Laserfiche WebLink
<br />Mr. Clark <br />January 16, 2007 <br />Page ii <br /> <br />The current owner recently replaced the siding and roofing shingles. The Buyer's scope <br />of rehabilitation includes: <br /> <br />1) converting one unit into a leasing office / clubroom resulting in 51 rental units; <br />2) new kitchen cabinets and countertops; <br />3) new bathroom vanities and cultured marble vanity tops; <br />4) replacing the boilers; <br />5) replacing appliances over 7 years old; and <br />6) updating the common areas with new carpet, paint and light fixtures. <br /> <br />We anticipate that the rehabilitation budget will be between $10,000 and $12,000 per unit <br />plus a 10% contingency. In addition to tax-exempt bonds, the Buyer is applying for <br />$900,000 in HOME funds from Central Minnesota Housing Partnership. Also, the Buyer <br />expects to raise $1,025,000 in tax credit equity. <br /> <br />The property is currently encumbered by a Land Use Restrictive Agreement (LURA) that <br />was executed December 24, 1990. The LURA specifies 100% of the units are rent and <br />income restricted at or below 60% of Area Median Income (AMI). The Buyer is <br />proposing to preserve 100% of this affordable housing under the same rent and income <br />restrictions, i.e. at or below 60% AMI. <br /> <br />The 60% AMI income restrictions are as follows: <br /> <br />2006 LmTC INCOME LIMITS (60% of AREA MEDIAN INCOME) <br /> <br />1 Person I 2 Persons 3 Persons 4 Persons I 5 Persons I 6 Persons <br />$33,000 $37,680 $42,420 $47,100 I $50,880 I $54,660 <br /> <br />The following table outlines current rents, proposed rents after rehabilitation and <br />maximum allowable rents per the Section 42 guidelines for the metro area: <br /> <br />2006 LIHTC RENT LIMITS 160% of AREA MEDIAN INCOME) <br />Unit Type # of Size Current Rent Proposed Max. LIHTC <br />Units (SF) Rent Rent <br />One Bedroom 3 683 $555 $625 $883 <br />Two Bedroom 22 871 $665 $715 $1,060 <br />2BR/TwoBath 2 1,113 $675 $750 $1,060 <br />3 BR / One Bath* 12 995 $725 $735 $1,060 <br />3 BR / Two Bath 12 1,066 $775 $850 $1,224 <br />* We are considering converting the twelve three bedroom / one bath units into two <br />bedroom / one bath units. <br /> <br />2355 Polaris Lane North Suite 100 Minneapolis, MN 55447 Phone 763/354-5500 Fax 763/354-5650 <br />Acquisition' Development. Construction' Management <br />