city, and state: ----------------------------------------------------------------6 D An organization operated for the benefit of a college or universin, owned or operated by a governmental unit described in
section 170(b)(1)(A)(lv). (Complete Part II.) 6 D A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 7 D An organization that normally receives a substantial part of its support from a governmental unit or from the general public
described in section 170(b)(1)(A)(vl). (Complete Part II.) 8 D A community trust described In section 170(b)(1)(A)(vi). (Complete Part II.) 9 [Kl An organization that normally receives: (1) more than 33113 % of its support from contributions, membership fees, and gross
receipts from activities related to its exempt functions - subject to certain exceptions, and (2) no more than 331/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part Ill.)
1 0 D An organization organized and operated exclusively to test for public safety. See section 609(a)(4). 11 D An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the
purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509!!}!3). Check the box that describes th,!.!yPe of supporting organization and complete lines 11 e through 11 h. a LJ Type I b D Type II c LJ Type Ill-Functionally integrated d O Type Ill-Non-functionally integrated
e D By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f If the organization received a written determination from the IRS that it is a Type I, Type 11, or Type Ill supporting
organization, check this box • • • • • • • • • • • • • • • • • • • • • • • • • , • • • • • • • • • • • • • • • • • • • • • • • • • 0 g Since August 17, 2006, has the organization accepted any gift or contribution from any of the
h
following persons? (I) A person who directly or indirectly controls, either alone or together with persons described in (ii)
and (iii) below, the governing body of the supported organization? ••••••••••••••••••••• (ii) A family member of a person described in (i) above? ••••••••••••••••••••••••••••• (iii) A 35% controlled entity of a person described in (i) or (li) above? • • • • • • • • • • • • • • • • • • • • • • Provide the following information about the supported organization(s).
119(1)
119(0)
119(111)
Yn No
X X X
(I) Name of supported (ll)EIN (Ill) Type of organization (lv)lsthe (Y) Old you notify (vi) la the (vft) Amount of monetary organization (described on lines 1-9
above or IRC section (see Instructions))
(A)
(B)
(C)
(D)".
(E)
,otal For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
JSA
2E12101.000
organizllliOn In cCII. (I) llslad In
Y°'!.,!1,~ Yes No
--~-
73632P A26J 4/30/2013 1:46:49 PM V 12-4.SF
the organization organization in support in col. (I) of col. (I) organized
your support? In the U.S.?
Yes No Yes No
Schedule A (Fonn 990 or 990-EZ) 2012
63-00208248-5002
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Fonn 990 or 990-EZ) 2012 Page 2 •iifljj• Support Schedule for Organizations Described in Sections 170(b)(1)(A)(lv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part Ill. If the organization fails to qualify under the tests listed below, please complete Part Ill.)
~ection A. Public Su rt .;alendar year (or fiscal year beginning In) • (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (I) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any•unusual grants.") •••••• 1------+------+------11-------+------+------
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf ••••••• 1-------+------+---------1-----+------+-----
3 The value of services or facilities furnished by a governmental unit to the organization without charge ••••••• 1-------+------1------1-------+------1------
4 Total Add lines 1 through 3 ••••••• i-,,-,,-;.,,.....-,-.....,,.,.._/fi{if,t,j7;,fi?ff(j°7/(;J/i:"""1"..,,..._.,....,. __ t--__ ..,.,..,..,,...-r-_,,.....,,..,.....,.""""~-----5 The portion of total contributions by
each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f). • • , , • • , . :;,,,--i,;,· ~~~~,,..,;+~-i-,,,,,~6-:~+"--~.,._.,,..,.,,.,-,~~~ ;;;:ffe:~;j------6 Public su Subtract line 5 from llne 4. :f,~,¥;.i11i1:;,J{~V;li\
Section B. Total Suooort Calendar year (or fiscal yur beginning In) • ....,_<.•.a..> 2_0_0_8_-+---'(--'b)_2_0_0_9_+-......;.(c..;..)_2_01_0_-+-_(;_d;;...) 2_0_1_1_-+---'(•_)_2_0_12_-+ __ (f)"--To_taJ __
7 Amounts from llne 4 •••••••••• 1-------+------+--------11-------+-----------8 Gross income from Interest, dividends, payments received on securities loans, rents, royalties and Income from similar
9
10
11 12
sources ••••••••••••••• •1------+------+------,1------+------+------Net Income from unrelated business activities, whether or not the business Is regularly carried on • • • • • •••• 1-------+-------+-----1-------+------+-----Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.) • • • • • • • • • • ,,.... .. . . . .. . .. . . ,,. .. .. . . . '.·tv',·1"•'·~1'-".J-!la:""-'!·~.~'.*·-?"· 1 -~-~~tf?~:_:i1~i_:::.· --, :._.:'- ... ,..,- - :..:_;_, ... ,.··.· ,::,·> ::·:."·-·•.(--.<,A:,~_•',, ---. Total support. Add lines 7 through 10 • • .':'hi•(.i~»~>c.?;;r::>:1 ·;?, •,r:,,:·;-,.i;,;; 0':,·;· • •• , .-.,,,:,;.., ',<.· o:r•••·· :,,.,. · · '· ,.,.>~,., :-",·1:·.,.,, ,.,,,.'!, Gross receipts from related act!Vities, etc. (see instructions) • • • • • • • • • • • • • • • • • • • • • • • • • • ... 1 ... 2 ... ..._I _______ _
13 First five years. If the Form 990 Is for the organization's first, second, third, fourth, or fifth tax year as a section 501 (c)(3) organization, check this box and stop here • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
14 Public support percentage for 2012 (line 6, column (f) divided by line 11, column (f)) •••••••• 14 % 15 Public support percentage from 2011 Schedule A, Part 11, rtne 14 • • • • • • • • • • • • • • • • • • • 15 % 16a 33113% support test. 2012. If the organization did not check the box on line 13, and line 14 Is 33113 % or more, check
this box and stop here. The organization qualifies as a publicly supported organization • • • • • • • • • • • • • • • • • • • • • D b 33113 % support test - 2011. If the organization did not check a box on line 13 or 16a, and line 15 is 33113 % or more,
check this box and stop here. The organization qualifies as a publicly supported organization • • • • • • • • • • • • • • • • • • 0 17a 10%-facts-and-circumstances test - 2012. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is
10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part IV how the organization meets the "facts-and-circumstances• test The organization qualifies as a publicly supported organization • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D
b 10%-facts-and-circumstances test - 2011. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and If the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly· ·
2E1220 1.000 73632P A26J 4/30/2013 1:46:49 PM V 12-4.5F
Schedule A (Fonn 990 or 990-EZ) 2012
63-00208248-5002 ·
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Fonn 990 or 990-EZ) 2012
Page 3 •ifflljj• Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
lection A. Public s UDDOrt
C alendar year (or fiscal year beginning In) • (8)2008 (b)2009 (c) 2010 (d) 2011 (e)2012 (f) Total 1 Gifts, grants, contributions, and membenshlp ,_
receiYed. (Do not in dude any "unusual grants. 1 0 C 14 688. 52. 564. C 67.252. 2 Gross receipts from admissions, merchandise
sold or services perfonned, or facilities furnished In any activity that Is related to the organization's tax-exempt purpose • • • • • • 120 671. 243 228. 85.335. 16 079. 79.000. 544 313.
3 Gross receipts from activities that are not an unrelated trade or business und• section 513 •
0 4 Tax revenues levied for the
organization's benefit and either paid to or expended on its behalf • • • • • • •
0 5 The value of services or facillUes
furnished by a governmental unit to the organization without charge • • • • • • • 0
8 Total Add llnes 1 through 5 ••••••• 120 671. 243 228. 100 023. 68 643. 79.000. 611 565. 7a Amounts included on lines 1, 2, and 3
received from disqualified persons • • • • 0 b Amounts Included on lines 2 and 3
received from other than dlsqualllied persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year 0
c Add lines 7a and 7b ••••••••••• 0 8 Public support (Subtract line 7c from .
line 6.) ••••••••••••••••• · 611 565. ectlon B . Total s UDDOrt
alendar year (or fiscal year beginning In) • (a) 2008 (b) 2009 (c)2010 (d) 2011 (e) 2012 (f) Total 9 Amounts from line 6. • • • • • • • • • • 120 671. 243 228. 100 023. 68,643. 79 000. 611 565. Oa Gross income from interest, dividends,
payments received on securttlea loans, rents, royalties and income from similar SOIJrt:eS • • • • • • • • • • • • • • • • • 6 777. 6.777.
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 •••••• 0
c Add lines 10a and 10b ••••••••• 6 777. 6,777. 1 1 Net income from unrelated business
activities not Included in line 10b, whether or not the business Is regularly carried on ............... 0 ( ( C C 0
1 2 Other Income. Do not Include gain or loss from the sale of capital assets (Explain In Part IV.) ...........
1 3 Total support. (Add lines 9, 10c, 11,
and 12.) •••••••••••••••• 127.448. 243 228. 100 023. 68 643. 79 000. 618 342. 14 First five years. If the Form 990 Is for the organization's first, second, third, fourth, or fifth tax year as a section 501{c){3)
organization, check this box and atop hen, • • • • • • • • • • • • • • • • • • • • • • • • • , • • . • . • • • . • • • • • • , • • , • , • n Section C. Com utation of Public Su ort Percenta e 15 Public support percentage for 2012 {line 8, column {f) dMded by line 13, column (f)). • • • • • • • • • • • • • 15 98. 90 % 18 Public support percentage from 2011 ScheduleA. Part.Ill, line 15 ••••••••••••• .- •• -;·;--~-;--~- ; ·; ··1a- 96.07 o/o Section D. Com utation of Investment Income Percenta e 17 Investment income percentage for 2012 (line 10c, column (f) divided by line 13, column (f)) •••••••••• 17 1.10% 18 Investment income percentage from 2011 Schedule A, Part Ill, line 17 •••••••••••••••••••• ......,;;.;;;.__i._ _______ _ 18 3.93% ia 33113% support tests. 2012. If the organization did not check the box on line 14, and llne 15 is more than 33113%, and line
17 is not more than 33113 %, check this box and stop hent. The organization qualifies as a publicly supported organization • ~ b 33113% support tests - 2011. If the organization did not check a box on line 14 or line 19a, and line 16 Is more than 33113 %. and
line 18 is not more than 331/3 %, check this box and atop here. The organization qualifies as a publicly supported organization • 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see Instructions • JSA
2E1221 1.000 73632P A26J 4/30/2013 1: 4 6: 4 9 PM V 12-4. SF
Schedule A (Fonm 990 or 990-EZ) 2012
63-00208248-5002
MCCURDY SENIOR HOUSING CORPORATION 56-2423539 Schedule A (Fonn 990 or 990-EZ) 2012
Page 4 iiffljlj ~upplemental Information. Complete this part to provide the explanations required by Part II, line 1 O; Part If, line 17a or 17b; and Part Ill, line 12. Also complete this part for any additional information. (See instructions).
JSA
2E1225 1.000
73632P A26J 4/30/2013 1: 46: 49 PM V 12-4. SF
Schedule A (Fonn 990 or 990-EZ) 2012
63-00208248-5002
SCHEDULEO ( F onn 990 or 990-EZ)
Supplemental Information to Form 990 or 990-EZ 0MB No. 1545-0047
~@12 'OBrtment rl the T-.y
mal R.-we Sar;ice
Complete to provide information for responses to specific questio,. on Form 990 or 990-EZ or to provide any additional Information. Open to Public
Inspection • Attach to Form 990 or 990-EZ. . .tme of the organization
MCCURDY SENIOR HOUSING CORPORATION
FORM 990EZ, PART I - OTHER REVENUE
MANAGEMENT FEES CONSULTING FEES
TOTALS
FORM 990EZ, PART I - OTHER EXPENSES TRAVEL INTEREST DEPRECIATION INSURANCE AUTO EXPENSE LICENSES & OTHER FEES MISCELLANEOUS GENERAL & ADMINISTRATIVE
OTAL
FORM 990EZ, PART II - CASH, SAVINGS AND INVESTMENTS
DESCRIPTION
CASH
TOTALS
Employer Identification number
56-2423539
ATTACHMENT 1
4,000. 75,000.
79,000.
ATTACHMENT 2
ATTACHMENT 3
109. 1,085. 4,170.
15,533. 3,633.
183. 2,889. 3,505.
31,107.
END BEGINNING OF YEAR OF YEAR
107,734. 113,166.
107,734. 113,166.
For Privacy Act and Paperwork Reduction Act Notice, see the lnstructlona for Fonn 990 or 990-EZ. Schedule O (Fonn 990 or 990-EZ) (2012) JSA
2E1227 1.000 73632P A26J 4/30/2013 1:46:49 PM V 12-4.SF 63-00208248-5002
Schedule O (Form 990 ot 990-EZ) 2012 Name of the organization
MCCURDY SENIOR HOUSING CORPORATION
FORM 990EZ, PART II - OTHER ASSETS
DESCRIPTION
ACCOUNTS RECEIVABLE DUE FROM MCCURDY CENTER, LTD. DUE FROM REGAL SENIOR SERVICES DUE FROM PAYCHEX PREPAID INSURANCE
TOTALS
FORM 990EZ, PART II - TOTAL LIABILITIES
DESCRIPTION DUE TO OFFICER DEPOSITS DUE TO CAPITAL ONE VISA DUE TO PNC CC DUE TO PNC BANK DUE TO MCCURDY CENTER GP LOAN PAYABLE- SOUTHEAST TOYOTA
MA Current-year Current-year reduction Basis Basis for Accumulated Accumulated Me- ~ 179
in basis Reduction deoreclation deoreciatlon deoreclatlon th.-vf Conv. Life class class exnense deoreclatlon 7 600. 760. SL 5.000 760.
34 098. 3.410. SL 5.000 3 410.
41. 698. 4 170 • 4 170.
41 698. 4 170. 4 170 •
Accumulated Ending
Accumulated Current-year amortization amortization Code Life amortization
V 12-4.5F 63-00208248-5002
Mccurdy Senior Housing Corporation 306 SW 10th Street
Belle Glade, Florida 33430
NOTE TO 2012 TAX RETURN: SALARY OF OFFICER
Still being active in the stabilization of Quiet Waters, the President, Joseph Glucksman, had earned his base salary $107,782, consistent with his Employment Agreement.
Attachment 6: List of Officers & Directors, shows total compensation to Joseph Glucksman as President, of $162,500. The difference between his base salary and the Statement of Compensation is attributed to the payment of accrued salary and bonuses earned during a period of years when Mccurdy Senior Housing Corporation had no revenues. The payment during 2012 of accrued salary and bonuses earned can be found on Attachment 5: Total Liabilities under line item "Due To Officer".
ATTACHMENT 15
NEW SOUTH BAY VILLAS
ZONING, LAND USE, INFRASTUCTURE & SERVICES PROXIMITY
ATTACHED
City of South Bay
Office of City :Mana9er
South Bay City Hall 335 SW 2nd Avenue
South Bay, FL33493 Telephone: 561 ·998-6751 Facslmlle: 561·996·7950
www.southbayclLy.com
August 27. 2014
Joseph Glucksman McCurdy Senior Housing Corporation 306 SW Io• Street Belle Glade. Aorida 33430
Re: South Bay Villas and Marshall Heights
Dear Mr. Glucksman.
The infonnation below has been prepared in response to your request to verify that the land use and zoning on the two properties referenced is consistent with the intended continued use as a multi-family rental community.
Property 1 - South Bay Villas - JOO I Jasmine Ct., South Bay FL -PCN:58364414153600020 Property 2- Marshall Heights - l IO HaJTelle Dr •• South Bay FL -PCN:58364414153500020
The existing land use for both properties is high density residential and the existing zoning is multi-family residential. Based on existing usage for a 65 unit residential development at I 10 HarreUe Dr. and 66 units at 1001 Jasmine CL we can confirm thal the zoning and land use for these parcels support the continued operation of 131 collective residential rental units on these properties.
We undersland that your current proposed plan includes the renovation of all units on South Bay Villas and the demolition and reconstruction of residential units on Marshall Heights not to exceed the number of units currently existing on the site. We also recognize that it is desirable to combine the two communities and as such the final site plan may vary in tenns of building footprints and overall layout however as long as the total number of units previously pennitted on each site is consistent with the current zoning and land use requirements of the City of South Bay.
While this letter is intended to confirm the overall zoning and land use compatibility of these sites. prior to site plan approval being granted, full plans showing compliance with setbacks, parking and building code requirements must be submitted and approved by the City of South Bay.
If you have additiorud questions please contact me via email or by phone.
• Name Address Cit 1 South Bay Villas 110 HARRELLE DR South Bay Project Location 0 2 South Bay City Police Department 335 SW 2nd Ave South Bay Fire/Police 0.52 3 Fire Department 335 SW 2nd Ave·. South Bay, Fire/Police 0.52 4Clarence E Anthony Branch Library 375 SW 2nd Ave South Bay Library/Civic 0.53 s Lake Shore Civic Center . 1224 SW Avenue E Pl Belle Glade Library/Civic 2.76 6 Rosenwald Elementary School 1321 W Palm Beach Rd South Bay School 0.31 7 Glades Central Community High 1001 SW Avenue M Belle Glade School 2.96 8 Lake Shore Middle 425 W Canal St N Belle Glade School 3.48 9 Palm Tran Bus Stop 799 Dr MLK Jr Blvd South Bay Transportation 0.09
• Name Address Cit 11111 1 South Bay Villas 110 HARRELLE DR .. South Bay• Project Location 0 2 South Bay Food Center Inc 110 US Hwy 27 S South Bay Grocery 0.31 3 Little Giant Foods 515 W Palm Beach Rd South Bay Grocery·· 0.26 4South Bay Market 105 NW 10th Ave South Bay Grocery 0.07 5 South Bay Marathon 890 US Hwy 27 N South Bay Grocery 0.85 6 Belle Glade Wholesale Market 525 NW Ave L Belle Glade Grocery 3.75 7 South Bay Jiffymart 890 US Hwy 27 N South Bay Grocery 0.85 8 Bowling Supermarket 1425 S Main St Belle Glade Grocery 3.10 9 Subway Restaurant 195 US Hwy 27 S South Bay Restaurant 0.29
10 The Last Stop 510 US Hwy 27 N South Bay Restaurant 0.56 11 Terry's Restaurant 510 US Hwy 27 N South Bay Restaurant 0.56 12 Five Star Sports Bar and Grill 510 US Hwy 27 N South Bay Restaurant 0.56 13 McDonalds 833 S Main St Belle Glade Restaurant 3.27 14South Bay Maket 105 NW 10th Ave South Bay Shopping 0.07 15 Family Dollar 533 SW 16th St Belle Glade Shopping 2.65 16 New Beginning Fashions 141 S Main St #241 Belle Glade Shopping 3.64 17 Payless Shoe Source 9465 Main St Belle Glade Shopping 3.22
Proximity To Services - Medical 'ii· .. ' ,, ~!' ::ii ;~I ~;,, I.''
\--•-:,)
·• .• ·.I
I ·.
1· _•.;
_; '.,4,, ...... . . ,
Type~- .<,:'· ProJect Location ',-, Clmic ::;:: Doctor Of!ICe O Pharmacy
• Name Address ' .
1 South Bay Villas ·· 110 HARRELLE DR 2 Everglades Metcare 349 NW 16th St 3 My Doctor PA 1200 S Main St 4 PBC Health Department 1500 NW Avenue L 5 Palm Beach Nephrology PA 929 SE 1st St 6 Doctor Thomas P Baker 216 Royal Palm Way 7 Doctor Robert L Rease 609SW9thSt 8 Winn-Dixie 900S Main St 9 CVS Pharmacy 916S Main St
10 Fast and Friendly Pharmacy 364 W Avenue A 11 Lake Pharmacy 25 Dr MLK Jr Blvd E 12 Walgreens 101 N Main St
Cit
South Bay
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
Belle Glade
j(
Airport Rd Gator E @'
I ~-
... @
r '" G)
[ .
-~ SF.ll.E C GLADE
1111 Project Location · 0
2.92
3.11
2.98
3.31
2.79
2.90
3.17
3.11
3.54
0.53
3.71
Clinic
Clinic
Clinic
Clinic
Doctor Office
Doctor Office
Pharmacy
Pharmacy
Pharmacy
Pharmacy
Pharmacy
ATTACHMENT 16
NEW SOUTH BAY VILLAS
PROJECT SCHEDULE
ATTACHED
New South Bay Villas 2014 2015 2016 I 2017
ID Task Name Start Duration Finish tr trltrltr tr(trltrltr tr I tr tr tr I tr tr I tr tr 1 Obtain Home Funds 8n/14 60 days 10/30/14 ...... :
46 Play and Recreation Ammenities 3/9/17 2mons 5/3/17 ~/9 (lill 5/3 47 Project Completiopn 1/12/17 100 days 5/31/17 r • 48 Pre-Leasing of MH 1/12117 3mons 4/5/17 1/12 Jy:,.:::1 4/5
49 Move in Complete - Full Occupancy 5/31/17 0days 5/31/17 • 5/31
'
Page 2 of 2 l 8/28/14
ATTACHMENT 17
NEW SOUTH BAY VILLAS
PUBLIC DISCLOSURE
ATTACHED
EXHIBIT G: DISCLOSURE OF BENEFICIAL INTERESTS
DISCLOSURE OF BENEFICIAL INTERESTS (REQUIRED BY FLORIDA STATUTES 288.23)
TO: PALM BEACH COUNTY CHIEF OFFICER, OR HIS OR HER OFFICIALLY DESIGNATED REPRESENTATIVE
STATE OF FLORIDA COUNTY OF PALM BEACH
BEFORE ME, the undersigned authority, this day personally appeared, v;an Johnson. hereinafter referred to an Afflant who being by me first duly sworn, under oath, deposes and states as follows:
1. Affiant Is the Palm Beach County Houa:ing~Authority , which entity is the Lead Entity for the ResDOlldent to Palm Beach County Request for proposals Number RFP NO. DES.2014~1
2. Affiant'saddressis: 3432 w. 45th Street, WPB, FL. 33407
3. Attached hereto, and m2'de a part hereof, as Attachment -1 is a complete listing of the names and addresses of every person or entity having a five percent (5%) or greater beneficial interest in the proposed HOME project and the percentage interest of each such person or entity.
4. Affiant acknowledges that this Affidavit is given to comply with Florida Statutes 286.23, and will be relied upon by Palm Beach County.
5. Afflant further states that Affiant is famifiar with the nature of an oath and with the penalties provided by the laws of the State of Florida for falsely swearing to statements under oath.
6. Under penalty of perjury, Affiant declares that Affiant has examined this Affidavit and to the best of Afflant's knowledge and belief it is true, correct, and complete.
FURTHER AFFIANT SAYETH NAUGHT. By Van ,!ohnson
,Afflant
The Jrregoing instrument was sworn to, subsaibed and acknowledged before me this ~day of ¾-'fcw>bu , 20.1.:i, by YU\ Jokr,,spn , who is personally known to me OR who produced El cl it vv I ,u n ¥' as identification and who did take an oath.
(NOTARY SEAL BELOW) Notary Signature:
Notary Name: b .«1d•At:I& o1 Notary Public State of Florida
25
ATTACHMENT 1 TO DISCLOSURE OF BENEFICIAL INTERESTS
SCHEDULE .TO BENEFICIAL INTERESTS IN PROJECT PROPOSAL
Affiant is only required to identify five percent (5%) or greater beneficial interest holders in the proposed project. If none, so state. Affiant must Identify individual owners. If, by way of example, the proposed project is wholly or partially owned by another entity, such as a corporation, Affiant must identify such other entity, its address and percentage interest, as well as such information for the individual owners of such other entity.
Palm Beach County 3432 w. 45th Street 51% Housing Authority West Palm Beach, FL. 33407
These entities are non-profit & governmental organizational & therefo e
have no individual owneri hip.
26
ATTACHMENT 18
NEW SOUTH BAY VILLAS
DRUG FREE WORKPLACE CERTIFICATION
ATTACHED
EXHIBIT G: DRUG FREE WORKPLACE CERTIFICATION
Preference shall be given to businesses with drug-free workplace programs. Pursuant to Section 287.087, Florida Statutes, whenever two or more competitive solicitations that are equal with respect to price, quality, and service are received by the State or by any political subdivision for the procurement of commodities or contractual services, a response received from a business that certifies that it has implemented a drug-free workplace program shall be given preference in the award process. Established procedures for processing tie responses will be followed If none of the tied providers has a drug free workplace program. In order to have a drug-free workplace program, a business shall:
1. Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition.
2. lnfonn employees about the dangers of drug. abuse In the workplace, the business's policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be Imposed upon employees for drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual services that are under proposal a copy of the statement specified in Subsection (1 ).
4. In the statement specified in Subsection (1 ), notify the employees that, as a condition of working on the commodities or contractual services that are under proposal, the employee will abide by the tenns of the statement and will notify the employer of any conviction of, or plea of guilty or no/o contendere to, any violation of Chapter 894, Florida Statutes, or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction.
5. Impose a sanction on any employee who is so convicted or require the satisfactory participation in a drug abuse assistance or rehabDitation program as such is available in the employee's community.
6. Make a good faith effort to continue to maintain a drug-free workplace through implementation of applicable laws, rules and regulations.
As the person authorized to sign the statement, I certify that this finn complies fully with the above requirements.
PBCBA BUSINESS NAME
VINJ ~ PROVIDER'S SIGNATURE
27
ATTACHMENT 19
NEW SOUTH BAY VILLAS
GLADES REGION PREFERENCE
The New South Bay Villas is located at 110 Harrelle Drive, South Bay, Florida 33493. It is within the Glades Region of Palm Beach County as evidenced by the attached location map.
Glades Region Preference
!!
J
'a I· I
I
I
·:.:>, ... ---..,,~ ··v ·,,\
The proposed property is located at 2802 llex Court in the City of South Bay within the Glades Region. At completion 100% of the units will have rental assistance available to qualifying Glades Region residents. The project schedule also provides for the currently unoccupied units within the project site to be fully rehabilitated and ready for occupancy prior to starting construction on any occupied units. This will provide an opportunity for onsite relocation of current residents in the units that are proposed to be rebuilt during the second part of the construction activates. Due to the high demand for affordable, quality housing in the glades area the proposed development when complete will likely obtain 100% of its occupants from existing residents in the Glades region.
ATTACHMENT 20
NEW SOUTH BAY VILLAS
ADDENDUM ACKNOWLEDGEMENT FORM
ATTACHED
ADDENDUM ACKNOWLEDGEMENT FORM
to Addendum No. "1"
to RFP No. DES.2014.1
By signing this Form, Respondent acknowledges receipt of this Addendum No. "1" to RFP No. DES.2014.1
Respondents shall Include this Acknowledgement Fonn as Attachment 20 to their proposal.