Pine Terrace Apartments

~~lEXAS DEPARTMENT OF HOUSING &COMMUNITY AFFAIRS uilding Homes. Strengthening Communities.

2014 Multifamily Housing Application Certification Mailing Address: P.O. Box 13941} Austin} TX 78711-3941 Physical Address: 221 East 11th Street} Austin, TX 78701

Development Name: PineTerrace Apartments

The undersigned hereby makes an Application to Texas Department of Housing and Community Affairs. The Applicant affirms that they have read and understand the Uniform Multifamily Rules (Title 10, Texas Administrative Code, Chapter 10) and Qualified Allocation Plan (Title 10, Texas Administrative Code, Chapter 11). Specifically} the undersigned understands the requirements under 10 TAC §10.101 of the Uniform Multifamily Rules, Site and Development Requirements and Restrictions, as well as Internal Revenue Code Section 42. By signing this document, Applicant is affirming that all statements and representations made in this certification and application, including all supporting materials, are true and correct under penalty of law, including Chapter 37 of the Texas Penal Code titled Perjury and Other Falsification and subject to criminal penalties as defined by the State of Texas. Applicant is also affirming understanding of §10.2(e) of the Uniform Multifamily Rules, relting to public Information Requests, specifically that the filing of an Application with Department is deemed as consent to release any and all information contained therein.

The undersigned further certifies that he/she has the authority to execute this certification.

PineTerraceHousing, Ltd Applicant Entity Name

By: ~~ tZ.U~ Signature of Authorized Representative Therese Allgeier Printed Name Manager, General Partner Title ~/ll t(010It Date Sworn to and subscribed before me on the 2'1 .. day of JC..=.b ,L014 by Therese Allgeier

(Personalized Seal) ...... _ ...... _:r~~s Notary Public} State of VC\\ k~S coun~of _"""",",CJS~. .,.....I.?~11 ( . ~yoz:r;~°7i"y_e_s: _ I Datet ( Yes IThe Certification of Development Owner is included behind this tab.

**The form should be executed, notarized, and included in the full application document.**

The form for the certification will be posted to the Department's website at http://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm.

( Development Owner Certification

All defined terms used in this certification and not specifically defined herein have the meanings ascribed to them in Chapter 2306 of the Texas Government Code, §42 of the Internal Revenue Code, and §10.3 of the Uniform Multifamily Rules.

The undersigned, in each and all of the following capacities in which it may serve or exist- Applicant, Development Owner, Developer, Guarantor of any obligation of the Applicant, and/or Principal of the Applicant and hereafter referred to as "Applicant" or "Development Owner," whether serving in one or more such capacities, is hereby submitting its Application to the Department for consideration of Department funding.

Applicant hereby represents, warrants, agrees, acknowledges and certifies to the Department and to the State of Texas that:

The Development will adhere to the Texas Property Code relating to security devices and other applicable requirements for residential tenancies, and will adhere to local building codes or, if no local building codes are in place, then to the most recent version of the International Building Code.

This Application and all materials submitted to the Department constitute records of the Department subject to Chapter 552, Texas Government Code, and the Texas Public Information Act.

The Application is in compliance with all requirements related to the eligibility of an Applicant, Application and Development as further defined in §§1O.101 and 10.202 of the Uniform Multifamily Rules. Any issues of non-compliance have been disclosed.

All representations, undertakings and commitments made by Applicant in the Application process for a Development expressly constitute conditions to any Commitment, Determination Notice, Carryover Allocation, or Direct Loan Commitment for such Development which the Department may issue or award, and the violation of any such condition shall be sufficient cause for the cancellation and rescission of such Commitment, Determination Notice, Carryover Allocation, or Direct Loan Commitment by the Department. If any such representations, undertakings and commitments concern or relate to the ongoing features or operation of the Development, they shall each and all be enforceable even if not reflected in the Land Use Restriction Agreement. All such representations, undertakings and commitments are also enforceable by the Department and the tenants of the Development, including enforcement by administrative penalties for failure to perform, in accordance with the Land Use Restriction Agreement. ( Page 1 of 5 Development Owner Certification

( The Development Owner is and will remain in compliance with state and federal laws, including but not limited to, fair housing laws, including Chapter 301, Property Code, Title VIII of the Civil Rights Act of 1968 (42 U.S.c. §§3601 et seq.), the Fair Housing Amendments Act of 1988 (42 U.S.c. §§3601 et seq.), the Civil Rights Act of 1964 (42 U.S.c. §§2000a et seq.), the Americans with Disabilities Act of 1990 (42 U.S.c. §§12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.c. §§701 et seq.), Fair Housing Accessibility, and the Texas Fair Housing Act; and the Development design is consistent with the Fair Housing Act Design Manual produced by HUD, the Code Requirements for Housing Accessibility 2000 (or as amended from time to time) produced by the International Code Council and the Texas Accessibility Standards. (§2306.257; §2306.6705(7))

The Development Owner has read and understands the Department's fair housing educational materials posted on the Department's website as of the beginning of the Application Acceptance Period.

The Development shall comply with the accessibility standards that are required under §504, Rehabilitation Act of 1973 (29 U.S.c. §794), specified under 24 C.F.R. Part 8, Subpart C and as outlined in 10 TAC Chapter 1 Subchapter B.

For New Construction (excluding New Construction of non-residential buildings) Developments where some Units are two-stories or single family design and are normally exempt from Fair Housing accessibility requirements, a minimum of 20% of each Unit type (Le., one bedroom, two bedroom, three bedroom) must provide an accessible entry level and all common-use facilities in compliance with the Fair Housing Guidelines, and include a minimum of one bedroom and one bathroom or powder room at the entry level.

The Development Owner will establish a reserve account consistent with §2306.186 of the Texas Government Code and as further described in §10A04 of the Uniform Multifamily Rules, relating to Reserve for Replacement Requirements.

The Development will operate in accordance with the requirements pertaining to rental assistance in Chapter 10, Subchapter F.

The Development Owner agrees to implement a plan to use Historically Underutilized Businesses (HUB) in the development process consistent with the Historically Underutilized Business Guidelines for contracting with the State of Texas. The Development Owner will be required to submit a report of the success of the plan as part of the cost certification documentation, in order to receive IRS Forms 8609 or, if the Development does not have Housing Tax Credits, release of retainage.

( Page 2 of 5 Development Owner Certification

( The Applicant will attempt to ensure that at least 30% of the construction and management businesses with which the Applicant contracts in connection with the Development are Minority Owned Businesses as further described in §2306.6734 of the Texas Government Code.

The Development Owner will affirmatively market to veterans through direct marketing or contracts with veteran's organizations. The Development Owner will be required to identify how they will affirmatively market to veterans and report to the Department in the annual housing report on the results of the marketing efforts to veterans. Exceptions to this requirement must be approved by the Department.

The Applicant has disclosed, in the Application, any Principal or any entity or Person in the Development ownership structure who was or is involved as a Principal in any other affordable housing transaction and who has, voluntarily or involuntarily, terminated within the past 10 years or plans to or is negotiating to terminate their relationship with any other affordable housing development. The disclosure identified the person or persons and development involved, the identity of each other development and contact information for the other Principals of each such development, a narrative description of the facts and circumstances of the termination or proposed termination, and any appropriate supporting documents. The Applicant has read and understands §1O.202(1)(M) of the Uniform Multifamily Rules related to such disclosure. ( The Applicant certifies that, for any Development proposing New Construction or Reconstruction and located within the one-hundred (100) year floodplain as identified by the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps, the Development Site will be developed so that all finished ground floor elevations are at least one foot above the floodplain and parking and drive areas are no lower than six inches below the floodplain, subject to more stringent local requirements. Applicant further certifies that, for any Development proposing Rehabilitation (excluding Reconstruction) that is not a HUD or TRDO USDA assisted property, the Development Site is not located in the one-hundred year floodplain unless the existing structures already meet the requirements for New Construction or Reconstruction or unless the Unit of General Local Government has undertaken and can substantiate sufficient mitigation efforts.

The Development site will be located within a one mile radius (two-mile radius for Developments located in a Rural Area) of at least six (6) services as described further in §10.101(a)(2) of the Uniform Multifamily Rules.

The Development is not located in an area with undesirable site features as further described in §10.101(a)(3) of the Uniform Multifamily Rules. If such an undesirable site feature is present a

Page 3 of 5 Development Owner Certification

waiver request was submitted to the Department pursuant to §1O.207 of the Uniform Multifamily Rules.

The Development is not located in an area with undesirable area features as further described in §10.101(a)(4) of the Uniform Multifamily Rules. If a confluence of undesirable area features is present, a request for pre-clearance was submitted to the Department pursuant to §10.207 of the Uniform Multifamily Rules.

The Development shall have all of the mandatory Development amenities required in §1O.101(b)(4) of the Uniform Multifamily Rules at no charge to the tenants.

The Development will satisfy the minimum point threshold for common amenities as further described in §1O.101(b)(S) of the Uniform Multifamily Rules.

The Development will meet the minimum size of Units as further described §10.101(b)(6)(A) of the Uniform Multifamily Rules.

The Development (excluding competitive Housing Tax Credit Applications) will include enough amenities to meet the required minimum number of points as further described in §1O.101(b)(6)(B) of the Uniform Multifamily Rules.

The Development (excluding competitive Housing Tax Credit Applications) will include enough ( supportive services, at no charge to the tenants, to meet the required minimum number of points as further described in §10.101(b)(7) of the Uniform Multifamily Rules.

The Development Owner will comply with any and all notices required by the Department.

None of the criteria in subparagraphs (A) - (M) of §10.202(1) of the Uniform Multifamily Rules, related to ineligible Applicants, applies to any member of the Development team.

The individual whose name is subscribed hereto, in his or her individual capacity, on behalf of Applicant, and in all other related capacities described above, as applicable, expressly represents, warrants, and certifies that all information contained in this certification and in the Application, including any and all supplements, additions, clarifications, or other materials or information submitted to the Department in connection therewith as required or deemed necessary by the materials governing the Housing Tax Credit Program are true and correct and the Applicant has undergone sufficient investigation to affirm the validity of the statements made. Further, the Applicant hereby expressly represents, warrants} and certifies that the individual whose name is subscribed hereto has read and understands all the information contained in this form of the Application.

Page40f5 Development Owner Certification

By signing this document, the undersigned, in their individual capacity, on behalf of Applicant, and in all other related capacities described above, is affirming under penalty of Chapter 37 of the Texas Penal Code titled Perjury and Other Falsification and subject to criminal penalties as defined by the State of Texas. TEX. PENAL CODE ANN. §§37.01 et seq. (Vernon 2003 & Supp. 2007) and subject to any and all other state or federal laws regarding the making of false statements to governmental bodies or the false statements or the providing of false information in connection with the procurement of allocations or awards that the Application and all materials relating thereto constitute government documents and that the Application and all materials relating thereto are true, correct, and complete in all material respects.

By: ~~ tLU~ Signature of Authorized Representative -r~e.re~e A\het~~.:....cr _ Printed N~e

MCl~~jer of q6" fl¥'o.. \ po.V"f", e.r Title J ~b'f- H{)l+ _ Date

THE STATE OF TEXAS § § COUNTYOF :J)~~=4\~~CC_·~-= §

I, the undersigned, a Notary Public in and for said County and State, do hereby certify that name is signed to the foregoing statement, and who is known to be one in the same, has acknowledged before me on this date, that being informed of the contents of this statement, executed the same voluntarily on the date same foregoing statement bears. ,..... GIVEN UNDER MY HAND AND SEAL OF OFFICE this L.' day of--.,;,...l-....;;e...;"b~_-', _'2_ol Y

(Seal)

BENJAMIN J WILLIAMS Notary Public, Slate of Texas My Commls81on ExplrOl MAY 21 2011

Page 5 of 5 (' Yes IThe Certification of Principal is included behind this tab.

**The form should be executed, notarized, and included in the full application document.**

The form for the certification will be posted to the Department's website at http://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm

( Certification of Principal

Certification of Principal

The undersigned, in each and all of the following capacities in which it may serve or exist- Applicant, Development Owner, Developer, Guarantor of any obligation of the Applicant, and/or Principal of the Applicant and hereafter referred to as "Applicant," whether serving in one or more such capacities, is hereby submitting its Application to the Department for consideration of an allocation of Housing Tax Credits.

Applicant hereby represents, warrants, agrees, acknowledges and certifies to the Department and to the State of Texas that:

This Application and all materials submitted to the Department constitute records of the Department subject to Chapter 552, Texas Government Code, the Texas Public Information Act.

All representations, undertakings and commitments made by Applicant in the Application process for a Development, whether with respect to Threshold Criteria, selection criteria or ( otherwise, expressly constitute conditions to any Commitment, Determination Notice, Carryover Allocation, or Direct Loan Commitment for such Development which the Department may issue or award, and the violation of any such condition shall be sufficient cause for the cancellation and rescission of such Commitment, Determination Notice, Carryover Allocation, or Direct Loan Commitment by the Department. If any such representations, undertakings and " commitments concern or relate to the ongoing features or operation of the Development, they shall each and all shall be enforceable even if not reflected in the Land Use Restriction Agreement. All such representations, undertakings and commitments are also enforceable by the Department and the tenants of the Development, including enforcement by administrative penalties for failure to perform, in accordance with the Land Use Restriction Agreement.

Applicant or any other member of the Development Team has not been or is not barred, suspended, or terminated from procurement in a state or Federal program or listed in the List of Parties Excluded from Federal Procurement or Non-Procurement Programs.

Applicant or any other member of the Development Team has not been convicted of a state or federal felony crime involving fraud, bribery, theft, misrepresentation of material fact, misappropriation of funds, or other similar criminal offenses within fifteen (15) years preceding the Application submission.

Page 1 of 5 Certification of Principal ( Applicant or any other member of the Development Team is not, at the time of Application, subject to an enforcement or disciplinary action under state or federal securities law or by the NASD; is not subject to a federal tax lien; and is not the subject of a proceeding in which a Governmental Entity has issued an order to impose penalties, suspend funding, or take adverse action based on an allegation of financial misconduct or uncured violation of material laws, rules, or other legal requirements governing activities considered relevant by the Governmental Entity.

Applicant or any other member of the Development Team has not breached a contract with a public agency and failed to cure that breach.

Applicant or any other member of the Development Team has not misrepresented to a subcontractor the extent to which the Developer has benefited from contracts or financial assistance that has been awarded by a public agency, including the scope of the Developer's participation in contracts with the agency and the amount of financial assistance awarded to the Developer by the agency.

Applicant or any other member of the Development Team has not failed to cure any past due fees owed to the Department at least ten (10) days prior to the Board meeting at which the decision for an award is to be made.

Applicant or any other member of the Development Team is not in violation of a state revolving door or other standard of conduct or conflict of interest statute, including §2306.6733 of the Texas Government Code, or a provision of Chapter 572 of the Texas Government Code, in making, advancing, or supporting the Application.

Applicant or any other member of the Development Team does not have previous Contracts or Commitments that have been partially or fully de-obligated during the twelve (12) months prior to the submission of the Application and through the date of final allocation due to a failure to meet contractual obligations, and said person is not on notice that such de-obligation results in ineligibility under these rules.

Applicant or any other member of the Development Team has not provided fraudulent information, knowingly falsified documentation, or other intentional or negligent material misrepresentation or omission in an Application or Commitment as part of a challenge to another application, or any other information provided to the Department for any reason.

Page 2 of 5 Certification of Principal

The Applicant or any other member of the Development team has not been the owner or Affiliate of the owner of a Department Neighborhood Stabilization Program ("NSP") or HOME assisted rental development for which the federal affordability requirements were prematurely terminated and the affordability requirements have not re-affirmed or NSP or HOME funds repaid.

The Applicant or any other member of the Development Team has not participated in the dissemination of misinformation about affordable housing and the persons it serves that would likely have the effect of fomenting opposition to an Application where such opposition is not based on substantive and legitimate concerns that do not implicate potential violations offair housing laws.

The Applicant will not violate §2306.1113 of the Texas Government Code relating to Ex Parte Communication and further explained in §10.202(2)(A) of the Uniform Multifamily Rules.

For any Development utilizing Housing Tax Credit or Tax-Exempt Bonds, at all times during the two-year period preceding the date the Application Round begins (or for Tax-Exempt Bond Developments any time during the two-year period preceding the date the Application is submitted to the Department), the Applicant or a Related Party is not or has not been a member of the Board or employed by the Department as the Executive Director, Chief of Staff, General Counsel, a Deputy Executive Director, the Director of Multifamily Finance, the Chief of Compliance, the Director of Real Estate Analysis, a manager over the program for which an Application has been submitted, or any person exercising such responsibilities regardless ofjob title; or in violation of §2306.6733 of the Texas Government Code.

For any Development utilizing Housing Tax Credits, the Applicant will not propose to replace in less than fifteen (15) years any private activity bond financing of the Development described by the Application, unless the exceptions in §2306.6703(a)(2) of the Texas Government Code are met.

All the instances in which any Principal or any entity or Person in the Development ownership structure who was or is involved as a Principal in any other affordable housing transaction and that has, voluntarily or involuntarily, terminated within the past ten years or is negotiating to terminate their relationship with any other affordable housing development have been fully disclosed pursuant to §1O.202(1)(M) of the Uniform Multifamily Rules. Applicant understands that if the Department learns at a later date that removal did take place as described and was not disclosed, the Application will be terminated and any Allocation or Award made will be rescinded.

All housing developments with which Applicant, Development Owner, Developer, Guarantor and/or Principal thereof participating, are in compliance with: state and federal fair housing ( Page 3 of 5 Certification of Principal ( laws} including Chapter 301} Property Code} the Texas Fair Housing Act; Title VIII of the Civil Rights Act of 1968 (42 U.S.c. Section 3601 et seq.); and the Fair Housing Amendments Act of 1988 (42 U.S.c. Section 3601 et seq.); the Civil Rights Act of 1964 (42 U.S.c. Section 2000a et seq.); the Americans with Disabilities Act of 1990 (42 U.S.c. Section 12101 et seq.); and the Rehabilitation Act of 1973 (29 U.S.c. Section 701 et seq.).

The making of an allocation or award by the Department does not constitute a finding or determination that the Development is deemed qualified to receive such allocation or award. Applicant agrees that the Department or any of its directors} officers} employees} and agents will not be held responsible or liable for any representations made to the undersigned or its investors relating to the Housing Tax Credit Program; therefore, Applicant assumes the risk of all damages, losses, costs, and expenses related thereto and agrees to indemnify and hold harmless the Department and any of its officers, employees, and agents against any and all claims, suits, losses, damages, costs, and expenses of any kind and of any nature that the Department may hereinafter suffer, incur, or pay arising out of its decisions and actions concerning this Application for Housing Tax Credits or the use of information concerning the Housing Tax Credit Program.

Applicant, Development Owner, Developer, Guarantor or other Related Party is not subject to any criminal proceedings and if any such proceeding or any other charges which would invalidate the certifications herein occur prior to Carryover} the Applicant will immediately notify the Department. Such notification must be presented to the Board for consideration at the next available Board meeting.

The individual whose name is subscribed hereto, in his or her individual capacity, on behalf of Applicant, and in all other related capacities described above, as applicable, expressly represents, warrants, and certifies that all information contained in this certification and in the Application, including any and all supplements, additions, clarifications, or other materials or information submitted to the Department in connection therewith as required or deemed necessary by the materials governing the Housing Tax Credit Program are true and correct and the Applicant has undergone sufficient investigation to affirm the validity of the statements made. Further, the Applicant hereby expressly represents, warrants, and certifies that the individual whose name is subscribed hereto has read and understands all the information contained in this form of the Application.

By signing this document, the undersigned, in their individual capacity, on behalf of Applicant, and in all other related capacities described above, is affirming under penalty of Chapter 37 of the Texas Penal Code titled Perjury and Other Falsification and subject to criminal penalties as defined by the State of Texas. TEX. PENAL CODE ANN. §§37.01 et seq. (Vernon 2011) and ( subject to any and all other state or federal laws regarding the making of false statements to Page 4 of 5 Certification of Principal governmental bodies or the false statements or the providing of false information in connection with the procurement of allocations or awards that the Application and all materials relating thereto constitute government documents and that the Application and all materials relating thereto are true, correct, and complete in all material respects.

By: J~ Cl.el)f?Y!A 2 Signature of Authorized Representative

-rhe..-e5e AJ),...... e ;o..::..e...... C_ Printed NIme

MA.V1c...4£~ 6 -F gevleVCt-l y?t',.r-t-" (21!' -V Title U

6ft;c.f-/el 0 I t.f Date

THE STATE OF TEXAS § § COUNTYOF j)q\\~ §

GIVEN UNDER MY HAND AND SEAL OF OFFICE this ~day ofJ$;:b ,20l 'i

(Seal)

~. NJAMIN J WILLIAMS ·.,!tary PUblic. State of TexIS ...j',<:~,:~ Commllalon ExpIr81 ,; ~ 21 2011

Page 5 of 5 Certification of Principal

Certification of Principal

All defined terms used in this certification and not specifically defined herein have the meanings ascribed to them in Chapter 2306 of the Texas Government Code} §42 of the Internal Revenue Code} and §10.3 of the Uniform Multifamily Rules.

The undersigned} in each and all of the following capacities in which it may serve or exist- Applicant} Development Owner, Developer} Guarantor of any obligation of the Applicant} and/or Principal of the Applicant and hereafter referred to as JlApplicant/} whether serving in one or more such capacities} is hereby submitting its Application to the Department for consideration of an allocation of Housing Tax Credits.

Applicant hereby represents} warrants} agrees} acknowledges and certifies to the Department and to the State of Texas that:

This Application and all materials submitted to the Department constitute records of the Department subject to Chapter 552} Texas Government Code} the Texas Public Information Act.

All representations} undertakings and commitments made by Applicant in the Application process for a Development} whether with respect to Threshold Criteria} selection criteria or otherwise} expressly constitute conditions to any Commitment, Determination Notice} Carryover Allocation} or Direct Loan Commitment for such Development which the Department may issue or award} and the violation of any such condition shall be sufficient cause for the cancellation and rescission of such Commitment, Determination Notice, Carryover Allocation, or Direct Loan Commitment by the Department. If any such representations, undertakings and " commitments concern or relate to the ongoing features or operation of the Development} they shall each and all shall be enforceable even if not reflected in the Land Use Restriction Agreement. All such representations} undertakings and commitments are also enforceable by the Department and the tenants of the Development} including enforcement by administrative penalties for failure to perform, in accordance with the Land Use Restriction Agreement.

Applicant or any other member of the Development Team has not been or is not barred} suspended} or terminated from procurement in a state or Federal program or listed in the List of Parties Excluded from Federal Procurement or Non-Procurement Programs.

Applicant or any other member of the Development Team has not been convicted of a state or federal felony crime involving fraud, bribery} theft} misrepresentation of material fact} misappropriation of funds} or other similar criminal offenses within fifteen (15) years preceding the Application submission.

Page 1 of 5 Certification of Principal

Applicant or any other member of the Development Team is not, at the time of Application, subject to an enforcement or disciplinary action under state or federal securities law or by the NASD; is not subject to a federal tax lien; and is not the subject of a proceeding in which a Governmental Entity has issued an order to impose penalties, suspend funding, or take adverse action based on an allegation of financial misconduct or uncured violation of material laws, rules, or other legal requirements governing activities considered relevant by the Governmental Entity.

Applicant or any other member of the Development Team has not breached a contract with a public agency and failed to cure that breach.

Applicant or any other member of the Development Team is not delinquent in any loan, fee, or escrow payments to the Department in accordance with the terms of the loan, as amended, and is otherwise not in default with any provisions of such loans. ( Applicant or any other member of the Development Team has not failed to cure any past due fees owed to the Department at least ten (10) days prior to the Board meeting at which the decision for an award is to be made.

Page 2 of 5 Certification of Principal ( The Applicant or any other member of the Development team has not been the owner or Affiliate of the owner of a Department Neighborhood Stabilization Program ("NSP") or HOME assisted rental development for which the federal affordability requirements were prematurely terminated and the affordability requirements have not re-affirmed or NSP or HOME funds repaid.

The Applicant will not violate §2306.1113 of the Texas Government Code relating to Ex Parte Communication and further explained in §1O.202(2)(A) of the Uniform Multifamily Rules.

For any Development utilizing Housing Tax Credits, the Applicant will not propose to replace in less than fifteen (15) years any private activity bond financing of the Development described by the Application} unless the exceptions in §2306.6703(a)(2) of the Texas Government Code are met.

All the instances in which any Principal or any entity or Person in the Development ownership structure who was or is involved as a Principal in any other affordable housing transaction and that has, voluntarily or involuntarily, terminated within the past ten years or is negotiating to terminate their relationship with any other affordable housing development have been fully disclosed pursuant to §10.202(I)(M) of the Uniform Multifamily Rules. Applicant understands that if the Department learns at a later date that removal did take place as described and was not disclosed, the Application will be terminated and any Allocation or Award made will be rescinded.

All housing developments with which Applicant, Development Owner, Developer, Guarantor and/or Principal thereof participating, are in compliance with: state and federal fair housing

Page 3 of 5 Certification of Principal ( laws, including Chapter 301, Property Code, the Texas Fair Housing Act; Title VIII of the Civil Rights Act of 1968 (42 U.S.c. Section 3601 et seq.); and the Fair Housing Amendments Act of 1988 (42 U.s.c. Section 3601 et seq.); the Civil Rights Act of 1964 (42 U.S.c. Section 2000a et seq.); the Americans with Disabilities Act of 1990 (42 U.S.c. Section 12101 et seq.); and the Rehabilitation Act of 1973 (29 U.S.c. Section 701 et seq.).

The making of an allocation or award by the Department does not constitute a finding or determination that the Development is deemed qualified to receive such allocation or award. Applicant agrees that the Department or any of its directors, officers, employees, and agents will not be held responsible or liable for any representations made to the undersigned or its investors relating to the Housing Tax Credit Program; therefore, Applicant assumes the risk of all damages, losses, costs, and expenses related thereto and agrees to indemnify and hold harmless the Department and any of its officers, employees, and agents against any and all claims, suits, losses, damages, costs, and expenses of any kind and of any nature that the Department may hereinafter suffer, incur, or pay arising out of its decisions and actions concerning this Application for Housing Tax Credits or the use of information concerning the Housing Tax Credit Program.

Applicant, Development Owner, Developer, Guarantor or other Related Party is not subject to any criminal proceedings and if any such proceeding or any other charges which would invalidate the certifications herein occur prior to Carryover, the Applicant will immediately notify the Department. Such notification must be presented to the Board for consideration at the next available Board meeting.

The individual whose name is subscribed hereto, in his or her individual capacity, on behalf of Applicant, and in all other related capacities described above, as applicable, expressly represents, warrants, and certifies that all information contained in this certification and in the Application, including any and all supplements, additions, clarifications, or other materials or information submitted to the Department in connection therewith as required or deemed necessary by the materials governing the Housing Tax Credit Program are true and correct and the Applicant has undergone sufficient investigation to affirm the validity of the statements made. Further, the Applicant hereby expressly represents, warrants, and certifies that the individual whose name is subscribed hereto has read and understands all the information contained in this form of the Application.

Page 4 of 5 Certification of Principal ( governmental bodies or the false statements or the providing of false information in connection with the procurement of allocations or awards that the Application and all materials relating thereto nst"tute government documents and that the Application and all materials relating theret are tr e, c rect, and complete in all material respects.

By: ---'-;~/f1!!.~r.-....Jd.:.~'1------Sgnature of Aut or. zed Representative Dtt" 'c-\ A.ll~ ~(~ r Printed Name

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THE STATE OF TEXAS § § COUNTY OF r:tb ,) \CA-S §

GIVEN UNDER MY HAND AND SEAL OF OFFICE this :f::Lday of_t.L.....:::cb=-."., , LuI Y

(Seal)

BENJAMIN J WILLIAMS ···. '. . Notary Public, State of Texas 111 Uy Commlllionexpires ~ .....e-'II 1 017

Page 5 of 5 (

IN/A IHOME Development Certification is included behind this tab.

**The form should be executed, notarized, and included in the full application document.**

The form for the certification will be posted to the Department's website at http://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm.

( ( Provide the contact information for the Applicant and any staffresponsible for Administrative Deficiencies and/or clarifications to the Application.

1. Applicant Contact Information Name: Daniel Allgeier Phone: (214) 277-4839 Office Extension Email: [email protected] Mobile Mailing Address: 4925 Greenville Ave, Suite 1305 Street Dallas TX 75206 City State Zip

2. Second Contact Name: Therese Allgeier Phone: (214)277-4839 Office Extension Email: [email protected] Mobile

( 3. Consultant Contact (if applicable) Name: none Phone: Office Extension Email: Mobile Mailing Address: Street

City State Zip Competitive Housing Tax Credit Selectio ( y Criteria Promoting Development of High====QUaHtHousing . ',. QAP Reference's'e'P"::;:-"eic, n Point Item Description . '. Unit Sizes §11.9(b)(1)(a) 8 Unit Features §11.9(b)(1)(b) 7 Sponsor Characteristics §11.9(b)(2) 1 . . High Quality Housing Total 16 Criteria to Serve and Support Texans Most In Need

Point Item Description QAP Referenee'rP;;i;;t,-d .. . " . I Selected Income Levels of Tenants §11.9(c)(1) 16 Rent Levels of Tenants §11.9(c)(2) 11 Tenant Services §11.9(c)(3) 10 Opportunity Index §11.9(c)(4) 0 Educational Excellence §11.9(c)(S) 0 Underserved Area §11.9(c)(6) 2 Tenant Populations with Special Needs §11.9(c)(7) 2 '. ·:.c •..•. , '. Serve and Support TexansMost in Need Total 41 Criteria'Rromoting Community Support and Engagement . .

( pointlt~m Des-'·:·_L'-n • '.. QAP Reference Points . '., •..... ,.crWtlOI .. Selected Local Government Support §11.9(d)(1) Commitment of Development Funding by Local Political Subdivision §11.9(d)(2) 14 Declared Disaster Area §11.9(d)(3) 10 Quantifiable Community Participation §11.9(d)(4) Community Support from State Representative §11.9(d)(S) I---~;""";,,,-+----I Input from Community Organizations §11.9(d)(6) Community Revitalization Plan §11.9(d)(7) o , Community Support and Engagement Total 24 Cr.iteria Promoting t~e Efficient Use of limited Resources and ApplicantAccountability

Poi~t It~~ Description '., QAP Reference P~ . -+ ...... _S_e~-I- Financial Feasibility §11.9(e)(1) 18 Cost of Development per Square Foot §11.9(e)(2) 12 Pre-application Participation §11.9(e)(3) 6 Leveraging of Private, State, and Federal Resources §11.9(e)(4) 3 Extended Affordability or Historic Preservation §11.9(e)(S) 2 Right of First Refusal §11.9(e)(6) 1 Funding Request Amount §11.9(e)(7) 1 Point Deductions §11.9(f) Efficient Use of Limited Resources and Applicant Accountability Total 43 Total Application.Self Score 124 • 'pevelopment Address (All programs) (

1612Amy Drive Mt. Pleasant Address City 4 75455 Titus I-R-u-ra-'-I Participating Jurisdiction? I0.....-...... Region Zip County Rural/Urban (HOME applicants only) I~------__-- 2. Icensus Tract Information (All Programs)

48449950600 Yes Median Household Income: 1$ 29,4181 Quartile: 14th I Poverty Rate: 132.3% Census Tract Number QCT?

3. IlV1alld.at()rYcornmunity A~~ets(.A11Rr(")g't'gms)

U]Development Site is within a 1 mile radius (urban) or 2 mile radius (rural) of at least 6 eligible amenities and/or services pursuant to §10.101 of the Uniform Multifamily Rules. A map showing the Development Site, scale showing radius, and the location of the amenities is included behind this tab. -- 4. Mark onlv one box below:

~Development received Department pre-clearance for any undesirable area features; or

Dpre-c1earance is pending; or

U]NO undesirable area features are present.

5. I Resolutions (AlIl'rograms, Ifapplicable) .

Check the boxes of true statements below. Resolutions must be provided to demonstrate eligibility for any unchecked item.

U]Twice the State Average Per Capita. The proposed Development is NOT located in a municipality or a county that has more than twice the state average of units per capita supported by Tax Credits or Private activity Bonds. (QAP §11.3(b))

I •• xlone Mile Three Year Rule. The proposed Development is located outside an MSA or in a county with a population of less than one million OR is NOT a New Construction or Adaptive Reuse development that will be located one mile or less from a new construction or terminated/withdrawn HTC or Bond development serving the same type of household. (QAP §11.3(c))

U]Limitations on Developments in Certain Census Tracts. The proposed Development is NOT a New Construction or Adaptive Reuse development that will be located in a census tract that has more than 20% HTC units per total households. (QAP §11.3(d))

6. IZ6ning and Flood Zone Designation (AllPrograms) Development Site is appropriately zoned? Ives Zoning Designation: ------MF

Flood Zone Designation: x Development is outside the 100 year floodplain?l~v...e...s...... I ( (

IxlStreet Map with Site Drawn and Identified

Ix .Icensus Tract Map with Development Site Identified

[DSite Characteristics Map (with radius and identifying which type of service each location offers pursuant to §10.101(a)(2))

I n/a IEvidence of Department Pre-Clearance of Undesirable Area Feature(s)

I n/a ITwice the State Average of Units Per Capita Resolution

I n/a lone Mile Three Year Resolution or E,!vidence of other exception

I n/a IHOUSing Tax, Credit Units per Total Household Resolution

[DEvidence of Zoning and/or Evidence of Re-Zoning Process

[DEvide,nce of Flood Zone Designation

DFor Tax-Exempt Bond Applications, if available, resolution of no objection to satisfy requirements of §10.204(4) of the Uniform Multifamily Rules , \ (

\. ( Google Maps Page 1 of 1

(

Map data@2014 Google 1000 (t

https://www.google.com/maps/@33.1725611.-94.9935337.15z?hl=en 2/23/2014 .~--,

AMERICAN ','<, FactFind,er 0

Pine Terrace '"

Legend: Boundaries ,;,y='o,;;u;;;,r...;S;;.;e;;.;l.=e.=c..:;ti.=o..:;n.=s _ -0 State 0 Your Selections cr '11 County iD '12 Census Tract Features Major Road

Street

StreamlWaterbody Items in grey text are not visible at this zoom level

1 of 1 01/05/2013

( Pine Terrace Mandatory Community Assets - circle on map is 2 mile radius

Amenity (a) full service grocery - Brookshires (b) pharmacy - Brookshires (c) C-Store - Valero (d) retail - Family Dollar (e) bank - Pilgrim Bank (f) restaurant - Luigi Italian on 1-30 service road many others within 2 mile radius (h) city park - adjacent to Pine Terrace (i) medical- Titus Regional Medical Center plus doctor's offices G) public school- Mt. Pleasant High School (1) religious institutions - Greater Hope Church (there are lots ofchurches within 2 miles but our maintenance man is the pastor here) (P) government offices - city hall a,nd county courthouse and offices on the square (

City ofMollnt Pleasant Mailing Address: 50lN, Madison MOllnt Pleasant, TX 75455-3650 Telephone: 903-57?-4000 City FIl\(: 903-577"1828 of Web Page: www,mpcitv,llCl MOUNT PLEASANT

December 17, 2013

Daniel Allgeier Lakewood Pl'Opelty Management 4925 Greenville Avenue Suite 1305 Dallas; Texas 75206

Dear Ml' Allgeier,

( Please find attached a memo from Eddie Perritt, Director ofBuilding and Planning, regardingzolling for Pine TerraCeApartmel1ts at 1612 Amy Drive, Mount Pleasant, Texas.

Ifyou have any questions, please feel free to call.

Sincerely,

Mike Ahrens City Iv1al1ager

Attached: Memo from Eddie PeiTitt, Director dfBuildhlg and Planning Legal Description, Phase I Legal Description, Phase II

( (

City of MOUNT PLEASANT

MEMORANDUM

Date: December 16,2013

To: Mike Ahrens, City Manager

From: Eddie Perritt, Director of Building & Planning

Re: Pine Terrace Apartment at 1612 Amy Drive

( The current use of the property referenced above is a conforming use and therefore does not require any amendment to the zoning classification. If you need additional information, please let me know. Exhibit A

Legal Description

BEGINNING at an iron stake for a comer at the northwest comer ofthe above mentiQned.13.602 acre tract, same being the northeast corner ofa one acre ttact conveyed by Hugh Pogue to Sam Williams(Vol. 142, Pg. 83); THENCE S 89° 30' E, 740.33 feet; THENCE South 395 feet; THENCE S 63 deg -30' W, 200 feet to an iron stake for COtner, an inteliorcorner ofthe said 13.602 .acre tract;· THENCE,.South 26° 301 E,'270.52 feet to anit'on stake fol' corner inthe northwesterly right ofway line ofD.S. Highw~yNo. 67, same being a lower Southeast comer ofthe said 13.602 acre tract; THENCE S 63(130' W, along said right ofway line, 80.00 feet to at1 iron stake for corner, same being a lowersouthwest corner ofthe said 13.602 acre tract; THENCE N 26° 30' W, 270,40 feet to an iron stake for corner, an interior corner ofthe said 13.602 acre tract; THENCE S 63° 301 W, 548.61 feet to an iron stake for comer in the west line ofthe said 13.602 acre tract; ( THENCE N 0° 10' E, along said west line, 763.18 feet to the place of begi1l1ling, colltaining 9.84 acres. ExhibitA ( Legal Description

All that certain tra.ct or parcel of land situated iIi the Mrry Herchant Survey, A~358, City of Mt. Pleasant, Titus County,Texas,beingout of that certain 12.85acro tra.c:t described in deed to Danie1AJ,lgeier, dated Hay, 1979, recorded .in Volume 426, Page 642, Deed Records of Titus County, Texas; and being more particularly described as fallows:

COMHENGlNG at a 2 inch iron pipe found forcornersitullted on the NIY corner of said 12.85 acre tr.ll.ct and being on the ME corner of a 1.0 acre tract described in Deed to Sam Williams, rec:orded in Volume 142, Page 83, of said Deed Records; THENCE S 89° 30'E, with a fence along the NBL of said 12.85 acre tract 715.0 feet to as/Hinch iron pipe set for corner; '1'HENCE S 0° 10' l~, a distance of 110.0 feet to a 5/8 inch iron pipe set for .coJ;l\er and the POINT OFBEGINNINGj THENCE N 45° 10' E, a distance of 98.4 feet to a 5/8 inch iron pipe set for corner; 'rHENCE S 89° 30 1 E, a dista.nce of 208.5 feet to a 5/8 inch iron pipe set for corner and .the Hl:!st ROfol of FH 1734; 'l'HENCE S 43° 01' E, alortg the West ROW of Fl·11734 a distartce of 344.8 f~et to an iron pipe set for co~~er; 9 THENCE S 69 11 ' H; a distance of 3:12.2 feet to a 5/8 inch iron pipe set for corner; THENCE S 63°30' H, a distance of 225.4 feet to a 5/8 inch iron pipe set for cornerj TBENCEN 0° 10' E, a distance of 289.8 feet to the point of beginning, containing 2.514 acres more or les8, e Flood Insurance-Study report for thisjurisdiction.

ce is available in this community, contact your insurance > Insurance Program at 1-800-638-6620. O:W WzO:::l llJw ROAD --'> FM 1734 ::loo: ~ W20TH:::;: fi\Cl000: STREET LLO ---t-I_--11 11I A D ct" A Ie .. "_ .. nnn' Zo: C1i

W 18TH" ....p = = M~I""" I 0 300 600

ELM IW 17TH PANEL 02650 J STREET I FIRM FLOOD INSURANCE RATE MAP 15TH -r- :;:: m TITUS COUNTY, :;:: 0 :IJ TEXAS :;; , A~ , ,r w' -, AND INCORPORATED AREAS

::l W WIZ ~> Co)- .~~ lJJ i00: 0 tii :;'(W1T~ ~ PANEL 265 OF 425 (SEE MAP INDEX FOR FIRM PANEL LAYOUl) Cm r"" 12TH CONTAINS' COMMUNITY ~ ,EAt,IfJ. ~ f- Z W TrruS COUNTY 4S1023 0265 Wf- ;': :;'( S: MOUNT PLEASANT, CITY OF 480821 0255 f- () llJ (f) 0 (f) 00: 0: 0: () ::l ~I I STREET :'5 ~I _~w'''% I 10TH 100: w Z Ql/ 19TH I STREET z' I w I I W --' Notice 10 User: The Map Number shown below should be wi 8TH ISTR used when placing map orders; the Community Number shown ~ above should be used on insurance applications for the subject 00: community. () 7TH \ STR MAP NUMBER 48449C0265D W 16TH ISTR EFFECTIVE DATE W6TH SEPTEMBER 29, 2010 STREET 5TH I STR

Federal Eme~ency Management Agency

>~o

Grades Index 1 Score School Name Accountability Rating Overall Rating X through X (e.g. 78)

through Vivian Fowler K through 4 No Met Standard Rating 61 Elementary PEWallace 5 through 6 No Met Standard Rating 70 <77 Index 1 (MetStandard) Mt PleasantJH 7 through 8 No MetStandard Rating 75 Middle School Mt Pleasant High 9 through 12 NoMetStandard Rating 65 No Met Standard Rating High School District Wide Rating (if applicable) :f77 Index 1 (Met Standar~

This application is seeking points for Educational Excellence. Total Points Claimed: Notes:

2. lopportunity Index (Competitive HTC Only) •

DDevelopment is Urban and:

1n/aiDevelopment is located in a census tract that has a poverty rate below 15% for individuals. OR 1n/a IDevelopment is located in either Region 11 or 13 and has a poverty rate below 35% for individuals.

0Development is Rural and:

DDevelopment is located in a census tract that has a poverty rate below 15% for individuals or in regions 11 or 13 and has a poverty rate below 35% for individuals. OR DDevelopment is located within a census tract with income in the top or 2nd quartile of median household income for the couty or MSA as applicable. OR DDevelopment is located within the attendance zone of an elementary school that has a Met Standard rating and has achieved a 77 or greater on index 1 of the performance index. AND DDevelopment is located within one linear mile of the following: 1 1 1------

1 I 1~======______** if using proximity to school for points, site must be in the attendance zone of the school

Target Population: Elderly Tract Quartile: 4th

School Rating for scoring (Elementary or district): No Met Standard Rating -{ Application is seeking Opportunity Index Points: Total Points Claimed:

If necessary, provide a brief summary of how the Development Site is justifying the points selected: I Summary (lines 60-65 are hidden, and available ifneeded) 3. Iunderserved Area (Competitive HTC Only)

( '\pplications may qualify for up to two (2) points for proposed Developments located in one of the following areas:

...... _1 Colonia;

___....1Economically Distressed Area;

IA municipality, or if outside of the boundaries of any municipality, a county that has never received a competitive tax credit ...... __.... allocation or a 4 percent non-competitive tax credit allocation; or

Yes IFor Rural Areas only, a census tract that has never received a competitive tax credit allocation or a 4 percent non-competitive tax credit allocation serving the same Target Population. Note: Qualfied Elderly Developments are not eligiblefor points.

Application is seeking Underserved Area Points: Total Points Claimed:

4. Community Revitalization (Competitive HTC Only)

Region: I Rural I [EJNO points were claimed for opportunity Index.

Mark the box that identifies the type of Community Revitalization Plan that will be submitted.

Dcommunity Revitalization Plan is attached behind this tab. OR Dcommunity Development Block Grant Disaster Relief (CDBG-DR) Plan, Commitment Letter from City, and Target Area Map are ( provided behind this tab. OR

[EJ Development is in a Rural Area, and supporting documentation meeting requirements of §11.9(d)(6)(C) is provided behind this tab.

For an additional 2 points under §11.9(d)(G)(A)(ii)(III):

DDevelopment is explicitly identified by the city or county as contributing most significantly to the concerted revitalization efforts of the city or county; resolution stating such is provided behind this tab.

Application is seeking Community Revitalization Points: Total Points Claimed:

S. Iinput other than Quanlflable Community Participation (Competitive HTC Only)

[EJAPplicant has included one or more letters of support for points. G. Declared Disaster Area Scoring (Competitive HTC ONLY)* • [EJDevelopment is located in an area that qualifies as a Declared Disaster Area as defined in §11.9(d)(3). 10

Total Points Claimed:1 10

~ Resolution(s) of either no objection or support is included behind this tab.**

** Note that resolutions are not due until April 1, 2014 ( Dschool Attendance Zone Map and/or school rating

DMap of Community Assets

Dprint-out from DFPS website and confirmation that child care center serves the relevant age groups

DMiscellaneous information regarding senior center, health related facility and/or full service grocery ~Evidence of Underserved Area (HTC Only)

In/a IFor Colonia: A map of the colonia clearly outlining its boundaries and indicating the location of the Development Site

In/a IFor Economically Distressed Areas: A letter or correspondence from Texas Water Development Board

In/a Icommunity Revitalization Plan

In/aICDBG - DR Plan In/aILetter from City demonstrating commitment of funds In/a IMap of target area(s) In/a ILetter from a governmental official with specific knowledge regarding infrastructure improvements ~Lettersfor points under §11.9(d)(2) Community Input other than QCP ~Resolution(s) from city and/or county regarding support and/or no objection • ~-----. . ~. .-..

PINE TERRACE APARTMENTS

EXISTING HTC PROPERTIES IN MT. PLEASANT

92098 9%HTC Woodland Apartments 500 W. 17th Sl. Mount Pleasant 48 48 General

92154 9%HTC Ml. Pleasant Seniors Aoartments 602 West School Sl. Mount Pleasant 28 28 Elderty

07118 9% HTC Lakeside Apartments 120 Tennison Road Mount Pleasant 64 63 General

08927 9%HTC Lakeside Aoartments 120 Tennison Road Mt Pleasant 0 0 General

Mount Pleasant Count 4

The following map shows that this elderly property is not in the same census tract. Location of Mt. Pleasant Seniors Apts

Legend: Boundaries State '12 County Features Major Road Street Stream/Waterbody Your Selections Your Selections Items in grey text are not visible at this zoom level

1 of 1 02/16/2014 PINE TERRACE ( COMMUNITY SUPPORT

3 LETTERS ARE INCLUDED

( February 20, 2014

Texas Department of Housing and Community Affair 221 East 11th Street Austin, Texas 78701

Re: Pine Terrace Apartments Mount Pleasant, Texas

Dear Sir or Madam: We understand that Pine Terrace Housing, Ltd Is planning to acquire and rehabilitate the Pine Terrace Apartments on 1612 Amy Drive in Mount Pleasant. These affordable apartments for seniors have been a valuable asset in the community and the plan to upgrade and modernize them will Improve the quality of /lfe for the reidents that live there. We support this project. Titus County Cares is a tax-exempt organization that has a primary purpose to provide food, financial help, counseling, and other tangible items for families In need,' with intentional efforts to build relationships to meet spiritual needs. We look forward to working with Pine Terrace Housing, Ltd and the residents of Pine Terrace Apartments in the future.

Sincerely, ~\.U:)\.A.I\,A)JLL) U JudyLee CJ Executive Director

P.O.Box1476 ~ '31ON.Edwards 0 Mt. Pleasant. TX. 75456~1476 903~575-9157 ~ fax ~ 903~575-9767 ~ www.tituscountycares.org tituscountycares lOUR PROGRAMS Page 1 of2

i(:';l11;j.naf£f:;J ( =-VISAmt~~R VOLUNTEER

HOME I ABOUT US lOUR PROGRAMS I GET INVOLVED CONTACT US EVENTS PARTNERS OUR PROGRAMS ""'--~------Cares4kids Making a difference in a LOCAL child's life physically, emotionally and spiritually is what Cares4kids is all about. Cares4kids is a unique program lhal recruits caring adults to "Be the Difference and Bless a local chiJdl~ through sponsoring specific children in low income families for $20 a month or $240 year. Clothes4kids Clolhes4kids is a referral-based program serving Titus County children. Clothing that is the right size, warm, comfortable, and allows a child to fit in with peers is essential to a positive learning environment. This program purchases new clothes at local stores for kids in distressed situations. Food4kids The mission ofTitus County Cares Food4kids Backpack Club is to help alleviate childhood hunger by providing low income children with nutritious meals al times when other resources are not available, such as weekends. As of January 2013, 85% of children in Titus County Schools are on free or reduced·cost meals. For lhose children, weekends are filled wHh hunger and despair, as they often go home to houses with little to no food. Every week Apply to become a Titus during the school year, a community of volunteers and partners work together at TCC to send two days' worth of kid-friendly foods home with over County Cares Volunteer! 850 children for the weekend. Empty Stocking The Empty Stocking Program empowers parents and guardians of children VOLUNTEER ( living in poverty by proViding them with an opportunity to give their children gifts at Christmas time. Each year, the generous contributions received from

local families, businesses and corporate donors enable us to provide gifts for hundreds of children from 2 to 16 years of age. Food Pantry Titus county Cares helps provide low-income individuals and families with the food to survive the month. Our network of volunteers, local businesses and

partners supply food to more than 700 families monthly, which indudes more

than 850 children. Fuel Up The Fuel Up for Summer Program serves children ages 1-18 years of age nutritious meals during the summer, the weeks between summer school and

when school starts in the fall. In 2012, Titus County Cares partnered with MI. Independent School District to provide more locations to help more families

who need this program to survive. Good Samaritan In teday's economy more people are finding it harder to make ends meet. Many are having to make the choice between eilher not paying rent and

eating or paying rent and not eating. Titus County Cares Good Samaritan Program is dedicated to helping low-income families in lhe Titus County area based on the individuals' need, whether it is rent, electric bill, heating bill, water bill, elc. Handy Helpers Handy Helpers is a program in ntus County run by volunteers to assist the elderly (65+ who are on a fixed income or disability) in need of minor home repair that might compromise the applicants safety. The function of the program is to provide the repair so the qualified applicant can avoid the

expense.

http://www.tituscountycares.org/ 2/20/2014 tituscountycares lOUR PROGRAMS Page 2 of2

Phone: 903.575.9157 Fax: 903.575.9767 I Mailin9 Address: P.O.1476 Mount Pleasant, Texas 75456 Physical Address: 310 N. Edwards Mount Pleasant, Texas 75455 - Titus County Cares is a nonprofit 501(c){3) organization HOME I ABOUT US OUR PROGRAMS GET INVOLVED I CONTACT US I More

-, Donate~- ... .J == .::::H~IEl

(

http://www.tituscountycares.org/ 2120/2014 ~•., CYPRE6513A61N'H05PICE ~ ~'

February 20/ 2.014 .

Texas Department of Housing and Community Affairs 221 East 11th Street , Austin, Texas 78701

Re: Pine Terrace Apartments 1612 Amy Drive Mount Pleasant, Texas

Dear SIr or Madam:

We understand that Pine Terrace Housing, ltd is planning to acquire and rehabilitate the Pine , Terra'ce Apartments on 1612 Amy Drive in Mount Pleasant. These affordable apartments, for seniors have been a valuable asset in the community and the plan to upgrade and modernize them will improve the quality of life for the residents that live there. We support this project.

Cypress Basin Hospice Inc Is a tax~exempt organization that has as a primary purpose to provide hospice care for patients with a terminal illness',

We look forward to working with Pine Terrace Housing) Ltd and the residents of Pine Terrace . Apartments in the future. .

Sincerely,

Mellnd~ Proctor . ,,/ Director of Financial Services .,.'

f:O. aox 544'· 207MO~GAN' Mf,PLl:ASANT,TEXAs'16466-0644" (e03)677~1610' rAX(SO~)f,;17~9571 E-mail: illfo@Duhol7r>ioe.ol'g • Website: Www,abhollploe.org Cypress Basin Hospice Home Page Page 1 of2

Cypress Basin Hospice provides family-centered, quality end of-life care that emphasizes compassion, dignity, independence and respect. For over 25 years, we have been the area's premier not-for-profit, community owned agency. We are committed to caring for individuals touched by life limiting illnesses, grief and loss. Our hope for our patients and families is that as we apply our training, experiences and compassion, we are able to relieve their physical, emotional and spiritual pain. Our patients and families have the assurance that they are being served by one of the oldest and most respected hospice programs in Northeast Texas.

GRIEF SUPPORT GROUP IN MOUNT VERNON

CYPRESS BASIN HOSPICE IS NOW ACCREDITED BY THE COMMUNITY HEALTH ACCREDITATION PROGRAM

. Serving Northeast Texas

"Community Owned and Community Grown Since 1986"

http://www.cbhospice.org/index.html 2/20/2014 cbhospice.org - Our History Page 1 of2

Community Owned and Community Grown Since 1986 Cypress Basin Hospice was founded in 1986 by a group of local civic minded individuals who envisioned a community centered organization supporting their friends and families through the difficult last weeks and months of an illness. These founders worked tirelessly to raise needed funds and spent many hours researching About Hospice f----__ and then creating the right kind of organization to serve that purpose. At each board meeting, they passed the hat to raise funds. Numerous garage sales and auctions took place to raise the necessary money needed to apply for a state license. The annual "Light Up a Life" Holiday Memorial program was started to support the funding needs of the developing program.

The name Cypress Basin Hospice was selected because this group envisioned the program serving Northeast Texans who reside along the tributaries of the Cypress River which run through Camp, Franklin, Morris and Titus counties. This continued to be the service area Service Area f------, until 1994 when the Board of Directors approved expanding the Cypress Basin Hospice service a@9 to a 40 mile radjlls of. Service Area ... ttie office located in Mt. Pleasant, 'Texas. -

Over the years, we have taken a leadership role in providing quality end of life care in Northeast Texas. Hospice work is heart work and Testimonials f------, Cypress Basin Hospice is so fortunate to have caring people who want to make a difference in the lives of those they serve. The words 'Thank You' are 50 totally inadequate for all you did for my mother. We strive to meet all ....Evelyn s. of the standards of the hospice industry More... through membership in several professional associations.

The hospice industry has grown and changed since those early days in 1986; there are now more providers, more regulatory oversight and challenges coming from an overly burdened reimbursement system. Cypress Basin Hospice remains the only not-for-profit program in the area. One of the things that separates us from most other hospice agencies is the same guiding principle that led to our development. We were started by neighbors for the benefit of neighbors and we remain so today.

http://www.cbhospice.org/history.htm 2/20/2014 ( She[ter .9lgenciesfor1'amiHes in 'East rTe?(asl Inc. P. O. Box 2337 204 Patrick Street Mt, Pleasant, Texas 75456-2337

Phone: (903) 572-0973 Fax: (903) 572~0982 www.safe-tagency.com

January 14,2014

Texas Department ofHousing and Community Affairs 221 East 11th Street Austin, Texas 78701

Re: Pine Terrace Apartments 1612 Amy Drive Mount Pleasant, Texas

Dear Sir or Madam:

We understand that Pine Terrace Housing, Ltd is planning to acquire and rehabilitate the Pine Terrace Apartments on 1612 Amy Drive in Mount Pleasant. These affordable apartments for seniors have been a valuable asset in the community and the plan to upgrade and modernize them will improve the quality oflife for the residents that live there. We support this project.

Shelter Agencies for Families in East Texas, Inc. is a tax~exempt organization that has as a primary purpose of assisting victinlS of domestic violence. One of our main programs is to find and refer clients to affordable housing. Our clients range in age from infants to elders.

We look forward to working with Pine Terrace Housing, Ltd and the residents of Pine Terrace Apartments in the future.

Sincerely, (~t{r( 6f14Atl/VL/ Carol Gresham Executive Director OUTREACH SERVICES SAFETY PLAN OUf mission is to create an • 24-hour crisis hotline ForVictims of Domestic Violence environment where violence and • Counseling & Support Groups abuse are not tolerated in the • Always keep some money hidden • Crime Victim Assistance communities we serve. Abuse • Have extra keys for the car and house • Rape Crisis Intervention diminishes the full expression of • Keep a small bag with extra c1othing life which is every person's right. • Batterer's Program hidden in garage, at friends house, or • Child Visitation & Exchange closet. SAFE-T SERVICE AREA • Accompaniment to Court • Establish a code with family & friends Titus, Camp, Delta, Franklin, Hopkins, • Legal Assistance • Call police! 911 Lamar, Morris and Red River Counties • RI.S.K. (Resource, Information, Skills • Have important documents ready: and Knowledge) group for Teens • Silent Witness Candlelight Vigil Driver's license number (both) • Educational Programs and Marriage license & Birth Records Professional Trainings Bank statements &Insuranc~poli~ie§: RESIDENTIAL SERVICES , ··c~ Social Security numbers(s) ··Shelter Medications Clt)lictirnAssistance List of important phone numbers • Housing Assistance Car Registration • Counseling & Group Advocacy Any valuables (Jewelry) • LegalAdvocacy -~ - - - -. ------I We are a non-profit 501 3©and all abuse • Children's Advocacy REDUCE THE RISK OF I services are provided free ofcharge. I SEXUAL·ASSAULT toh~'p. EDUCATIONAL PROGRAMS : Yes! I would like • Always carry money for a phone or taxi. • School programs Pre-K-College : __ with a donation • Know the exact plans for a date and your • Domestic Violence Cycle and Laws : __ Information expected time of return, then inform a I • Children Who Witness Violence parent, room mate or friend. I __ Volunteering • Sexual Assault I • Your ability to react under the influence I __ I would like a presentation I • Workplace Violence of alcohol or drugs isreduced. : Please mail to: • Training for Law Enforcement, Social • NEVER let a stranger bring you a drink, : SAFE-T Workers, Nurses, and Community. or leave your drink unattended. I SAFE-T is a community effort: We are in constant I Post Office Box 2337 r need of Funds and items to provide services to to All selVices of SAFE-T are provided without regard to race, color, national origin, sex, age, disability, I Mount Pleasant, Texas 75456 1 survivors ofabuse. Funding comes from: Concerned I ~ individuals, churches, Foundations, Federal and . . • income, political beliefs, HIV/Aids or religion as State Grants. defined in Title 40 of the Texas Administrative Code. PLAN DE ,-_CURIDAD SERVk,.uS AL PUBLICIO There is Help For • Linea de Crisis las 24 horas • Siempre tenga dinero escondido Survivors • Grupos de Asesoramiento y Ayuda • Tenga lIaves adicionales del • Asistencia a la Victima de Crimen Carro y de la casa Of • Intervencion de Crisis de Violacion • Tenga listos los documentos importantes: Domestic Violence • Programa para el Golpeador Numero de licensia (de el y de usted) • Intercambio y Visitacion de Menores Aetas de Casamiento y Nacimiento and • Accompanamiento a Corte Extractos de Cuenta y Poliza de • Asistencia Legal Aseguranza Sexual Assault • R.I.S.K. grupo de Jovenes Numeros de Seguro Social (de • Vigilia de Testigo Silenciado el y de usted) Medicaciones ~~OR FAilttt • Programas educacionales r~ ~ Entrenamiento profesional Lista de numerous importantes ~\,.J u> Objetos de valor Uoyeria) & ~~ SERVICIOS RERSIDENCIALES Registracion de Carro ~ ~ --~cQ!l~-" '00 • Mantenga una bolsa pequena conropac ~ 1-3 • Asilo ~ ~ • Asistencia a la Victima de emergencia-escondida en.laconpt:1era, ~~ ~. .. .. ~ ./'~ -,--'.- en casa de un amigo, oen unarmario. ,. . • Asist~ricia de Hogar / .•{p • Establesca un codigo con la familia'y • Asesoramiento y Grupo de Defensa ~ amigos. SAFE-T • Defensa Legal • L1ame a la policia!! 911 • Defensa al Menor REDUSCA EL RIESGO DEL PostOffice Box 2337 PROGRAMAS EDUCACIONALES ASALTO SEXUAL 204 Patrick Street Mount Pleasant, Texas 75456 • Programas Escolares Pre-K - High School • Carge dinero para telefono 0 taxi. • lnforma a un pariente 0 amigo de tus • Programas de la Universidad Hotline 903-575-9999 planes de una fecha y la hora de tu • Violencia Domestica/Ciclode Toll Free 1-888-801-HELP (4357) retorno. Violencia/Leyes Office: 903-572-0973 • Tu abilidad a reacionar bajo la influencia Fax: 903-572-0982 • Asalto Sexual de drogas 0 alcohol es reducida • Violencia en EI Trabajo • Nunca deje que un extrano Ie de una Sulphur Springs Office: 903-439-0325 • Entrenamiento para Policia, bebida, y nunca deje su bebidadesatendida. Paris Office: 903-783-1313 Trabajadoras Sociales, Todos los servicios de SAFE-T son proporcionados SAFE-T Resale Store: 903-577-9035 sin descriminacion a raza, color, origin nacional, sexo, Enfermeras, y La Comunidad. edad, incapacidad, ingreso economico, creecia politica, HIV/Sida, 0 religion segun [0 definido en Titulo www.safe-tagency.com _ 40 del Codigo Administrativo deTexas. RESOLUTION NO. 2014~5

A RESOLUTION :FROM THE CITY OF MOUNT PLEASANT, TEXAS SUPPORTING THE PlNE TERRACE APARTMENTS AT 1612 AMY DIUVE, Ml'. PLEASANT AND AUTIlORIZING A :LOAN COMMITMENT FOR TIlE DEVELOPMENT IN CONNECTION WITlI A LOW-INCOME HOUSING TAX CREDIT APPLICATION.

WHEREAS, the City ofMt. Pleasartt, Texas (the "CITY") desires assisting in the provision of housing options for persons oflowartd model'ateirtcome; atid

WHEREAS, the CITY can establish an interim loan program for projects applying for low-income housing tax credits with the Texas Department ofRousing and Community Development ("TDHCA") in which the CITY makes loans based on a cettificate ofdeposit or assignment of loan al'l'angement; and

WHEREAS, Pine Terrace Housing, Ltd has requested an interim loan in coItrtection with the redevelopment ofthe Pine Terrace Apartments located at 1612 Amy Drive in Mt. Pleasant, Texas; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MT. PLEASANT, TEXAS TlIAT:

1. The CITY confirms its SliPport for the development and remodel ofPine Terrace Apartments.

2. The CITY authorizes the issuance of a loan commitment in an amountnot to exceed $185,000 for an interim loan to Pille Terrace Housing, Ltd. for the rehabilitation ofthe Pine Terrace Apartments in cOimection with an application for low-income housing tax credits filed with TDHCA. Such loan shall bear interest at the rate of 3% per atmum, have a term of five years and be secured and guaranteed as requi.l'edunder a loan commitment and be subject to t'eceipt by Pine Terrace Housing, Ltd. of an allocation of2014 housing tax credits. The City Manager is authorized to execute a loan commitment in compliance with all TDHCAprogram requirements, and all actions taken by or on behalf ofthe CITY in connection with such loan are authorized and confirnted.

3. This Resolutioni$ intended to comply with TDHCA's Qualified Allocation Plan for 2014 and, in particular, constitutes a firm commitment for the purposes of Section 11.9(d)(2)(C). This Resolution shall be in full force and effectfrOlh and UPo}} the date ofits adoption.

ATTEST: I ISite Acreage ~ Please identify site acreage as listed in each of the following exhibits/documents.

Site Control: 12.364 Site Plan: -----12.364 Appraisal: -_12.364...... _- ESA: ...... n/a- ...... - Please provide -----an explanation of any discrepancies in site acreage below: no recent survey-will be provide before cost certification

2. ISite¢ont~()1 The current owner of the Development Site is (If scattered site, & more than one owner, refer to Scattered Site Info. Tab.):

two sites-although they are contiguous see scattered sites tab DanielAllgeier Entity Name Contact Name 4925 .Greenville Ave, Suite 1305 Address Dallas TX 75206 1985 City State Zip Date of Last Sale

Did the seller acquire the property through foreclosure or deed in lieu of foreclosure? No

Applicant or Applicant Representative Reminder: Identify all of the sellers of the proposed property for the 36 months prior to the first day of the Application Acceptance Period and their relationship, if any, to members of the Development Team: Housing Associates of Mt. Pleasant, ltd - general partner .is principal of applicant HousingAssociates of Mt. Pleasant II, Ltd - general partner is principal of applicant.

Site Control is in the form of: r::E:Jcontract for sale. c:JRecorded Warranty Deed with corresponding executed closing/settlement statement.

c:Jcontract for lease. Expiration of Contract or Option: 11/30/2014 Anticipated Closing Date: 11/30/2014

r::E:JTitle Commitment or Title Policy is included behind this tab ( as requested in the Multifamily Rules §10.204(12)).

4. Development qualifies for the boost for: r::E:JQualified Census tract r::E:JRural Development (Competitive HTC only) c:::JDevelopment is Supportive Housing (Competitive HTC Only)

c:::JDevelopment meets the criteria for the Opportunity Index as identified in §11.9(c)(4) of the Qualified Allocation Plan (Competitive HTC only) c:JDevelopment is non-Qualified Elderly not located in a QCT and is targeted under a Community Revitalization Plan. (Competitive HTC only) c:JDevelopment includes an additional 10% of units at 30% AMI (over the amount of units needed for point scoring).

( c:JDevelopment is in a QCT with 20% or greater Housing Tax Credit Units per household, and a resolution from the Governing Body of the appropriate municipality or county allowing the construction of the Development is included behind Tab 8**

** Resolution not due until Resolutions Delivery Date for Tax-Exempt Bond Developments Ix ISite Control Documentation

[EJ]Titie Commitment or Policy

DEach of the HOME exhibits identified below (as applicable)

Confirm the following supporting documents are provided behind this tab.

DLetters on company letterhead from local utility providers confirming the site has access to the following services: water and wastewater, sewer, electricity, garbage disposal and natural gas, if applicable.

DStatement explaining how the Development will promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons.

Dcensus data about the city where the proposed site will be located addressing the following: race/ethnicity of the population, poverty, basic counts/population, housing and financial characteristics. This combined census data can be found on the DP-l Profile of General Demographic Characteristics using the Advanced Search option at www.census.gov. Documentation included should reference the entire Census tract number for the proposed Development. DA statement confirming that travel time and cost via public transportation or private automobile, from the neighborhood to places of employment providing a range of jobs for lower-income workers, is not excessive. This is not applicable for Developments proposing to serve Elderly. •

( ~I{,t ~ 1'tA. v+- I STANDARD CONTRACT FOR SALE AND PURCHASE

( THIS CONTRACT FOR SALE AND PURCHASE ("Contract") made and entered into this 9th day of January, 2014 ("Effective Date") by and between Housing Associates ofMt. Pleasant, Ltd (hereinafter refell'ed to as "Seller"), and Lakewood Property Management, LLC or its designee or assigns (hereinafter referred to as "Purchaser").

WITNESSETH:

1. Premises. Subject to the tellliS and conditions set f011h below, Seller shall sell and convey to Purchaser and Purchaser shall purchase from Seller the Pine Tell'ace Apartments phase one, in the City of Mount Pleasant, Texas in Titus County which is more pm1icularly described on Exhibit "A" attached hereto and made a pa11 hereof, together with any and all easements, rights-of-way, privileges, benefits, contract rights, development rights, surface rights, pelmits, licenses or approvals, improvements, or appUl1enances arising from, pertaining to or associated with said real estate (collectively, the "Premises)

2. Purchase Price. The lesser ofthe value established by an independent appraisal to be prepared at the Buyer's expense prepared by March 1,2014 or one million eighty six thousand dollars and no cents ($1,086,000.00) subject to adjustments, credits, and prorations as set f011h hereinbelow (the "Purchase Price"), to be paid as follows:

(a) Deposit.

(1) Within five (5) days of the Effective Date hereof, Purchaser shall deposit with Chicago Title Insurance Company ("Escrow Agent"), the sum of One Hundred and No/I00 Dollars ($100.00) as a good faith deposit (the "Deposit").

(2) All monies paid as Deposits hereunder shall be applicable to and credited against the Purchase Price at Closing. The Deposit shall be placed, by the Escrow Agent, in an interest bem'ing money market account, with any and all interest accruing thereon to be the propelty ofthe party entitled to the Deposits pursuant to the terms hereof. All interest accruing thereon, and all extension fees paid hereunder, shall for all purposes hereunder be considered a pm1 ofthe Deposit.

(b) Balance. The balance ofthe Purchase Price shall be paid in cash at the closing.

3. Title Insurance. Within fifteen (15) days after the Effective Date hereof, Seller shall deliver to Purchaser a title commitment (the "Title Commitment") for an owner's TLTA title insurance policy (standard Texas f01m) (the "Title Policy") issued by Chicago Title Insurance Company (the "Title Insurance Company") in the amount of the Purchase Price covering title to the Premises on or after the date hereof, showing title in the Seller's name, subject only to (a) title exceptions peliaining to liens or encumbrances of a definite or asceliainable amount which may be removed by the payment of money at the time of Closing and which the Seller shall remove at the time byusing the funds to be paid to Seller at closing, (b) ad valorem taxes for the year of closing, subject to proration as herein provided, and (c) such other exceptions as may be acceptable to Purchaser (with all of said exceptions being herein refell'ed to as the "Pelmitted Exceptions"). The Title Commitment shall be conclusive evidence of good title as to all matters to be insured by the policy, subject to the exceptions as therein stated. There shall be deleted from the Title Commitment, and title policy issued pursuant thereto, at closing, all of the standard general

1 WyU.122412 exceptions and the survey exception (survey exception to be obtained at Purchaser's expense). The cost of any title search fees and said Title Commitment and the premium for the basic title insurance policy to ( be issued pursuant thereto shall be borne by Seller and paid by Seller on or before Closing. Any future matters arising from 01' revealed by a subsequent title search prior to Closing shall be subject to the provisions ofthis Contract regarding title matters

4. Survey. Seller will provide any existing boundary survey (the "Survey") ofthe Premises to the Buyer within ten (10) days after the Effective Date hereof. Within ninety (90) days after the Effective Date hereof, Purchaser at its sole discretion may secure a new boundmy survey (the "Survey") ofthe Premises certified by the surveyor to the Purchaser, Purchaser's counsel, the Seller and the Title Insurance Company as having been made in compliance with the minimum technical standards in form and content satisfactOlY to the Title Insurance Company for the purposes of issuing the owner's title insurance policy required by this Contract, and deleting therefrom the standard general exception for matters which might be revealed by the accurate survey ofthe Premises. The cost of the Survey shall be bome by Purchaser but reimbursed by Seller at Closing.

5. Curing of Unpermitted Exceptions and Survey Defects. Purchaser shall have thirty (30) days after the delivelY ofthe last to be received ofthe Survey and the Title Commitment to examine them. Ifeither discloses any exceptions or encroachments which are unacceptable to Purchaser, 01' matters that render the title unmarketable ("title defects"), Purchaser shall so notify Seller on or before the end ofthe applicable thirty (30) day period. Seller may have the title defects removed, but shall not be required to expend any money in doing so. In the event Seller is unable or unwilling to have such title defects removed or corrected on or before ninety (90) days after the date of Purchaser's notice ofthe title defects, Purchaser shall have the right to either (a) terminate this Contract upon written notice to Seller, and all sums paid or deposited by Purchaser hereunder shall be retumed to Purchaser with neither party having any fulther ,,0' ( obligatiOli hereunder (except for $100.00 which shall be paid to Seller as consideration for entering into this Contract), or (b) waive such objection and proceed to closing ofthis transaction.

6. Seller's Documents. Seller shall execute and deliver to Purchaser at closing, the following:

(a) A Special Warranty Deed executed by Seller conveying to Purchaser fee simple title to the Premises, subject only to the Pelmitted Exceptions, in form satisfactory to the Purchaser and the Title Insurance Company, and, if requested, a quitclaim deed to reconcile any differences between the legal description in the chain oftitle and as reflected by survey;

(b) A Seller's affidavit as to debts, liens and patties in possession sufficient in fOlm and content to pelmit deletion ofall ofthe standard general exceptions from the Title Commitment and the Title Policy;

(d) Subject to the retention by Seller of mineral rights as described in Section 1 hereinabove, the originals of all development rights, pelmits, licenses, benefits, consents, or approvals, surveys, soil tests, water, sewer, or other utility capacity verification or reservation, development plans, engineering plans or specifications, tests, repOlts, studies, appraisals, analyses and similar documents 01' information in the possession of Seller pertaining to the Premises, together with an assignment of all of Seller's right, title and interest with regard thereto;

( 2 Wylie122412 (e) Closing Statement;

( .(f) Such other closing documents as reasonably may be required to consummate the transaction contemplated by this Contract, 01' which may be required by the Title Company in order to issue the Title Policy as required by the Title Commitment.

7, Expense Provisions. State documentaty stamps required on the deed, the cost and expenses of any con:ective instruments or actions, the title insurance premium (except for the survey deletion charge, which shall be paid by the Purchaser) and title search charges shall be paid by Seller on 01' before Closing. The cost ofrecOl'ding the deed, the cost ofthe Survey, and one half of any roll-back taxes with respect to change in use ofthe Premises (capped at $75,000,00) shall be paid by the Purchaser. Each party shall pay their own legal fees. Any charges, fees or expenses ofthe Escrow Agent shall be divided evenly between the Seller and the Purchaser.

8. Representations. Warranties and Covenants of Seller. The Seller hereby represents wan'ants and covenants to and with the Purchaser as follows:

(a) From and after the Effective Date until Closing, Seller shall not enter into any contracts, agreements, encumbrances, liens, or other documents 01' instruments for 01' regarding the sale, transfer, disposition, assignment, conveyance, encumbrance, lien, pledge ofthe Premis,es, 01' any part thereof or any interest therein, or which may result in any lien 01' encumbrance with regat'd to the Premises, or any part thereof, 01' an interest therein, without the prior written consent of the Purchaser, which will not be umeasonably withheld.

(b) The person executing this Contract on behalf of the Seller is fully and duly authorized to do so by ( Seller, and any and all actions required to make this Contract and the pelformance thereof legally binding obligations of Seller, have been duly and legally taken, No fmther consent, authorization 01' approval of any person 01' entity is required for Seller to enter into 01' pelform this transaction.

(c) Seller has paid (or covenants that he will pay prior to Closing) any and all taxes (excluding taxes not yet due) which have or could become a lien or charge against the Premises, subject to the proration herein provided,

(d) Except for the liens, encumbrances or charges against the Premises (i) specifically disclosed in this Contract; 01' (ii) described on the Title Commitment to be provided to Purchaser by Seller pursuant to Section 3 hereof, there are no other.liens, encumbrances, unpaid bills to vendors, outstanding obligations or charges (contingent or absolute) in existence against such Seller or any business conducted thereon, 01' any existing undisclosed or umecorded liens, encumbrances or charges, which could adversely affect title to the Premises after the Effective Date hereof or the Closing Date, and Seller has no knowledge of any matters pending that could result in a lien against the Premises, 01' in any way substantially adversely affect title to the Premises,

(e) From and after the Effective Date hereof, Seller will not cause, permit, suffer, or allow any change, modification, or alteration to be made to the Premises, or any part or pOltion thereof, 01' its physical condition without the prior written consent of Purchaser, which will not be umeasonably withheld.

( 3 Wylie122412 (f) There are no watershed restrictions, impervious covel' restrictions, density restrictions or other restrictions that prohibit the construction ofrental multifamily housing with a density of 40. units pel' acre ( 01' less.

(g) No representation, warranty or covenant in this Contract, nor any document, certificate 01' exhibit given 01' delivered to Purchaser pursuant to this Contract, when read singulady or together as a whole contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein true in the light ofthe circumstances under which they were made, to the best ofSeller's knowledge.

9. Representations and Warranties of the Purchaser. Purchaser hereby represents and warrants to Seller as follows:

(a) To the best ofPurchaser's knowledge, no consent to the transaction contemplated by this Contract by any person or entity other thanPurchaser is required;

(b) No representation, warranty 01' covenant in this Contract, nor any document, certificate or exhibit given 01' delivered to Seller pursuant to this Contract, when read singulady or together as a whole, contains any untrue statement of material fact, or omits to state a material fact necessary to make the statements contained therein hue in light ofthe circumstances under which they were made.

10. Continuing Representation and Warranties. The representations and wan'anties ofthe patties contained herein shall not be terminated by but shall expressly survive the Closing for six (6) months, and shall be deemed made at the Effective Date and renewed at the Closing Date.

11. Access to the Premises. Seller agrees that from the Effective Date until the Closing Date it will allow Purchaser, and its authorized representatives and agents, entry upon the Premises for the purpose of satisfying itself with respect to the representations, warranties and covenants of the Seller contained herein, and to take soil tests, borings, make surveys or layouts for the improvements, or such other tests, evaluations, or investigations as Purchaser may perform. Purchaser hereby agrees to indemnify, defend and hold Seller halmless from and against any and all loss, damage, injUly, claim, cost 01' expense of any nature whatsoever arising from Purchaser's exercise of its rights granted by this Paragraph. Purchaser represents and wal'l'ants to Seller that Purchaser is insured under a general liability policy of not less than $1,000,000.00 pel' occurrence, which Purchaser covenants to maintain until Closing, and which provides coverage for the indemnity set fmth in this Section 11. This Section 11 shall survive Closing and/or termination ofthis Contract.

12. Feasibility Period; Tax Credit Contingency. Purchaser will submit a preapplication to the Texas Department of Housing and Community Affairs (the "Agency") for Housing Tax Credits in the 2014 round by JanualY 16, 2014. By the later ofthe date preapplication scoring results are available from the Agency or JanualY 31, 2014, Purchase will notify Seller of intent to continue or to terminate the application process. Ifthe agreement is terminated at this time the Escrow Deposit and all interest earned thereon (less the sum of $10 which will be paid to the Seller and will represent the consideration payable to Seller for this option) will be retumed to Purchaser, and the palties shall be released from any further obligation with respect to the Property or arising out ofthis letter or the Purchase Agreement.

( 4 Wyliel22412 Purchaser will have until the earlier of (i) July 31, 2014 or (ii) the date on which the Agency allocates Low-Income Housing Tax Credits (the "Credits") in its 2014 round (the "Feasibility Period") to ( review those documents and information, to study the Property, and to determine, in its sole discretion, whether the Property is suitable for its use and other purposes. At the expiration ofthis Feasibility Period, the Escrow Deposit will be retained by the Title Company, subject only to the satisfaction of the other conditions and terms contained in the Purchase Agreement, unless Purchaser notifies Seller within five (5) days after the expiration ofthe Feasibility Period that it has elected to telminate the Purchase Agreement, in which event the Escrow Deposit and all interest eamed thereon (less the sum of $100 which will be paid to the Seller and will represent the consideration payable to Seller for this option) will be retumed to Purchaser, and the parties shall be released from any fUlther obligation with respect to the Propelty or arising out ofthis letter or the Purchase Agreement.

The obligation of the Purchaser to purchase the Propelty shall be expressly contingent on the Purchaser receiving an allocation of Credits applicable to the Propelty from the Agency in an amount and with respect to a number of dwelling units acceptable to Purchaser, in its sole discretion. In the event that Purchaser has not received such allocation ofCredits on or before July 31, 2013, either Purchaser or Seller may telminate the Purchase Agreement; provided, however, in the event that Purchaser's Credit application has not been granted by the Agency as ofthe above"referenced date because of a delay by the Agency in granting or allocating Credits, then the above-referenced date shall automatically be extended for up to an additional fOlty-five (45) days until the date that the Agency grants approvals of Credit applications.

13. General Conditions to Obligations of the Purchaser. The obligations of Purchaser are, at the option ofPurchaser, contingent upon these conditions:

(a) The representation and wall'anties made by Seller herein shall be COll'ect statements offact as said facts exist as ofthe Closing Date, and at all times between the Effective Date hereof and the Closing Date,

(b) All terms, covenants, agreements and provisions of this Contract to be complied with and performed by the Seller on or before the Closing Date shall have been duly complied with or perfOlmed.

If these conditions are not met then, at Purchaser's option, the Deposit shall be returned to Purchaser upon Purchaser's notice oftelmination ofthis Contract given prior to Closing.

14. Purchaser Covenants and Bond Financing.

(a) The Purchaser shall apply for an allocation of housing tax credits fl.-om the Texas Depmtment of Housing & Community Affairs, Multifamily Finance Division (the "Agency") by the next available date in an amount and with respect to a number of rental apaltment units to be constructed on the Premises ("Purchaser's Intended Use") detelmined by Purchaser in Purchaser's sale discretion.

( 5 Wylie122412 (b) In the event that the Agency has not granted said allocation of tax credits (the "Reservation") by July 31, 2014 then at Purchaser's option, this Contract shall be terminated, with the Deposit being ( thereupon refunded to the Purchaser, and thereafter neither Seller nor Purchaser shall have any further obligation hereunder. Notwithstanding the foregoing, if Purchaser elects not to terminate this Contract, then Closing shall occur on or before 60 days from the date of a commitment for housing tax credits issued by the Agency at the time and place set forth in Section 16 hereof.

15. Real Estate Commission. No commissions shall be any brokers by the Purchaser.

Purchaser hereby represents and warrants to Seller that Purchaser has not engaged or dealt with any agent, broker or finder other than Brokers with regard to this Contract or to the sale and purchase ofthe Premises contemplated hereby. Purchaser hereby indemnifies Seller and agrees to hold Seller free and harmless from and against any and all liability, loss, cost, damage and expense, including, but not limited to, attomey's fees and costs oflitigation, whether or not an action is commenced, or whether incurred before, during or after trial, or upon appellate level, which Seller shall ever suffer or incur because of any claim by any agent, broker or finder, other than Brokers, who was engaged by Purchaser, for any fee, commission or other compensation with respect to this Contract 01' to the sale and Purchase of the Premises contemplated hereby.

Seller hereby indemnifies Purchaser and agrees to hold Purchaser free and harmless from and against any and all liability, loss, cost, damage and expense, including but not limited to attomeys' fees and costs of litigation, whether or not an action is commenced, or whether incurred before, during or after trial, or upon any appellate level, which Purchaser shall ever suffer or incur because of any claim by any agent, broker or finder engaged by Seller for any fee, commission or other compensation with respect to this Contract or to the sale and Purchase ofthe Premises contemplated hereby.

16. Closing. Closing shall be on or before December 1, 2014. Subject to the telms and conditions hereof, the Closing of this transaction shall be held at 2:00 P.M., at the offices of the Title Insurance Company (the "Closing Date") 01' via U.S. mail or nationally recognized overnight delivery service. At Purchaser's option, the closing may be held sooner than the foregoing dates, so long as Purchaser gives Seller not less than five (5) days notice of the Closing Date. Seller shall deliver possession of the Premises to Purchaser on the Closing Date.

17. Prorations. Real estate taxes for the year of Closing shall be prorated on an accrual basis as of the Closing Date, based upon the most recent ascertainable taxes. The parties agree to a re-proration and adjustment ofthe real estate taxes when the actual tax bill for the year ofclosing is received.

Ifat any time before closing, the Premises, or any part thereof, shall be the subject ofany assessment or assessments which are payable in annual installments, other than ad valorem real estate taxes, or if the PREMISES is subject to agriculturall'Oll-back taxes, then for the purposes of this Contract all of the unpaid installments ofany such assessment and the amount ofsuch roll-back taxes, including those which are to become due and payable after closing, shall be paid and discharged by Purchaser, up to a cap of $50,000.00 as provided in Section 7 hereof.

18. Default. If the sale contemplated by this Contract is not consummated through default of Purchaser, Seller's sale and exclusive remedy shall be to retain all Deposits hereunder as full liquidated damages for such default by Purchaser, and the parti~s hereunder shall have no OOther rights or liabilities

( 6 Wylie122·1J2 under this Contract. If the sale contemplated by this Contract is not consummated through default of Seller, Purchaser may, as its sole and exclusive remedies, elect to either (i) terminate this Contract and ( demand and receive a refund ofall Deposits hereunder; or (ii) seek specific perfonnance ofthis Contract.

19. Condemnation. If, prior to Closing, the Premises or any portion thereof, is condemned or taken under power of eminent domain, or if Seller receives any notice or knowledge that any such taking is threatened or contemplated by any governmental agency or entity or any other entity having the power of eminent domain, then, in any such event, Seller shall promptly give notice thereofto Purchaser in writing. Purchaser shall then have the options ofeither (a) terminating this Contract and receiving a refund ofany and all Deposits paid hereunder, with neither party thereafter having any further obligations to the other hereunder, or (b) waiving such matters and proceeding to close this transaction without reduction in the Purchase Price, but with the right to receive any and all awards or monies payable as a result of any such taldng. Purchaser shall make such election by giving written notice there to Seller at any time prior to Closing.

20. Contract Construction. Purchaser and Seller aclmowledge that this Contract was prepared after substantial negotiations between the parties. This Contract shall not be interpreted against either party solely because such party or its counsel drafted the Contract.

21. Miscellaneous.

(a) Notices. Any notice required 01' permitted to be given under this Contract shall be in writing, and shall be deemed to have been given when delivered, if delivered by hand delivery, 01' when deposited in the United States Post Office, registered or celtified mail, postage prepaid, retUln receipt requested, if mailed. Notices hall be addressed as follows: ( Ifto Seller: Housing Associates ofMt. Pleasant, Ltd 3903 Frontier Lane Dallas, Texas 75214 (214) 277A839 Facsimile: (678) 218-1496 [email protected]

Ifto Purchaser: Lakewood Property Management, LLC 3903 Frontier Lane Dallas, Texas 75214 (214) 277-4839 Facsimile: (678) 218-1496 [email protected]

or such other address either pmty from time to time specify in writing to the other.

(b) Assignment. Purchaser shall have the right to assign this Contract, or any ofthe rights or benefits hereof, and to take title to the Premises in the name of one or more designees or entities, without the consent ofSeller.

7 Wyliel22412 (c) Successors and Assigns. This Contract shall be binding upon alid inure to the benefit of the parties hereto and their respective successors and assigns. ( (d) Amendments and Termination. Except as otherwise provided herein, this Contract may be amended 01' modified by, and only by, a written instrument executed by Seller and Purchaser, acting by their respective duly authorized agents or representatives.

(e) Governing Law. This Contract shall be govemed by and construed in accordance with the laws ofthe State ofTexas.

(f) Section Headings. The section headings inserted in this Contract are for convenience only and are intended to, and shall not be construed to, limit, enlarge or affect the scope or intent ofthis Contract, nor the meaning ofany provision hereof.

(g) Counterparts. This Contract may be executed in two or more counterparts, each of which shall be deemed an original, but all ofwhich together shall constitute one and the same document.

(h) Effective Date. The IIEffective Datell of '1Ius Contract shall be the date that the last party shall have executed this Contract.

(i) Merger of Prior Agreements. This Contract supersedes all prior agreements and understandings between the patties hereto relating to the subject matter hereof.

G) Attorneys' Fees and Costs. In any litigation arising out of or peltaining to this Contract, the

," prevailing party shall be entitled to an award of its attorneys' fees, whether incuned before, after or during ( trial, or upon any appellate level.

(k) Time. Time is of the essence of this Contract. When any time period specified herein falls or ends upon a Saturday, Sunday or legal holiday, the time period shall be automatically extend to 5:00 P.M. on the next ensuing business day.

(1) Acceptance and Confidentiality. Ifthis Contract is not executed and delivered by both parties on or before Janumy 10,2014 it shall be null and void. The telms and subject matter of '1his Contract shall be kept confidential by Seller and Purchaser, and shall not be shared with third parties, other than agents and repl'esentatives ofsame, as necessary to close the transaction contemplated hereby.

8 Wylie122412 (m) Independent Consideration. Notwithstanding any provision hereof to the contrary, if the Deposits are for any reason to be delivered to Purchaser pursuant to the terms ofthis Contract, $100 ofthe Deposits shall nevertheless be delivered to Seller as independent contract consideration for Purchaser's exclusive right to inspect and purchase the Premises pursuant to this Contract and for Seller's execution, delivery and performance ofthis Contract.

WITNESS, the due execution hereof as ofthe day and year first above written.

"PURCHASER"

Lakewood Property Management, LLC.

"SELL

By: --J~~Cf-~I------

9 Wylie122412 ADDENDUM (

\, BY:--1~=---!.."":'=~...lI--J~IYPo~tJLU=--' _

Date: ~'--tA-"""""""""""""'A---'--~-----' 20-a:

10 Wylie122412 (

Exhibit A

Legal Description

BEGINNING at an iron stake for a corner at the northwest cornel' ofthe above mentioned 13.602 acre tract, same being the northeast corner ofa one acre tract conveyed by Hugh Pogue to Sam Williams (Vol. 142, Pg. 83); THENCE S 89° 30' E, 740.33 feet; THENCE South 395 feet; THENCE S 63 deg -30' W, 200 feet to an iron stake for corner, an interior comer ofthe said 13.602.acretract;· THENCE,.South 26° 30' E, '270.52 feet to an iron stake for cornel' in the northwesterly right ofway line ofU.S. Highway No. 67, same being a lower Southeast comer ofthe said 13.602 acre tract; THENCE S 63° 30' W, along said right ofway line, 80.00 feet to an iron stake for comer, same being a lower southwest comer ofthe said 13.602 acre tract; THENCE N 26° 30' W, 270.40 feet to an iron stake for comer, an interior corner ofthe said 13.602 acre tract; THENCE S 63° 30' W, 548.61 feet to an iron stake for comer in the west line ofthe said 13 .602 acre tract; THENCE N 0° 10' E, along said west line, 763.18 feet to the place of beginning, containing 9.84 acres. ASSIGNMENT OF ( STANDARD CONTRACT FOR SALE AND PURCHASE

Lakewood Property Management LLC assigns the Standard Contract for Sale and Purchase dated January 9, 2014 between Housing Associates ofMt. Pleasant I, Ltd and Lakewood Property Management LLC to Pine Terrace Housing Ltd.

Signed this 23 rd day ofFebruary, 2014

LAKEWOOD PROPERTY MANAGEMENT, LLC

By~~ ClRf1~ Therese Allgeier, Manager

By ---''-''<-..::...... :..---t---=--~'------ Daniel Allgeier, me

(

( STANDARD CONTRACT FOR SALEAND PURCHASE

I," ( TIDS CONTRACT FOR SALE AND PURCHASE (IIContract") made and entered into this 9th day of January, 2014 ("Effective Date") by and between Housing Associates of Mt. Pleasant II, Ltd ll (hereinafter referred to as "Seller ), and Lakewood Property Management, LLC or its designee or assigns (hereinafter referred to as IIPurchaser").

WIT NE SSE T H:

1. Premises. Subject to the terms and conditions set forth below, Seller shall sell and convey to Purchaser and Purchaser shall purchase from Seller the Pine Terrace Apartments, Phase 2, in the City of Mount Pleasant, Texas in Titus County which is more particularly described on Exhibit IIA" attached hereto and made a part hereof, together with any and all easements, rights-of-way, privileges, benefits, contract rights, development rights, surface rights, permits, licenses or approvals, improvements; or appurtenances arising from, pertaining to or associated with said real estate (collectively, the "Premises)

2. Purchase Price. The lesser ofthe value established by an independent appraisal to be prepared at the Buyer's expense prepared by March 1, 2014 or one hundred thousand dollars and no cents ($100,000.00) subject to adjustments, credits, and prorations as set forth hereinbelow (the "Purchase ll Price ), to be paid as follows:

(a) Deposit.

(1) Within five (5) days of the Effective Date hereof, Purchaser shall deposit with Chicago Title Insurance Company ("Escrow Agent"), the sum ofOne Hundred and No/100 Dollars ($100.00) as a good I, faith deposit (the "Deposit").

(2) All monies paid as Deposits hereunder shall be applicable to and credited against the Purchase Price at Closing. The Deposit shall be placed, by the Escrow Agent, in an interest bearing money market account, with any and all interest accruing thereon to be the property ofthe party entitled to the Deposits pursuant to the terms hereof. All interest accruing thereon, and all extension fees paid hereunder, shall for all purposes hereunder be considered a part ofthe Deposit.

(b) Balance. The balance ofthe Purchase Price shall be paid in cash at the closing.

3. Title Insurance. Within fifteen (15) days after the Effective Date hereof; Seller shall deliver to Purchaser a title commitment (the "Title Commitment") for an owner's TLTA title insurance policy (standard Texas form) '(the "Title Policy") issued by Chicago Title Insurance Company (the "Title Insurance Company") in the amount of the Purchase Price covering title to the Premises on or after the date hereof, showing title in the Seller's name, subject only to (a) title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment ofmoney at the time ofClosing and which the Seller shall remove at the time by using the funds to be paid to Seller at closing, (b) ad valorem taxes for the year ofclosing, subject to proration as herein provided, and (c) such other exceptions as may be acceptable to Purchaser (with all ofsaid exceptions being herein referred to as ll the IIPermitted Exceptions ). The Title Commitment shall be conclusive evidence of good title as to all matters to be insured by the policy, subject to the exceptions as therein stated. There shall be deleted from the Title Commitment, and title policy issued pursuant thereto, at closing, all of the standard general

1 PT1 exceptions and the survey exception (survey exception to be obtained at Purchaser's expense). The cost ofany title search fees and said Title Commitment and the premium for the basic title insurance policy to ( be issued pursuant thereto shall be borne by Seller and paid by Seller on or before Closing. Any future matters arising from or revealed by a subsequent title search prior to Closing shall be subject to the provisions ofthis Contract regarding title matters

4. Survey. Seller will provide any existing boundary survey (the "Survey") ofthe Premises to the Buyer within ten (10) days after the Effective Date hereof. Within ninety (90) days after the Effective Date hereof, Purchaser at its sole discretion may secure a new boundary survey (the "Survey") ofthe Premises certified by the surveyor to the Purchaser, Purchaser's counsel, the Seller and the Title Insurance Company as having been made in compliance with the minimum technical standards in form and content satisfactory to the Title Insurance Company for the purposes ofissuing the owner's title insurance policy required by this Contract, and deleting therefrom the standard general exception for matters which might be revealed by the accurate survey ofthe Premises. The cost ofthe Survey shall be borne by Purchaser but reimbursed by Seller at Closing.

5. Curing of Unpermitted Exceptions and Survey Defects.- Purchaser shall have thirty (30) days after the delivery ofthe last to be received ofthe Survey and the Title Commitment to examine them. Ifeither discloses any exceptions or encroachments which are unacceptable to Purchaser, or matters that render the title unmarketable ("title defects"), Purchaser shall so notify Seller on or before the end ofthe applicable thirty (30) day period. Seller may have the title defects removed, but shall not be required to expend any money in doing so. In the event Seller is unable or unwilling to have such title defects removed or corrected on or before ninety (90) days after the date of Purchaser's notice ofthe title defects, Purchaser shall have the right to either (a) terminate this Contract upon written notice to Seller, and all sums paid or deposited by Purchaser hereunder shall be returned to Purchaser with neither party having any further obligation hereunder (except for $100.00 which shall be paid to Seller as consideration for entering into this Contract), or (b) waive such objection and proceed to closing ofthis transaction.

6. Seller's Documents. Seller shall execute and deliver to Purchaser at closing, the following:

(a) A Special Warranty Deed executed by Seller conveying to Purchaser fee simple title to the Premises, subject only to the Permitted Exceptions, in form satisfactory to the Purchaser and the Title Insurance Company, and, if requested, a quitclaim deed to reconcile any differences between the legal description in the chain oftitle and as reflected by survey;

(b) A Seller's affidavit as to debts, liens and parties in possession sufficient in form and content to permit deletion ofall ofthe standard general exceptions from the Title Commitment and the Title Policy;

(d) Subject to the retention by Seller of mineral rights as described in Section 1 hereinabove, the originals of all development rights, permits, licenses, benefits, consents, or approvals, surveys, soil tests, water, sewer, or other utility capacity verification or reservation, development plans, engineering plans or specifications, tests, reports, studies, appraisals, analyses and similar documents or information in the possession of Seller pertaining to the Premises, together with an assignment of all of Seller's right, title and interest with regard thereto;

2 PTI (e) Closing Statement;

( .(f) Such other closing documents as reasonably may be required to consummate the transaction contemplated by this Contract, or which may be required by the Title Company in order to issue the Title Policy as required by the Title Commitment.

7. Expense Provisions. Title insurance premium (except for the survey deletion charge, which shall be paid by the Purchaser) and title search charges shall be paid by Seller on or before Closing. The cost of recording the deed, the cost ofthe Survey shall be paid by the Purchaser. Each party shall pay their own legal fees. Any charges, fees or expenses ofthe Escrow Agent shall be divided evenly between the·Seller and the Purchaser.

8. Representations, Warranties and Covenants of Seller. The Seller hereby represents warrants and covenants to and with the Purchaser as follows:

(a) From and after the Effective Date until Closing, Seller shall not enter into any contracts, agreements, encumbrances, liens, or other documents or instruments for or regarding the sale, transfer, disposition, assignment, conveyance, encumbrance, lien, pledge ofthe Premises, or any part thereofor any interest therein, or which may result in any lien or encumbrance with regard to the Premises, or any part thereof, or an interest therein, without the prior written consent of the Purchaser, which will not be unreasonably withheld.

(b) The person executing this Contract on behalf ofthe Seller is fully and duly authorized to do so by Seller, and any and all actions required to make this Contract and the perfoni1ance thereof legally binding obligations of Seller, have been du1y and legally taken. No further consent, authorization or approval of any person or entity is required for Seller to enter into or perform this transaction.

(c) Seller has·paid (or covenants that he will pay prior to Closing) any and all taxes (excluding taxes not yet due) which have or could become a lien or charge against the Premises, subject to the proration herein provided.

(d) Except for the liens; encumbrances or charges against the Premises (i) specifically disclosed in this Contract; or (ii) described on the Title Commitment to be provided to Purchaser by Seller pursuant to Section 3 hereof, there are no other liens, encumbrances, unpaid bills to vendors, outstanding obligations or charges (contingent or absolute) in existence against such Seller or any business conducted thereon, or any existing undisclosed or unrecorded liens, encumbrances or charges, which could adversely affect title to the Premises after the Effective Date hereof or the Closing Date, and Seller has no knowledge of any matters pending that could result in a lien against the Premises, or in any way substantially adversely affect title to the Premises.

(e) From and after the Effective Date hereof, Seller will not cause, permit, suffer, or allow any change, modification, or alteration to be made to the Premises, or any part or portion thereof, or its physical condition without the prior written consent of Purchaser, which will not be unreasonably withheld. .

3 PTI (t) There are no watershed restrictions, impervious cover restrictions, density restrictions or other restrictions that prohibit the construction ofrental multifamily housing with a density of40 units per acre or less.

(g) No representation, warranty or covenantin this Contract, nor any document, certificate or exhibit given or delivered to Purchaser pursuant to this Contract, when read singularly or together as a whole contains any untrue statement ofa material fact, or omits to state a material fact necessary to make the statements contained therein true in the light ofthe circumstances under which they were made, to.the best ofSeller's knowledge.

9, Representations and Warranties of the Purchaser. Purchaser hereby represents and warrants to Seller as follows:

(a) To the best ofPurchaser's knowledge, no consent to the transaction_contemplated by this Contract by any person or entity other than Purchaser is required;

(b) No representation, warranty or covenant in this Contract, nor any document, certificate or exhibit given or delivered to Seller pursuant to this Contract, when read singularly or together as a whole, contains any untrue statement of material fact, or omits to state a material fact necessary to· make the statements contained therein true in light ofthe circumstances under which they were made.

10. Continuing Representation and Warranties. The representations and warranties ofthe parties contained herein shall not be terminated by but shall expressly survive the Closing for six (6) months, and shall be deemed made at the Effective Date and renewed at the Closing Date.

( 11. Access to the Premises. Seller agrees that from the Effective Date until the Closing Date it will allow Purchaser, and its authorized representatives and agents, entry upon the Premises for the purpose of satisfying itself with respect to the representations, warranties and covenants of the Seller contained herein, and to take soil tests, borings, make surveys or layouts for the improvements, or such other tests, evaluations, or investigations as Purchaser may perform. Purchaser hereby agrees to indemnify, defend and hold Seller harmless from and against any and all loss, damage, injury, claim, cost or expense of any nature whatsoever arising from Purchaser's exercise of its rights granted by this Paragraph. Purchaser represents and warrants to Seller that Purchaser is insured under a general liability policy ofnot less than $1,000,000.00 per occurrence, which Purchaser covenants to maintain 'until Closing, and which provides coverage for the indemnity set forth in this Section 11. This Section J 1 shall survive Closing and/or termination ofthis Contract.

12.. Feasibility Period; Tax Credit Contingency. Purchaser will submit a preapplication to the Texas Department of Housing and Community Affairs (the "Agency") for Housing Tax Credits in the 2014 round by January 16,2014. By the later ofthe date preapplication scoring results are availablefrom the Agency or January 31, 2014, Purchase will notify Seller of intent to continue or to terminate the application process. Ifthe agreement is terminated at this·time the Escrow Deposit and all interest earned thereon (less the sum of $10 which will be paid to the Seller and will represent the consideration payable to Seller for this option) will be returned to Purchaser, and the parties shall be released from any further obligation with respect to the Property or arising out ofthis letter or the Purchase Agreement.

I \ 4 PTI Purchaser will have until the earlier of (i) July 31, 2014 or (ii) the date on which the Agency allocates Low-Income Housing Tax Credits (the "Credits") in its 2014 round (the "Feasibility Period") to ( review those documents and information, to study the Property, and to determine, in its sole discretion, whether the Property is suitable for its use and other purposes. At the expiration ofthis Feasibility Period, the Escrow Deposit will be retained by the Title Company, subject only to the satisfaction of the other conditions and terms contained in the Purchase Agreement, unless Purchaser notifies Seller within five (5) days after the expiration ofthe Feasibility Period that it has elected to terminate the Purchase Agreement, in which event the Escrow Deposit and· all interest earned thereon (less the sum of $100 which will be paid to the Seller and will represent the consideration payable to Seller for this option) will be returned to Purchaser, and the parties shall be released from any further obligation with respect to the Property or arising out ofthis letter or the Purchase Agreement.

The obligation of the Purchaser to purchase the Property shall be expressly contingent on the Purchaser receiving an allocation of Credits applicable to the Property from the Agency in an amount and with respect to a nurtlber of dwelling units acceptable to Purchaser, in its sole discretion. In the event that Purchaser has not received such allocation ofCredits on or before July 31, 2014, either Purchaser or Seller may terminate the Purchase Agreement; provided, however, in the event that Purchaser's Credit application has not been granted by the Agency as ofthe above-referenced date because ofa delay by the Agency in granting or allocating Credits, then the above-referenced date shall automatically be extended for up to an additional forty-five (45) days until the date that the Agency grants approvals of Credit applications.

13. General Conditions to Obligations of the Purchaser. The obligations of Purchaser are, at the option ofPurchaser, contingent upon these conditions:

(a) The representation and warranties made by Seller herein shall be correct statements offact as said facts exist as ofthe Closing Date, and at all times between the Effective Date hereofand the Closing Date,

(b) All terms, covenants, agreements and provisions of this Contract to be complied with and performed by the Seller on or before the Closing Date shall have been duly complied with or performed.

If these conditions are not met then, at Purchaser's option, the Deposit shall be returned to Purchaser upon Purchaser's notice oftermination ofthis Contract given prior to Closing.

14. Purchaser Covenants and Bond Financing.

(a) The Purchaser shall apply for an allocation of housing tax credits from the Texas Department of Housing & Community Affairs, Multifamily Finance Division (the "Agency") by the next available date in an amount and with respect to a number of rental apartment units to be constructed on the Premises ("Purchaseris Intended Use") determined by Purchaser in Purchaser's sole discretion.

5 PTI (b) In the event thaUhe Agency has not granted said allocation of tax credits (the "Reservation") by July 31, 2014 then at Purchaser's option, this Contract shall be tenninated, with the Deposit being thereupon refunded to the Purchaser, and thereafter neither Seller nor Purchaser shall have any further obligation hereunder. Notwithstanding the foregoing, if Purchaser elects not to tenninate this Contract, then Closing shall occur on or before 60 days from the date of a commitment for housing tax credits issued by the Agency at the time and place set forth in Section 16 hereof.

15. Real Estate Commission. No commissions shall be any brokers by the Purchaser.

Purchaser hereby represents and warrants to Seller that Purchaser has not engaged or dealt with any agent, broker or finder other than Brokers with regard to this Contract or to the sale and purchase ofthe Premises contemplated hereby. Purchaser hereby indemnifies Seller and agrees to hold Seller free and harmless . from and against any and all liability, loss, cost, damage and expense, including, but not limited to, attorney's fees and costs oflitigation, whether or not an action is commenced, or whether incurred before, during or after trial, or upon appellate level, which Seller shall ever suffer or incur because of any claim by any agent, broker or finder, other than Brokers, who was engaged by Purchaser, for any fee, commission or other compensation with respect to this Contract or to the sale and Purchase of the Premises contemplated hereby.

Seller hereby indemnifies Purchaser and agrees to hold Purchaser free and harmless from and against any and all liability, loss, cost, damage and expense, including but not limited to attorneys' fees and costs of litigation, whether or not an action is commenced, or whether incurred before, during or after trial, or upon any appellate level, which Purchaser shall ever suffer or incur because of any claim by any agent, broker or finder engaged by Seller for any fee, commission or other compensation with respect to this Contract or to the sale and Purchase ofthe Premises contemplated hereby.

16. Closing. Closing shall be on or before December 1, 2014. Subject to the tenns and conditions hereof, the Closing of this transaction shall be held at 2:00 P.M., at the offices of the Title Insurance Company (the "Closing Date") or via U.S. mail or nationally recognized overnight delivery service. At Purchaser's option, the closing may be held sooner than the foregoing dates, so long as Purchaser gives Seller not less than five (5) days notice of the Closing Date. Seller shall deliver possession of the Premises to Purchaser on the Closing Date.

Ifat any time before closing, the Premises, or any part thereof, shall be the subject ofany assessment or assessments which are payable in annual installments, other than ad valorem real estate taxes, or if the PREMISES is subject to agricultural roll-back taxes, then for the purposes of this Contract all of the unpaid installments ofany such assessment and the amount ofsuch roll-back taxes, including those which are to become due and payable after closing, shall be paid and discharged by Purchaser, up to a cap of $50,000.00 as provided in Section 7 hereof.

18. Default. If the sale contemplated by this Contract is not consummated through default of Purchaser, Seller's sole and exclusive remedy shall be to retain all Deposits hereunder as full liquidated damages for such default by Purchaser, and the parties hereunder shall have no further rights or liabilities

6 PTl ------_.__..-.-...

lUlder this Contract. If the sale contemplated by this Contract is not consummated through default of Seller, Purchaser may, as its sole and exclusive remedies, elect to either (i) terminate this Contract and ( demand and receive a refund ofall Deposits hereunder; or (ii) seek specific performance ofthis Contract.

19. Condemnation. If, prior to Closing, the Premises or any portion thereof, is condemned or taken under power of eminent domain, or if Seller receives any notice or knowledge that any such taking is threatened or contemplated by any governmental agency or entity or any other entity having the power of eminent domain, then, in any such.event, Seller shall promptly give notice thereofto Purchaser in writing. Purchaser shall then have the options ofeither (a) terminating this Contract and receiving a refund ofany and all Deposits paid hereunder, with neither party thereafter having arty further obligations to the other hereunder, or (b) waiving such matters and proceeding to close this transaction without reduction in the Purchase Price, but with the right to receive any and all awards or monies payable as a result ofany such taking. Purchaser shall make such election by giving written notice there to Seller at any time prior to Closing.

20. Contract Construction. Purchaser and Seller acknowledge that this Contract was prepared after substantial negotiations between the parties. This Contract shall not be interpreted against either party solely because such party or its cOlUlsel drafted the Contract.

21. Miscellaneous.

(a) Notices. Any notice required or permitted to be given under this Contract shall be in writing, and shall be deemed to have been given when delivered, if delivered by hand delivery, or when deposited in the United States Post Office, registered or certified mail, postage prepaid, return receipt requested, if mailed. Notices hall be addressed as follows:

Ifto Seller: Housing Associates ofMt. Pleasant II, Ltd 3903 Frontier Lane Dallas, Texas 75214 (214) 277-4839 Facsimile: (678) 218-1496 [email protected]

IftoPurchaser: Lakewood Property Management, LLC 3903 Frontier Lane Dallas, Texas 75214 (214) 277-4839 Facsimile: (678) 218-1496 [email protected]

or such other address either party from time to time specify in writing to the other.

7 PTI (c) SuccessorS and Assigns. This Contract shall be binding upon and inure to the benefit of the ," parties hereto and their respective successors and assigns. (d) Amendments and Termination. Except as otherwise provided herein, this Contract may be amended or modified by, and only by, a written instrument executed by Seller and Purchaser, acting by their respective duly authorized agents or representatives.

(e) Governing Law. This Contract shall be governed by and construed in accordance with the laws ofthe State ofTexas.

(g) Counterparts. This Contract may be executed in two or more counterparts, each of which shall be deemed an original, but all ofwhich together shall constitute one and the same document.

(h) Effective Date. The 'IEffective Date" ofthis Contract shall be the date that the last party shall have executed this Contract.

(i) Merger of Prior Agreements. This Contract supersedes all prior agreements and understandings between the parties hereto relating to the subject matter hereof.

G) Attorneys' Fees and Costs. In any litigation arising out of or pertaining to this Contract, the prevailing party shall be entitled to an award ofits attorneys' fees, whether incurred before, after or during trial, or upon any appellate level.

(1) Acceptance and Confidentiality. Ifthis Contract is not executed and delivered by both parties on or before January 10, 2014 it shall be null and void. The terms and subject matter ofthis Contract shall be kept confidential by Seller and Purchaser, and shall not be shared with third parties, other than agents and representatives ofsame, as necessary to close the transaction contemplated hereby.

8 PTI (m) Independent Consideration. Notwithstanding any provision hereof to the contrary, if the Deposits are for any reason to be delivered to Purchaser pursuant to the terms ofthis Contract, $100 ofthe Deposits shall nevertheless be delivered to Seller as independent contract consideration for Purchaser's exclusive right to inspect and purchase the Premises pursuant to this Contract and for Seller's execution, delivery and performance ofthis Contract.

WITNESS, the due execution hereofas ofthe day and year first above written.

"PURCHASER"

Lakewood Property Management, LLC.

BY:~·a&.~ Name: Therese Allgeier Title: manager Date: _

By: -+-bl-=--+--:...J.Lj.£------

9 PTI ADDENDUM ( Escrow Agent accepts its designation as Escrow Agent hereunder, and acknowledges receipt·of the Deposit as herein provided. Escrow Agent is a stakeholder only, shall not be liable for any acts taken in . good faith, shall only be liable for its willful default or action, or gross negligence, and may, in its sole discretion, rely in good faith upon the written notices, communications, orders or instructions given by any party hereto. In the event of a dispute between Purchaser and Seller under this Contract sufficient in the discretion ofEscrow Agent to justify its doing so, Escrow Agent shall be entitled to tender into the registry or custody of any court of competent jurisdiction the Deposit and all other money or property in its hands under the terms of this Contract, together with such legal proceedings as it deems appropriate, and thereupon be discharged from all farther duties under this Contract. Seller and Purchaser agree to indemnify and hold harmless Escrow Agent against any and all losses, claims, damages, liabilities and expenses, including, without limitation, reasonable costs of investigation and counsel fees and disbursements which may be incurred by Escrow Agent in connection with its acting as Escrow Agent or the performance of its duties hereunder, including, without limitation, any litigation arising from this Contract or involving the subject matter hereof; provided, however, that if Escrow Agent shall be determined to have acted in willful default or with gross negligence, then, in such event, Escrow Agent shall bear all such losses, claims, damages and expenses. In the event Escrow Agent places the Deposit in the registry or custody ofany court, it agrees to request that the Deposit be placed in interest-bearing form for the benefit ofthe parties hereto.

The undersigned Escrow Agent hereby acknowledges receipt of the $100 Deposit check referred to in Paragraph 2 ofthe preceding Agreement, and agrees to the terms set forth in Paragraph 2 thereof.

\ BY:---l~~~~~¥Ul~~~--- Authorized S gnatory

Date:~w'ur--->.l?Y-L.L--_' 2011

10 PTI ,- '------,----,------

Exhibit A ( LegalDescription

All that certain tract or parcel of land situated in the Berry Merch~nt Surv~y. A-35S',City of Mt. Pleasant, Titus County, Texas. being olit of that certain 12.S5 acre tract described in deed too ,Daniel Allgeier, dated May. 1979, , racorded i l1 Volume 426, Page 642, need Records of TitiJ.$ County. Texas; and being more particularly described as follQwli: "'

COMMENCING ata2 inch iron pipe found for corner situated on 'the NW corner of said 12.85 acre tract and being ontha NE COTner of a 1.0 acre .triict described inDeed to Sam Williams. recorded in Volume 142. Page 83, of said Deed Records; THENCE S 89°30' E. with 8. fence along the NBL of said 12.85 acre tract 715.() feet toa 518 inch iron pipe set 'for corner; , THENCE S 0° 10' W, a distance of 110.0 feet to a 5/8 inch 'iron pip~ set for' corner and the POlm' OF BEGINNING; . ,' THENCE N45° 10'E. 8. distance of 98.4 feet to a ~/~ inch iron pipe set for corner; THENCE S 89°30'E. adistance,of 20S.S feei: to a 5/8 inch iron pipe set for corner and the West ROW oiFM 1734; , THENCE S 43° 01' E, along the West ROW of FM'1734 a distance of 344.8 feet to an iron pipe set for corner; " THENCE S 89° II' W. a d~stanceof 312.2 feet to a 5/8 inch iron pip~ Bet for corner; THENCE 8630 30' W, a distance of 225.4 feet to a 5/8 inch iron pipe set for corner; THENCE N 0° 10' E, a distance of 2S9.8 feet to the point of beginning. containing 2.514 acres more or less. ASSIGNMENT OF STANDARD CONTRACT FOR SALE AND PURCHASE

Lakewood Property Management LLC assigns the Standard Contract for Sale and Purchase dated January 9, 2014 between Housing Associates ofMt. Pleasant II, Ltd and Lakewood Property Management LLC to Pine Terrace Housing Ltd.

Signed this 23 rd day ofFebruary, 2014

LAKEWOOD PROPERTY MANAGEMENT, LLC

By :Jb/l.Jo.- CLR.f2~ Therese Allgeier, Manager

er ofgeneral partner COMMITMENT FOR TITLE INSURANCE

Issued by Chicago Title Insurance Company

CHICAGO TITLE INSURANCE COMPANY

THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW.

We (CHICAGO TITLE INSURANCE COMPANY, a Nebraska corporation) will issue our title insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in Schedule C. Our Policy will be in the form approved by the Texas Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording fees, and expedited delivery expenses.

This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our fault. Our liability and obligations to you are under the express terms of this Commitment and end when this Commitment expires.

CHICAGO TITLE INSURANCE COMPANY Chicago Title Insurance Company 2828 Routh Street, Suite 800 Dallas, TX 75201 214-303-5300 - Pamela Medlin File No. 4712005097A President

/s/ Pamela Medlin

Authorized Officer or Agent

Secretary

CONDITIONS AND STIPULATIONS

1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred.

2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements, or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations, and Exclusions. COMMITMENT FOR TITLE INSURANCE ( SCHEDULE A

Effective Date: February 13,2014 GF. No. 4712005097A Commitment No.: Not Applicable issued: February 19, 2014 (if applicable) 1. The policy or policies to be issued are: (a) OWNER'S POLICY OF TITLE INSURANCE (Form T-1) (Not applicable for improved one-to-four family residential real estate) Policy Amount: $1,086,000.00 PROPOSED INSURED: LAKEWOOD PROPERTY MANAGEMENT, LLC

(b) TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES (Form T-1R) Policy Amount: PROPOSED INSURED:

(c) LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: PROPOSED INSURED: Proposed Borrower: (d) TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T 2R) Policy Amount: PROPOSED INSURED: Proposed Borrower: ( (e) LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) Binder Amount: PROPOSED INSURED: Proposed Borrower: (f) OTHER Policy Amount: PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: FEE SIMPLE ESTATE, subject to, and the Company does not insure title to, and excepts from the description of the land, coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto.

3. Record title to the land on the Effective Date appears to be vested in: Housing Associates of Mt. Pleasant (Tract I); AND Housing Associates of Mt. Pleasant II (Tract II)

4. Legal description of land:

FIRST TRACT:

Part of a tract situated in the City of Mt. Pleasant, Titus county, Texas, being a portion of the Berry Merchant Survey, Abstract No. 358, and being a part of the remaining 13.602 acres of the Hugh Pogue Estates bounded as follows:

BEGINNING at an iron stake for a corner in the northwest corner of the above mentioned 13.602 acre tract, same being the northeast corner of a one (1) acre tract conveyed by Hugh Pogue to Sam Williams (Volume 142, Page 83);

Chicago Title Insurance Company Form T-7 Commitment for Title Insurance (Rev 01/01/2014) ( THENCE South 89 0 30' East, 740.33 feet;

THENCE South 395 feet;

THENCE South 63 0 30' West, 200 feet to an iron stake for corner, an interior corner of the said 13.602 acre tract

THENCE South 260 30' East, 270.52 feet to an iron stake for corner in the northwesterly right of way line of U. S. Highway No. 67, same being a lower Southeast corner of the said 13.602 acre tract;

THENCE South 63 0 30' West, along said right of way line 80 feet to an iron stake for corner, same being a lower southwest corner of the said 13.602 acre tract;

THENCE North 26030' West, 270.40 feet to an iron stake for corner, an interior corner of the said 13.602 acre tract;

THENCE South 63 030' West, 548.61 feet to an iron stake for corner in the west line of the said 13.602 acre tract;

THENCE North 00 10' East, along said west line 763.18 feet to the PLACE OF BEGINNING, CONTAINING 9.84 acres of land, more or less.

NOTE: COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR SQUARE FOOTAGE CALCULATIONS ARE CORRECT.

SECOND TRACT: ( All that certain tract or parcel of land situated in the Berry Merchant Survey, A-358, City of Mt. Pleasant, Titus County, Texas, being out of that certain 12.85 acre tract described in a deed to Daniel Allgeier dated May 1979, recorded in Volume 426, Page 642, Deed Records of Titus county, Texas and being more particularly described as follows:

COMMENCING at a 2 inch iron pipe found for corner situated on the NW corner of said 12.85 acre tract and being on the NE corner of a 1.0 acre tract described in deed to Sam Williams recorded in Volume 142, Page 83, of the Deed Records;

THENCE South 89 0 30' East, with a fence along the NBL of said 12.85 acre tract, 715.0 feet to a 5/8 inch iron pipe set for corner;

THENCE South 0010' West, a distance of 110.0 feet to a 5/8 inch iron pipe set for corner, and the POINT OF BEGINNING:

THENCE North 450 10' East, a distance of 98.4 feet to a 5/8 inch iron pipe set for corner;

THENCE South 89 0 30' East, a distance of 208.5 feet to a 5/8 inch iron pipe set for corner;

THENCE South 430 01' East, along the West ROW of FM 1734 a distance of 344.8 feet to a 5/8 inch iron pipe set for corner;

THENCE South 89 0 11' West, a distance of 312.2 feet to a 5/8 inch iron pipe set for corner;

THENCE South 63 0 39' West, a distance of 225.4 feet to a 5/8 inch iron pipe set for corner;

THENCE North 00 10' East, a distance of 289.8 feet to the point of beginning and containing 2.514 acres, more or less.

Chicago Title Insurance Company Form T-7 Commitment for Title Insurance (Rev 01/01/2014) NOTE: COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR ( SQUARE FOOTAGE CALCULATIONS ARE CORRECT.

(

Chicago Title Insurance Company Form T-7 Commilmentfor Tille Insurance (Rev 01/01/2014) Order No.: 4712005097A

( SCHEDULE B

EXCEPTIONS FROM COVERAGE

In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from:

1. Item 1, Schedule B is hereby deleted in its entirety.

2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.

3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner's Policy only).

4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities,

a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or

b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or

c. to filled-in lands, or artificial islands, or

d. to statutory water rights, including riparian rights, or

e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.

(Applies to the Owner's Policy only.)

5. Standby fees, taxes and assessments by any taxing authority for the year 2014, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Loan Policy (T-2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year 2014, and subsequent years.")

6. The terms and conditions of the documents creating your interest in the land.

7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.)

8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy (T-2) only.)

9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Loan Policy (T-2R). (Applies to Texas Short Form Residential Loan Policy (T-2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy (T-2R).

10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception.):

a. Rights of tenants in possession, as tenants only, under unrecorded lease agreements.

Chicago Title Insurance Company Form T-7 Commilmenlfor Title Insurance (Rev 01/01/2014) Continuation of Schedule B Order No. 4712005097A

b. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting ( the title that would be disclosed by an accurate and complete land survey of the Land.

(NOTE: UPON RECEIPT OF A SURVEY ACCEPTABLE TO COMPANY, THIS EXCEPTION WILL BE DELETED. COMPANY RESERVES THE RIGHT TO ADD ADDITIONAL EXCEPTIONS PER ITS EXAMINATION OF SAID SURVEY).

c. Memorandum of Lease between Solon Automated services, Inc and Integrity Management, Agent for Housing Associates of Mt. Pleasant as recorded in Volume 980, Page 232, and Volume 980, Page 233.

d. Easements to Southwestern Gas & Electric Co. in Volume 75, Page 469, and Volume 429, Page 192, Deed Records, Titus County, Texas.

e. Easements to Arkla Gas Louisiana Gas Co. in Volume 430, Page 432, and Volume 483, Page 236, Deed Records of Titus County, Texas.

f. Easement to City of Mt. Pleasant as recorded in Volume 997, Page 229, and Volume 1554, Page 223, Real Property Records of Titus County, Texas.

(

Chicago Title Insurance Company Form T-7 Commitmentfor Title Insurance (Rev 01/01/2014) Order No.: 4712005097A

SCHEDULE C ( Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued:

1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record.

2. Satisfactory evidence must be provided that:

a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A,

b. all standby fees, taxes, assessments and charges against the property have been paid,

c. all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property,

d. there is legal right of access to and from the land,

e. (on a Loan Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage.

3. You must pay the seller or borrower the agreed amount for your property or interest.

4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment.

5. The Company must be furnished evidence of the authority and/or capacity, along with evidence of good standing, of any fictitious entity to the transaction to which the commitment is addressed.

6. If any portion of the proposed loan and/or the Owner's Title Policy coverage amount includes funds for immediately contemplated improvements, the following exceptions will appear in Schedule B of any policy issued as indicated:

Owner's and Loan Policy{ies): Any and all liens arising by reason of unpaid bills or claims for work performed or materials furnished in connection with improvements placed, or to be placed, upon the subject land. However, the Company does insure the insured against loss, if any, sustained by the Insured under this policy if such liens have been filed with the County Clerk of County, Texas, prior to the date hereof.

Owner's Policy{ies) Only: Liability hereunder at the date hereof is limited to. Liability shall increase as contemplated improvements are made, so that any loss payable hereunder shall be limited to said sum plus the amount actually expended by the insured in improvements at the time the loss occurs. Any expenditures made for improvements, subsequent to the date of this policy, will be deemed made as of the date of this policy. In no event shall the liability of the Company hereunder exceed the face amount of this policy. Nothing contained in this paragraph shall be construed as limiting any exception or any printed provision of this policy.

Loan Policy{ies) Only: Pending disbursement of the full proceeds of the loan secured by the lien instrument set forth under Schedule A hereof, this policy insures only to the extent of the amount actually disbursed, but increase as each disbursement is made in good faith and without knowledge of any defect in, or objections to, the title up to the face amount of the policy. Nothing contained in this paragraph shall be construed as limiting any

Chicago Title Insurance Company Form T-7 Commitment for Title Insurance (Rev 01/01/2014)) Order No. 4712005097A

exception under Schedule B, or any printed provision of this policy. ( The following liens appear of record:

7. Deed of trust dated December 30, 1899, recorded in Volume 142, Page 570, Deed of Trust Records of Titus County, Texas, executed by Housing Associataes of Mt. Pleasant to W. H. Pieratt, Trustee(s), securing the payment of one note dated June 20,1980, in the sum of $940,950.00, payable to U.S. of A acting through the FHA U.S. Dept. of Agriculture. Covers FIRST TRACT

8. Deed oftrust dated July 1, 1985, recorded in Volume 167, Page 696, Deed of Trust Records of Titus County, Texas, executed by Housing Associates of Mt Pleasant II to J. Lynn Futch, Trustee(s), securing the payment of one note dated July 1, 1985, in the sum of $608,000.00, payable to U. S. of A acting through the FHA U.S. Dept. of Agriculture, (covers SECOND TRACT)

The following abstracts of judgment were filed against Housing Associates, Inc. a separate entity, from record owners of this property and some against individuals Daniel Allgeier and wife, Therese Allgeier. It appears that this corporation has filed with the secretary of state and appears to be in good standing with the Comptroller is separate and apart from record owner with similar name: This information is provided to clarify names of entities apparently owned by same party.

Abstract of Judgment dated September 11,2007, by Transit Mix Concrete & Materials Co. vs. Housing Associates, Inc. filed September 14,2007, in the amount of $11,342.00, plus int~est and costs, recorded liT Volume 1967, Page 250, Real Property Records of Titus County, Texas.

10. Abstract of Judgment dated April 17, 2008, against Housing Associates, Inc.,by City of Pittsburg, Texas, in the amount of $275,700, plus inlerest and costs, recorded in Document ( No. 200800002620 (now called 20082620 in County Clerk Office), Real Property Records of ~ Titus County, Texas. Abstract of Judgment signed July 14, 2009, filed July 15, 2009 against Housing Associates, Inc. Daniel Allgeier and Therese Allgeier, by States Resources Corp in tfie amount of m:r,225, plus interest and costs recorded in Document 200900003170 (renumbered in Office of County Clerk as 20093170), Real Property Records of Titus County, Texas. ~ IJ..t h~'~

Chicago Title Insurance Company Form T-7 CommitmentforTitie Insurance (Rev 01/01/2014» Order No. 4712005097A

COMMITMENT FOR TITLE INSURANCE ( SCHEDULE D

Pursuant to the requirements of Rule P-21 , Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made:

1. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment The following individuals are Officers and/or Directors of Chicago Title Insurance Company, a Nebraska corporation

Directors Officers Raymond Randall Quirk Raymond Ranall Quirk President Anthony John Park Anthony John Park Executive Vice President Michael Joseph Nolan Michael Louis Gravelle Secretary Theodore L. Kessner Daniel Kennedy Murphy Treasurer Edson Nye Burton, Jr.

Fidelity National Financial, Inc. owns 100% of FNTG Holdings, Inc. which owns 100% of Fidelity National Title Group, Inc. which owns 100% of Chicago Title Insurance Company.

2. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement.

You are further advised that the estimated title premium' is: Owner's Policy $6,253.00 Loan Policy $0.00 Endorsements $0.00 Other $ Total $6,253.00 ( Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows:

To Whom For Services Greene Title & Abstract TITLE EVIDENCE

The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance.

Chicago Title Insurance Company Schedule D Order No. 4712005097A

( TEXAS TITLE INSURANCE INFORMATION

Title insurance insures you against loss resulting from EI seguro de titulo Ie asegura en relacion a certain risks to your title. perdidas resultantes de ciertos riesgos que pueden afectar el titulo de su propiedad.

The Commitment for Title Insurance is the title insurance EI Compromiso para Seguro de Titulo es la company's promise to issue the title insurance policy. promesa de la compania aseguradora de The Commitment is a legal document. You should review titulos de emitir la poliza de seguro de titulo. it carefully to completely understand it before your closing EI Compromiso es un documento legal. date. Usted debe leerio cuidadosamente y entendario completamente antes de la fecha para finalizar su transaccion.

Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy sUbject to the Commitment's terms and requirements.

Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest.

- MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (eXcluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate.

Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown on Schedules Band C of the Commitment with an attorney. These matters will affect your title and your use of the land.

When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below.

- EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy.

- EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment.

- CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions.

Texas Title Insurance Information Order No. 4712005097A

You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title ( Insurance Company at 1-800-442-7067 or by calling the title insurance agent that issued the Commitment. The State Board of Insurance may revise the policy form from time to time.

You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling 1 800-252-3439.

Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are:

- Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you.

- Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy.

The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. (

Texas Title Insurance Information (Con'd) ( DELETION OF ARBITRATION PROVISION (Not Applicable to the Texas Residential Owner's Policy)

ARBITRATION is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award.

Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the Closing of your real estate transaction or by writing to the Company.

The Arbitration provision in the Policy is as follows:

"Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the RUles, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction."

SIGNATURE DATE

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Through the Website," subsection "Third Party Opt Out." 601 Riverside Avenue Jacksonville, Florida 32204 Access and Correction Attn: Chief Privacy Officer To access your Personal Information in the possession of (888) 934-3354 FNF and correct inaccuracies of that information in our [email protected] records, please contact us in the manner specified at the Copyright © 2014. Fidelity National Financial, Inc. All end of this Privacy Notice. We ask individuals to identify Rights Reserved. themselves and the information requested to be accessed and amended before processing such requests, and we EFFECTIVE AS OF: JANUARY 24,2014 may decline to process requests in limited circumstances LAST UPDATED: JANUARY 24,2014 as permitted by applicable privacy legislation.

Privacy Policy Notice Rev. 01124/14 ( For each scattered site in the development, list each purchase contract (or deed or lease) that demonstrates applicant site control. Under each contract number, list the address, legal description, and acreage for each tract/lot included under the contract. The sum ofthe acreages included in each contract must equal the acreage indicated by the survey of the related scattered site(s} in the architectural drawings andfeasibility report. If not, provide an explanation that reconciles the difference (e.g., dedications, reserves for other uses, etc.). Plats must be attachedfor each site stating the dimensions along each boundary and identifying the tract/lots in relation to their addresses/legal descriptions.

1 1 48449950600 9.84 pending Contract Number Census Tract Acreage Date of Sale 4925 Greenville Ave, Ste1305 Dallas Street Address City Daniel Allgeier Housing Associates of MLPleasant Contact Name for Seller Name of Seller Entity Only list/fowner has owned<36 mos. Only Iistif owner hasowned <36 mOs. Contact Name for Previous Seller Name of Previous Seller Entity 4925 Greenville Ave, Ste 1305 Dallas TX 75206 Seller Address City State Zip Did the seller acquire the property through foreclosure or deed in lieu of foreclosure? No I Is the seller affiliated with the Applicant, Principal, sponsor, or Development Team? Yes I If y,es above, describe relationship: Igeneralpartnerof seller same as generalflartnerof buyer I

Contract includes more than one tract/lot. Address, legal description, and acreage are below.

a. Address Abbreviated Legal Acres b. Address Abbreviated Legal Acres c. Address~ Abbreviated Legal Acres

~ ~, ~ ~ ~ ~ ~ ~ ~

2 2 48449950600 2.51 pending Contract Number Census Tract Acreage Date of Sale 4925 Greenville Ave Ste 1305 Dallas Street Address City Daniel Allgeier Housing Associates of MLPleasantH,Ltd Contact Name for Seller Name of Seller Entity Only Iistifownerhas owned <36 mos. Only list ifowner has owned <36 moS. Contact Name for Previous Seller Name of Previous Seller Entity 4925 Greenville Ave Ste 1305 Dallas TX 75206 Seller Address City State Zip Did the seller acquire the property through foreclosure or deed in lieu of foreclosure? No I Is the seller affiliated with the Applicant, Principal, sponsor, or Development Team? Yes I If yes above, describe relationship: Igeneral partnerofseller is general partner of buyer I

Contract includes more than one tract/lot. Address, legal description, and acreage are below.

a. Address Abbreviated Legal Acres ( b. Address Abbreviated Legal Acres c. Address Abbreviated Legal Acres i ...... •i> ...... •••• •• i i> ••••

( 3 Contract Number Census Tract -Acreage Date of Sale

Street Address City

Contact Name for Seller Name of Seller Entity Only list ifownerhas.owned <36 mos. Only IisUf owner has oWned <36 mos. Contact Name for Previous Seller Name of Previous Seller Entity

Seller Address City -State Zip Did the seller acquire the property through foreclosure or deed in lieu of foreclosure? II Is the seller affiliated with the Applicant, Principal, sponsor, or Development Team? I I If yes above, describe relationship: I I CJ Contract includes more than one tract/lot. Address, legal description, and acreage are below. a. Addrer;s Abbreviated Legal -Acres b. Address Abbreviated Legal -Acres c. Address Abbreviated Legal -Acres ...... • ...... ·Y ..... · •• >W iY ••••• i. ... .Y ••.•.•••• I· •••• •• 4 , - \ Contract Number Census Tract Acreage Date of Sale

Street Address City

Contact Name for Seller Name of Seller Entity Only list ifowner has owned <36 mos. Only list ifownerhasowned <36 mos. Contact Name for Previous Seller Name of Previous Seller Entity

Seller Address City -State Zip Did the seller acquire the property through foreclosure or deed in lieu of foreclosure? II Is the seller affiliated with the Applicant, Principal, sponsor, or Development Team? I I If yes above, describe relationship: I I CJ Contract includes more than one tract/lot. Address, legal description, and acreage are below. a. Address Abbreviated Legal -Acres b. Address Abbreviated Legal -Acres c. Address AbbreviatedLegal -Acres ( 5 Contract Number Census Tract Acreage Date of Sale

Street Address City

Contact Name for Seller Name of Seller Entity Only list ifowner has owned <36 mos. Only list ifoWner has owned <3611105. Contact Name for Previous Seller Name of Previous Seller Entity

Seller Address City State Zip

Did the seller acquire the property through foreclosure or deed in lieu of foreclosure?

Is the seller affiliated with the Applicant, Principal, sponsor, or Development Team?

If yes above, describe relationship:

Contract includes more than one tract/lot. Address, legal description, and acreage are below.

a. Address Abbreviated Legal Acres b. Address Abbreviated Legal Acres c. Address Abbreviated Legal Acres

( ( (]]Elected officials were identified in the Pre-Application, and there have been no changes. (If box above is checked, these forms may be left BLANK.)

Please identify all elected officials which represent the Development Site.

** US Representative District

State Senator District State Representative District

Support Letter ( Support Letter

City Mayor County Judge

School Superintendent District Name Email

Address City Zip

( Presiding officer of Board of Trustees Email

Address City Zip

** While Applicants are not required to notify US Representatives, the Department is required to notify these elected officials. Therefore, Applicant must identify the appropriate US Representative ofthe district containing the Development.

( (

Identify all Neighborhood Organizations Applicant is aware of and any identified by the local elected official.

(}]organizations were identified in the Pre-Application, and there have been no changes. (If above is checked, these forms may be left BLANK)

1. ... . Name of Organization Contact Name

Address City

Zip Phone Fax or Email

2. ••••••• Name of Organization Contact Name

Address City

Zip Phone Fax or Email

3. Name of Organization Contact Name

Address City

Zip Phone Fax or Email

.... 4. .... Name of Organization Contact Name

Address City

Zip Phone Fax or Email

...... 5. Name of Organization Contact Name ... Address City

Zip Phone Fax or Email ,-,_ .. > ,',' .. ,', < : .. "" ,,', ; ,'/ -•.. ; ' .. ",', ',.- ", -, .. <,<.: :-: ;.':',' .. ,' .:.,::.:::,::,":::,':':::,:,::::::': .. ::::/:.> CERTIFICATION OF NOTIFICATIONS (All PROGRAMS)

Part 2. ffi]~~~~2L~~!lli~~~~~~~illE~~::::::::::::::::::::::::::~ D The pre-application for this full Application met all threshold requirements, but all required entities were re-notified as required by §10.203 of the Uniform Multifamily Rules. As applicable, all changes in the Application have been made on the Elected Officials and/or Neighborhood Organizations Form(s). D I (we) certify that the notifications are not older than 3 months from the first day of the Application Acceptance Period for Competitive HTC Applications and not older than three (3) months prior to the date Parts 5 and 6 of the Application are submitted for Tax Exempt Bond Developments, and not older than three (3) months prior to the date the Application is submitted for all other Applications. D I (We) certify that, in addition to all of the required neighborhood organizations, the following entities were notified in accordance with §10.203 of the Multifamily Uniform Rules. The notifications were in the format provided in the Application Notification Template. All of the following entities were notified and are correctly listed on the Elected Officials Form and Neighborhood Organizations Form: Superintendent of the school district containing the Development; Presiding officer of the board of trustees of the school district containing the Development; Mayor of any municipality containing the Development; All elected members of the Governing Body of any municipality containing the Development; ( Presi~ingofficer of the Governing Body of the county containing the Development; All ele'c~~d members of the Governing Body of the county containing the Development; State senator of the district containing the Development; and State representative of the district containing the Development. D While not required to be submitted in this Application, I have kept evidence of all notifications made and this evidence may be requested by the Department at any time during the Application review.

Part 3.

I (We) certify that no Neighborhood Organizations exist for which this Application would be eligible to receive points under III §11.9(d)(4) ofthe QAP or for which notification is required.

BY:~0..~ ;ii}'-~< Signature of Applicant Development Owner Notary Public, State of There~e.Allgeier TEXAS Printed Name County of &2!:Ltf-f«p,t...... DALLAS Date My Commission expires

GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2 4

BENJAMIN J WILLIAMS Notary Public. State of Texsa My Commlaalon &Plr.. e MAY 21 2011 Development Narra.tive

1,.hhe proposed Developmeiitis: (Check all that apply) ( \ Acquisition/Rehab I and/or:

Previous TDHCA # If applicable If Acquisition/Rehab or Rehab, original construction year: 1979& 1985

If Reconstruction, Units Demolished Units Reconstructed

If Adaptive Reuse, Additional Phase, or Scattered Site, include detailed information in the Narrative (4.) below.

2.IThe Target Population will be: Elderly

3.IStaff Determinations regarding definitions of development ~ctivity obtained? . I o If a determination under §10.3(b) of the Uniform Multifamily Rules was made prior to Application submission, provide a copy of such determination behind this form.

4·INarrative . . I Briefly describe the proposed Development, including any relevant information not already identified above. Acquire and rehabilitate 76 one bedroom units, provide additional amenities and a small office and clubhouse on theexisit property. An existing Section 8 contract for 52 units will be transferred to the new owner. Five existing USDA-RD rental assistance will also be transferred.

(

5.IFunding Reque~t: ~.

Complete the table below to describe this Application's funding request.

( 440,277 (:. ~t~e.§ide(Fg,.~cf""pet'~J'!~f""'IC g,Ff(;)iftllE~ppJicQtion$()riIY)i' Identify any and all set-asides the application will be applying under. Set-Asides can not be added or dropped from pre-application to full Application for Competitive HTC Applications. Competitive HTC Only HOME Only Nonprofit Persons w/Disabilities

By selecting the set-aside above, I, individually or as the general partner(s) or officers of the Applicant entity, confirm that I (we) are applying for the above-stated Set-Aside(s) and Allocations. To the best of my (our) knowledge and belief, the Applicant entity has met the requirements that make this Application eligible for this (these) Set-Aside(s) and Allocations and will adhere to all requirements and eligibility standards for the selected Set-Aside(s) and Allocations.

7. IPreviously Awarded State and Federal Funding Has this site/activity previously received or applied for TDHCA funds? No If "Yes" Enter Project Number: .....---...... and TDHCA funding source: Has this site/activity previously received non-TDHCA federal funding? Yes

Will this site/activity receive non-TDHCA federal funding for costs described in this Application?

~IQualified Low Incorrie Housing Development Eledion(HTCApplications only) ( ,'ursuant to §42(g)(1)(A) & (B), the term "qualified low income housing development" means any project or residential rental property, if the Development meets one of the requirements below, whichever is elected by the taxpayer." Once an election is made, it is irrevocable. Select only one: OAt least 20% or more of the residential units in such development are both rent restricted and occupied by individuals whose income is 50% or less of the area median gross income, adjusted for family size.

[E]At least 40% or more of the residential units in such development are both rent restricted and occupied by individuals whose income is 60% or less of the median gross income, adjusted for family size. (

1. ICOinmon.Am~hit.ie$(AlkMuJtifa.milYApPll<:~ti.qil~§lQ.1(1:C(b)(.5)) I 76 In of Units must qualify for I 7 Ipoints GJDevelopment will provide sufficient common amenities to qualify for the number of points indicated above, pursuant to §10.101(b)(S) of the Uniform Multifamily Rules. Applications for scattered site developments should refer to §10.101(b)(S)(B) of the Uniform Multifamily Rules.

2. lunit Requirements (ALL Multifamily Applications §10.101(b)(6)(A) and(B))

Q&. [EJDevelopment is proposing Rehabilitation (excluding Reconstruction) or Supportive Housing, and does not adhere to the size requirements above.

B. Unit Amenities (For Competitive HTC Applications, see Tab 19for Unit and Development Features)

CI]Application is a Tax Exempt Bond Development and will meet a minimum of seven (7) points as outined in §10.101(b)(6)(B) Clf the Uniform Multifamily Rules.

CI]APplication is HOME only or other Department Direct Loan and will meet a minimum of four (4) points as outined in §1O.101(b)(6)(B) of the Uniform Multifamily Rules. ( ** Rehabilitation Developments will start with a base score ofthree (3) points and Supportive Housing Developments will start with a base score offive (5) points. **

DAPplication is a Tax Exempt Bond Development and will meet aminimum of eight (8) points as outlined in §10.101(b)(7) of the Uniform Multifamily Rules. DAPplication is HOME only or other TDHCA Direct Loan and will meet a minimum four (4) points as outlined in §10.101(b)(7) of the Uniform Multifamily Rules.

..~ 4. 1Development Accessibility Requirements (ALL Multifamily Applications§10.101(b)(8» ..... /. ····1

[]]Development will meet all specifications and accessibility requirements reflected in the Certification of Development Owner form pursuant to §10.101(b)(8) of the Uniform Multifamily Rules.

(" I:?evelopment Activities (Continued)·

~. ISizeand Quality of Units (Competitive HTC Applications only)

..i]Development meets the minimum size requirements identified below: Points claimed: 8

Bedroom Size Square Footage

mSpecifiC amenities and quality features will be provided in every Unit at no extra charge to the Points claimed: 7 tenant; Development will maintain the points selected and associated with those amenities as outlined in §10.101(b)(6)(B) of the Unifon:n Multifamily Rules.

2.llncome Levels ofTenants (CompetitiveHTC Applications only) I 16 I Total Number of Units at 50% or less of AMGI II Number of 30% Units used to score points under 11.9(c)(2)* I I Number of 30% Units used under 11.4(c)(2)(D) regarding an Increase in Eligible Basis (30% boost) I 16 I Number of Units at 50% or less of AMGI available to use for points under 11.9(c)(l) ~ 21.05% I Percentage used for calculation of eligible points under 11.9(c)(l) Mark only one box below:

DDevelopment is located within a Non-Rural Area ofthe Dallas, Fort Worth, Houston, San Antonio or Austin MSA; or o

mDevelopments proposed in all other areas. 16

* Applicants electing the 30% boostfor additional 30% units are advised to ensure the units used to support the Points Claimed:1 16 boost are not included in the units needed to achieve the Application's scoring elections.

3. R~f1t .LevelsofJ:enah'fs (C(;ll1petltivej.J;rCApplic:ationsonly) Mark only one box below: OAt least 20% (less Units used for eligibility for boost) of all low-income Units are restricted at 30% or less of AMGI; 0 development is Supportive Housing and qualifies under the Nonprofit Set-Aside. DDevelopment is urban and at least 10% (less Units used for eligibility for boost) of all low-income Units are restricted at 0 30% or less of AMGI; or

[E]Development is located in a Rural Area and 7.5% (less Units used for eligibility for boost) of all low-income Units are 11 I restricted at 30% or less of AMGI; or

OAt least 5% of all low-income Units at 30% or less of AMGI 01 pointsClaimed:1 111

4. ~Tenant Services (Competitive HTC Applications only) .i Development will provide a combination of supportive services as identified in §10.101(b)(7) and those services will be recorded in the Development's LURA. Osupportive Housing Development qualifying under the Nonprofit Set-Aside; or I 0 mAli other Developments. I 10 Points Claimed:1 10

( ,Temmt Populations with Special Housing Needs (Competitive HTC Applications only) ..

mAt least 5% of the Units are set aside for Persons with Special Needs as identified in §11.9(c)(7) of the QAP, 2

6. IPre-Application Participation (Competitive HTC Applications only) mDevelopment is requesting Pre-Application Points 6 7. JExtel1d~~}\ffordabili(v/qI'Hi$t()l'i(:preServati(jnl~9rnpetiti vefiTCiAJJplicatiqlls '.0 11 Iy) Mark only one box below: [[]Development will maintain a 35 year Affordability Period OR 2

f]Application is proposing the use of historic (rehabilitation) tax credits, is requesting a tax credit amount of less than o ( $7,000 per unit, and has included a letter from the Texas Historical Commission behind this tab showing preliminary eligibility for at least one building. • Points claimed:I...... ;;2_ 8·1 Bighti()fFil'sfB~ftl~al'(C()rnp~titi"e.l-l,.cAppli(:atiqns()IlIY) [[]Development Owner agrees to provide a Right of First Refusal to purchase th~ Development upon or following the end 1 of the Compliance Period.

9. IFtll1dingB¢qlJestAI1191JI1tlq()mpefitiv¢H,.qApplic~tlonsoI1IY) [[]Application reflects funding request for no more than 100% of the amount available in the subregion or set-aside as of 1 12/1/2013.

( 1. IAt-Risk Set-Aside (~oiiJpetitive HTC Applications Only) I ( .~Qualification: Must meet the requirements of an At-Risk Development in §11.5(3) of the Qualified Allocation Plan. Documentation: Must be submitted behind this tab showing that the Development meets the requirements of §2306.6702(a)(5) of the Texas Government Code.

Part A: Documentation must show that the subsidy or benefit is from one of the following approved programs (mark all that apply):

Dsections 221(d)(3) and (5), National Housing Act (12 U.S.c. Section 17151)

Dsection 236, National Housing Act (12 U.S.c. Section 1715z"1)

Dsection 202, Housing Act of 1959 (12 U.S.c. Section 1701q)

Dsection 101, Housing and Urban Development Act of 1965 (12 U.S.c. Section 1701s)

~ The Section 8 Additional Assistance Program for housing developments with HUD-Insured and HUD-Held Mortgages administered by the U.S. Department of Housing and Urban Development as specified in 24 CFR Part 886, Subpart A. o The Section 8 Housing Assistance Program for the Disposition of HUD-Owned Projects administered by the U.S. Department of Housing and Urban Development as specified by 24 CFR Part 886, Subpart C. ~Sections 514, 515, and 516, Housing Act of 1949 (42 U.S.c. Sections 1484, 1485 and 1486)

Dsection 42, of the Internal Revenue Code of 1986 (26 U.S.c. Section 42)

DAPPlicant proposes rehabilitation or reconstruction of housing units that:

Dare owned by a Public Housing Authority and received assi,stance under Section 9; OR Dreceived assi~tance under Section 9 and:

Dare proposed to be demolished by the Public Housing Authority OR

Dhave been demolished by the Public Housing Authority in the last 2 years.

Part B: Place an "X" by one of the following: o The stipulation to maintain affordability in the contract granting the subsidy is nearing expiration (expiration will occur within two (2) calendar years ofJuly 31, 2014). See §11.5(3)(E) and (F) of the 2014 QAO concerning At-Risk developments qualifying under Section 42 of the Internal Revenue Code. ~The federally insured mortgage is eligible for prepayment without penalty or is nearing the end of its mortgage term (the term will end within two (2) calendar years ofJuly 31, 2014)

Part C: I certify that: ~the Development is at risk of losing affordability from the financial benefits available to the Development, and those financial benefits and affordability will be retained or renewed unless regulatory barriers necessitate elimination of a portion of that benefit, pursuant to §11.5(3)(D) of the Qualified Allocation Plan. Part D: If proposing demolition of the existing Units which have received the financial benefits described in Part A: o the redevelopment will include at least a portion of the same site. OR Drelocation of the existing units is proposed, and the requirements of §11.5(3)(C)(i) throuh (iii) of the 2014 Qualified Allocation Plan will be met. Part E: Place an "X" below if the statement is applicable: DDeve'opment is also applying for HUD Rental Assistance Demonstration Program funding and is currently waiting on the Attorney General opinion. 2. Existing Development Assistance On Housing Rehabilitation Activities'

Part A. The existing Property is expected to have or continue the following benefit: Rental ASSistance Provide a brief description of the restrictions or subsidies the existing Property will have or continue in the space below:

there is a project based HAP contract for 52 units and USDA rental assistance for 5 units

(

mA copy of the contract or agreement securing the funds identified above is provided behind this form. The source of funds is: _HUDahdUSDA RD _- The annual amount of funds is: varies

The number of units receiving assistance: 57

The term of the contract or agreement is (date): oneyear

The expiration of the contract or agreement is (date): 6/30/2014

Part B. Acquisition Of Existing Buildings (applicable only to HTC applications with Acquisition credits requested)

Date of the most recent sale or transfer of the building(s): 06/06/85

In the last ten years, did the previous owner perform rehabilitation work greater than 25% of the building's adjusted No basis?

Was the building occupied at any time during the last ten years? Yes

Was the building occupied or suitable for occupancy atthe time of purchase? Yes

Will the acquisition meet the requirements of §42(d)(2)(B)(ii) relating to the 10-year placed in service rule? Yes

If "Yes", provide a copy of a title commitment that the Development meets the requirements of §42(d)(2)(B)(ii) as to the 10 year period. • If "No", does the property qualify for a waiver under §42(d)(6)? 11-._1-1-1-1-.... If "Yes", provide the waiver and/or other documentation.

How many buildings will be acquired for the Development? 21

Are all the buildings currently under control by the Development Owner? Yes

If "No", how many buildings are under control by the Development Owner? n/a

When will the remaining buildings be under control? n/a

'Per §2306.008, TDHCA shall support the preservation of affordable housing for individuals with special needs and individuals and families of low income at any location considered necessary by TDHCA.

Part B. Acquisition Of Existing Buildings (continued) Identification or address(es) of Building(s) Type of Control (Ownership, Expiration Acquisition Cost of under Owner's Control Option, Purchase Contract) Date # of Units Building .... 1612 Amy Drive contract 11/30/2014 52 $1,086,000 1701 Edwards contract 11/30/2014 24 600,000 Provide the information listed below concerning the acquisition of building(s) for the Development: 1. Building(s) acquired or to be acquired from: [1] Related Party D Unrelated Party 2. Building(s) acquired or to be acquired with Buyer's Basis: (D Determined with reference to Seller's Basis [1] Not Determined with reference to Seller's Basis

List below by building address, the date the building was placed in service (PIS), the date the building was or is planned for acquisition, and the number of years between the date the building was placed in service and acquisition. Attach separate sheet(s) with additional information if necessary.

Proposed PIS date of building by most Years between PIS & Building Address(es) Acquisition date by recent owner Acquisition the Applicant 1612AIllY Drive .. 1978 11/30/2014 36 1701 EdWards 1984 11/30/2014 30 .... ••• .. . ..

......

3. ILead Based Paint (HOME Applications Only)

Development constructed before January 1, 19781 No (If "Yes", continue to next selections)

Check each of the following that applies [24 CFR 35.115]: DEmergency repairs to the property are being performed to safeguard against imminent danger to human life, health or safety, or ( to protect the property from further structural damage due to natural disaster, fire or structural collapse. The exemption applies only to repairs necessary to respond to the emergency.

DThe property will not be used for human residential habitation. This does not apply to common areas such as hallways and stairways of residential and mixed-use properties.

[B]Housing "exclusively" for the elderly or persons with disabilities, with the provision that children less than six years of age will not reside in the dwelling unit.

DAn inspection performed according to HUD standards found the property contained no lead-based paint.

DAcCOrding to documented methodologies, lead-based paint has been identified and removed; and the property has achieved clearance. D The rehabilitation will not disturb any painted surface.

D The property has no bedrooms.

D The property is currently vacant and will remain vacant until demolition. Evidence ofrent subsidies

The original Housing Assistance Payment contract for Pine Terrace expired in 1999. Since that time, the subsidies have been provided by one year extensions. The only documentation ofthe subsidies are rent increase certifications. The original contract isn't available. We have attached an Amendment.

The rental assistance agreement for Pine Terrace II is attached.

( N·JEJ\:D}JENT TO BOllSlNG .J\SSISTANCE PAYNENTS COJ\:TRACT

/ FW-79-152, June 4, 1979 HAP Contract List Number and Date: Amended FW-79-395, August 31, 1979 ( Project Number: __TX 16:-ROO~=015, Mt. Pleasant, Texas

~vner: Housing Associates of Mt. Pleasant . "Pine Terrace"

Exhibit A, the schedule showing the number of uni ts by size (Contract Uni ts) and their applicable rents (Contract Rents) for the" above identifj ed Housing Assistance Payments Contract is hereby amended as foll'ows:

NO. OF CONTRACT UTILITY GROSS UNITS BEDROOMS RENTS ALLOWANCE RENT ....

52 1 208 34 242

07-01-81 This amendment shall be effective \ All other provisions of the Contract shall remain in full force and effect.

Owner: Housing Associates of Mt. Pleasant

By:

Title: General Partner

Date:

UNITED STATES OF AMERICA Secretary of Housing and Urban Development

By:

Title: Dallas Area Office

Date: FOllM APPROVED USDA·FmHA IVIULTIPL.l~ FAIVlILY HOUSI\\IG .JMB NO. 0575-0047 Form FmHA 1944·7 (Rev. 4·66) INTEnEST CliEDIT /l,ND HEI\JT/\L /-\SSiSTAI\ICE AGFH::EIVIEI\IT (

10. This Agreement between the United States of America, acting through the Farmers Home Ad !llinistration pursuant to

Section 511 of the Housing Act of 1949, (herein ca lied "t111~ Government") and __ROUSING-AS.snCIAT.ES.-o-L----.-----.

Mr.:.._ PLEASANT II .~_~_.-'_. ..__._ (herein called "Borrower") supplements a _PROMr.sSORY-NOT-K-.-~·---

in the principal amount of :L.6D.B..,l10_0A_O..Q. , ~ ·· ··, atELEV_EN_.AND__ SEV-EN.--E-IGHl!fsentCl1~ ..8'7rb

interest, dated ~ }""J,.:-198.'L.~__-.---.._-.--..-_which was drawn in [XJa single advance[] muu-iple advances.

II. The Government shall compute interest OU the bOiTower's account at the promissory note rate.

12, Subject to the provisions of this Agreement the Government will credit $J±.,.7J±f1.._9fJ. .~. . subsidy, less surcharge/overage, to the borrower's account when each MONTHLY payment is Illade. The borrower's subsidized payment

shall be $ _.L..2.8.8..~O .. plus surcharge/overage.

13. Borrower shall submit to the Government, as required by the Government in form prescribed or approved by it, proof of borrower's income and expenses for the previous calendar year or other designated periods, and any information 011 the family size and income of the occupants of the housing financed with the loan evidenced by the note.

14. If the Governrnr.nl should determine that the borrower has defanlted under any terJllS or conditions of this Agreement, the note, borrower's related Loan Resolution/Agreemr.ht, and supplementary or related agreements, or any related secU1ity instrument, or viobtes any program regUlations, at its option the Government l1Iay suspend Of terminate ~his Agreement as of any specified date following the default. 15. No credit to the borrower's account provided for in paragraph J'2. shall be made followiu[\ any termination date specified pursuant 10 paragraph 14. 16. The Government shall credit the borrower's account, or pay the borrower rental assistance, including periods of default whe1l determined to be in the Govefl\ment's best interest, amounts equal to the difference between the paymenl required in paragraph 1'2 above and the payment req uired under a formula aud procedure prescribed by the Government.

17. No terms or conditions of the note or any related secmily or other instrument shall be affected by this Agreement eKcept as expressly sel forth herein. 18. This Agreement is subject to lhe present regUlations of the Farmers Home Administration, and to its future regulations 1Iot inconsistent with the express provisions hereof.

19. Upon request, the borrower will permit representatives of FmHA (or other agencies of the Department· of Agriculture authorized by the Department) to illspecl and make copies of any records of borrower pertaining Lo FmHA loans and this Agreement. 10. If the bOlTower has received any excessive credit or payment, in addition to allY rights of reeovery, Ihe Governmellt ITlay deduct the afllount from any subsequent credit Of payment.

21. If the Government should determlne that the subsidy is no longer needed for the benefit of the tenants, at its option the Government may upon written nol"ice suspend, modify or terminale this agreement as of any speeific date. ~-_._---~--~.-__. ."._.._~~_. __ ~_._~ .~.d •._.. ~_.·_·~_"' ·_~·_~-.~~.-.--._-----_ ..~--..--.-----..._--._-.... _-~ ... ----~------.~-~~-<~.-- .. _..~-~-"-~J ( The information required by this form is collected and used by FmHA to ensure thai the borrower is complying with limited or non-profit loa n reqIlirements a nd other agreements referenced herein. Execul ing this agreemeni is required . [ to obtain a benefit. ~ .~_~~~~ .~_~ ~. =---~-_r,<,...... -_ ~_ ~-c=-,...---..,- ~_~~ ..--.-.=-",.~"" .~""- ,,.,,..~..,--...... -~..,-_ .,._~_, ~_ ~,~., ~~-_=~._~._~~~~_ _=~_.=",,-.-._ ,-,-"~~., ~~.-.-.>~-, ..-_~.....-_~.~._.~~=_.~=-~ __ ... __ ...... •.._r...... __ ... •...,.,...,...... ,. __ __ ...... ,...... -'-" . ...=-"'"..=.O

Position 2 \.. •.. \

pallas, Texa

UNITED STATE' FARMERS HOM: ~~

7-1-85 (DATE OF EXECUTION) DISTll.GL

( Pursuant to §10.204(7)(G)(i) through (ii) of the Uniform Multifamily Rules, any Application where any structure on the Development Site is r 'pied, or if the Application proposed the demolition of any occupied housing, the following items must be provided behind this tab. ( At least one of the following must be provided: [;]Historical monthly operating statements of the Development for twelve (12) consecutive months ending no more than three (3) months from the first day ofthe Application Acceptance Period; OThe two (2) most recent consecutive annual operating statement summaries;

OThe most recent consecutive six (6) months of operating statements and the most recent available annual operating summary; or;

OAII monthly or annual operating summaries available; and

Each of the following items, as applicable, is provided behind this tab: [EJA rent roll not more than six (6) months old as of the first day of the Application Acceptance Period that discloses the terms and rate of the lease, rental rates offered at the date of the rent roll, Unit mix, and tenant names or vacancy. I*IA written explanation of the process used to notify and consult with the tenants in preparing the Application; (§2306.6705(6))

[JAny documentation necessary for the Department to facilitate, or advise an Applicant with respect to or ensure compliance with the Uniform Relocation Act and any other relocation laws or regulations as may be applicable; and [;]If applicable, evidence that the relocation plan has been submitted to the appropriate legal or governmental agency. (§2306.6705(6)) ( DThe current property owner is unwilling to provide one or more of the required documents above, and a signed statement from the Applkant atte,tlng to that fact" ,"bmitted behind thl, tab. III

If one or more the above is not applicable, based upon the type of occupied structures on the Development Site, please provide an explanation of such non-applicability below:

Iuniform Relocation Act (URA) APplicability (HOME Applications Only) The proposed Development must be carried out in accordance with policies and procedures governing implementation of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, Section 104(d) of the Housing and Community Development Act of 1974, and the optional relocation policies adopted pursuant to 24 CFR 92.253(d).

A nisplaced person is covered under URA, regardless of the income of the person, if they are displaced by acquisition, rehabilitation, or ( Iition.

A displaced person is covered under Section 104(d) if they are a low-income person displaced by demolition OR conversion (if market rent of the dwelling did not exceed the fair market rent before conversion). These requirements apply to any Development that utilizes HOME funds if (check all that apply):

1»IThe activity involves acquisition of property occupied by a tenant, homeowner, or business.

DThe activity involves rehabilitation of property occupied by a tenant, homeowner, or business.

1>IThe activity involves demolition of existing housing units.

1>IThe activity involves conversion of occupied rental property occupied by any tenant.

If ANY of the above boxes are checked, complete the Residential Anti-Displacement and Relocation Assistance Plan Certification below.

Applicants for HOME funds that plan to rehabilitate, demolish and/or reconstruct occupied developments must comply with the Uniform Relocation Act. By signing below, the Applicant certifies that they will comply with the Residential Anti-Displacement and Relocation Assistance Plan (RARAP) approved by the Department on June 1, 2012. The RARAP, as approved follows the Housing and Community Development Act of 1974, and HUD regulations at 24 CFR §42.325. The Department, through its subgrantees, will offer relocation assistance for lower-income tenants who, in connection with an activity assisted under NSP or HOME move permanently or move personal property from real property as a direct result of the demolition of any dwelling unit or the conversion of a lower-income dwelling unit in accordance with the requirements of 24 CFR §42.350.

p ". 'olaced person who is not a lower-income tenant will be offered relocation assistance in accordance with the Uniform Relocation l .ance and Real Property Acquisition Policies Act of 1970, as amended ("URN'), (Pub. L 91-645, 42 U.S.c. 4601 §§ et seq).

The purpose and goals of the RARAP is to:

(1) Provide (through its subgrantees) Relocation Assistance (2) Minimize Displacement (3) Ensure a One-for-One Replacement of Lower-Income Dwelling Units (HOME only)

I (we) certify that I (we) have read and understand the Department's approved Residential Anti-Displacement and Relocation Assistance Plan (RARAP), and I (we) will comply will all parts of the plan as they apply to this Application.

Signature of Applicant 1here~e ~t~~~e,.:..~ ~l ~;IPo~~ _r...... me _

( USDA Position 3 FORM APPROVED Fonn RD 3560-7 MULTIPLE FAMILY HOUSING PROJECT BUDGET/ OMB NO. 0575-0189 (Rev. 05-06) UTILITY ALLOWANCE PROJECT NAME BORROWER NAME BORROWER ill AND PROJECT NO. ( Pine Terrace Hsg Assoc of Mt Pleasant Loanffransfer Amount $ Note Rate Payment $ ICPayment $ Reporting Period Budget Type Project Rental Type Profit Type The following utilities are masler 0 I hereby request metered: units ofRA. Current number o Annual o Initial o Family o Full Profit -- o Quarterly [2] Regular Report [2] Elderly [2] Limited Profit o Electricity o Gas ofRA units o Monthly o Rent Change o Congregate o Non-Profit OWaler o Sewer Borrower Accounting Method o SMR o Group Home o Trash o Other Servicing o Mixed OLH o Other o Cash o Accrual PART I-CASH FLOW STATEMENT CURRENT PROPOSED COMMENTS BUDGET ACTUAL BUDGET or (YTD) BEGINNING DATES> ENDING DATES> l2-31-20D OPERATIONAL CASH SOURCES 1. RENTAL INCOME .. 2. RHS RENTAL ASSISTANCE RECEIVED .. 3. APPLICATION FEES RECEIVED . 4. LAUNDRY AND VENDING . 5. INTEREST INCOME .. 6. TENANT CHARGES : .. 7. OTHER -PROJECT SOURCES .. 8. LESS (Vacancy and Contingency Allowance) . 9. LESS (Agency ApprovedIncentive Allowance) 10. SUB-TOTAL [(1 thru 7) - (8 & 9)] . 0.00 204,437.00 0.0 NON-OPERATIONAL CASH SOURCES

.," . 11. CASH-NON PROJECT . ( 12. AUTHORIZED LOAN (Non-RHS) . 13. TRANSFER FROM RESERVE . 0,.1 14. SUB-TOTAL (11 thru 13) .. oj J 15. TOTAL CASH SOURCES (10+14) .. 0.001 204,437.00 I 0.09 OPERATIONAL CASH USES 16. TOTAL O&M EXPENSES (From Part II) .. 17. RHS DEBT PAYMENT .. 18. RHS PAYMENT (Overage) . 19. RHS PAYMENT (Late Fee) .. 20. REDUCTION IN PRIOR YEAR PAYABLES 21. TENANT UTILITY PAYMENTS .. 22. TRANSFER TO RESERVE . 23. RETURN TO OWNERINP ASSET MANAGEMENT FEE .. 24. SUB-TOTAL (16 thru 23) .. 0.00 242,236.00 0.00 NON-OPERATIONAL CASH USES 25. AUTHORIZED DEBT PAYMENT (Non-RHS) . 26. ANNUAL CAPITAL BUDGET (From Part III, Lines 4-6) .. 27. MISCELLANEOUS . 0,.1 28. SUB-TOTAL (25 thru 27) .. oj oj

29. TOTAL CASH USES (24+28) .. 0.001 242,236.001 0.001

30. NET CASH (DEFICIT) (15- 29) .. 0.001 <37,799.00)1 0.001 CASH BALANCE 31. BEGlNNlNG CASH BALANCE .. 32. ACCRUAL TO CASH ADmSTMENT . ( 33. ENDING CASH BALANCE (30+31+32) .. oJ """,...,1 oj

According to the Papenl'orkReduction Act of1995, an agency may 1101 conduct sponsor anda person is 1101 required to respond to a collection ofinformation unless it displays a valid OMB COII/rolmimbel'. The valid OMB cOlltl'olllllmbel'jol' thts illjol'matioll collection is 0575-0189. The time I'eqllil'ed to complete this illjol'matioll colleclioll is estimatedto average 2 1/2 hO/ll's per response, including the time for reviewing instrllctions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. PART II-OPERATING AND MAINTENANCE EXPENSE SCHEDULE CURRENT PROPOSED COMMENTS ( BUDGET ACTUAL BUDGET or (YTD)

1. MAINTENANCE AND REPAIRS PAYROLL . 39,533.00 2. MAINTENANCE AND REPAIRS SUPPLy . 28,692.00 3. MAINTENANCE AND REPAIRS CONTRACT . 4. PAINTING . 3,784.00 5. SNOW REMOVAL _ . 6. ELEVATOR MAINTENANCE/CONTRACT . 7.GROUNDS . 5,960.00 8. SERVICES . 1,829.00 9. ANNUAL CAPITAL BUDGET (From Part V- Operating) . 10. OTHER OPERATING EXPENSES (Itemize) . 11. SUB-TOTAL MAINT. & OPERATING (l thru 10) . 0.00 79,798.00 0.00

12. ELECTRICITY ] [[master metered . 4,274.00 ~~: ~~:: ;,~:::.~~~~.~~.:::::::::::::::::::::::::::::::::::::::::::::::::::::: 8,556.00 15. FUEL (Oil/Coal/Gas) . 3,435.00 16. GARBAGE & TRASH REMOVAL. . 17. OTHER UTILITIES . 18. SUB-TOTAL UTILITIES (12 Thru17). .. 0.00 16,265.00 0.00

19. SITE MANAGEMENT PAYROLL. , . 33,280.00 20. MANAGEMENT FEE . 21. PROJECT AUDITING EXPENSE . 7,237.00 ( 22. PROJECT BOOKKEEPING/ACCOUNTING. . 23. LEGAL EXPENSES . 2,372.00 24. ADVERTISING . 1,372.00 1,227.00 25. TELEPHONE & ANSWERING SERVICE ... 26. OFFICE SUPPLIES . 596.00 27. OFFICE FURNITURE & EQUIPMENT . 342.00 28. TRAINING EXPENSE . 29. HEALTH INS. & OTHER EMP. BENEFITS . 30. PAYROLL TAXES . 6,446.00 31. WORKMAN'S COMPENSATION . 32. OTHER ADMINISTRATIVE EXPENSES (Itemize). . 33. SUB-TOTAL ADMINISTRATIVE (19 thru32) . 0.00 52,872.00 0.00

34. REAL ESTATE TAXES . 14,621. 00 35. SPECIAL ASSESSMENTS . 36. OTHER TAXES, LICENSES& PERMITS . 37. PROPERTY& LIABILITY INSURANCE .. 10,700.00 38. FIDELITY COVERAGE INSURANCE . 39. OTHERINSURANCE. . 40. SUB-TOTAL TAXES& INSURANCE (34 thru39) . 0.00 25,321. 00 0.00

41. TOTAL O&MEXPENSES (11 +18+33+40) '-- 0._0_0'-1 17_4.:....,2_5_6_.0_01 0_.0_01 _

(

Fonn RD 3560-7 Page 2 USDA Position 3 FORM APPROVED Fonn RD 3560-7 MULTIPLE FAMILY HOUSING PROJECT BUDGET/ OMB NO. 0575-0189 (Rev. 05-06) UTILITY ALLOWANCE PROJECT NAME BORROWER NAME BORROWERill AND PROJECT NO. ( Pine Terrace II Hsg Assoc of Mt Pleasant II Loanffransfer Amount $ Note Rate Payment $ IC Payment $ Reporting Period Budget Type Project Rental Type Profit Type The following utilities are master 0 I hereby request metered: [{] Annual o Initial o Family o Full Profit --units ofRA. Current number o Quarterly [{] Regular Report [2] Elderly [{] Limited Profit o Electricity o Gas ofRA units o Monthly o Rent Change o Congregate o Non-Profit o Water o Sewer Borrower Accounting Method o SMR o Group Home o Trash o Other Servicing o Mixed OLH o Other o Cash o Accmal PART I-CASH FLOW STATEMENT CURRENT PROPOSED COMMENTS BUDGET ACTUAL BUDGET or (YTD) BEGINNING DATES> ENDING DATES> 12-31-2013 OPERATIONAL CASH SOURCES 1. RENTAL INCOME . 2. RHS RENTAL ASSISTANCE RECEIVED . 3. APPLICATION FEES RECEIVED . 4. LAUNDRY AND VENDING . 5. INTEREST INCOME . 6. TENANT CHARGES . 7. OTHER -PROJECT SOURCES . 8. LESS (Vacancy and Contingency Allowance) . 9. LESS (Agency ApprovedIncentive Allowance) 10. SUB-TOTAL [(1 thru 7) - (8 & 9)) . 0.00 24,689.00 0.0 NON-OPERATIONAL CASH SOURCES 11. CASH-NON PROJECT . ( 12. AUTHORIZED LOAN (Non-RHS) . 13. TRANSFER FROM RESERVE . 14. SUB-TOTAL (11 thru 13) .. .J .J J 15. TOTAL CASH SOURCES (10+14) .. 0.001 24,689.001 0.09 OPERATIONAL CASH USES 16. TOTAL O&M EXPENSES (From Part II) . 26,334.00 I7.RHSDEBTPAYMENT .. 18. RHS PAYMENT (Overage) . 19. RHS PAYMENT (Late Fee) . 20. REDUCTION IN PRIOR YEAR PAYABLES 21. TENANT UTILITY PAYMENTS . 22. TRANSFER TO RESERVE .. 23. RETURN TO OWNERINP ASSET MANAGEMENT FEE . 24. SUB-TOTAL (16 thru 23) .. 0.00 30,127.00 0.00 NON-OPERATIONAL CASH USES 25. AUTHORIZED DEBT PAYMENT (Non-RHS) . 26. ANNUAL CAPITAL BUDGET (From Part III, Lines 4-6) . 27. MISCELLANEOUS . 28. SUB-TOTAL (25 thru 27) .. .J .J .J

29. TOTAL CASH USES (24+28) .. 0.001 30,127.001 0.001

30. NET CASH (DEFICIT) (15- 29) .. 0.001 (5,438.00ll 0.001 CASH BALANCE 31. BEGINNING CASH BALANCE .. 32. ACCRUAL TO CASH ADJUSTMENT . ",m. ( 33. ENDING CASH BALANCE (30+31 +32) .. . ..1 ..,1 ...1 According to the PapeJ11'Ork Reduction Act of1995, an agency may no/ conduct sponsor Gnd a person is 1101 }'eqllired to J'espond to a collection ofin/ormation unless it displays a valid OMB contra/ IIIlmber. The valid OMB contro/nllmberfor this informalioll colleclion is 0575-0189. The time reqllired 10 complete Ihis information colleclion is estimaled to average 2 112 hOllrs per response, including the time for reviewing instructions, searching existing data sources, gathering andmaintaining the data needed, and completing andreviewing the collection of information. PART II-OPERATING AND MAINTENANCE EXPENSE SCHEDULE CURRENT PROPOSED COMMENTS ( BUDGET ACTUAL BUDGET or (YTD)

1. MAINTENANCE AND REPAIRS PAYROLL . 0.00 2. MAINTENANCE AND REPAIRS SUPPLy . 99.36 3. MAINTENANCE AND REPAIRS CONTRACT . 4. PAINTING . 5. SNOW REMOVAL . 6. ELEVATOR MAINTENANCE/CONTRACT . 7. GROUNDS , . 3,4l0.00 8. SERVICES , . 844.00 9. ANNUAL CAPITAL BUDGET (From Part V- Operating) . 10. OTHER OPERATING EXPENSES (Itemize) . 11. SUB-TOTAL MAINT. & OPERATING (l thrulO) .. 0.00 4,353.36 0.00

3,323.00 12. ELECTRICITY ] llmaster metered . ~~: ~~:: ;,~:::.~~~.~~.:::::::::::::::::::::::::::::::::::::::::::::::::::::: 4,972.00 15. FUEL (Oil/Coal/Gas) . 3,332.00 16. GARBAGE & TRASH REMOVAL. . 17. OTHER UTILITIES . 18. SUB-TOTAL UTILITIES (12 Thru17). .. 0.00 ll,627.00 0.00

19. SITE MANAGEMENT PAYROLL .. 20. MANAGEMENT FEE . 21. PROJECT AUDITING EXPENSE . 2,700.00 22. PROJECT BOOKKEEPING/ACCOUNTING. .. 23. LEGAL EXPENSES . 24. ADVERTISING . 25. TELEPHONE & ANSWERING SERVICE .. .. 26. OFFICE SUPPLIES . l73.00 27. OFFICE FURNITURE & EQUIPMENT . 28. TRAINING EXPENSE . 29. HEALTH INS. & OTHER EMP. BENEFITS . 30. PAYROLL TAXES . 31. WORKMAN'S COMPENSATION . 32. OTHER ADMINISTRATIVE EXPENSES (Itemize) . 33. SUB-TOTAL ADMINISTRATIVE (19 thru32) .. 0.00 2,873.00 0.00

34. REAL ESTATE TAXES . l,540.00 35. SPECIAL ASSESSMENTS .. 36. OTHER TAXES, LICENSES& PERMIT~ . 37. PROPERTY& LIABILITY INSURANCE . 5,941.00 38. FIDELITY COVERAGE INSURANCE . 39. OTHER INSURANCE. . 40. SUB-TOTAL TAXES& INSURANCE (34 thru39) . 0.00 7,481.00 0.00

41. TOTAL O&M EXPENSES (11 +18+33+40) _____0_._00 IL 2_6,---,3_3_4._3_6Ll 0_.0_0-'-1 _

FOnTI RD 3560-7 Page 2 USER DEFINED TENANT SUMMARY

PINE TERRACE APARTMENTS Report Date: January 2014 01/26/2014 1612 AMY DRIVE 8:58 am l 'LEASANT, TX 75455 Page 1 of 1

Unit Tenant Contract Recert. Unit No. Tenants Name Size Rent Rent Date

1601A Bedsworth, Lloyd R 1BR 373 373 06/01/2014 1601B Walker, Shambrika D 1BR 34 373 09/01/2014 1601C Campbell, Kali N 1BR 176 373 09/01/2014 HOlD Frazier, Karen K 1BR 87 373 04/01/2014 1602A MARS, WILLIAM 1BR 87 373 12/01/2014 1602B Milner, Sandra G 1BR 87 373 01/01/2015 1602C Derrick, Johnny W 1BR 292 373 03/01/2014 1602D JOHNSON, WANDA J 1BR 109 373 07/01/2014 1603A HORTON, MYRTLE 1BR 215 373 01/01/2015 1603B GANN, DANNY 1BR 302 373 09/01/2014 1603C Self, Irby R 1BR 235 373 06/01/2014 1603D Green, Joseph A 1BR 87 373 04/01/2014 1604A Winston, Willie C 1BR 97 373 01/01/2015 1604B Gibson, Edith Y 1BR 95 373 03/01/2014 1604C Pike, Frances D 1BR 313 373 05/01/2014 1604D GRIGSBY, CAROLYN 1BR 93 373 07/01/2014 1605A Jones, Nancy 1BR 79 373 02/01/2014 1605B ZELAYA, NORA I 1BR 93 373 06/01/2014 1605C VACANT 1BR o 0 1605D James, Dennis L 1BR 16 373 11/01/2014 1606A JONES, MARILYN 1BR 93 373 07/01/2014 1606B Gartman, Virginia L 1BR 192 373 06/01/2014 1606C HOUSE, LEANNE M 1BR 83 373 12/01/2014 1606D WHATLEY, STEVEN 1BR 93 373 08/01/2014 1607A VACANT 1BR o 0 1607B TRAYLOR, SHIRLEY 1BR 97 373 04/01/2014 1607C Webb, Connie J 1BR 240 373 09/01/2014 lhn7D JONES, MELBA L 1BR 87 373 12/01/2014 / 1.\ Hilton, Maxine 1BR 122 373 02/01/2014 cB MCGILL, HELEN 1BR 93 373 03/01/2014 1608C Jerigan, Galeen H 1BR 95 373 02/01/2014 1608D Bullard, Brenda K 1BR 227 373 03/01/2014 1609A Breazeale, Mary A 1BR 93 373 10/01/2014 1609B VACANT 1BR o 0 1609C Petty, Gloria J 1BR 373 373 10/01/2014 1609D WHITTINGTON, MARY B 1BR 154 373 09/01/2014 1610A GOODLOW, RUBY D 1BR 87 373 06/01/2014 1610B LEWIS, FRANCIS M 1BR 94 373 04/01/2014 1610C Cox, Donna C 1BR 87 373 04/01/2014 1610D DOBSON, SALLY R 1BR 106 373 04/01/2014 1611A VACANT 1BR o 0 1611B Johnson, Rudell 1BR 298 373 06/01/2014 1611C RAMOS, PRIMO 1BR 70 373 05/01/2014 1611D Salinas, Jimmy 1BR 373 373 10/01/2014 1613A SCOTT, JOANN 1BR 207 373 01/01/2015 1613B VACANT 1BR o 0 1613C PAYNE, LINDA J 1BR 369 369 06/01/2013 1613D Ryan, Shirley J 1BR 30 373 03/01/2014 1614A Lee, Linda M 1BR 107 373 08/01/2014 1614B Pitts, Deborah S 1BR 87 373 03/01/2014 1614C Lee, Anna E 1BR 154 373 03/01/2014 1614D VACANT 1BR o 0

6,981 USER DEFINED TENANT SUMMARY

Pine Terrace II Report Date: January 2014 01/26/2014 1612 Amy 9:46 am Pleasant, TX 75455 Page 1 of 1

Unit Tenant Basic Mkt/Note Recert. Unit No. Tenants Name Size Rent Rent Rate Date

01 Turner, Alice M 1BR 295 295 325 09/01/2014 02 Rockwell, Melody 1BR 136 295 325 05/01/2014 03 Burns, Bravious T 1BR 325 295 325 12/01/2014 04 Smyer, David 1BR 2 295 325 12/01/2014 05 VACANT 1BR 06 Jackson, Harold 1BR 325 295 325 03/01/2014 07 Turner, Alice 1BR 295 295 325 08/01/2014 08 VACANT 1BR 09 VACANT 1BR 10 Webster, Freddie M 1BR 98 295 325 07/01/2014 11 Dillard, Carolina 1BR 325 295 325 04/01/2014 12 Smith, Jeff 1BR 325 295 325 06/01/2014 13 VACANT 1BR 14 Quinn, James W 1BR 325 295 325 10/01/2014 15 VACANT 1BR 16 VACANT 1BR 17 VACANT 1BR 18 White, Jakehia J 1BR 34 295 325 09/01/2014 19 Cason, Toni A 1BR 325 295 325 09/01/2014 20 Melendez, Genna D 1BR o 295 325 12/01/2014 21 VACANT 1BR o o 0 22 Davis, Karlton 1BR 310 295 325 08/01/2014 23 McGill, Brittnei 1BR 325 295 325 09/01/2014 24 Grant, Robert 1BR 249 295 325 09/01/2014

3,694 PINE TERRACE PROCESS USED TO NOTIFY AND CONSULT WITH TENANTS IN PREPARING THIS APPLICATION

This notice has been posted on the bulletin board.

re '::> I Je-v'Vt D I\, * 2) J-{) ,,~ LAKEWOOD PROPERTY MANAGEMENT, LLC 4925 Greenville Ave., Ste. 1305 Dallas, Texas 75206 Phone 214-277-4839 (

February 17,2014

Residents:

The owners ofthe Pine Terrace Apartment have signed a contract to sell the property. The new owners are submitting an application to the Texas Department ofHousing and Community Affairs for an allocation ofhousing tax credits which will be sold for equity to help pay for the purchase and to complete an extensive remodel ofthe property. More information will be available after the TDHCA decides ifthe owners obtain tax credits but each unit will be completely remodeled so a temporary relocation probably on the property will be required ofall residents. The relocation will be completely at the owner's expense including all costs ofmoving, materials for moving, utility deposits, etc. Then you will be able to move back into a completely remodeled unit with new heating and air conditioning, doors, windows, kitchen cabinets and appliances, flooring, paint, plumbing and light fixtures. The new equipment and fixtures will be Energy Star rated. Other improvements will include resurfacing and striping the parking, new fencing and other features.

Before any remodel or relocation will occur several meetings will be held to explain and to solicit suggestions for the remodeling.

All rent subsidies will remain in place and although the rents may increase slightly, ifyou have either a Section 8 subsidy or Rental Assistance your rent will probably not change significantly.

HOUSING ASSOCIATES OF MT. PLEASANT

DANIEL ALLGEIER, GENERAL PARTNER

Sincerely,

Dan Allgeier, Member [email protected] f!)~4~~~ ~~~\'N~4 We do not discriminate againstpersons with disabilities This institution is an equal opportunityprovider and employer Race / ,Ethnicity Report

PINE TERRACE APARTMENTS Tenant Certification in Effect 2/23/2014 1612AMYDRIVE (As of) Report Date: 01/0112014 04:46PM MT PLEASANT, TX 75455 Page 1 of 1 ( Race Ethnicity American Indian or II Black or INative Hawaiian orI Hispanic rUnit No. Tenant Name Age Relationship Status Gender Alaskan Native Asian African American Pacific Islander White I Other or Latino

1601A Bedsworth, Lloyd 76 Head E Male XX 1601B Walker, Shambrika 29 Head H Female XX 1601C Campbell, Kali 19 Head H Female XX 160lD Frazier, Karen 48 Head D Female XX 1602A MARS, WILLIAM 36 Head D Male XX 1602B Milner, Sandra 58 Head H Female XX 1602C Derrick, Jolmny 63 Head E Male XX 1602D JOHNSON, WANDA 67 Head E Female XX 1603A HORTON, MYRTLE 93 Head E Female XX 1603B GANN,DANNY 70 Head E Male XX 1603C Self,Irby 79 Head E Male XX 1603D Green, Joseph 27 Head H Male XX 1604A Winston, Willie 67 Head E Male XX 1604B Gibson, Edith 70 Head E Female XX 1604C Pike, Frances 80 Head E Female XX 1604D GRIGSBY, CAROLYN 78 Head E Female XX 1605A Jones, Nancy No-Cer! 1605B ZELAYA, NORA 39 Head D Female XX 1605C VACANT, 1605D James, Dennis 54 Head H Male XX 1606A JONES, MARILYN 63 Head ED Female XX 1606B Gartman, Virginia 72 Head E Female XX 1606C HOUSE, LEANNE 33 Head D Female XX 1606D WHATLEY, STEVEN 33 Head D Male XX '07A VACANT, ( J7B TRAYLOR, SHIRLEY 65 Head E Female XX i607C Webb, Connie 62 Head EH Female XX 16070 JONES, MELBA 57 Head D Female XX 160BA Hilton, Maxine 64 Head ED Female XX 1608B MCGILL, HELEN 57 Head D Female XX 1608C Jerigan, Galeen 53 Head H Female XX 1608D Bullard, Brenda 51 Head H Female XX 1609A Breazeale, Mary 68 Head E Female XX 1609B VACANT, 1609C Pelty, Gloria 68 Head E Female XX 1609D WHITTINGTON, MARY 72 Head E Male XX 1610A GOODLOW, RUBY 51 Head D Male XX 1610B LEWIS, FRANCIS 64 Head ED Male XX 1610C Cox,Donna 54 Head H Female XX 1610D DOBSON, SALLY 83 Head E Female XX 1611A VACANT, 161lB Johnson, Rudell 63 Head EH Male XX 1611C RAMOS, PRIMO 53 Head D Male XX XX 161lD Salinas, Jimmy 64 Head E Male XX XX 1613A SCOTT, JOANN 77 Head E Male XX 1613B VACANT, 1613C PAYNE, LINDA No-Cert 1613D Ryan, Shirley 74 Head E Female XX 1614A Lee, Linda 62 Head EH Female XX 1614B Pitts, Deborah 61 Head H Female XX 1614C Lee, Anna 68 Head E Female XX 1614D VACANT,

11: 44 26 Elderly ...... 59.09 % 16 Male .. 36.36 % 0 0 11 0 33 0 2 100.00 % 24 HandilDisable. 54.55 % 28 Female 63.64 % 0.00 % 0.00 % 25.00 % 0.00 % 75.00 % 0.00 % 4.55 % Average Age 60 €. eldJev'J > /,,-- H tic... () et, s ft. k, leJ eu) , ';{d((;t~ Race / Ethnicity Report

Pine Terrace 11 Tenant Certification in Effect 2/23/2014 1612 Amy (As of) Report Date: 0110112014 04:46PM Mt. Pleasant, TX 75455 Page 1 of 1 ( Race Etlmicity American Indian or Black or Native Hawaiian or Hispanic 0 II I II UnitNoo Tenant Name Age Relationship Status Gender Alaskan Native Asian Afiican American Pacific Islander White Other or Latino 1

01 Turner, Alice 67 Head E Female XX 02 Rockwell, Melody 34 Head D Female XX 03 Bums, Bravious 34 Head Male XX 04 Smyer, David 42 Head Male XX 05 VACANT, 36 06 Jackson, Harold 55 Head Male XX 07 Tnmer, Alice 67 Head E Female XX 08 VACANT, 67 09 VACANT, 93 10 Webster, Freddie 58 Head D Female XX 11 Dillard, Carolina 55 Head Female XX 12 Smith, Jeff 64 Head E Male XX 13 VACANT, 67 14 Quinn, James 46 Head Male XX 15 VACANT, 80 16 VACANT, 78 17 VACANT, 18 White, Jakehia 21 Head Female XX 19 Cason, Toni 25 Head Female XX 20 Melendez, Genna 33 Head Female XX XX 21 VACANT, 63 22 Davis, Karlton 21 Head Male XX 23 McGill, Brittnei 24 Head Female XX 24 Grant, Robert 43 Head D Male XX

( 31: 16 3 Elderly ...... 18.75% 7 Male .. 43.75 % I 0 13 0 2 0 I 100.00 % 3 HandiJDisable. 18.75 % 9 Female 56.25 % 6.25 % 0.00 % 81.25 % 0.00 % 12.50 % 0.00 % 6.25 % Average Age 51 Relocation plan was included in the transfer docket submitted to USDA-RD on February 25,2014. The cover letter, and Fed Ex receipt are attached. RELOCATION PLAN ( PINE TERRACE APARTMENTS

This property will have some vacant units when the rehabilitation program is initiated. Vacant units will be rehabilitated first but there is no one building that is completely vacant and in order to properly complete this work, a complete building must be vacant. As a result, 3 buildings will be vacated initially. After these units are completed, eligible residents that have been relocated will be offered their original, remodeled unit at the after rehabilitation rents with housing assistance payment. Then 3 more building will be vacated with residents moved within the property. This process will be completed until all 19 buildings (76 units) are completed. During this process, residents will continue to pay rent on their units but any cost ofrelocation including moving, storage, utility deposits, etc will be paid by the property owner in accordance with HUD Handbook 1378.0 Tenant Assistance, Relocation and Real Property Acquisitions. No new leases will be executed during the remodel process so no new residents will be added.

This is primarily an elderly only property and at this time no school aged children occupy a unit.

Meetings will be held on site and counselors will be available periodically on site to answer questions, provide information and help residents with the necessary temporary relocation. Adequate notice will be provided so residents have a reasonable time to move. ( Counselors will assist residents complete the required paperwork for the move, help arrange the actual move, assist in transferring utilities and other requirements ofthe temporary relocation. The residents will have a reasonable choice ofunits for short term relocation while their unit is being remodeled. We will make arrangements with the owners ofthe alternative housing to provide short term leases.

Ifany residents have special needs because ofdisability, job location or children's schooling, these will be considered.

The difference in the resident's current rent and the rent for this temporary apartment will be paid by the owner. Additionally, the owner will reimburse reasonable moving costs including actual cost ofmoving, storage, and deposits. The goal is that residents will have no cost associated with this temporary relocation.

( RELOCATION BUDGET ( Counselors - 100 hours at $20 per hour $2,000 Moving - 120 moves and returns at $200 each 24,000 Storage Rent - warehouse for 12 months on short term Leases @ $600 per month 7,200 Utility Deposits 30 electric deposits at $100 3,000 water deposits (city has agreed to waive) o Special needs - medical equipment set up, etc. 5,000 Short term rent 88 nights at $100 8,800 Total relocation budget $50,000

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( LAKEWOOD PROPERTY MANAGEMENT} LLC 4925 Greenville Ave., Ste. 1305 Dallas, Texas 75206 Phone 214-277-4839

______~ N N ~ _ February 23,2014

Mr. Larry Jones Acting Housing Program Director USDA Rural Development 101 South Main, Suite 102 Temple, TX 76501 ·7 c"", c! U 4- ,--1.. J Via Federal Express . JtJD 202-D ~ ~-b

Re: Pine Te11'ace Apartments 1612 Amy Drive Mt. Pleasant, Texas Request to transfer ownership and prepay loan

Dear Mr. Jones:

Housing Associates ofMt. Pleasant has executed a contract to sell the Pine Terrace Apartments to Lakewood Property Management who has assigned the contract to Pine Terrace Housing, Ltd. Pine TelTace Housing has submitted a preapplication and will be submitting an application for an allocation of housing tax credits from the Texas Department ofHousing and Community Affairs to help finance the purchase and rehabilitation ofthis propelty. Itis our intention to combine phase one and two into one property. The loan will be paid offin full at transfer.

We have enclosed a Transfer Request according to the Transfer Request Checklist, Attachment 7-D, HB 3-3560. Please contact me with any questions.

bel' nanagement.com

Qr.~rnv 6'fr!tIlf!l~W'"t? We do not discriminate againstpersons with disabilities This institution is an equal opportunity provider and employer .Page 1 01 1

From: (214)217-4839 OriglnIO:TRLA FecI.1Dz. ~~!N~~~W~E814 DanAlIgeillr &press CAD: 1027H6f3llNET3490 ---:-:=:::::~~:~;;~;4==n. ~~~~_. O'W'lil1fiiilililil~[~illllllllll~IIIIIIIIIII~11I111111

SHIP TO: (254) 742·9765 BilL SENDER Ref# PT hansrer applications Larry Jones Inv.I,.# PON USDARD D.plll 101 South MaIn Suite 102 TEMPLE, TX 76501 WED - 26 FEB AA STANDARD OVERNIGHT TRK# 7980 2828 4536 []ill] 76501 lX-US ,II 44 TPLA AUS II 52201F.i32FlfmI Aller printing this label: 1. Use Ihe 'Print' button on this page to print your label to your laser or Inkjet printer. 2. Fold the printed page along the horizonlalline. 3. Place label In shipping pouch end affix It to your shipment so Ihatlhe bercode portion of the label can be read and scanned.

Warning: Use only Ihe prinled original label for shipping. Using a pholocopy of this label ror shipping purposes Is fraudulent and could Iesultln addlUonal billing charges, along with Ihe cancellallon or your FedEx accounl number. Use or Ihls system conslilules your agreement to the service conditions In Ihe current FedEx Service Guide, available on fedex.com.FedEx will not be responsible for any clelm In excess or $100 per package, whelher the result of loss, damage, delay, non-dellvery,mlsdellvery,or mlslnformalion, unless you declare a higher value, pay an addlllonal charge, document your aclualloss and file a timely clalm.Llmltallons found In the currenl FedEx Service Guide apply. Your righllo recover from FedEx for any loss, Including Intrinsic velue of the packege, loss of sales, Income Inleresl, profit, allomey's fees, costs, and other forms of demage whether direct, Incldenlal,consequenlial, or special Is IImlled to the grealer or $100 or Ihe aulhorized declared velue. Recovery cannol exceed aclual documenled 10ss.Maxlmum for Items of extraordinary value Is $1,000, e.g. Jewalry, precious melals, negoliable Instrumenls and other Ilems IIsled In our ServlceGulde. Wrillen claims must be filed within slricillme IImlls, see current FedEx Service Guida.

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https://www.fedex.com/shipping/html/enJPrintIFrame.html 2/25/2014 Dan LPM

From: [email protected] Sent: Wednesday, February 26, 2014 9:29 AM To: [email protected] Subject: FedEx Shipment 798028284536 Delivered

fedex,colll I Ship I Track I Manage I Learn I Office/Print Services Your package has been delivered Tracking # 798028284536

Ship (P/U) date: Delivery date: Tuesday, 2/25/14 VVednesday, 2/26/14 Dan Allgeier 9:26 AM Dallas, TX 75214 Larry Jones US USDARD Delivered 101 South Main Suite 102 TEMPLE, TX 76501 US

Shipment Facts

Our records indicate that the following package has been delivered,

Tracking number: 798028284536

Status: Delivered: 02/26/201409:26 AM Signed for By: D,FIKES

Reference: PT transfer applications

Signed for by: D,FIKES

Delivery location: TEMPLE, TX

Delivered to: Receptionist/Front Desk

Service type: FedEx Standard Overnight

Packaging type: FedEx Box

Number of pieces:

Weight: 8,00 lb.

Special handling/Services: Deliver Weekday

c:::::':1 Please do not respond to this message, This email was sent from an unattended mailbox, This report was generated at approximately 9:29 AM CST on 02/26/2014,

1 IxlSite Plan which: ( Ixlincludes a unit and building type table matrix that is consistent with the Rent Schedule and Buildi Configuration forms I •• x lidentifies all residential and common buildings [EJclearly delineates the flood plain boundary lines

[EJidentifies all easements ~if applicable, indicates probable placement of detention/retention pond(s) [EJindicates the location of parking spaces

Ixlincludes information regarding local parking requirements 1.>< IBUilding Floor Plans - including a square footage tabulation of breezeways, corridors, utility closets, p< patios, and any other square footage not included in NRA

Ixlunit Floor Plans for each type of Unit IxlElevations for each building type and must include: Ix la percentage estimate of the exterior composition IXlproposed roof pitch ~Photos of building elevations (for Rehab and Adaptive Reuse developments that will not alter the uni1 co nfiguration

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MARK NUM ER OF UNITS j.q 76 76

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Unit types should be enteredfrom smallest to largest based on "# ofBedrooms" and "Sq. Ft. Per Unit." "Untt Label" should correspond to the unit label or name used on the unit floor plan. "Building Label" should conform to the building label or name on the building floor plan. The total number ofunits per unit typeand totals for "Total # ofUnits" and "Total Sq Ft. for Unit Type" should match the rent schedule and site plan. If additional building types are needed, they are available by un-hiding columns Q through AA, and rows 51 through 79.

Building Configuration ~SingleFamily Construction ~SRO ~ Transitional (per §42(i)(3)(B)) ~DuPlex (Check all that apply): ~scattered Site ~FourPlex ~ > 4 Units Per Building ~Townhome

Development will have: ~Fire Sprinklers ~Elevators ~ # of Elevators ~Wt. Capacity

Free Paid Free Paid

Number of Parking Spaces(consistent ~~Shed or Flat Roof Carport Spaces ~~ Detached Garage Spaces with Architectural Drawings): ~~Attached Garage Spaces ~~ Uncovered Spaces

~~Structured Parking Garage Spaces

Floor & Wall Compositions: I. 100 1% Carpet/Vinyl/Resilient Flooring ~Ft.ceilingS

~% Ceramic Tile

~% other Describe:

Total # of Residential Buildings Unit Type 19 #of Unit Sq. Ft. Per Bed- #of Baths Number of Units Per Building Total # of Total Sq Ft for Unit Label Unit rooms Units T pe 1 1 1 576 76 43,776

76 43,776

Net Rentable Square Footage from Rent Schedule! ~3,776 !

."(' Interior Corridors '.( /, Total Interior Corridor Per Building Label 0 0 0 0 0 0 0 0 0 0 - Common Area i( Total Common Area Per Building Label 0 0 0 0 0 0 0 0 0 0 - Breezeways (1)( Total Breezeways Per Building Label 0 0 0 0 0 0 0 0 0 0 - Self Score Total: Ite Activity Bond Priority (For Tax-Exempt Bond Developments ONLY): _ Unit types must be entered from smallest to largest based on "# of Bedrooms" and "Unit Size", then within the same "# of Bedrooms" and "Unit Size" from lowest to hj"L ~~t "Rent Collected/Unit". 2nt Designations (select from Drop down menu) i Unit Size HOME Total Net Tenant Paid Rent Total HTC Other/ # of Bed- #of (Net Program Units HTF Units MRB Units # of Units Rentable Utility Collected Monthly Units Subsidy rooms Baths Rentable Sq. Rent Limit (Rent/Inc) Sq. Ft. Allow. /Unit Rent Ft.l (A) (B) (A) x (B) (E) (A) x (E) TC30% 6 1 1.0 576 3,456 282 116 166 996 TC50% 16 1 1.0 576 9,216 471 116 355 5,680 TC60% 54 1 1.0 576 31,104 565 116 449 24,246 0 - .. 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 1--'. 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - i 0 - r-'- 0 - TOTAL 76 43,776 30,922 Non Rental Income $4.93 per unitfmonth for: lalllldry 375 Non Rental Income 3.29 per unitfmonth for: fees 250 Non Rental Income 0.00 per unitfmonth for: + TOTAL NONRENTAL INCOME $8.22Ioer unit/month 625 = POTENTIAL GROSS MONTHLY INCOME 31,547 - Provision for Vacancy & Collection Loss % ofPotential Gross Income: 7.50% 2,366 - Rental Concessions = EFFECTIVE GROSS MONTHLY INCOME 29,181 x 12 = EFFECTIVE GROSS ANNUAL INCOME 350,172

% of LI % of Total %ofLi % of Total TC30% 8% 8% 6 HTF30% 0 TC40% 0 HTF40% 0 TC50% 21% 21% 16 HTF50% 0 HOUSING TC60% 71% 71% 54 HOUSING HTF60% 0 ~-76 TAX HTCllT()tal L TRUST HTF80% 0 .L ,~~~~ -~---:~ CREDITS EO 0 FUND MR 0 -_.~.- L MRlot

Note: If more than one entity (Sec. 8 administrator, public housing authority) is responsible for setting the utility allowance{s) in the area of the development location, then the selected utility allowance must be the one which most closely reflects the actual expenses.

If an independent utility cost evaluation is conducted it must include confirming documentation from all the relevant utility providers.

If other reductions to the tenant rent is required such as the cost of flood insurance for the tenant's contents, documentation for these . reductions to gross rent should also be attached. gy ,-..--'--'---'-----"-t-'--'---~'-+__E_n_e_r__,_,-+~_-+ __-+__-+---,,_'-+'1_'--=-+,__s_o_u_r_ce__oE~=~Ueltl/ityADla'Ot'eWance & . Utility .' Wbo Pays .. Source .',OBR tBR I 2BR 3BR 4BR #'~ 1- , Heating Tenant Electric $ 29 Zeffert & Assoc ..... '. Cooking Tenant Natural Gas 3/18/2013 Other Electric Tenant .. $ 60 $ 3

$ 13 $ 11 .,', Trash Landlord I, . . flattee Tenant .. ~, .' '. other Total Paid by tenant; , $ - $ 116 $- $ - $ - I ,

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132 2/17/148:32 AM Zeffert & Associates ( 03/0812013

To: Regional Office Subject: Utility Allowance Calculations Project: Pine Terrace I Location: Mt. Pleasant, TX Mangement: Lakewood Property Management

Based on billing history data, we have analyzed the utility usage for this Project and have calculated Utility Allowances for the apartment sizes shown below. Based on this data, we find that: Apt 2013 Calculated Change Change Proposed Size ,---~U~A~_ Average $ % UA LL] 115 ------::.~11.::..:6=-----r-----"l=---- _--,,0=.9--,--0/(:::....0__---=11:c..::6=---_

Apt Size Electric Gas Water Sewer Other* Total ["I] 61 I 29 I 13 11 2 116 *Underground Electric Distribution (

Ifyou have any questions about these calculations, please call the UA department at (800) 820-4079

2321 Weldon Parkway * 81. Louis, Missouri 63146 * (800) 820-4079 * (314) 514-7799 ANNUAL OPERATING EXPENSES ( General & Administrative Expenses Accounting $ 5,000.00 Advertising $ 500.00 Legal fees $ 1,000.00 Leased equipment $ 0.00 Postage & office supplies $ 600.00 Telephone $ 3,000.00 Other Payroll Service $ 2,400.00 Other Describe $ Total General & Administrative Expenses: Management Fee: Percent of Effective Gross Income: 5.00% Payroll. Payroll Tax & Employee Benefits Management $ 30,000.00 Maintenance $ 22,000.00 Other taxes $ 7,000.00 Other Describe Total Payroll, Payroll Tax------~-~~------~~~-& Employee Benefits: Repairs & Maintenance Elevator $ Exterminating $ 3,000.00 Grounds $ 12,000.00 Make-ready $ 12,000.00 Repairs $ 24,000.00 Pool $ Other Describe $ Other Describe $ Total Repairs & Maintenance: Utilities (Enter Development Owner expense) Electric $ 12,000.00 Natural gas $ 2,400.00 Trash $ 6,000.00 Wa~r&~wer $ 4,800.00 Other Describe $ Other Describe $ Total Utilities: Annual Property Insurance: Rate per net rentable square foot: $ 0.52 Property Taxes: Published Capitalization Rate: Source: Annual Property Taxes: $ Payments in Lieu of Taxes: $ Other Taxes Describe $ Other Taxes Describe $ Total Property Taxes: Reserve for Replacements: Annual reserves per unit: $ 300.00 22,800.00 Other Expenses ( Cable TV $ Supportive service contract fees $ TDHCA Compliance fees $ 2,280.00 TDHCA Bond Administration Fees (TDHCA as Bond Issuer Only) $ Security $ Other Describe $ Other Describe $ Total Other Expenses: $ 2,280.00 TOTAL ANNUAL EXPENSES Expense per unit: $ 3158.95 $ 240,080.00 Expense to Income Ratio: 68.56% NET OPERATING INCOME (before debt service) $ 110,091.70 Annual Debt Service Assumed USDA financing $ 14,496.00 538 loan $ 68,135.00 Localfunding $ 9,360.00 Describe Source $ TOTAL ANNUAL DEBT SERVICE Debt Coverage Ratio: 1.20 91,991.00 NET CASH FLOW 18,100.70

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15 Year Rental HousingOperatingProforrna

All Programs Must Completethe following: The pro forma should be based on the operating income and expense information for the base year (first year ofstabilized occupancy using today's best estimates ofrental income and expenses), and principal and interest debt service. The Department currently considers an annual growth rate of2%for income and 3% for expenses to be reasonably conservative estimertes. Written explanation for any -deviatians from these growth rates orfor assumptions other than straight-line growth made during the proforma period should be attached to this exhibit. INCOME I YEAR 1 I YEAR 2 I YEAR 3 I YEAR 4 I YEAR 5 YEAR 10 YEAR 15 POTENTIAL GROSS ANNUAL RENTAL INCOME I $371,064 I $378,485 I $386,055 I $393,776 1$401,652 $443,456 $489,611 Secondary Income 1 $ 7,500.00 I $ 7,650.00 I $ 7,803.00 I$ 7,959.06 I $ 8,118.241 $ 8,963.191$ 9,896.09 POTENTIAL GROSS ANNUAL INCOME I $378,564 1$386,135 I $393,858 I $401,735 I $409;770 $452,419 $499,507 Provision for Vacancy &CoJlection Loss 1$ 28,392.30 I $ 28,960.15 I $ 29,539.35 I $ 30,130.14 I $ 30,732.741 $ 33,931.43 I $ 37,463.04 Rental Cqncessions 1$ EFFECTIVE GROSS ANNUAL INCOME $350,172 $357,175 $364,319 $371,605 $379,037 $418,488 $462,044 EXPENSES General&,Administrative Expenses $ 12,500.00 $12,875 $13,261 $13,659 $14,069 $16,310 $18,907 Management Fee $ 17,500.00 $ 18,025.00 $ 18,565.75 $ 19,122.72 $ 19,696.40 $ 22,833.53 $ 26,470:32 Payroll, Payroll Tax & Employee Benefits $ 59,000.00 $ 60,770.00 $ 62,593.10 - $ 64,470.89 $ 66,405.02 $ 76,981.62 $ 89,242.79 Repairs &.Maintenance $' 51,000.00 $ 52,530.00 $ 54,105.90 $ 55,729.08 $ 57,400.95 $ 66,543.43 $ 77,142.08 Electric & Gas Utilities $ 14,400.00 $ 14,832.00 $ 15,276.96 $ 15,735.27 $ 16,207.33 $ 18,788.73 $ 21,781.29 Water, Sewer & Trash U~i1ities $ 10,800.00 $ 11,124.00 $ 11,457.72 $ 11,801.45 $ 12,155.50 $ 14,091.55 $ 16,335.97 Annual Property Insurance Premiums $ 22,800.00 $ 23,484:00 $ 24,188.52 $ 24,914.18 $ 25,661.60 $ 29,748.83 $ 34,487.05 PropertyTax $ 27,000.00 $ 27,810.00 $ 28,644.30 $ 29,503.63 $ 30,388.74 $ 35,228.88 $ 40;839.92 Reserve for Replacements $ 22,800.00 $ 23,484.00 $ 24,188.52 $ 24,914.18 $ 25,661.60 $ 29,748.83 $ 34,487.05 Other Expenses: $ 2,280.00 $ 2,348.40 $ 2,418.85 $ 2,491.42 $ 2,566.16 $ 2,974.88 $ 3,448.70 TOTALA~NUAL EXPENSES $240,080 $247,282 $254,701 $262,342 $270,212 $313,250 $363,143 NET OPERATING INCOME $110,092 $109,893 $109,618 $109,263 $108,825 $105,238 $98,902 DEBT SERVICE EirsfReed'ofdtri!ist~Wr1uali\~oanT~yi:rl~ttit~'i:<," :;"7,' $61,892 $61,892 $61,892 $61,892 $61,892 $61,892 $61,892 Second Deed ofTrust Annual Loan Payment 14,491 14,491 14,491 14,491 14,491 14,491 14,491 Third Deed ofTrust Annual Loan Payment 9,360 9,360 9,360 9,360 9,360 9,360 9,360 Other Annual Required Payment: Other Annual Required Payment: NET CASfI FLOW T $24,3491 $24,150 I $23,8751 $23,52oT $23,0821 $19,4951 $13,159 Debt Coverage Ratio 1 1.28 1.28/ 1.28 " 1.27 1.27 1.23! 1'.15 Other (Describe) Other (Describe)

Phone: 72-7- 233-oseg Email: r±;\(~ ~ cso..L,~.c.,..,'(Vl

A:/r!Y); 1Zczx r<) ,77/h!; z,( ZS(/'-I Signature, Authorized Repres\mtative, Construction or Printed Name L Date Permanent Lender

PlY, Co TIt(r G._~ "- To..--,;} .IT This form must be submitted with the Development Cost Schedule ifthe development has offsite costs, whether those costs are included in the budget as a line item, embedded in the acquisition costs, or referenced in utility provider letters. Therefore, the total costs listed on this worksheet mayor may not exactly correspond with those off-site costs indicated on the Development Costs Schedule. However, all costs listed here should be able to be justified in another place in the application.

Column A: The offsite activity reflected here should correspond to the offsite activity reflected in the Development Cost Schedule or other supporting documentation. Columns Band C: In determining actual construction cost, two different methods may be used: Column D: To arrive at total construction costs in Column D: Column E: Any proposed activity involving the acquisition of real property, easements, rights-of-way, etc., must have the projected costs of this acquisition for the activity. Column F: Engineering/architectural costs must be broken out by the offsite work activity. Column G: for Column Total are obtained Columns

A. B. C. D. E. F. G. Materials or # of Total Construction Engineering / Activity Labor or Unit Price Acquisition Costs Total Activity Costs Units Costs Architectural Costs none ...

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Lines 35-3THidden Total $ -

Seal ~rdLUn:U1 negr.:.-.:;o::reU.:Tle;rrreel Printed Name ~ ...... ,...... ,...... ,..:hl,... ~,...... D",.In...... 111I.. +i~ ...... +i,......

Date This form must be submitted with the Development Cost Schedule as justification ofSite Work costs. Column A: The Site Work activity reflected here must match the Site Work activity reflected in the Development Cost Schedule. , Columns Bandc: In determining actual construction cost, two different methods may be used: The construction costs may be broken into labor (Column B) and' materials (Column C) for the activity; OR The use of unit price (Column B) and the number of units (Column C) data for the activity. Column 0: To arrive at total construction costs in Column D: If based on labor and materials, add Column B and Column Ctogether to arrive at total construction costs. If based on unit price measures, Column B is multiplied by Column Cto arrive at total construction costs. Column E: Any proposed activity involving the acquisition of real property, easements, rights-of-way, etc., must have the projected costs ofthis acquisition for the activity. Column F: Engineering/architectural costs must be broken out by the Site Work activity. Column G: Figures for Column G, Total Activity Cost, are obtained by adding together Columns 0, E, and Fto get the total costs. Ififlf A. B. C. D. E. F. G. Materials or# of Total Construction EngineeringI Activity Labor or Unit Pric~ Acquisition Costs Total Activity Costs Units Costs Architectural Costs Termite Treatment $ ·50,000.00 .. '1 S 50;000.00 $ - $ - S 50,000 . '. Paving repair $ 50,000.00 '. 1 $ 50,000.00 $ 50,000 Striping $ .. 1,000.00 ·1 $ - 1,000.00 $ 1,000 Landscape $ 20,000.00 1 $ 20,000.00 $ 20,000 BBQ grills, etc $ 7,500.00 ·1 $ ·7,500.00 $ 7,500

Fence I S . 20,000.00 1 $ 20,000.00 $ 20,000

PO Boxes $ 7J 600.00 1 $ 7,600.00 $ 7,600 Retaining Walls $ 25,000.00 1 $ 25,000.00 $ 25,000 Site sign $ 3,000.00 1 $ 3,000.00 $ 3,000 ADA $ 22,400.00 '1 $ 22,400.00 $ 22,400

Total .- ..'-nf*~~~':::'.~·'4,I.~~~~ $ 206,500 £-<- -" ..... ~A p~. a~M2 Wayne L. Snoddy Seal ;~,i lrQ~, Signa "'I t:: 6l.8&¢terea Engineer Printed Name -'-""";;""'. ~.. tl)J! ....'Yif'6.~...._. ~···N··:-"'" ·2124/2014 :~~~:.~;;~gi}J-~:'"';"~:~ ~~":;~3~ ~ "'.:::.9":1 ·l!o~rl:.';'" Date , o~ A ,.,h.:.J.." .6.';. J:; 4:'<: "':"" ~ ,~.,,>- J/ -¥ ~~VJ'6 ~ \'f;,W -,,~..;, ~.~~ ~,.. ..Q .:at:..: w ,."£~~.;~~-.;...... :::' Development Cost Schedule

Self Score Total:1 124 .,

( evelopment Cost Schedule must be consistent with the Summary Sources and Uses of Funds Statement. All Applications must complete the total development cost column and the Tax Payer Identification column. Only HTC applications must complete the Eligible Basis columns and the Requested Credit calculation below:

TOTAL DEVELOPMENT SUMMARY Total IEligible Basis (If Applicable) Scratch Paper/Notes Cost I Acquisition I New/Rehab. ACQUISITION Site acquisition cost Existing building acquisition cost Closing costs & acq. legal fees Other (specify) - see footnote 1 Other (specify) - see footnote 1 Subtotal Acquisition Cost 2 OFF-SITES Off-site concrete Storm drains & devices Water & fire hydrants Off-site utilities Sewer lateral(s) Off-site paving Off-site electrical Other (specify) - see footnote 1 Other (specify) - see footnote 1

( 3 Subtotal Off-Sites Cost ~._ . .NORK o~ Demolition ;--;: ------~ Rough grading 0 0 0 Fine grading 0 0 0 On-site concrete 25,000 0 25,000 0- On-site electrical 0 0 On-site paving . 50,000 0 50,000 0- On-site utilities 0 0 Decorative masonry 0 0 0 Bumper stops, striping & signs 4,000 0 4,000 PLEASE SPECIFY - see footnote 1 50,000 0 50,000 Subtotal Site Work Cost $129,000 $0 $129,000 SITE AMENITIES - Landscaping 20,000 20,000 Pool and decking 0 Athletic court(s), playground(s) 7,500 7,500 Fencing 20,000 20,000 PLEASE SPECIFY - see footnote 1 30,000 30,000 Subtotal Site Amenities Cost $77,500 $0 $77,500 BUILDING COSTS*: Concrete 60,000 60,000

Masonry 0 - I\/Iatals 0 ( Js and Plastics 80,000 80,000 Thermal and Moisture Protection 0 Roof Covering 70,000 70,000 Doors and Windows 250,000 250,000 BUILDING COSTS (Continued): Finishes 500,0001 500,0001 Specialties 0 Equipment 120,000 120,000 Furnishings 20,000 20,000 Special Construction 20,000 20,000 \p"'/eying Systems (Elevators) 0 ( dnical (HVAC; Plumbing) 500,000 500,000 Electrical 400,000 400,000 • Individually itemize costs below:

Detached Community Facilities/Building 10,000 10,000 .'. '. Carports and/or Garages 0 ....

Lead-Based Paint Abatement 0 "'. •••• Asbestos Abatement 0 , .... ' Structured Parking 0

, C ',c" Commercial Space Costs , I , Other(specify)- seefootnote 1 0 Subtotal Building Costs $2,030,000 $0 $2,030,000

TOTAL BUILDING COSTS & SITE WORK $2,236,5001 $2,236,5001 $ ' .. 2,465,618

(including site amenities) ••• Contingency 8.94%1--_-'-_-'--~-----_+------'-_'_'_l ••• TOTAL HARD COSTS

OTHER CONSTRUCTION COSTS

General requirements «6%) 5.99% 134,000 134,000 5.99%0 Field supervision (Within GR limit) 0

Contractor overhead «2%) 2.00% 44,667 44,667 2.00%0 G & A Field (within overhead limit) 0

Contractor profit «6%) 5.99% 134,000 134,000 5.99%0 TOTAL CONTRACTOR FEES $312,667 $0 $312,667 , TOTAL CONSTRUCTION CONTRACT I' $2,749,1671 sol $2,749,1671

3 SOFTCOSTS Architectural- Design fees 50,000 50,000 Architectural - Supervision fees 15,000 15,000 Engineering fees 25,000 25,000 Real estate attorney/other legal fees 0 Accounting fees 0 Impact Fees 0 ... Building permits & related costs 56,000 56,000 Appraisal 8,000 8,000 ... Market analysis ... 0 ." Environmental assessment 0 Soils report 5,000 5,000 Survey 15,000 15,000 .. Marketing 20,000 )' if ,.

Partnership Hazard & liability insurance 15,000 ) 15,000 Real property taxes 15,000 15,000 Personal property taxes 0 Tenant relocation expenses 50,000 50,000 PLEASE SPECIFY - see footnote 1 10,000 10,000 Other (specify) - see footnote 1 0 ( Subtotal Soft Cost $284,000 $0 $264,000 't'II~ANCING: CONSTRUCTION LOAN(S)3 Interest 85,000 85,000 Loan origination fees 10,000 10,000 Title & recording fees 30,000 30,000 Closing costs & legal fees 25,000 25,000 Inspection fees 0 Credit Report 0 Discount Points 0 p''''r (specify) -see footnote 1 0 \. (specify) - see footnote 1 0 PERMANENT LOAN(S) '.' Loan origination fees Title & recording fees Closing costs & legal Bond premium Credit report

Discount points . Credit enhancement fees ....

Prepaid MIP " Other (specify) -see footnote 1 Other (specify) - see footnote 1 .' .. BRIDGE LOAN(S) Interest 0 Loan origination fees 0 •• Title & recording fees 0 Closing costs & legal fees •• 0 Other (specify) - see footnote 1 0 Other (specify) ~ see footnote 1 0 OTHER FINANCING COSTS3 Tax credit fees 24,000 Tax and/or bond counsel 0 Payment bonds ( 1rmance bonds 0 . \. _.lit enhancement fees 0 Mortgage insurance premiums 0

Cost of underwriting & issuance 0 , ..

Syndication organizational cost 25,000 ,"

Tax opinion ,". ---'-- Contractor Guarantee Fee 0 Developer Guarantee Fee 0 PLEASE SPECIFY - see footnote 1 10,000 10,000 Other (specify) - see footnote 1 0 Subtotal Financing Cost $256,000 $0 $160,000 .',

DEVELOPER FEES3 Housing consultant fees4 0 0 General & administrative 100,000 100,000 .... Profit or fee 559,000 559,000 ... Subtotal Developer Fees 14.99% $659,000 $0 $659,000 14.99% .'.

RESERVES Rent-up Operating 120,000 Replacement 7,600 Escrows c"btotal Reserves $127,600 $0 $0 ( s tOTAL HOUSING DEVELOPMENT COSTS $5,753,7671 $1,223,8001 $3,832,1671

The following calculations are for HTC Applications only. Deduct From Basis: Federal grants used to finance costs in Eligible Basis 01 01 Non-qualified non-recourse financing 0 0 Non-qualified portion of higher quality units §42(d)(5) 0 0 Historic Credits (residential portion only) 0 0 Total Eligible Basis $1,223,800 $3,832,167 ~·*";'!h Cost Area Adjustment (100% or 130%) it 130% ( Adjusted Basis $1,223,800 $4,981,817 Applicable Fraction 100% 100% Total Qualified Basis I $6,205,617 $1,223,800 $4,981,817 6 Applicable Percentage 3.41% 8.00% Credits Supported by Eligible Basis I $440,277 $41,732 $398,545 (May be greater than actual request)

Name of contact for Cost Estimate: Dr-Ill~\ ~\~e---t,------,-C.~------,-.... ===_

Phone Number for Contact: J.\ crYA-{A'6~j

Footnotes:

1 An itemized description of all"other" costs must be included at the end of this exhibit.

2 All Off-Site costs must be justified by a Third Party engineer in accordance with the Department's format provided in the Offsite Cost Breakdown form.

3 (HTC Only) Site Work expenses, indirect construction costs, developer fees, construction loan financing and other financing costs mayor may not be included in Eligible Basis. Site Work costs must be justified by a Third Party engineer in accordance with the Department's format provided in the Site Work Cost Breakdown form.

4 (HTC Only) Only fees paid to a consultant for duties which are not ordinarily the responsibility of the developer, can be included in Eligible Basis. Otherwise, consulting fees are included in the calculation of maximum developer fees.

5 (HTC Only) Provide all costs & Eligible Basis associated with the Development. ( -C Only) Use the appropriate Applicable Percentages as defined in §10.3 of the Uniform Mutifamily Rules. Development Budget ( Pine Terrace

Site work - other Termite Treatment

Site amenities - other Post office boxes ADA sidewalks, ramps, handrails, etc

Soft Cost - other CNA reports - $10,000

Other Financing Costs - Other Accounting (cost certification audit) - $10,000 .,"-"'"., /lds·

Describe all sources offunds and total uses offunds. Information must be consistent with the information provided throughout the Application (i.e. Financing Narrative, Term Sheets and Development Cast Schedule). Where funds such as tax credits, loan guarantees, bands are used, only the proceeds going into the development should be identified so that "sources" match "uses. "

Construction Period Permanent Period Lien Lien Financing Participants Funding Description I Position Position

Debt TDHCA HOME $0 0% TDHCA NSP $0 0% TDHCA Mortgage Revenue Bond $0 0% Churchill Stateside Conventional Loan $1,000,000 6.00% 1 $ 1,000,000 USDAcRD USDA!TXRD Loan(s) $570,000 1.00% 2 $ 570,000 Local funding Local.GovernmentLoan $185,000 3.00% 2 $ 185,000

Churchill Stateside !:!IC.I $ 440,277 1$ 3,328,161 II 1$ 3,697,957 0.84 ~ '"'~r·\P'_

559.£8 $ .., 300.810 I B···· 1=-== Other

I I Total Sources of Fundsl $ 5,642,161 $ 5,753,767 Total Uses of $ 5,753,767

Briefly describe the complete financing plan for the Development, including the sources and uses of funds, matching funds (if applicable), and any other financing. The information must be consistent with all other documentation in this section. - ~, ,mancial Capacity and Construction Oversight If the Department's Direct Loan amounts to more than SO% of the Total Housing Development Cost, except for Developments also financed through the USDA-SiS program, the Application MUST include:

•A letter from a Third Party CPA verifying the capacity of the Owner or Developer to provide at least 10% of the Total Housing Development Cost as a short term loan for Development; and •A letter from the Developer's or Owner's bank(s) confirming funds amounting to 10% of the Total Housing Development Cost are available; OR • Evidence of a line of credit or equivalent equal to at least 10% of the Total Housing Development Cost from a financial institution that is available for use during the proposed development activities.

Additionally, this tab must include a brief narrative of the direct (Le. onsite) ongoing oversight of the construction and development process that will be performed. The narrative should address the Applicant's experience overseeing the I successful development and completion of other similar activities, including any specific construction management experienc~ of Applicant staff. .Ie extent thatMatch in the amount of 5% ofthe HOME award is provided, the interest rate may be adjusted to as low as 0%; otherwise, the interest rate will be as low as 2% and 2% match must be provided. Indicate the amount and source of Match funds in the appropriate spaces in the table below. Provide supporting documentation in the form of firm commitments from the match source. If a property tax abatement is pledged as Match, include a letter from the appropriate appraisal district documenting a specific cash value and duration for the abatement.

Generally, a Related Party contribution to the Development is not considered eligible Match. Please contact the Department for specific examples that are not provided in the Match Guidance below.

Pledged Type of Match Pledged Source of Funds Amount Non-Federal Grants »

Waived, foregone or deferred fees and charges (ex: debris removal and container fees, tap fees, building permits, other mandatory fees charged by the local municipality) **CANNOT INCLUDE DEVELOPER FEES** ... Below Market Financing Property Tax Abatement ... ~onated Non-Professional Labor .Jon-Federally Funded Infrastructure Rental Value of Donated Use of Site Preparation or Construction Equipment Donated Construction Materials Donated Site Preparation Donated Demolition Services Donated Real Property Total Value of Match Pledged $ - Total Amount of HOME funds Requested $ - TDHCA HOME Percentage of Project Funds to be Matched (Total Value of Match /Project Funds Requested) #DIV/Ol

( mpetitive HTC Applications ONLY)

( )mmitrilent of Development FundingbV Local Political Subdivision (§11.9(d)(2))

Local Political Subdivision Funding Amount $ 185,000 Per Unit Funding Amount: 2434.210526

per unit scoring threshold: eligible for points: i. Population 16,081 x 0.15 = $ 2,412 or $°15,000 L__ 2,413.--,~)er_unit. 11 ---."-'-- ii. Population 16,081 x 0.10 $ 1,608 or $ ..10,()00 $~=c _~60~per.\Jnit 10 = I>····~cc.~_

-~-----~-- iii. Population 16,081 x 0.05 $ 804 or $ 5,000 .8_04 peru~lt_ 9 = ------iv. Population 16,081 x 0.025 $ 402 or $ 1,000 .~. p~.unit 8 = ._._------. - J .. ._ 402 v. Population 16,081 x 0.01 = $ 161 or $ 500 $ 161 per unit 7

Firm Commitmentfrom Local Political Subdivision in form ofresolution? Yes

I2Jsource is in the form a grant, in-kind donation, or permanent loan.

r-- ...... T_o_t_al_p_o_in_t_s_C_1a~im-e-d:-====1=4==~1 2·IFinandal Feasibiuty(§11:9(e)(lU. •... ·1

~Eligible Pro-Forma and letter stating the Development is financially feasible. o I ~=1=8=~1 li]Eligible Pro-Forma and I~tter stating Development and Principals are acceptable.

Total Points Claimed: Io0o.-__18__1

3.ILeVeraging of Private, State, and Federal Resources (§2306.6725(a)(3); §11.9(e)(4» .' "1

Percent of Units restricted to serve households at or below 30% of AMGI 7.89%

HTC funding request as a percent of Total Housing Development Cost leligible for points: I DDevelopment Leverages CDBG Disaster Recovery, HOPE VI, RAD or Choice Neighborhood Funding I 0 1 Housing Tax Credit Request 8% ofTotal Housing Development Cost 1 3 1 Housing Tax Credit Request 9% of Total Housing Development Cost I 2 I Housing Tax Credit Request 10% of Total Housing Development Cost I 1 I * Be sure no more than 50% ofDeveloper fees are deferred. Total Points Claimed: 1 3 1 (

IxlExecuted Pro Forma from Permanent or Construction Lender Ix >ILetter from lender regarding approval of Principals 1)

1>IEvidence of any Gap Financing DEvidence of any Owner Contributions

IxlEvidence of Equity Financing (HTC applications only)

IxlFUnding from a Local Political Subdivision (mark all that are appropriate) Ix Icommitment in the form of a resolution DLetter stating that application was received and funding will occur by September 1

GJStatement from LPS that funds were not first provided by the Applicant

DEvidence of Rental Assistance/Subsidy 15 Year Renta l HouSihg OperatingPl'oforrna

All Programs Must Complete the following: The pro forma should be based on the operating income and expense information for the base year (first year ofstabilized occupancy using today's best estimates ofrental income and expenses), and prindpal and interest debt service. The Department currently considers an annual growth rate of2%forincome and 3% for expenses to be reasonably conservative estimates. Written explanation for any deviations from these growth rates or for assumptions other than straight-line growth made during the proforma period should be attached to this exhibit. INCOME I YEAR 1 I YEAR 2 I YEAR 3 I YEAR 4 I YEAR 5 YEAR 10 YEAR 15 POTENTIAL GROSS ANNUAL RENTAL INCOME I $371,064 I $378,485 I $386,055 I $393,n6 I $401,652 $443,456 $489,611 Secondary Income I $ 7,500.00 I $ 7,650.00 I $ 7,803.00 I $ 7,959.06 I $ 8,118.24 I $ 8,963.19 I $ 9,896.09 POTENTIAL GROSS ANNUAl INCOME I $378,564 I $386,135 I $393,858 I $401,735 I $409,nO $452,419 $499,507 Provision for Vacancy & Collection Loss I $ 28,392.30 I $ 28,960.15 I $ 29,539.35 I $ 30,130.14 I $ 30,732.74 I $ 33,931.43 I $ 37,463.04 Rental Concessions I $ EFFECTIVE GROSS ANNUAL INCOME $350,172 $357,175 $364,319 $371,605 $379,037 $418,488 $462,044 EXPENSES General & Administrative Expenses $ 12,500.00 $12,875 $13,261 $13,659 $14,069 $16,310 $18,907 Management Fee $ 17,500.00 $ 18,025.00 $ 18,565.75 $ 19,122.72 $ 19,696.40 $ 22,833.53 $ 26,470.32 Payroll, Payroll Tax & Employee Benefits $ 59,000.00 $ 60,nO.Oo $ 62,593.10 $ 64,470.89 $ 66,405.02 $ 76,981.62 $ 89,242.79 !Repairs & Maintenance $. 51,000.00 $ 52,530.00 $ 54,105.90 $ 55,729.08 $ 57,400.95 $ 66,543.43 $ 77,142.08 Electric & Gas Utilities $ 14,400.00 $ 14,832.00 $ 15,276.96 $ 15,735.27 $ 16,207.33 $ 18,788.73 $ 21,781.29 Water, Sewer & Trash Utilities $ 10,800.00 $ 11,124.00 $ 11,457.72 $ l1,801.4S $ 12,155.50 $ 14,091.55 $ 16,335.97 Annual Property Insurance Premiums $ 22,800.00 $ 23,484.00 $ 24,188.52 $ 24,914.18 $ 25,661.60 $ 29,748.83 $ 34,487.05 Property Tax $ 27,000.00 $ 27,810.00 $ 28,644.30 $ 29,503.63 $ 30,388.74 $ 35,228.88 $ 40,839.92 Reserve for Replacements $ 22,800.00 $ 23,484.00 $ 24,188.52 $ 24,914.18 $ 25,661.60 $ 29,748.83 $ 34,487.05 Other Expenses: $ 2,280.00 $ 2,348.40 $ 2,418.85 $ 2,491.42 $ 2,566.16 $ 2,974.88 $ 3,448.70 TOTALAI\INUAL EXPENSES $240,080 $247,282 $254,701 $262,342 $270,212 $313,250 $363,143 NET OPERATING INCOME $110,092 $109,893 $109,618 $109,263 $108,825 $105,238 $98,902

$61,892 $61,892 $61,892 $61,892 $61,892 $61,892 $61,892 Second Deed ofTrust Annual Loan Payment I 14,491 14,491 14,491 14,491 14,491 14,491 14,491 Third Deed ofTrust Annual Loan Payment 1 9,360 9,360 9,360 9,360 9,360 9,360 9,360 Other Annual Required Payment: Other Annual Required Payment: NET CASfi FLOW $23,082 $13,159 Debt Coverage Ratio 1.27 1.15 Other (Describe) Other(Describe)

Phone: 7 2: ? - Z"33 - oseg Email: c±illc.'-1 0~S-~_~.CT2M ~ v v jZczo>; ('.J, Id I.e. ~ 6( 2. S(I '-I Signature, Authorized Represlmtative, Construction or Printed Name l Date Permanent Lender

P,'vl(' Te(((J..~~ TCL-'~ .IT -_._ __------

-_._- I (

February 20,2014

Pine Terrace Housing, Ltd. 4925 Greenville Ave Suite 1305 Dallas, Texas 75206

Attn: Mr. Allgeier

Re: Pine Terrace Apartments - Permanent Financing Letter

Churchill Mortgage Investment LLC, a subsidiary of Churchill Stateside Group, LLC (collectively defined as the "Lender"), is pleased to provide this conditional commitment for permanent financing. The terms and conditions ofthe proposed permanent financing are as follows:

Subject Property: Pine Terrace Apartments, 1612 Amy Drive, Mt. Pleasant, Texas

Borrower: Pine Terrace Housing, Ltd a Texas limited partnership. Loan Amount: $1,000,000 (subject to LTV and DSCR constraints described below) Note Rate: 5.50% fixed Term: Not less than 25 years; Maximum of40 years Amortization: Not less than 25 years; Maximum of40 years O&M Reserve: 2% ofthe Loan Amount. It is the intent of the Lender to request that a portion of the equity provider's funded operating reserve account be used to meet this requirement; subject to their approval Replacement Reserve: $1,000 per/unit to have accumulated by the end ofthe third year Lender Financing Fee: 1% ofLoan Amount Other Fees: The Borrower shall be responsible for the Lender's reasonable legal fees and any other reasonable fees incurred in the processing of the Borrower's application

3rd Party Reports: The Borrower shall be responsible for the cost ofall required third party reports. Loan-to-Value: 90% maximum based on all mandatory pay debt Debt Service Coverage Ratio: 1.15 minimum based on Lender's underwritten Net Operating Income

Funding is conditioned upon, but not limited to, the following:

1. Receipt and review by Lender ofall due diligence items and applicable third party reports; 2. Approval ofthe proposed transaction by Lender's Investment Committee; 3. Lien-free completion ofthe proposed improvement;

601 Cleveland Street, Suite 850 • Clearwater, FL 33755 Phone 727.461.2200. Fax 727.461.6047 Pine Terrace Apartments, Mt. Pleasant, Texas

4. 90% occupancy for 90 consecutive days prior to issuance ofPermanent Loan Note; 5. Payment ofall fees, escrows and reserve deposits.

Thank you for the opportunity to provide financing for this project. Please let me know ifyou have any questions related to this matter.

Sincerely,

CHURCHILL STATESIDE GROUP ~~9'~~ By: Daniel J. Flick VP - Southwest Regional Director

The foregoing is hereby agreed to and confirmed:

By: Pine Terrace Housing, Ltd

By: LPM Pine Terrace, LLC its General Partner

ManaginWNL~ ( By: Date:. Y2.tY/1 ,2014

Title: Member

Churchill Mortgage Investment LLC Page 2 (

CONSTRUCTION LOAN COMMITMENT

Date ofApplication: February 20,2014

Churchill Mortgage Investment LLC, a wholly owned subsidiary of Churchill Stateside Group, LLC ("CMI" or "Lender") and/or its assigns, is pleased to present this conditional commitment letter to Pine Terrace Housing, Ltd, a Texas limited partnership (the "Borrower"). The purpose ofthis letter is to engage and retain CMI on an exclusive basis to underwrite a construction loan for Pine Terrace Apartments located in Mt. Pleasant, Texas (the "Apartment Community").

I. GENERAL LOAN TERMS AND CONDITIONS:

1. CONSTRUCfION LoAN AMOUNT: Up to $2,536,500; in no event shall the Loan exceed (i) 80% ofthe total development costs; or, (ii) 80% of the appraised restricted value plus the investment value of the tax credits.

2. INTEREST RATE: 6%; fixed for the initial term ofthe Loan.

3. LOAN TERM: 24 months from the date ofthe closing ofthe Construction Loan.

4. EXTENSION OF LoAN TERM: Should the Borrower be unable to complete construction of the Apartment Community and/or close on the permanent financing within the term of the Construction Loan, the Construction Loan may be extended at the sole discretion of Lender with or without the requestor consent ofthe Borrower. If an extension is granted, the Borrower will be charged 25 basis points (0.25%) based on the face amount ofthe promissory note for the initial3-month extension, and 25 basis points (0.25%) for any subsequent 3-month extension. No more than 4, 3-month extensions shall be allowed by Lender. Borrower must notify Lender ofan extension request 30 days prior to the expiration ofthe Construction Loan. Extension fees shall be paid on or before the date ofextension or the extension will not be granted and the Loan will be due.

5. SECURITY: The Construction Loan will be secured by a first mortgage lien on the Apartment Community, all associated personal property and improvements, and all rents, fixtures, permits, contract documents, and all rights Borrower may have as developer of the Apartment Community, including syndication or equity contributions, profits and proceeds therefrom. The Construction Loan shall be full recourse to the Borrower, its General Partners and Guarantor(s).

6. CONSTRUCfION LoAN COMMITMENT FEE: 1.00% of the Construction Loan Amount. The Construction Loan Commitment Fee is fully earned upon submission ofLender's Approval ofFunding ("Notice") to Borrower. Borrower agrees to pay Lender the Commitment Fee at the earlier of thirty (30) days from the date ofNotice or Construction Loan Closing.

7. DUE DILIGENCE FEE: A non-refundable due diligence fee in the amount of$30,000 is required, which shall be applied to the following:

a. $20,000 shall be applied to third party reports and other Lender due diligence expenses. Lender shall consider using existing third party reports on a case by case basis. In no event shall Lender accept reports prepared for another client unless a reliance letter is provided by the preparer of the report and/or Lender is named as a client on the report. Any reported prepared for someone other than Lender shall, at their sole discretion, require review by an independent qualified third party and said review fee shall be paid for by the Borrower. Said review does not guarantee acceptance of the report. If the Due Diligence Fee is insufficient to cover all reasonable due diligence fees, the Borrower shall immediately provide funds requested by the Lender to cover

60 I Cleveland Street, Suite 850 Clearwater, FL 33755 Phone 727.461.2200 Fax 727.461.6047 Pine Terrace Apartments, Mt. Pleasant, Texas

costs or the Lender, at its discretion, shall request payment of the fees at Construction Loan ( Closing; and,

b. $10,000 shall be credited toward Lender Legal Fees due at Construction Loan Closing or legal fees incurred at or prior to termination ofthis Application.

8. LENDER LEGAL FEES: Borrower will be obligated to pay reasonable Lender legal fees, including local counsel engaged by Lender's attorney.

II. OTHER TERMS AND CONDITIONS

1. Low INCOME HOUSING TAX CREDITS ("TAX CREDITS"): Ifthe Apartments Community is currently participating in or plans to receive Tax Credits, the Borrower agrees to rent the set-aside units to only income-qualified tenants and Lender must be satisfied that the Tax Credits have been applied for and granted by the applicable state agency. The Tax Credits must be conditionally assigned to Lender as additional security for the Construction Loan.

2. PAYMENT AND PERFORMANCE BOND: At Lender's discretion, the General Contractor shall furnish a 100% dual obligee payment and performance bond that shall be acceptable to Lender and shall show Lender's interest as construction lender.

3. START OF CONSTRUCTION: Unless Borrower receives written authorization from Lender, Borrower shall not grade, stake, or otherwise start development on the Apartment Community site until after Construction Loan Closing. Borrower understands and agrees that in the event Lender approves the commencement of construction prior to Construction Loan Closing, Borrower shall provide title insurance protection satisfactory to Lender with respect to filed and unfiled mechanics or similar liens.

4. INSPECTING ARCHITEcrIENGINEER: At Borrower's expense, the Lender's approved Inspecting Architect/Engineer will perform the monthly inspections and approve monthly draw requests. The ( estimated total expense for monthly inspections will be paid at the Construction Loan Closing. The Lender's Inspecting Architect/Engineer will not assume any responsibility of the Architect or Engineer(s) of Record. The Borrower's Architect/Engineer(s) shall be responsible for inspecting the Apartment Community monthly and approving the monthly draw requests on behalf of the Borrower and, at completion, attest that the Apartment Community was built in accordance with approved plans and specifications. Borrower shall provide copies of Borrower's Architect/Engineer(s)' monthly inspection reports to Lender.

5. DRAW REQUESTS: Draw Requests shall be once monthly as approved by Lender's Inspecting Architect/Engineer and Lender will require all disbursements to be made through a Lender-approved title company (the "Disbursing Agent"), which disbursements shall include direct payment to sub contractors and suppliers along with the completion and execution of an Unconditional Waiver and Release of Lien form. When applicable, all payments to subcontractors and suppliers by the Disbursing Agent shall be approved by the General Contractor.

6. RETAINAGE: 10% Retainage/holdback based on all hard cost construction funds is required until 50% completion then 0% thereafter, provided there have been no significant construction problems or delays. In no event shall the total retainage fall below 5% of the total construction cost. Retainage must be detailed in the contract with the General Contractor.

7. RENTAL ACTIVITY REpORTS: Lender will require monthly (or at Lender's option weekly) status reports on rental activity during lease-up.

8. INSURANCE: The Borrower shall be required to maintain acceptable property & liability insurance and any other special coverages (Le. flood, earthquake, etc.) during the term ofthe Loan. Lender may at its discretion require funding of an escrow account to cover future premiums or if required by another lender or equity provider.

Churchill Mortgage Investment LLC Page 2 of3 9. PREPAYMENT: During the term of the Construction Loan, the Construction Loan may be prepaid in whole or in part at any time without penalty. Lender requires at least five (5) business day notice of prepayment.

10. ASSIGNMENT OF APPLICATION BY LENDER: The Application maybe assigned to another lender at the ( sole discretion ofLender 11. ApPLICATION EXPIRATION DATE: This Application will expire fifteen (15) business days following the date of this application ("Expiration Date") unless executed and returned to Lender prior to the Expiration Date with the required non-refundable Due Diligence Fee. If the executed Application together with the non-refundable Due Diligence Fee is not returned prior to the Expiration Date, this application shall be of no effect and the Borrower and Lender shall have no further obligations under the Application.

12. LENDER OBLIGATION EXPIRATION DATE: IfBorrower is unable to close the Construction Loan within ninety (90) days from Notice, Borrower shall have the option to purchase up to three (3), one-month extensions at a non-refundable fee equal to 25 basis points (0.25%) of the approved loan amount per extension. Further extensions shall be at the sole discretion ofthe Lender.

Borrower and its affiliates agree to keep information contained within this commitment letter confidential; provided, however, that such confidential information of CMf may be disclosed to the extent necessary only to those parties who need to know such information for the purpose ofevaluating any transactions under this commitment.

The Borrower agrees that CMl, its successors and/or its assigns shall be the Borrower's exclusive agent for providing construction fmancing for the Apartment Community. As always, we appreciate your business and look forward to working with you on this transaction.

Sincerely, CHURCHILL MORTGAGE INVESTMENT LLC and/or its Assigns

Daniel J. Flick VP - Southwest Regional Director

Churchill Mortgage Investment LLC Page 3 of3 ( February 20, 2014

Pine Terrace Housing, Ltd 4925 Greenville Ave Suite 1305 Dallas, Texas 75206 Attn: Daniel Allgeier

Re: Pine Terrace Apartments, Mt. Pleasant, Texas

Dear Mr. Allgeier,

I have received and reviewed the 15 year pro forma for Pine Terrace Apartments located at 1612 Amy Drive in Mt. Pleasant, TX. The attached pro forma, which has been prepared and executed by an authorized representative of Churchill Stateside Group projects total operating expenses, net operating income, and debt service for the first year of stabilized operation based on preliminary information provided by the borrower.

The attached pro forma indicates that the development would maintain no less than a 1.15 debt coverage ratio throughout the initial fifteen years. These projections, which indicate that the Development is expected to be feasible for fifteen years, are made based upon the preliminary infonnation provided by the borrower to this point, and are subject to Churchill Stateside Group due diligence review.

Additionally, Churchill Stateside Group has performed a preliminary review of the credit worthiness of Lakewood Property Management, ILC and Housing Associates, Inc. At this time, Churchill Stateside Group has no reservations with any of the Principals of the borrower.

Sincerely,

CHURCHill STATESIDE GROUP ~?-~ ~- -d.;/~ .. p. By: DanielJ. Flick Vice President, Southwest Regional Director

(

601 Cleveland Street, Suite 850 Clearwater, FL 33755 Phone 727.461.2200 Fax 727.461.6047 (

February 20, 2014

Pine Terrace Housing, Ltd 4925 Greenville Ave Suite 1305 Dallas, Texas 75206

Attn: Mr. Dan Allgeier

Re: Project: Pine Terrace Apartments Partnership: Pine Terrace Housing, Ltd a Texas Limited Partnership Property Location: Mt. Pleasant, Texas Number ofUnits: 76 units

Dear Mr. Allgeier:

Churchill Stateside Group ("CSG") is pleased to submit this Letter of Intent ("LOI") to Lakewood Property Management, liC with respect to a proposed equity investment in Pine Terrace Housing, Ltd. (the ''Partnership''), Pine Terrace Apartments (the ''Project''). CSG is a sponsor ofinvestment ( partnerships (the "CSG Fund") which provides equity capital for projects that are eligible for low income housing tax credits ("LIHTCs") pursuant to Section 42 ofthe Internal Revenue Code. The terms of this LOI are based on preliminary financial infonnation we have received about the Project. We have not yet completed our review of detailed plans or specifications for the Project, loan commitments, the property management agreement, the development agreement, or other agreements and materials. Our expectation is that the economics for the Project will be consistent with your preliminary economic projections and other documents and material submitted by you. Based upon the Partnership receiving $443,300 in annual low income housing tax credits, and further based on terms and conditions as set forth below, the investment in the Project is $3,731,747 or $0.84 per low income housing tax credit allocated the investor, subject to market conditions. Of the total low income housing tax credits allocated to the Partnership, 99.99% shall be purchased by the CSG Fund. The CSG Fund's net investment is anticipated to be funded based upon the following schedule: • 20% ($746,349) paid prior to or simultaneous with the closing ofconstruction financing • 15% ($559,762) paid at 50% completion • 55% ($2,052,462) paid at issuance ofCertificate ofOccupancy • 10% ($373,174) paid at Cost Certification/ Pennanent Loan Closing

601 Cleveland Street, Suite 850 Clearwater, FL 33755 Phone 727.461.2200 Fax 727.461.6047 Pine Tetrace Aparttnents, Mt. Pleasant, Texas Page 20f2 (

lbis letter of intent is subject to CSG's satisfactory completion of its nottnal due diligence, and is also subject to the approval by the Investment Committee of CSG of the tettns and conditions of the investment in its sole discretion based on then current market conditions, including availability ofinvestment funds and pricing for tax credits. CSG is led by seasoned professionals whose collective experience includes direct involvement in the production and syndication of more than $1 billion of federal and state tax credits for affordable multifamily rental housing properties under the federal and state Low Income Housing Tax Credit ("LIHTC") programs. Thank you again for the opportunity to work with you on this transaction.

Sincerely,

CHURCHILL STATESIDE GROUP Aj~~ 9. J;c~~~ By: DanielJ. Flick VP - Southwest Regional Director

The foregoing is hereby agreed to and confirmed:

By: Pine Terrace Housing, Ltd

By: Date, 2-/2.~~ 2014 nESOLUTIONNO. 2014~5 ( A RESOLUTION FROM T,HE C.ITY OF MOUNI' PI,EASANT, TEXAS SUPPORTING THE PINE TERRACE APARTMENTS AT 1612 MIT DI.UVE, l\1T. PLEASAlIT AN]) AUTHORIZING A L()AN.COMl\WmNT.FOR THE DEVELOPMENT IN CONNECTION WITH A LOW-INCOm HOUSING TAX CREDIT APPLICATION.

WlIEllliAS, the City ofMt.Pleasant, Texas (the "CITY") desires assisting in the provision of housing options for perso1ls of low and model'ate income; and

WHEReAS, the CITY can establish an interim loall p1"ogram for projects applying for low-income housing tax credits with the Texas Department ofHollsing and Community Developluent ("TPIICA") in which the CITY makes loans bllsed on acel1ificate ofdeposit or assignmeilt ofloan arrangement; and

WHEllliAS, Pine Terrace Housing, Ltd has requested all interim loan in connection with the redeve!oPlllClit ofthe Pine Terrace Apartments located at 1612 Amy Drive in Mt. Pleasant, Texas; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MT. PLEASANT, TEXAS THAT:

1. The .CITY confrrms its Sllpport for the development and remodel ofPine Terrace Apartments.

2. The CITY authorizes the issuance of a loan commitment in an Ilmountnot toexc.eed $185,000 for an interim loan to Pine Tel'race Housing, Ltd. for the rehabilit~tion ofthe Pine Terrace Apartments in connection with an application for low-income housing tax credits filed with TDHCA. Stich loan shall bear hiterest at the rate of 3% per annum, have a term .of five yearsllOd be secured and guaranteed as required under a loan. commitment and be subject to receipt. by Pine Terrace Housing, Ltd. of an ( allocation of2014 housing tax credits.. The City Manager is authorized to execute a loan commitment in oompliance with all TDHCAprogr~m requirements, l\nd all ~ctions taken by 01' on behalf ofthe CITY in connection with such loan m'e authorized and confirmed.

3. This Resolution is intended to comply with TDl-ICA'sQualified Allocatioll Pl~n for20l4 and, in particular, constitutes a firm commitment for the purposes of Section 11.9(d)(2)(C). This Resolution shall be in f\I1I foroe ah(1 effect from and up 011 the date ofits adoption.

AI'TEST: Self Score Total: pursuant to §11.9(b)(2) of the Qualified Allocation Plan, an Application may qualify to receive up to one (1) point provided the ownership IC -ture meets one of the following requirements in parts 1 or 2 below; 1.~~~~~~~~~======::::J

~APPlication is applying under the Nonprofit Set-Aside, and

~The Qualified Nonprofit has some combination of ownership interest, cash flow from operations, and developer fee which taken together equal at least 80% and no less than 5% for any category.

Ownership Interest: CANNOT BE LESS THAN 5%

Cash flow from operations: CANNOT BE LESS THAN 5%

Developer Fee: CANNOT BE LESS THAN 5%

Total: 0.00%

____The Qualified Nonprofit will materially participate in the Development and the operation of the Development throughout the Compliance Period. The Qualified Nonprofit has experience directly related to the housing industry. (mark all that apply)

Dproperty Management Dconstruction DDevelopmentDFinancing Dcompliance

DNa Pdocip,l, olthe Q"Uied Noopmfit.ce rel,ted "rtieHo ,"yother Prlocip,l, olthe Appli"ot or Developer. II

DEvidence of experience in the housing industry and a statement regarding material participation are provided behind this tab. Eligible pOints:Ir---o-""'" (

Yes.. The ownership structure contains a HUB, and evidence from the Texas Comptroller of Accounts is provided behind this Tab.

~The HUB has some combination of ownership interest, cash flow from operations, and developer fee which taken together equal at least 80% and no less than 5% for any category.

Ownership Interest: 99.99%

Cash flow from operations: 100.00%

Developer Fee: 100.00% •

Total: 299.99%

~ The HUB will materially participate in the Development and the operation of the Development throughout the Compliance Period.

The HUB has experience directly related to the housing industry. (mark all that apply)

[E]property Management Dconstruction DDevelopment 'DFinancing [E]Compliance

[]]No Principals of the HUB are related Parties to any other Principal of the Applicant or Developer. II

rE]Evidence of experience in the housing industry and a statement regarding material participation are provided behind this tab.

Eligible Points:' 1 SUS AN TE X A 5 COM P T R 0 L L E R of PUB Lie Ace 0 U NT 5 ( COM BS p.e.Box 131 8e· AUSTIN, TX 78711-31 8e

The Texas Comptroller of Public Accounts (CPA) administers the Statewide Historically Underutilized Business (HUB) Program for the State of Texas, which includes certifying minority and woman-owned businesses as HUBs and is designed to facilitate the participation of minority and woman-owned businesses in state agency procurement opportunities.

We are pleased to inform you that your application for certification/re-certification as a HUB has been approved. Your company's profile is listed in the State of Texas HUB Directory and may be viewed online at http://www.window.state.tx.us/procurement//cmbllhubonly.html. Provided that your company continues to meet HUB eligibility requirements, the enclosed HUB certificate is valid for four years.

You must notify the HUB Program in writing of any changes affecting your company's compliance with the HUB eligibility requirements, including changes in ownership, day-to-day management, control and/or principal place of business. Note: Any changes made to your company's information may require the HUB Program to re-eva/uate your company's eligibi/ity. As part of the HUB Program:s monitoring efforts, you will be sent a HUB Certification Eligibility Affidavit in approximately 24 months. Failure to complete and submit the HUB Certification Eligibility Affidavit, and/or failure to notify us of changes affecting your company's compliance with HUB eligibility requirements, may result in the revocation of your company's certification.

Please reference the enclosed pamphlet for additional resources, such as the state's Centralized Master Bidders List (CMBL), that can increase your chance of doing business with the state.

Thank you for your participation in the HUB Program! If you have any questions, you may contact a HUB Program representative at (512) 463-5872 or toll-free in Texas at (888) 863-5881.

Texas Historically Underutilized Business (HUB) Certificate CertificateNiD Number: 1272203552900 FileNendorNumber: 477063 ILHUB 07-DEC-2012 • ... .• . • ~~h~~~~~~~~~iration Date: 07-DEC-2016 ...... ~.,thIIndIIId ...... 1'rolIr*ll

The Texas Comptroller of Public Accounts (CPA), hereby certifies that LAKEWOOD PROPERTY MANAGEMENT has successfully met the established requirements of the State of Texas Historically Underutilized Business (HUB) Program to be recognized as a HUB. This certificate printed 07-DEC-2012, supersedes any registration and certificate previously issued by the HUB Program. If there are any changes regarding the information (Le., business structure, ownership, day-to-day management, operational control, business location) provided in the submission of the business' application for registration/certification as a HUB, you must immediately (within 30 days of such changes) notify the HUB Program in writing. The CPA reserves the right to conduct a compliance review at any time to confirm HUB eligibility. HUB certification may be suspended or revoked upon findings of ineligibility.

Paul Gibson, Statewide HUB Program Manager Texas Procurement and Support Services Note: In order for State agencies and institutions of higher education (universities) to be credited for utilizing this business as a HUB, they must award payment under the CertificateNID Number identified above. Agencies and universities are encouraged to validate HUB certification prior to issuing a notice of award by accessing the Internet (http://www.window.state.tx.us/procurementlcmbl/cmblhub.html) or by contacting the HUB Program at 1-888-863-5881 or 512- 463-5872. Rev. 09/12 LAKEWOOD PROPERTY MANAGEMENT} LLC 4925 Greenville Ave., Ste. 1305 Dallas, Texas 75206 Phone 214-277-4839 (

February 25,2014

Lakewood Property Management LLC certifies that:

It will materially participate in the acquisition and rehabilitation ofPine Terrace and the subsequent rent up, operations and compliance ofthe property. Lakewood and it's owners are the sole principals ofthis application.

Sincerely, ~~~~

Therese Allgeier, Manager [email protected]

'0" -::; )'" - ,~- >',. (!)- ~~!~ m~~8~1~·--~"!t We do not discriminate againstpersons with disabilities This institution is an equal opportunityprovider and employer LAKEWOOD PROPERTY MANAGEMENT ( STATEMENT OF QUALIFICATIONS

Lakewood Property Management was formed in 2010 as a full service property management company for affordable multifamily properties. Currently Lakewood manages four properties in East Texas. The properties have both USDA-RD financing and in some cases project based Section 8 contracts. Some ofthe properties have Rental Assistance provided by USDA-RD. Lakewood's duties include:

• Employing and overseeing on-site management and maintenance staff • Negotiating local service provider's contracts • Preparing annual budgets and rent increase requests • Preparing annual utility allowances • Reviewing and paying bills • Maintaining financial records • Arranging annual audits and tax returns • Filing payroll, franchise and other tax returns and reports • Preparing monthly financial statements, rent rolls, and other financial information for the owner, lender and investors • Marketing • Tenant compliance with HUD Section 8, USDA-RD and HTC requirements • Maintaining banking relationships ( • Overseeing repairs and maintenance • Negotiating property and liability insurance

Lakewood is approved as a management agent by USDA-RD in Texas, Oklahoma Housing Finance, the Fort Worth regional office ofHUD, and equity providers.

Lakewood is registered with the State ofTexas as a Historically Underutilized Business (HUB). Applicants should note that subsequent changes to the Development Ownership structure presented in this secti( consent ofthe Department. I ~ .lant to §1O.204(13)(A) of the Uniform Multifamily Rules, a chart must be submitted that clearly illustrates tt structure of the final proposed Development Owner and any Developer or Guarantor. The organization charts must include: IxlThe names and ownership percentages of all Persons having an ownership interest in the Development Guarantor.

1)(~NOnprofit entities, public housing authorities, publicly traded corporations, individual board membe must be included in Organization charts.

IX~Any and all trusts must list all beneficiaries that have the legal ability to control or direct activities of financial beneficiaries.

In the case of: (A) Partnerships - Principals include all general Partners and Special LPs (any LP thCjt is not the Syndicator is (

(B) Corporations - Principals include the executive director and all members of the board (shown with "0% For to-be formed instrumentalities of PHAs, where the executive director and board remain to be det itself. and its members; (C) Limited liability companies - Principals include all the managing members and all other members.

Org. Chart Example: Applicant I

( Organization 1 1%

Org.l.l Org. 1.2 49% 51% I

I Principal I} Org. Board President, 1.1 President, 85% Org. 1.20%

Note that the percentage refers to the entity to which the Principal 2, Org. Board Member} Person is directly connected, 1.1 V.P.} 10% Org. 1.20% not to the whole Development Owner.

Principal 3, Org. Executive Director, 1.1 Treasurer, 5% • Org. 1.2} 0% ( (

1. LPM PINE TERRACE, LLC 0.01 % Ownership General Partner

1.1 LAKEWOOD PROPERTY MANAGEMENT, LLC 100 %Ownership Manager

l.1 THERESE ALLGEIER

1.lDANIEL ALLGEIER

OWNERSHIP ORGANIZATION PINE TERRACE (

1. LAKEWOOD PROPERTY MANAGEMENT, LLC 80 %Developer

1.1 THERESE ALLGEIER 1.1 DANIEL ALLGEIER Sl%OWner 49%Owhers

DEVELOPER ORGANIZATION PINE TERRACE Provide the requested information for all partnerships, corporations, limited liability companies, trusts, or any other public or private entity and their Affiliates identified on the Owner and Developer Organization Charts. Organizations that own or control other organizations should also be identified until the only remaining sub-entity would be natural persons. Organizations that are Developers and/or Guarantors must also be listed on this form as must any 0r~'1ization (and natural person whose ownership interest in an applicable entity is direct instead of via membership in an organization) that will receive r~ than 10% of the developer fee. (Note - Entity Names, Principals, and ownership percentage should coincide with the Owner and Developer Organization Charts)

Applicant Legal Name: Pine Terrace Housing Ltd

Address: 4925 Greenville Ave, Ste1305 City: _D_a_lIa_s~__~-,---- State:TX Zip: _'____~7~5~20~6_'____~ Name(s) of Entities the Organization Owns or Controls: none

Organization legally formed? No Date formed: N/A Legal Org is or will be: Limited Partnership Previous TDHCA Experience? No Phone: ########### Email: [email protected]

arg.1 Organization Legal Name: LPM Pine Terrace LLC Role/Title General Partner

Address: 4925 Greenville Ave, Ste 1305 City: Dallas State: --TX Zip: 75206 Name(s) of Entities the Organization Owns or Controls: Pine Terrace HOlJsing Ltd

Organization legally formed? No Date formed: N/A Legal Org is or will be: Lirnited Liability Company Previous TDHCA Experience? No Phone: 2142774839 Email: [email protected] Organization is identified on Org. Chart: Yes List of Sub-Entities or Principals:

1. Lakewood Property Management LLC 2. 3. TDHCA Experience: No TDHCA Experience: TDHCA Experience: 4. 5. 6. TDHCA Experience: TDHCA Experience: TDHCA Experience: argo Organization Legal Name: Lakewood Property Management LLC Role/Title Member ofGP (~ Address: 4925 Greenville Ave, Ste 1305 City: Dallas State: --IX Zip: 75206 Name(s) of Entities the Organization Owns or Controls: LPM Pine Terrace LLC

Organization legally formed? Yes Date formed: 2010 Legal Org is or will be: Limited Liability Company

Previous TDHCA Experience? No Phone: 2142774839 Email: [email protected] Organization is identified on Org. Chart: Yes

List of Sub-Entities or Principals:

1. Therese Allgeier 2. Daniel Allgeier 3. TDHCA Experience: Yes TDHCA Experience: Yes TDHCA Experience: 4. 5. 6. TDHCA Experience: TDHCA Experience: TDHCA Experience: oargo Organization Legal Name: Role/Title Developer Address: City: State: Zip: -- Name(s) of Entities the Organization Owns or Controls: none Organization legally formed? Date formed: Legal Org is or will be: Previous TDHCA Experience? Phone: Email:

Organization is identified on Org. Chart: List of Sub-Entities or Principals: 1. 2. 3. TDHCA Experience: Yes TDHCA Experience: TDHCA Experience: 4. 5. 6. TDHCA Experience: TDHCA Experience: TDHCA Experience: oarg. Organization Legal Name: Role/Title Address: City: State: --Zip: Previous Participation Fo . ( Complete Sections 1, 2 and 3 for each person that has or will have a controlling interest or oversight in the contract, award, agreement, or ownership transfer being considered. This form should also be completed for each board member, individual with signature authority, executive director, or elected official that represents the person/entity (as applicable).

Person/Role: Therese Allgeier - manager of member of general partner

Applicant Legal Name: Pine Terrace Housing Ltd

1. List experience with all TDHCA rental development programs (including: HTC, HTC Exchange, HOME (RHD), and BOND) that you have controlled at any time.

Gl By selecting this box I certify that I have no prior experience with any TOHCA administered affordable rental program.

Control TDHCA Control End Property Name Property City Program began 10# (mm/yy) (mm/yy)

( z. List any TDHCA Community Affairs Contract Activities (including: CSBG, CEAP, WAP, HHSP, and ESG) that you had experience overseeing within the last 3 years. mBy selecting this box I certify that I have no prior experience with any TDHCA Community Affairs Contract Activity.

Contract Contract End ( TDHCA Contract 10# Grantee, Contractor or Sub-Recipient Name Program Begin (mm/yy) (mm/yy)

3. Listexperience with other TDHCA programs and activites including HOME (HRA, HBA, CFDC, TBRA or SFD), all HTF/OCI activities (including AYBR and Colonia Self-Help Centers), NSP and any other Single Family Development awards that you had experience overseeing within the last 3 years.

m By selecting this box I certify that I have no prior experience with any other TDHCA programs or activity.

Contract Contract End TDHCA Contract ID# Grantee, Contractor or Sub-Recipient Name Program Begin (mm/yy) (mm/yy) (

! ( Previous Participation Form Complete Sections 1, 2 and 3 for each person that has or will have a controlling interest or oversight in the contract, award; agreement, or ownership transfer being considered. This form should also be completed for each board member, individual with signature authority, executive director, or elected official that represents the person/entity (as applicable).

Person/Role: Daniel Allgeier

Applicant Legal Name: Pine Terrace Housing Ltd

1. List experience with all TOHCA rental development programs (including: HTC, HTC Exchange, HOME (RHO), and BONO) that you have controlled at any time.

LI By selecting this box I certify that I have no prior experience with any TDHCA administered affordable rental program.

Control TDHCA Control End Property Name Property City Program began 10# (mm/yy) (mm/yy) 97026 Rancho del Cielo Brownsville HTC Aug-97 97027 Courts of Las Palomas Kingsville HTC Aug-97 Oct-04 99029 Rancho del Cielo II Brownsville HTC Aug-99 01002 La Vista Townhomes Del Rio HTC Aug-lO Oct-04 02042 Saddlecreek . Kyle HTC Aug-02 Oct-04 02043 Kings Crossing Kingsville HTC Aug-02 Oct-04 02040 Residences on Stillhouse Road Paris HTC Aug-02 Oct-04 04105 Preston Trace Frisco HTC Aug-04 Oct-04

( Z. list any TDHCA Community Affairs Contract Activities (including: CSBG, CEAP, WAP, HHSP, and ESG) that you had experience overseei ( within the last 3 years. m By selecting this box I certify that I have no prior experience with any TDHCA Community Affairs Contract Activity.

Contract Contract End TDHCA Contract 10# Grantee, Contractor or Sub-Recipient Name Program Begin (mm!yv) (mm!vv)

(

( 3. List experience with other TDHCA programs and activites including HOME (HRA, HBA, CFDC, TBRA or SFD), all HTF/OCI activities (including ( AYBR and Colonia Self-Help Centers), NSP and any other Single Family Development awards that you had experience overseeing within the last 3 years.

mBy selecting this box I certify that I have no prior experience with any other TDHCA programs or activity.

Contract Contract End TDHCA Contract 10# Grantee, Contractor or Sub-Recipient Name Program Begin (mm/yy) (mm/yy)

( ~"Il.lications involving a Qualified Nonprofit Organization pursuant to Texas Government Code, §2306.6706 that havE ( ::)(3) or SOl(c)(4) designation at the time of Application and competitive 9% HTC Applications electing to compet, the Nonprofit Set-aside must provide the following documentation behind this tab: r

liThe Nonprofit's most recent financial statement as prepared by a Certified Public Accountant (not applicable to Tax-Exempt Bond Developments) []Certification regarding Board member residence (not applicable to Tax-Exempt Bond Developments) • The requested information on all known Development Team members must be provided. In addition to the categories listl bp1ow, the "Other" category should be used to list all known Development Team members that are included in t (, elopment Cost Schedule." If the team member that will be utilized is not yet known, indicate "TBD." If it is anticipat, that the Development Team category will not be utilized, indicate "N/A." * If there is a direct orindirect, financial, or other interest with Applicant orother team members, provide an attachment behind this form ofthe Application that explains the relationship(s). Developer: Lakewood Property Management LLC Therese Allgeier (214) 217-4839 Contact Name Phone [email protected] $350,000.00 272203552.00 Email Proposed Fee Tax ID Number (TIN) Certified Texas HUB? /Yes I This is a direct or indirect, financial, or other interest with Applicant or other team members* I Yes I

Housing General Contractor: SullivahBuilders Winston Sullivan (903)756-5554 Contact Name Phone [email protected] $134,000.00 Email Proposed Fee Tax ID Number (TIN) Certified Texas HUB? INo I This is a direct or indirect, financial, or other interest with Applicant or other team members* I No I

~ tfrastructure General Contractor: n/a Contact Name Phone

Email Proposed Fee Tax ID Number (TIN) Certified Texas HUB? I ] This is a dirett or indirect, financial, or other interest with Applicant or other team members* I I

Cost Estimator: rVa Contact Name Phone

Email Proposed Fee Tax ID Number (TIN) Certified Texas HUB? II This is a direct or indirect, financial, or other interest with Applicant or other team members* II

Architect: Wayne ShoddyA&A (903) 759-8321 Contact Name Phone ( [email protected] $65,000.00 .. Email Proposed Fee Tax ID Number (TIN) Certified Texas HUB? INo I This is a direct or indirect, financial, or other interest with Applicant or other team members* I No. I Engineer: none Contact Name Phone

( 'nail Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I J This is a direct or indirect, financial, or other interest with Applicant or other team members* I J

Civil Engineer: ...... ••• Contact Name Phone ...... Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? II This is a direct or indirect, financial, or other interest with Applicant or other team members* I •• I

Market Analyst: none Contact Name Phone

••• Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? II This is a direct or indirect, financial, or other interest with Applicant or other team members* II

.~ppraiser: Rafael Luebbert RafaelLuebbert (210)408-6041 Contact Name Phone [email protected] $5,000.00 Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? INa I This is a direct or indirect, financial, or other interest with Applicant or other team members* I No I

Attorney: Cynthia Bast Locke Lord (512).30S~4707 Phone

Tax 10 Number (TIN) Certified Texas HUB? INo I This is a direct or indirect, financial, or other interest with Applicant or other team members* I No I

Accountant: OehnisRick DenhisL Rick Ltd (507) 376-5818 Contact Name Phone [email protected] $15,000.00 Email Proposed Fee Tax 10 Number (TIN)

Certified Texas HUB? INa This is a direct or indirect, financial, or other interest with Applicant or other team members* INa I Property Manager: Lakewood Property Management Therese Allgeier (214) 277-4839 Contact Name Phone [email protected] $25,000.00 272203552.00 Proposed Fee Tax 10 Number (TIN) ( _,_ai_1------r----, Certified Texas HUB? IYesl This is a direct or indirect, financial, or other interest with Applicant or other team members* I Yes I

Originator of Underwriter: none •• Contact Name Phone ... •••• Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I I This is a direct or indirect, financial, or other interest with Applicant or other team members* II

Bond Issuer: none Contact Name Phone

••• Email Proposed Fee Tax ID Number (TIN)

Certified Texas HUB? II This is a direct or indirect, financial, or other interest with Applicant or other team members* II

Syndicator: Churchill Stateside Dan Flick (972)778-8110 Phone [email protected] Email Tax 10 Number (TIN) Certified Texas HUB? INo I This is a direct or indirect, financial, or other interest with Applicant or other team members* I No I

Supportive Services Provider: to bedeterrnihed ... Contact Name Phone

••• Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I I This is a direct or indirect, financial, or other interest with Applicant or other team members* II

Supportive Services Provider: to bedetertnined Contact Name Phone .. Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I I This is a direct or indirect, financial, or other interest with Applicant or other team members* II Application Consultant: none I Contact Name Phone ( . tmail Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? II This is a direct or indirect, financial, or other interest with Applicant or other team members* I I

ESA Provider: none ... ••• Contact Name Phone

... •• •••• Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I

PCA Provider: Gibson Consulting Jim HbWell (901)409-3415 Contact Name Phone [email protected] .. $10,000.00 I--...... ;=...... ::= ~ _ _- ....:...... :'-'-"- _ ....;...... Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? INo I , 'his is a direct or indirect, financial, or other interest with Applicant or other team members* INol ..

Other: ...

Contact Name Phone

.. < Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? II This is a director indirect, financial, or other interest with Applicant or other team members* II

Other: ....

••••• Contact Name Phone .. Email Proposed Fee Tax 10 Number (TIN) Certified Texas HUB? I I This is a direct or indirect, financial, or other interest with Applicant or other team members* II

( ( (We) certify that the Management Plan used at the development site will include, at a minimum, the information listed below. The management plan will be maintained on-site at the development. The Management Plan should be organized and subtitled in a manner consistent with the list below, and signed by the Applicant.

• Roles and responsibilities - the plan must detail roles and responsibilities of the owner, management agent, and tenants; • Location of Management Office - the plan must detail whether the office is on or off site; • Staffing - The plan must identify management staff for the project and specific duties, salaries, wages, fringe benefits, and qualifications are described; • Equal Opportunity and Fair Housing - The plan must include a policy statement regarding equal opportunity and fair housing that complies with HUD guidelines is created and posted at the site;

• Rents, security deposits, and other charges - The plan must identify the initial rents, amount of security deposits that must be paid, and any other charges such as parking fees and utility and maintenance charges; • Maintenance and Repair Procedures - The plan must detail the procedures for ensuring acceptable upkeep of the project, including those related to the purchase of maintenance equipment, servicing of appliances, annual Housing Quality Standards (HQS) inspections, preparation of vacated units for occupancy, billing and collection for tenant damage, and handling emergency repairs;

• Rent Collection Policies and Procedures - The plan must detail procedures that the management agent will follow in the collection of rents and other charges; • Rent Changes - The plan must desCribe procedures for implementing rent increases or decreases for tenants; include information about HUD policies for changes to High and Low HOME rents;

• General Administration - The plan must include a description of services to be provided to tenants such as the forming of a tenant's association, laundry and trash services, exterminating services, and day care;

• Recordkeeping - The plan must include a description of record keeping policies and procedures with respect to construction and management history; • Rental Application & Lease Agreement - The plan must include a copy of both the proposed tenant application and lease agreement; Lease agreements should not contain any prohibited provisions such as the provisions listed as prohibited in the HOME Final Rule; • Management Plan Addendum - The plan must include the TDHCA required, "Management Plan Addend um." The addendum (see below) must be on the letter head of the applicant and contain the exact language shown in the template.

By:

Signature ofApplicant/Development Owner Printed Name Date ...... ManagementPlan Addendum Template I

( Include the exact language below on letterhead as the Management Addendum in the HOME Application:

1. Management will ensure that tenants are income eligible under the rules and regulations of the program or activity funded.

2. Management must apply all other screening criteria, including employment policies or procedures and other leasing criteria (such as rental history, credit history, criminal history, etc.) uniformly and in a manner consistent with the Texas and Federal Fair Housing Acts, program guidelines, and the Department

3. Income determination must be made in a manner consistent with Section 8 of the United States Housing Act of 1937 (42 U.S.c. Section 1437f) and the guidelines established in Handbook 4350.3, as amended and promulgated by the u.s. Department of Housing and Urban Development (HUD).

4. Management shall not exclude an individual or family from admission to the development because the individual or family participates in the housing choice voucher program under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f).

5. Management shall not use a financial or minimum income standard for an individual or family participating in the voucher program that requires the individual or family to have a monthly income that exceeds 2.5 times the individual or family's share of the total monthly rent payable to the owner of the development.

6. Management must maintain a written management plan that is available for review upon request and states the intention of the development owner to comply with state and federal fair housing and ( antidiscrimination laws.

7. Property management and on-site staff must have received and read a written management and affirmative marketing plan.

8. The Department shall require a land use restriction agreement providing for enforcement of the restrictions by the Department, tenants of the development, or by a private party that includes the right to recover reasonable attorney's fees if the party seeking enforcements of the restrictions is successful.

9. Any minimum income requirements for Section 8 voucher and certificate holders will only be applied to the portion of the rent the prospective tenant would pay, provided, however, that if Section 8 pays 100% of the rent for the unit, the housing sponsor may establish other reasonable minimum income requirements to establish other reasonable minimum income requirements to ensure that the tenant has . the financial resources to meet daily living expenses. Minimum income requirements for Section 8 voucher and certificate holders will not exceed 2.5 times the portion of rent the tenant pays; and

10. All other screening criteria, including employment policies or procedures and other leasing criteria (such as rental history, credit history, criminal history, etc.) must be applied to the prospective tenants uniformly and in a manner consistent with the Texas and Federal Fair Housing Acts and with Department requirements. • ( ~.....;.ye__s...... IThe Architect Certification is inclu,ded behind this tab.

The form for the certification will be posted to the Department's website at http://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm.

( ( Architect Certit"ication

Architect Certification

I (We) certify that the Development will meet or exceed the accessibility requirements of the Federal Fair Housing Act as implemented by HUD at 24 C.F.R. Part 100 and the Fair Housing Act Design Manual, Titles II and III of the Americans with Disabilities Act (42 U.S.C.Sections 12131 12189) as implemented by the. Department ofJustice regulations at 28 C.F.R. Parts 35 and 36, and the Department's Accessibility rules in 10 TAC Chapter 1, Subchapter B, as may be amended from time to time.

In accorda.nce with Section 504 of the Rehabilitation ~ct of 1973 and implemented at 24 C.F .R. Part 8, if the Property includes the new construction or substantial rehabilitation of multifamily units (4 or more units per building), the Development Owner will ensure that at least five percent (5%) of all dwelling units will be designed and built to be accessible for persons with mobility impairments. A unit that is on an accessible route and is adaptable and otherwise compliant with the 2010 ADA Standards meets this requirement. In addition, at least two percent (2%) of all dwelling units will be designed and bUilt to be accessible for persons with hearing or vision impairments.

If the Property includes the new constructi~n or rehabilitation of single family units (1 to 3 units per building), the Development Owner will ensure that every. unit meets or exceeds the accessibility requirements of Section 2306.514 of the Texas Government Code, as it may be amended from time to time.

For New Construction (excluding New Construction of non-residential buildings) Developments where some Units are two-stories or single family design and are nor~ally exempt from Fair Housing accessibility requirements, a minimum of 20% of each Unit type (i.e., one bedroom, two bedroom, three bedroom) must provide an accessible entry level and all common-use facilities in compliance with the Fair Housing Guidelines, and include a minimum of one bedroom and one bathroom or powder room at the entry level.

If the Applicant is applying for HOME funds and the Development consists of new construction, I (We) further certify that the Development meets the Site and Neighborhood Standards in 24 C.F.R §983.6(b).

This certification meets the requirement that the Applicant provide a certification from the ( Development engineer, an accredited architect or Department-approved Third party accessibility

Page 1 on

Pursuant to §10.204(5) of the Uniform Multifamily Rules, a Principal of the Developer, Development Owner, or General Partner must establish that they have experience in the development of 150 units or more.

( ~nce of experience behind this tab includes: I klAn Experience certificate issued by the Department under'the 2014 Uniform Multifamily Rules. DAn Application for experience and sypporting documentation in accordance with §10.204(6)(A)(i) through (ix) [JEvidence from the Department that the application for experience was received and is being processed by the Department. InuNs Number AND CCI{ Documentation (HOME Applicati~ns Only) • The Office of Management and Budget (OMB) requires grant applicants to provide a Dunn and Bradstreet (D&B) Data Universal Numbering System (DUNS) number when applying for Federal grants, including HOME funds, on or after October 1, 2003. The DUNS number will supplement other identifiers required by statute or regulation, such as tax identification numbers. Applicants must also register with the System for Award Management (SAM) database. See the website at https://www.sam.gov/portal/public/SAM/. To apply for a DUNS number applicants can go to the Dunn & Bradstreet website at: https://iupdate.dnb.com/iUpdate/companylookup.htm

DUNS Number Registrant Name

DEvidence of SAM.gov registration is attached behind this tab. ~Davis Bacon Labor Standards (HOME Applications Only) • 24 CFR §92.354, Davis-Bacon Act (40 U.S.c. §§276(a)-276(a)(5), the Davis-Bacon Related Acts, the Contract Work Hours and Safety

C" -'1dards Act, and the Copeland (Anti-Kickback) Act (40 U.S.c. §276(c)) apply to developments being assisted with HOME funds if (Select ( . lat apply:):

DTwelve (12) or more HOME assisted units will be rehabilitated or constructed under one construction contract. [JJcommunity Development Block Grant (CDBG) funds are being used to support the Development, which requires a lower number of units (8) be used as a threshold. DThe construction includes commercial/community space and the cost for such space will exceed $2,000. [JJMortgage insurance under §223(f) of the National Housing Act is obtained on the Development, and the construction costs exceed $6,500 per dwelling unit.

~Affirmative Marketing Plan (HOME Applications Only) Complete and submit HUD's Affirmative Marketing Plan form (Form 935.2 or successors). This form may be found on the Department's website at http://www.tdhca.state.tx.us/home-division/mf-home/index.htm • The Affirmative Marketing Plan must comply with the Affirmative Marketing requirements in the Compliance Rules. HUD approval is not necessary unless the property receives project-based Section 8 assistance.

( (

TEXAS DEPARTMENT OF HOUSINGAND COMMUNITYAFFAIRS JI""II'.itIlml"rfaf,.t>,.IIJ BOARD MEMBERS J. Paul Oxer, Chair R.ick Perry Juan S. MUlioz, PhD, Vi", ChaJi' GOVERNOR TomB. Gann Leslie Bingham-Escaretio RobertD. Thomas J. lI-fark McWatters January 15, 2014

Writer's direct phone # 512-475-2213 Email: cam/[email protected]?tx.lIs

Mr, Daniel Allgeier Housing Associates, Inc. 4925 Greenville Avenue, Suite 1305 Dallas, Texas 75214

RE: REQUEST FOR EXPERIENCE CERTIFICATE UNDER 2014 UNIFORM MULTIFAMILY RULES

Dear Mr. Allgeier:

We have reviewed your request for an experience certificate, which is provided to individuals ( that meet the requirements of §10.204(6) of the UnifOlTI1 Multifamily Rules. In order to meet the experience requirements an individual must establish that they have experience in the development and placement in service of at least 150 residential units. We find that the documentation you have provided is sufficient to establish this required experience, Additionally, you have celtified to compliance with the requirements of §lO.204(6)(B), including the following requirements:

(ii) Experience may not be established for a Person who at any time within the preceding three years has been· involved with affordable housing in another state, in which the Person or Affiliate has been the subject of issued IRS Form 8823 citing non-compliance that has not been or is not being corrected with reasonable due diligence....

(iv) Notwithstanding the foregoing, no person may be used to establish such required experience if that Person or an Affiliate of that Person would not be eligible to be an Applicant themselves.

Should you choose to participate as a member of the Development Team or an individual providing experience fOf any Application: submitted for funding, a Previous Pmticipation Review (10 TAC §1.5) may be conducted prior to any award offunds. Additionally, should it be determined at any point in time that the information provided in your request for experience is fraudulent, knowingly falsified, intentionally or negligibly materially misrepresented, or omits relevant information, this certificate of experience is null and void and you may be subject to other sanctions under the Texas Depmtment ofHousing and Community Affairs' rules and requirements.

( 221 East 11 th Street P.O. Box 13941 Austin, Texas 78711-3941 (800) 525-0657 (512) 475-3800 REQUEST FOR EXPERIENCE CERTIFICATE UNDER 2014 UNIFORM MULTIPAMILY RULES ( Page 2 If you have any questions or concerns regarding this celiificate or the experience requirements, please contact Jean Latsha at [email protected].

Sincerely,

Carner F. Dorsey Direc r ofMultifamily Finance ppHcant Credit Lirnit'Doc~mentation;a (CorrlpetitiveHTCOnly).

( Jant to §ll.4(a) of the Qualified Allocation Plan, the Department shall not allocate more than $3 million of Competitive Housing Tax Credits from the current Application Round to any Applicant, Developer, Affiliate or Guarantor (unless the Guarantor is also the General Contractor, and is not a Principal of the Applicant, Developer, or Affiliate of the Development Owner). All Applications must be identified herein to ensure that the Department is advised of all Applications, Applicants, Affiliates, Developers, General Partners or Guarantors involved to avoid any statutory violation of Texas Government Code,

Instructions: Complete Part I of this form. For each person or entity in Part I that answers "Yes" to Part I b., a Part II form must be submitted (i.e. if 4 persons/entities answer "Yes" to Part I b., then 4 separate Part II forms must be provided).

Part I. Applicant Credit Limit Documentation

a. Applicant, Developers, Affiliates, and Guarantors - List below all entities b. Person/entity has at or Persons meeting the definition of Applicant, Affiliate, Developer or least one other Guarantor. application in the current Application Round. ... 1.ITherese Allgeier . I Yes ~ Daniel Allgeier Yes [I] U ~======Lf]~======o ~======[2J~======~======[!J~======~;:::::=::======~ [ill======[ill======; [ill;::=:::======~======~ [ill======~ [ill;::======[ill;::======:::::=::::: [ill~======~I ~======::::::; ~I======\, '~I ;::=:::======~ ~I

~L.-:::======_ ~======I 1===== ~ II [ill II==== ( ~ I 1======·lill 1 I [ill I I==== @Q;] I 1====__

Individually; or as the General Partner(s) of officer(s) of the Applicant entity, I (we) certify that we are submitting behind this tab one signed Credit Limit Certification form for each person and/or entity that answered "Yes" to Part b. above.

By: f>2 6lSlolFJlt Its: Date

( \. Part II. Credit Limit Certification Instructions: Each Person and/or Entity that answered "Yes" to Part 1 (b) must complete this form. r' 1e and role of Person or Entity completing this form: Therese Allgeier ~ ....;..,...... IIVhich is: G]the Applicant (Entity that generally manages or controls the "Applicant," Le. General Partner,

Qa Special Limited Partner or Class B Limited Partner or equivalent of the Applicant

G]a Developer for the Applicant for this specific Application

G]an Affiliate to the Applicant

G]a Guarantor on the Application

Pursuant to §l1.4(a) of the Qualified Allocation Plan, the Department shall not allocate more than $3 million of tax credits from the current Application Round to any Applicant, Developer, Affiliate or Guarantor. The undersigned represents to the Department that the following is a list of all developments for which the Applicant, the Developer, Affiliate, or Guarantor, has applied for an allocation of tax credit authority from the Department in the current Application Round. % % of Dev. Development Name: Region: City: Ownership: Fee:

Pine Terrace 4 Mt. Pleasant 51.00% 50.00%

Trinity Oaks 4 SulphurSprings 51.00% 50.00% Heritage Park Vista 3 FortWorth 40.00% 20.00% Residences at Rodd Field 11 Corpus Christi 40.00% 20.00%

::;~~;;~e:::;~:~ication in the -;t~f a1:n~~th~;d(~I)~JkLed Allocation Plan. I hereby certify that the foregoing is a complete list ofDevelopments with respect to which I am seeking a current allocation of tax credit authority from the Department. I certify that} if the Department makes a recommendation to the Board or issues a commitment which may cause Applications for which I am the Applicant, the Developer} Affiliate or Guarantor} to receive credits in excess of $3 million} I will notify the Department in writing within three business days of the

I acknowledge that if the Department determines that an Applicant} Developer} Affiliate or Guarantor} has received (in the aggregate) allocations in the current Application Round from the Department exceeding $3 million} the Department must refuse to issue one or more Commitments or Carryover Allocations} or must terminate one or more Commitments or

Under penalty of perjury, I certify that this information and these statements are true} complete} and accurate:

BY:~~~ Therese Allgeier Signature ofApplicant} Printed Name Developer} Affiliate or Guarantor Part II. Credit Limit Certification

Instructions: Each Person and/or Entity that answered "Yes" to Part 1 (b) must complete this form.

fl' ...,e and role of Person or Entity completing this form (as Ii Daniel Allgeier ( ....;;;.. _...... vVhich is: Glthe Applicant (Entity that generally manages or controls the "Applicant," i.e. General Partner, Da Special Limited Partner or Class B Limited Partner or equivalent of the Applicant

[Ela Developer for the Applicant for this specific Application

[Elan Affiliate to the Applicant

[Ela Guarantor on the Application

Pursuant to §11.4(a) of the Qualified Allocation Plan, the Department shall not allocate more than $3 million of tax credits from the current Application Round to any Applicant, Developer, Affiliate or Guarantor. The undersigned represents to the Department that the following is a list of all developments for which the Applicant, the Developer, Affiliate, or Guarantor, has applied for an allocation of tax credit authority from the Department in the current Application Round. % % of Dev. Development Name: Region: City: Ownership: Fee:

Pine Terrace 4 Mt. Pleasant 49.00% 50.00% Trinity Oaks 4 Sulphur Springs 49.00% 50.00%

I " I acknowledge that e --\Q((I(tt ,'t~l" 0 terminate the Application in the event of a conflict with §ll.4(a) f the Qualified Allocation Plan.

I hereby certify that the foregoing is a complete list of Developments with respect to which I am seeking a current allocation of tax credit authority from the Department. I certify that, if the Department makes a recommendation to the Board or issues a commitment which may cause Applications for which I am the Applicant, the Developer, Affiliate or Guarantor, to receive credits in excess of $3 million, I will notify the Department in writing within three business days of the

I acknowledge that if the Department determines that an Applicant, Developer, Affiliate or Guarantor, has received (in the aggregate) allocations in the current Application Round from the Department exceeding $3 million, the Department must refuse to issue one or more Commitments or Carryover Allocations, or must terminate one or more Commitments or

Under en Ity of p jury, I certify that this information and these statements are true, complete, and accurate:

By: Daniel Allgeier Printed Name • _0 RE!quired Third Party Reports

Pursuant to §10.205 of the Uniform Multifamily Rules complete the information below as applicable.

.hvironmentalSite Assessment (ESA) (All Multifamily Applications) Prepared by: none Date of Report: ...... _...... DReport recommends further studies or establishes environmental hazards that currently exist on the Property or off-site with the potential to affect the Property.

Dlf the above box is checked, a statement is provided behind this tab signed by the Development Owner, that certifies the Development Owner will comply with any and all recommendations made by the ESA preparer. IB]]Development is funded by USDA and is not required to supply an ESA.

2. IEnvironmetltaIClearance(HOIVIEClPplicationsonly) All Applications for Direct Loans by the Department must complete an environmental clearance process in accordance with 24 CFR Parts 50 and 58 prior to engaging in choice limiting activities such as closing on land, loans, beginning demolition or construction activities, or entering into construction contracts. A Phase I Environmental Site Assessment (ESA) will not satisfy the environmental clearance required for use of HOME funds. D Development has already received Environmental Clearance from HUD under 24 CFR Parts 50 or 58.

DDocumentation of HUD Environmental Clearance is included behind this tab. •

DApplicant has submitted an environmental packet to TDHCA and clearance is pending.

DAPplicant has reviewed the environmental clearance materials available on the Department's website at http://www.tdhca.state.tx.us/program-services/environmentalfindex.htm and understands that clearance must be received prior to closing on the HOME loan.

DA Third Party will aid in the completion of the environmental clearance process. If checked, complete the following: Name of Firm:

Contact Person:

Contact Telephone: Email:

3. 'Market Analysis Summary

DFor 9% HTC applications only, Summary is included behind this tab. Prepared by: ------none Date of Report: _ ...... 4. IprOpertv Condition.Assessment (PCA) Prepared by: Gibson Consulting Date of Report: 2/8/2014 ...... _....;...,;......

5. IAPpraisal Prepared by: Rafael Luebbert Date of Report: 1/13/2014 ...... ;...... ,;,;,;_......

:ite Design and Development Feasibility Report Prepared by: Wayne Snoddy A&A Date of Report: ....._ 2/23/2014....