August 25, 2020 Mr. Tim Kennedy Assistant Director of Multifamily Programs Florida Housing Finance Corporation 227 N. Bronough
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Exhibit E Page 1 of 13 August 25, 2020 Mr. Tim Kennedy Assistant Director of Multifamily Programs Florida Housing Finance Corporation 227 N. Bronough Street, Suite 5000 Tallahassee, FL 32301 RE: Babe’s House RFA 2019-117 (2020-067G) Financing to Build Smaller Permanent Supportive Housing Properties for Persons with Developmental Disabilities Dear Mr. Kennedy: At the request of Florida Housing Finance Corporation (“Florida Housing” or “FHFC”), First Housing Development Corporation of Florida (“First Housing”, “Servicer”, or “FHDC”) has reviewed the response to the Request for Applications (“RFA”) 2019-117 provided by the Autism Project of Palm Beach County, Inc. (“Applicant” or “APPBC”) for the construction of a new development to be known as Babe’s House (“Development”). The Applicant is requesting Grant funding in the amount of $588,000 to construct a Community Residential Home (“CRH”) with the sole intent to provide affordable, permanent, and supportive housing to individuals with developmental disabilities. The Applicant is committed to providing 100% of the newly constructed units to persons with developmental disabilities. For the Development, 33% of the bedrooms (2 bedrooms) will be set aside for residents classified as being Extremely Low Income (“ELI”) with incomes that are at or below 28% of the Area Median Income (“AMI”); the four (4) remaining bedrooms, or 67%, will be set aside for residents with incomes that are at or below 60% of AMI; all set asides will remain in place for an Compliance period of 10 years. The newly constructed development will be located at 18420 Limestone Creek Road, Jupiter, Palm Beach County, FL 33458, and will be situated on approximately 0.92 acres of land. The application stated the address as 18450 Limestone Creek Road, however the address is 18420 Limestone Creek Road. As proposed, the single-story, shared dwelling unit will consist of approximately 6,415 square feet of living space, six (6) bedrooms and seven (7) bathrooms to house up to six (6) developmentally disabled individuals. There will be a covered porch entry, exercise lanai at the rear, foyer, great room, two (2) caretaker offices, game room, kitchen, pantry, storage closets, Exhibit E Page 2 of 13 FHDC utility closets, 6 bedrooms with individual bathrooms for residents, one unisex bathroom, and oversized 2-car garage with laundry area. Applicant The Applicant is a Florida 501(c)(3) not-for-profit corporation, formed in 1996, having a Board of Directors comprised of 8-members. APPBC was formed by small group of parents to help address the needs of local individuals with autism spectrum disorder and their families. The Development will be managed by the Palm Beach Habilitation Center (“PBHC”) and its personnel upon completion of construction. Construction of the Development will be completed by D&D Constantakos, Inc. Development Name: Babe's House RFA/Program Numbers: RFA 2019-117 / 2020-067G Address:18420 Limestone Creek Road City: Jupiter Zip Code: 33458 County: Palm Beach County Size: Large Development Category: New Construction Development Type: Single Family Demographic Commitment: Primary: Persons with Developmental Disabilities for 100% of the Units Unit Composition: # of ELI Units: 2 ELI Units Are Restricted to 28% AMI, or less. Total # of units with PBRA? 0 Set Asides: Program % of Units # of Units % AMI Term (Years) Grant 33.0% 2 28% 10 Grant 67.0% 4 60% 10 Site Acreage: 0.92 Density: N/A Flood Zone Designation: X Zoning: MR-5 - Medium Residential Flood Insurance Required?: No DEVELOPMENT TEAM Applicant/Borrower: APPBC % Ownership Construction Completion Guarantor(s): CC Guarantor 1: APPBC Developer: APPBC General Contractor 1: D&D Constantakos, Inc. Architect: ACI Architectural Consultants Inc Credit Underwriter: First Housing Date of Final CUR: 8.25.2020 Babe’s House Page 2 August 25, 2020 Exhibit E Page 3 of 13 FHDC Source of Funds Interest Annual Debt Lender Revised Applicant Underwriter Term Yrs. Amort. Yrs. Rate Service FHFC - Grant $588,000 $588,000 10 0 0.00% $0 Developer Equity $1,344,241 $1,343,873 N/A N/A N/A N/A $1,932,241 $1,931,873 $0 FHFC Grant: The Applicant has requested funding in the amount of $588,000 via FHFC RFA 2019-117. Terms and conditions of Grant funding will be clearly defined in the Restrictive Covenant and Grant Agreement issued by FHFC, and will be recorded in the public records of the county in which the newly constructed development is located. In the event of a violation of any of the terms and conditions set forth in the Restrictive Covenant and Grant Agreement, or the awarded Grant Funds be used for any purpose other than those stated in the Request For Application submitted by the Applicant, or if funds awarded or disbursed to Grantee were based upon fraud or misrepresentation committed by the Grantee during the Compliance Period, Grant Funds may be revoked. It should be noted that a portion of the Total Grant Awarded ($18,000), may be used for predevelopment costs such as underwriting fees, plan and costs analysis, accessibility review, etc. In the event that the predevelopment costs are not fully expended at the completion of construction, the Applicant may be reimbursed up to the total amount remaining of these costs. Applicant Equity: In order to balance the sources and uses of funds, First Housing estimates that APPBC must contribute $1,343,873 to partially offset the construction costs of the Development. Funds required to complete construction of the Development over and above Grant funds, will be provided by APPBC as cash deposited at initial closing. Cash deposited will be in an amount less those expenses already paid by APPBC, and will be verified by First Housing. It should be noted that First Housing has included a 5% hard cost contingency and a 5% soft cost contingency to the budget. In the event that the total hard cost and soft cost contingencies are not fully expended at the completion of construction, the Applicant may be reimbursed up to the total amount remaining of these contingencies. In no event shall the total reimbursement of the contingencies and the predevelopment costs exceed the developer equity required in order for the Applicant to maintain the Qualifying Financing Assistance Preference obtained during the application process. For the Development, the Applicant must provide Developer Equity in the minimum amount of $58,800. Babe’s House Page 3 August 25, 2020 Exhibit E Page 4 of 13 FHDC Use of Funds CONSTRUCTION COSTS: Revised Underwriters Applicant Costs Total Costs - CUR New Rental Units $1,103,683 $1,103,683 Site Work $192,853 $192,853 Constr. Contr. Costs subject to GC Fee $1,296,536 $1,296,536 General Conditions $157,071 $157,071 Profit $43,608 $43,608 Total Construction Contract/Costs $1,497,216 $1,497,216 Hard Cost Contingency $74,860 $74,860 Total Construction Costs: $1,572,076 $1,572,076 Notes to Construction Costs: 1. First Housing reviewed an executed contract, dated April 14, 2020, and an addendum dated June 17, 2020 between Autism Project of Palm Beach County, Inc. (“Owner”) and D&D Constantakos, Inc. (“Contractor”). The guaranteed maximum price is $1,497,215.77. The projected completion date is December 9, 2020. Retainage in the amount of 10% will be withheld until such time as 50% completion is achieved and 0% retainage thereafter is required. 2. General Conditions and General Contractor (“GC”) Fee were indicated in the summary of hard construction costs at a total of $200,679.66 which is approximately 15.48% of the total construction contract minus the GC Fee, which meets the requirement of no more than 18%. General Conditions is in the amount of $157,071.43 and GC Fee is in the amount of $43,608.23. When added to the Construction Contract Costs of $1,296,536.11, the result is equal to the total construction contract amount of $1,497,215.77. The figures in the table above are rounded, and therefore the total construction costs appear as $1,497,216. 3. Hard cost contingency is within the allowable 5% of total hard costs for new construction by the applicable RFA. Babe’s House Page 4 August 25, 2020 Exhibit E Page 5 of 13 FHDC GENERAL DEVELOPMENT COSTS: Revised Underwriters Applicant Costs Total Costs - CUR Accounting Fees $750 $750 Appraisal $1,950 $1,950 Building Permits $39,760 $39,760 Builder's Risk Insurance $10,709 $10,709 Engineering Fees $37,938 $37,938 Environmental Report $1,500 $1,500 FHFC Application Fee $800 $800 FHFC Credit Underwriting Fee $8,506 $8,506 FHFC Compliance Fee $1,000 $1,000 Lender Inspection Fees / Const Admin $4,888 $4,520 Insurance $10,000 $10,000 Legal Fees - Organizational Costs $800 $800 Plan and Cost Review Analysis $2,300 $2,300 Soil Test $125 $125 Survey $5,433 $5,433 Title Insurance and Recording Fees $1,122 $1,122 Utility Connection Fees $17,367 $17,367 Soft Cost Contingency $7,228 $7,228 Total General Development Costs: $152,176 $151,808 Notes to General Development Costs: 1. Lender Inspection Fees includes the costs of 4 construction inspection fees. Each inspection fee is $670 per the Plan and Cost Analysis (“PCA”) engagement letter. Lender Inspection Fees also includes 5 draw approval fees of $368 each; fees are calculated at $184/hr. at a minimum of 2 hours per draw. 2. No architect’s fees have been included. First Housing has received a letter from the architect indicating services will be provided pro bono. 3. Soft cost contingency to be approximately 5% of the General Development Costs less the contingency, as allowed by RFA 2019-117.