Development Plan Fairwinds at Clear Lake Development Number: 2009-004P-07 Predevelopment Loan Program
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Exhibit F Page 1 of 7 Predevelopment Loan Program Development Plan Fairwinds at Clear Lake Development Number: 2009-004P-07 Exhibit F Page 2 of 7 A. General Information Development Name Fairwinds at Clear Lake Development Address 1801 Grand St, 1737 Grand St, 1784, 1788 & 1730 Columbia St. Developer Entity Name Clear Lake Partners, LLC Development Team Affordable Housing Solutions for Florida, Inc Contact Person Barry Haiman, President Development Type Rental Total Units 74 Target Population Other Construction Type New PLP Requested Loan Amount $500,000 Applicant comments and/or explanation: The 27-unit property consists of single family homes, duplexes, and quadplexes; with a unit mix of one, two, and three bedroom units. Currently, it is 95% occupied, current rents are between $450 and $900. These units will be demolished to be replaced with a newly constructed complex of 17 duplexes and one 4-story multi-family building (40 units) on the site. The Development will consist of 25 two-bedroom, 41 three-bedroom, and 8 four-bedroom units. TAP comments: Clear Lake, LLC consists of Affordable Housing Solutions for Florida, Inc. (51%); Frank Drane, individual (44%); and Deborah Livingston (5%). Affordable Housing Solutions for Florida, Inc. (AHSF) expects that a revision in the partnership agreement will eliminate the 5% Livingston share and the new structure will be AHSF (51%) and Frank Drane (49% ). B. Loan Information TAP Recommended Amount $500,000 Total Predevelopment Costs $1,268,041 Total Development Costs $10,382,201 Amount of Loan Requested for - Acquisition Applicant comments and/or explanation: The additional predevelopment costs not covered by the PLP will be funded through the City of Orlando's Affordable Housing Program and the 44% Partner (Drane). TAP comments: Exhibit F Page 3 of 7 C. Development Team Team Member Name Status Developer Affordable Housing Solutions for Florida, Inc. Applicant Contractor TBD TBD Architect TBD TBD Engineer TBD TBD Consultant TBD TBD Other Applicant comments and/or explanation: Alan Wolfe, Architect, has done preliminary renderings for the property and will bid for the contract. TAP comments: D. Market and Feasibility Type of Study Name Status Formal TBD Applicant comments and/or explanation: The Orange County Housing Authority has indicated a need for 3- and 4-bedroom units. It is anticipated that many of the units will be rented by tenants with Housing Choice Vouchers, however there is no project based rental assistance. TAP comments: The proforma is based on rents slightly below FHFC 2009 rent limits adjusted for bedroom size and utility allowances. Debt Service Coverage for years 1 - 13 ranges from 1.07 to 1.12. The inability to achieve expected rents will have a significant impact on project's feasibility. It is recommended that the market study be done immediately before additional PLP funds are expended. E. Site Control Type of Evidence Warranty Deed Applicant comments and/or explanation: We purchased the site in 2005 for $1,450,000. The appraised value at that time was $2,980,000. TAP comments: The warranty deed has been reviewed. The property is titled in the name of Clear Lake Partners, LLC. AHSF has a first mortgage on the property in the amount of $1,632,000 with Fairwinds Credit Union. There are no other loans against the site. Exhibit F Page 4 of 7 F. Zoning Status Zoning on Property R3 and R1A Current Use Residential MF and SF Future Land Use Plan No change No Zoning Evidence N/A Location map Provided Site Plan Approval Pending Applicant comments and/or explanation: The site is properly zoned for the proposed use. R3 is multi-family, 10 units per acre. R1A is single-family, which allows 2 units per lot. The site is currently located in Orange County and we have been working with the County and the City of Orlando for some time to have it annexed to the City. A public hearing was held and there were no objections. The annexation is expected to be completed by the end of November 2009. TAP comments: G. Development Elements Item Status Survey TBD Soil Test TBD Building Permit TBD Other Permits Demolition TBD Availability of Utilities To site Availability of Water and Sewer To site Availability of Roads Available Environmental Assessment Environmental site assessment completed Appraisal Completed in 2005 at time of acquisition Financial Statements Provided Drawings, Plans and/or Specs In process Applicant comments and/or explanation: Traffic study completed supporting 100 units. TAP comments: Environmental Assessment was reviewed, other than the possibility of one unit containing asbestos related materials, no concerns were noted. A phase one will be completed, as needed. Exhibit F Page 5 of 7 H. Marketing and Sales/Lease Up Please Provide Narrative Describing Marketing and Sales/ Lease Up The property is in on a large lake that is expected to add considerable value to the Development. The site is in close proximity to Citrus Health, downtown Orlando, Florida Regional Hospital, Florida A&M Law School, City of Orlando Government Center, and the Orlando public utilities office. The site is also within 1mile of the new $500 million Sports Arena currently under construction and close to the future site of the cultural center. Fairwinds at Clear Lake will be the only large apartment complex in the area. The property will be marketed to the employees of businesses above, as well as to the parishioners of several churches located across the lake. TAP comments: I. Sources Funding Source Amount Status FHLB AHP Grant $740,000 Applied June 2009 FHLB AHP subsidized advance $3,171,190 Letter of Intent (loan)- SunTrust provided City of Orlando Affordable $500,000 Applied Housing Grant Deferred developer fee $1,000,000 Permanent financing - TBD $3,339,011 TBD Fairwinds Credit Union $1,632,000 In place TOTAL $10,382,201 TAP comments: Applicant is in discussions with Wells Fargo to provide the $3,339,011 permanent financing for the project. The City of Orlando has indicated that the $500,000 will be provided to offset the impact fees related to the annexation to the City. J. Narrative Please describe any facts regarding this development that are not covered previously in this report Since no federal sources will be used in the Development, federal relocation regulations do not apply. Over 90% of the tenant's currently residing in the units have expired leases and are renting month to month. AHSF will not provided any monetary compensation to tenants as they are asked to vacate, however, they will provided referral services to assist in locating new housing. Exhibit F Page 6 of 7 K. Overall Uses Item Amount Acquisition $1,632,000 Demolition $300,000 Const. contingency $100,000 Accounting $5,000 Appraisal $5,000 Architect/engineer $208,190 Consultant $15,000 Construction $5,122,160 Environmental $5,000 Insurance $50,000 Legal $12,500 Market study $5,000 Surveys $10,000 Title Insurance $75,000 Soft cost contingency $100,000 inspections $5,000 Impact fees $851,851 operating reserve $100,000 Closing costs $75,000 Const & PLP interest $415,000 Loan origination fees $105,000 Permits $47,000 Marketing $10,000 Replacement reserve capitaliz. $18,500 Soil testing $5,000 Admin $5,000 Developer fee $1,100,000 TOTAL $10,382,201 Exhibit F Page 7 of 7 L. PLP Budget Item Amount From PLP Loan Market study $5,000 Rezone/Annexation $28,000 Title and closing $5,000 Legal $10,000 Surveys $10,000 Admin $5,000 Consultant $15,000 Construction loan Commitment fee $50,000 Soil testing $5,000 Environmental $5,000 Appraisal $5,000 Permits $18,760 Architect/Engineer $180,000 Accounting $5,000 Impact fees $135,240 Contingency $18,000 TOTAL $500,000 M. Timeline Timetable Comments Date Annexation approved November 2009 Site plan approval November 2009 Demolition February 2010 Const Permits issued March 2010 Construction commences April 2010 Certificate of Occupancy April 2011 Lease-up June 2011.