Fireside Park Apartments Rockville, Maryland 2015 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan 1 RHE Fireside Park Inc FY 2015 Annual Report Recapitalization Plan Submitted to the City of Rockville Mayor and City Council July 18, 2016 Prepared by Rockville Housing Enterprises FYE 2015 Successes 2 Occupancy averaged 96.1% Decrease Turnovers 83 in 2015 vs. 95 in 2014 Property scored 99% on HUD Real Estate Assessment Center inspection Received HAND (Housing Association of Non Profit Developers)Award Received a Superior Rating on the Annual Resident Satisfacts Survey Increased Resident Involvement to Create a Sense of Community RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Occupancy as of December 2015 3 Affordable Affordable Affordable @ 50% AMI @ 60% AMI @ 80% AMI Market Total Total Units 10 84 24 118 236 Occupied Last Month 10 79 23 108 220 11/30/15 # Move-Ins 1 1 1 1 4 # Move-Outs 1 3 0 0 4 Total Units Occupied 10 77 24 109 220 # Units Vacant 0 7 0 9 16 % of Total Units 100% 94.05% 100% 92.37% 93.22% Occupied • 20 Residents moved out in the last quarter primarily due to relocation, a change in family status, and home purchases which affected our year end occupancy. • The combined average occupancy of the affordable units is 97% RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Occupancy as of June 2016 4 Affordable Affordable Affordable @ 50% AMI @ 60% AMI @ 80% AMI Market Total Total Units 10 84 24 118 236 Occupied Last Month 10 80 22 107 219 05/30/16 # Move-Ins 0 4 2 0 6 # Move-Outs 0 0 0 2 2 Total Units Occupied 10 84 24 105 223 # Units Vacant 0 0 0 13 13 % of Total Units 100% 100% 100% 89% 94.49% Occupied RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan 2015 Audited Financial Summary Fireside Park Apartments 5 Condensed Net Cashflow Statement for the period ending December 31, 2015 (Audited) RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Debt Service Compliance – FY2015 6 Citi Bank Debt Service Payments Made $1,751,493.95 City of Rockville Interest payment for FYE 2015 $51,171.27 paid May 2016 Montgomery County Interest payment for FYE 2015 $82,915.94 paid May 2016 Principle Payments based on Net Cashflow Not Net Cashflow generated in FY2015 City of Rockville Principle payment made for FY 2014 was $45,019. This amount represented an overpayment of $23,513, which the City retained and applied to the principle balance of the loan. RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Fireside Park Apartments Cashflow Comparison (Audited) 7 2014 2015 Net Operating Income $2,105,597 $1,800,295 Debt Service Expenditures $1,962,350 $1,977,029 _ Net Cashflow $143,247 ($176,734) Principal Loan Payments City of Rockville $21,487 $0 Montgomery County $21,487 $0 ___ Excess Net Cashflow $100,273 $0 RHE Asset Management Fee $84,960 $0 Deposited to Cashflow Reserve $15,313 $0 RHE Payment to Cashflow Reserve $80,000 $0 (noted $80,000 reserve payment made for 2015)_______ Cumulative Cashflow Reserve $259,737 $164,424 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Extra Ordinary Maintenance Expenses (Completed during FYE 2015) 8 Plumbing Repairs $ 10,567 Water extraction due to plumbing issues $ 10,755 Tub Refinishing $ 21,575 Drywall Repairs $ 18,564 Balcony Repairs $ 15,020 Turn over expenses $ 66,682 Excessive Snow Removal $ 29,997 Boiler Repairs $ 3,061 Swimming Pool Repairs $ 11,124 Washer/Dryer Closets $ 8,610 Total Extraordinary Maintenance $195,955 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Extraordinary Administrative Expenses – FY 2015 9 Taxes and Insurance Taxes Increased $52,000 due to an increase in the Assessed Value Property Insurance Increased $36,000 due to change from Self Insurance to a Commercial Policy for more comprehensive coverage/protection Total Extraordinary Administrative Expenses $88,000 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Total Property Expense Summary 10 Total Extraordinary $195,955 Maintenance Expenses Total Extraordinary $88,000 Administrative Expenses Total Extraordinary $283,955 Property Expenses RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan NOI/Property Expenses 11 Net Operating Income for FY 2015 $ (176,734) Total Extraordinary Cost FY 2015 $ 283,955 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Current Cash Flow (As of month ending June 2016) 12 Income Total Rental Income $1,640,005 Other Income $117,445 Total Effective Gross Income $1,757,450 Operating Expenses Operating Expenses $730,529 Total Gross Operating Expenses $730,529 Net Operating Income $1,026,921 Debt Service Expenditures Total Debt Service Expenditures $468,900 Net Cash Flow $558,021 Principal Loan Payment Due: Basis City of Rockville 15% $83,703 Montgomery County 15% $83,703 Residual Net Cash Flow RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan 2016 Rent Schedule 13 Affordable Market Units Units Total Units 118 118 One Bedroom $1100-$1200 $1250 Two Bedroom $1325-$1400 $1530 Three Bedroom $1625-$1725 $1860 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Rockville Housing Enterprises – RHE Fireside Park Inc. Partnership Asset Management Fee 14 Based on sufficient net cashflow in FY 2014, RHE was entitled to receive the $80,000 asset management fee. The fee was approved by City of Rockville and Mo.Co. in October 2015. RHE drew down the $80,000 fee earned in May 2016 for FY 2015 and placed the funds into the RHE held replacement reserve deposit account. The funds will be used to fund the required Capital Improvements. There will be no Management Fee Earned for FYE2015 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan 2016 Capital Improvements based on Physical Needs Assessment 15 Capital Improvement Items to Be Estimated Cost (to be funded from the Completed RHE funded Replacement reserve) Tree Trimming $6,000 Concrete Replacement $26,791 R/R Tie Wall $45,000 Basement Water Proofing $47,640 ADA Unit $45,000 Exterior Paint $45,000 Total $215,431 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Long Term – Recapitalization Plan 16 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Long Term – Recapitalization Plan 17 RHE plans to re-finance Fireside Park Apartments utilizing the Low-Income Housing Tax Credit program with multi-family tax exempt bonds, subordinate State Loan program, 221 (d)(4) Permanent Financing and a subordinate loan from Montgomery County. The recapitalization strategy provides RHE with the funds to take out the City of Rockville’s outstanding loan. Debt to fund major property improvements and modernization for long term sustainability of the property. RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan COR Refinancing Plan Milestones 18 Take out Refinancing Plan submitted to the City Of Rockville May 2016 Final Refinancing Plan submitted to the City Of Rockville May 2019 City Of Rockville Loan due April 1, 2020 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Current Debt Service 19 Citi Bank Loan City of Rockville Original Loan Amount - Original Loan Amount - $32,400,000 $1,800,000 Current Loan Amount - Current Loan Amount - $1,705,709 $30,310,418.13 Term – 4-1-2020 January 1, 2020 Term Montgomery County Loan Original Loan Amount - $3,190,000 Current Loan Amount - $2,773,224 Term – 4-1-2020 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan Preliminary Recapitalization Critical Path 20 Predevelopment Expense Financing August 2016 Architect & Civil Engineering Schematic Design and September 2016 Programming Engagement of: • Market Analyst September 2016 • Appraiser, Phase I Environmental • Survey, PNA • RHE Legal Counsel Engagement of: • HERS Analyst October 2016 • Energy Consultant City of Rockville Project Approval October 2016 Submission of Financing Application for 4% Low Income November 2016 Housing Tax Credits, Tax Exempt Bonds and State of Maryland Partnership Funds to CDA Architect & Civil Engineering Construction Drawings December 2016 Financing Award from CDA February 2016 Payment of Non-Usage Fee to CDA for Tax Exempt Bonds March 2017 Finance Closing July 2017 Notice to Proceed to General Contractor July 2017 Completion of Construction December 2018 RHE Fireside Park Inc. FY 12- 2015 Annual Report/ Recapitalization Plan .