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Application
Tax Credits, RPP Loans, and/or Tax Exempt Bond Loans
Project Description
Project Name: Covington Park
Address: 1025 W Hamlet Avenue
City: Hamlet County: Richmond Zip: 28345
Census Tract: 9710 Block Group: 2
Is project in Qualified Census Tract or Difficult to Develop Area? Yes

Are you requesting the basis boost under section II(E)(4) of the QAP?
Political Jurisdiction: City of Hamlet

First:Jeff Last:
Jurisdiction CEO Name: Title: Mayor
Smart
Jurisdiction Address: PO Box 1229
Jurisdiction City: Hamlet Zip: 28345
Jurisdiction Phone: (910)582-2651
Site Latitude: 34.9029
Site Longitude: -79.7121
Project Type: New Construction
Is this project a previously awarded tax credit

development?
New Construction/Adaptive Reuse:

Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? No
If yes, list names of previous phase(s):

Rehab:
Number of residents holding Section 8
vouchers:
Will the project meet Energy Star standards as defined in Appendix B? Yes
Does a community revitalization plan exist? No

Will the project use steel and concrete construction and have at least 4 stories? No
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Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77?
No
If yes, please describe:
Target Population:Family
Will the project be receiving project based federal rental assistance? No
If yes, provide the subsidy source: and number of units:

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Applicant Information
Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. Under
QAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicant
must become part of the ownership entity. The applicant will execute the signature page for this application.
Applicant Name: Pendergraph Development LLC
Address: PO Box 19691
City: Raleigh State: NC Zip: 27619

Contact: First: Frankie Last:Pendergraph Title:
Telephone: (919)755-0558
Alt Phone:
Fax:
Email Address: [email protected]

NOTE: Email Address above will be used for communication between NCHFA and Applicant.

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Site Description
Total Site Acreage: 12 Total Buildable Acreage: 12

If buildable acreage is less than total acreage, please explain:
Identify utilities and services currently available (and with adequate capacity) for this site:
Storm Sewer Water Sanitary Sewer Electric
Is the demolition of any buildings required or planned? No

If yes, please describe:
Are existing buildings on the site currently occupied? No

If yes:
(a) Briefly describe the situation:
(b) Will tenant displacement be temporary?

(c) Will tenant displacement be permanent?
Is the site directly accessed by an existing, paved, publicly maintained road? Yes
If no, please explain:
Is any portion of the site located inside the 100 year floodplain? No
If yes:
(a) Describe placement of project buildings in relation to this area:

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(b) Describe flood mitigation if the project will have improvements within the 100 year floodplain:

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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?No
If yes provide:
Purchase Date: Purchase Price:
If no:
(a) Does the owner/principal or ownership entity have valid option/contract to purchase the property?Yes
(b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for
purchase of the property and the seller of the property?No
If yes, specify the relationship:
(c) Enter the current expiration date of the option/contract to purchase: 12/31/2009
(D) Enter Purchase Price: 175,000

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Zoning
Present zoning classification of the site:RA-20
Is multifamily use permitted?Yes
Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?No
If yes, have the hearings been completed and permits been obtained?
If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for
obtaining them:
Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office
review?No
If yes, describe below:
Are there any existing conditions of environmental significance located on the project site?No
If yes, describe below:

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Ownership Entity
Owner Name: Covington Park, LLC

City: Raleigh State:NC Zip: 27619
Federal Tax ID Number of Ownership Entity: (If assigned)

Note: Do not submit social security numbers for individuals.
Entity Type: Limited Liability Company
Entity Status: To Be Formed
Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? No
Is the applicant requesting that the Agency treat the application as CHDO sponsored? No
List all general partners, members,and principals. Specify nonprofit corporate general partners or members.
Click [Add] to add additional partners, members, and principals.
Org: FWP Covington Park, LLC

First Name: Frankie Last Name: Pendergraph Function: Managing Member
City: Raleigh State: NC Zip: 27619
Phone: (919)755-0558 Fax: (919)861-6068
EMail: [email protected] Nonprofit: No

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Unit Mix
The Median Income for Richmond county is $51,300.
Low Income Units
Total # Monthly Utility Mandatory **Total

Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.
Gdn Apt 2 1025 24 3 375 144 0 519
Gdn Apt 3 1220 32 3 400 170 0 570
Utilities included in rents: Water/Sewer Electric Gas Other trash
Employee Units (will add to Low Income Unit total)

Utilities included in rents: Water/Sewer Electric Gas Other
Market Rate Units

Utilities included in rents: Water/Sewer Electric Gas Other
Statistics
All Gross Monthly

Units Units Rental Income
Low Income....... 56 6 21800
Market Rate.......
Totals............... 56 6 21800
Proposed number of residential buildings: 4 Maximum number of stories in buildings: 2
Project Includes:
Separate community building - Sq. Ft. (Floor Area): 1,614
Community space within residential bulding(s) - Sq. Ft. (Floor Area):
Elevators - Number of Elevators:
Square Footage Information

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Gross Floor Square Footage: 74,589
Total Net Sq. Ft. (All Heated Areas): 65,702
Indicate below any additional targeting for special populations proposed for this project:
Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal and
state codes.)
Number of Units: 3
Number of Units Required: 6

Persons with disabilities or homeless populations.
Number of Units: 6
Notes
** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for low
income units are within established thresholds.
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Targeting
Specify Low Income Unit Targeting in table below. List each applicable targeting combination in a separate row below. Click [Add] to
create another row. Click "X" (at the left of each row) to delete a row. Add as many rows as needed.
# BRs Units %
2 9 targeted at 50 percent of median income affordable to/occupied by
Total Low Income Units: 56
Note: This number should match the total number of low income units in the Unit Mix section.

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Funding Sources
Amort. Annual
Non- Rate Term Period Debt
Source Amount Amortizing* (%) (Years) (Years) Service
Bank Loan
RPP Loan
Local Gov. Loan - Specify:
RD 515 Loan
RD 538 Loan - Specify:
AHP Loan
Other Loan 1 - Specify:
Tax Exempt Bonds
State Tax Credit(Loan) 2,122,029 0 30 30 0
State Tax Credit(Direct Refund)
Equity: Federal LIHTC 3,795,620
Non-Repayable Grant
Equity: Historic Tax Credits
Deferred Developer Fees 7,035
Owner Investment 382
Other - Specify:
Total Sources** 5,925,066
* "Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debt
service below.
** Total Sources must equal total replacement cost in Project Development Cost (PDC) section.
Estimated pricing on sale of Federal Tax Credits: $0. 65
Remarks concerning project funding sources:

(Please be sure to include the name of the funding source(s))

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Development Costs
Eligible Basis
Item Cost Element TOTAL COST
30% PV 70% PV
1 Purchase of Building(s) (Rehab / Adaptive Reuse only)
2 Demolition (Rehab / Adaptive Reuse only)
3 On-site Improvements 560,000 500,000
4 Rehabilitation
5 Construction of New Building(s) 2,968,000 2,968,000
6 Accessory Building(s) 100,000 100,000
7 General Requirements (max 6% lines 2-6) 217,680 217,680
8 Contractor Overhead (max 2% lines 2-7) 76,914 76,914
9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 230,741 230,741
10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 207,667 207,667
11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 60,000 60,000
12 Architect's Fee - Inspection 15,000 15,000
13 Engineering Costs 60,000 60,000
SUBTOTAL (lines 1 through 13) 4,496,002
14 Construction Insurance (prorate) 2,000 2,000
15 Construction Loan Orig. Fee (prorate) 42,000 42,000
16 Construction Loan Interest (prorate) 226,800 226,800
17 Construction Loan Credit Enhancement (prorate)
18 Construction Period Taxes (prorate) 5,000 5,000
19 Water, Sewer and Impact Fees 15,000 15,000
20 Survey 18,000 18,000
21 Property Appraisal 6,500 6,500
22 Environmental Report 6,500 6,500
23 Market Study 4,300 4,300
24 Bond Costs
25 Bond Issuance Costs
26 Placement Fee
27 Permanent Loan Origination Fee
28 Permanent Loan Credit Enhancement

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29 Title and Recording 9,000
SUBTOTAL (lines 14 through 29) 335,100
30 Real Estate Attorney 35,000 25,000
31 Other Attorney's Fees 6,000 6,000
32 Tax Credit Application Fees (Preliminary and Full) 2,300
33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 43,855
34 Cost Certification / Accounting Fees 10,000 10,000
35 Tax Opinion
36 Organizational (Partnership) 5,000
37 Tax Credit Monitoring Fee 39,200
38 Furnishings and Equipment 20,000 20,000
39 Relocation Expense
40 Developer's Fee 588,000 588,000
41 Additional Contigency (greater of $500/unit or $30,000) 30,000 30,000
42 Other Basis Expense (specify)
43 Other Basis Expense (specify)
44 Rent-up Expense
45 Other Non-basis Expense (specify)
46 Other Non-basis Expense (specify)
47 Rent up Reserve 33,600
48 Operating Reserve 92,009
49 Lease Up Fee 14,000
50 Lease Up Reserve
51 DEVELOPMENT COST (lines 1-49) 5,750,066 0 5,441,102
52 Less Federally Funded Grant
53 Less Disproportionate Standard
54 Less Nonqualified Nonrecourse Financing
55 Less Historic Tax Credit 0
56 TOTAL ELIGIBLE BASIS 5,441,102 0 5,441,102
57 Applicable Fraction (percentage of LI Units) 100.00% 100% 100%

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58 Basis Before Boost 5,441,102 0 5,441,102
59 Basis Boost of up to 130% 100.00% 130.00%
60 TOTAL QUALIFIED BASIS 7,073,433 0 7,073,433
61 Tax Credit Rate 3.50 9.00
62 Federal Tax Credits (maximum $1,300,000) 636,609 0 636,609
63 Federal Tax Credits Requested (if less than line 62) 584,000 584,000
64 Land Cost 175,000
65 TOTAL REPLACEMENT COST 5,925,066
FEDERAL TAX CREDITS IF AWARDED 636,609
Comments:
Project Development Cost per unit 53,000

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Market Study Information

Please provide a detailed description of the proposed project:
Covington Park will be a 4-building, 56-unit family development consisting of 24 2-bedroom units and 32 3-
bedroom units and a separate large community/office building. Three buildings will contain 16 units and one
building will contain 8 units. The buildings will be 2 stories and will feature a craftsman style design
including gabled areas with shake siding and craftsman arches, broken roof lines with dutch hip accents,
dormers, board and batten siding, brick and stone veneer. The development will also have a community
building of similar style that will house the on-site management office, a multipurpose community room,
computer center, laundry room, exercise room and covered patio.
The rents will be affordable to 50% and 60% income levels. We feel that this site and market are excellent
for the proposed development. All necessary amenities for the residents are within one mile of the site.
Hamlet is a growing community. It offers outdoor recreation, dining and shopping, business and industry,
education, healthcare and a solid network of parks, community centers and libraries. Hamlet is a nice
community to live in.
Front entries are covered breezeways. Patio doors are full view glass providing an abundance of natural
light into the main living, dining, and kitchen areas. All units will have patios or balconies with storage
closets. The roof will have a Dutch hip, shake siding in gable areas, high quality vinyl siding, and vinyl clad
windows with grids.
A new playground/tot lot will be installed that will be handicap accessible. It will have benches and
equipment for both older children and tots. A new picnic shelter will be constructed with seating, tables and
grilling station. A gazebo will also be installed for the residents use. There will be three areas of seating
located through out the property for the residents benefit. The community room will have an exercise room,
multipurpose area, and computer station.
Construction (check all that apply):
Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches
Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding
Other:
Have you built other tax credit developments that use the same building design as this project?Yes
If yes, please provide name and address:
Greenridge, Rockingham, NC
Wyndsor Downs, Polkton, NC
Site Amenities:
A new playground/tot lot will be installed that will be handicap accessible. It will have benches and
equipment for both older children and tots. A new picnic shelter will be constructed with seating, tables and

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grilling station. A gazebo will also be installed for the residents use. There will be three areas of seating
located through out the property for the residents benefit. The community room will have an exercise room,
multipurpose area, and computer station.
Onsite Activities:
We anticipate having computer classes, health education, first aid courses, and various children’s activities
geared towards different age groups, holiday events, and much more.
Landscaping Plans:
It is our plan to install new plant material as described in the QAP and an irrigation system in the main
visible areas. We will also make sure all site amenities and handicap parking and walks conform to
handicap/accessibility requirements. There will also be new hardscape items installed such as a picnic
shelter, playground, benches and a gazebo/trellis. The site will have attractive signage, lighting, and
landscaping. Trees will be a minimum of 2” caliper and all shrubs will be 3 gallon or larger. White vinyl
fencing will be installed around the dumpsters.
Interior Apartment Amenities:

The units will be spacious with exterior storage and large closets within the units. All living areas and
bedrooms will have ceiling fans. All appliances will carry the energy star rating. All units will have
dishwashers and full size washer dryer connections.
Do you plan to submit additional market data (market study, etc.) that you want considered? No
If yes, please make sure to include the additional information in your pre-application packet.

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Applicant's Site Evaluation

Briefly describe your site in each of the following categories:
NEIGHBORHOOD CHARACTERISTICS
Trend and direction of real estate development and area economic health. Physical condition of buildings and
improvements in the immediate vicinity. Concentration of affordable housing.
The trend and direction of real estate development and economic health is very positive. Adjacent to the
site is a new medical office facility. Across the street is Richmond County Community College which looks
new. Also across the street is the Sandhills Hospital which is in excellent condition.
SURROUNDING LAND USES AND AMENITIES
Land use pattern is residential in character (single and multifamily housing). Extent that the location is
isolated. Effect of industrial, large-scale institutional or other incompatible uses, including but not limited to:
wastewater treatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distribution
facilities, frequently used railroad tracks, power transmission lines and towers, factories or similar operations,
sources of excessive noise, and sites with environmental concerns (such as odors or pollution). Amount and
character of vacant, undeveloped land. The area around the site is a mixed use neighborhood with a good
balance of residential and commercial uses. The location is not isolated in the least and there are no
negative features (including those mentioned above) in the area. There are no large amounts of vacant land.
The only vacant land is the site.
SITE SUITABILITY
Adequate traffic safety controls (i.e. stop lights, speed limits, turn lanes). Burden on public facilities
(particularly roads). Access to mass transit (if applicable). Visibility of buildings and/or location of project sign
(s) in relation to traffic corridors. The site is located off of Hwy 74 Business in Hamlet. Hwy 74 is a 4 lane
highway and has adequate traffic safety controls in place. The property has excellent visibility.
Degree of on-site negative features and physical barriers that will impede project construction or adversely
affect future tenants; for example: power transmission lines and towers, flood hazards, steep slopes, large
boulders, ravines, year-round streams, wetlands, and other similar features (for adaptive re-use projects-
suitability for residential use and difficulties posed by the building(s), such as limited parking, environmental
problems or the need for excessive demolition).
There are no on-site negative features or physical barriers that will impede project construction or adversely
affect future tenants.
Similarity of scale and aesthetics/architecture between project and surroundings.

The project will be consistent with the existing structures in the neighborhood which includes single-family
residential, medical offices, a hospital and a community college.
For each applicable neighborhood feature, enter distance from project in miles.

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.50 Grocery Store .10 Community/Senior Center
1.1 Mall/Strip Center .10 Hospital
.50 Outdoor Athletic .50 Pharmacy

Fields
.50 Day Care/After .10 Basic Health Care

School
1.4 Public Transportation

Schools
Stop
1.1 Convenience Store 1.8 Public Parks
1.1 Gas Station 1.6 Library
Other facilities or services:

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Preliminary App Checklist
The following enclosures must be submitted along with your signed preliminary application. Some enclosures are required only under
certain conditions. Please check each applicable item to indicate that you understand the enclosure requirements and will enclose the
correct supporting documentation with your application.
Fee Payment
Check in the amount of $5,450.00 made payable to North Carolina Housing Finance Agency.
Tab A - Preliminary Application
Printed, signed copy of preliminary application generated from online system.
B - Map/Driving Instructions
A local map clearly identifying the location of the Site and detailed directions to the Site. Current City or County maps are preferred
– internet maps and directions are not acceptable. Applicant must also provide a map identifying the amenities listed in section IV
(A)(1)(b)(ii) of the QAP and their proximity to the site.
Applicant must provide a sign and boundary markers to clearly identify the road frontage of the site. The sign identifying the site
should read “SITE” with a minimum size of 11x17.
C - Community Revitalization Plan
Applicant should provide a map identifying the subject site within the Plan area (if applicable).
D - Evidence of Site Control
Provide valid option/contract or warranty deed and plot plan.
E - Site Plans/Scope of Work
Preliminary site plan, floor plans and elevations for all projects, interior and exterior photographs and detailed scope of work for
Adaptive Reuse and Rehab projects. Site and floor plans should be no larger than 11x17 and must be produced by a licensed
architect or engineer.
F - Information Package for Market Analysts
This section must include copies of items required in Tabs A, B, E and G (site and floor plans should be no larger than 11x17) and
can include any additional market information such as preliminary market studies the applicant would like to provide to the
Analysts.
G - Rent Roll (Rehabs only)
Provide the current rent roll for the property and indicate which units (if any) are receiving rental assistance.
H - Documentation for Basis Boost
Applicant should provide an appraisal and/or standard geological survey to support a request for the basis boost (if applicable).

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City: Hamlet County: Richmond Zip: 28345

Census Tract: 9710 Block Group: 2

Is project in Qualified Census Tract or Difficult to Develop Area? Yes

Political Jurisdiction: City of Hamlet

Jurisdiction City: Hamlet Zip: 28345

Jurisdiction Phone: (910)582-2651

Site Latitude: 34.9029

Site Longitude: -79.7121

Project Type: New Construction

Is this project a previously awarded tax credit

New Construction/Adaptive Reuse:

If yes, list names of previous phase(s):

Does a community revitalization plan exist? No

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If yes, provide the subsidy source: and number of units:

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City: Raleigh State: NC Zip: 27619

Email Address: [email protected]

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Total Site Acreage: 12 Total Buildable Acreage: 12

Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned? No

Are existing buildings on the site currently occupied? No

(b) Will tenant displacement be temporary?

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Purchase Date: Purchase Price:

(D) Enter Purchase Price: 175,000

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Is multifamily use permitted?Yes

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Owner Name: Covington Park, LLC

Federal Tax ID Number of Ownership Entity: (If assigned)

Org: FWP Covington Park, LLC

Phone: (919)755-0558 Fax: (919)861-6068

EMail: [email protected] Nonprofit: No

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Low Income Units

Total # Monthly Utility Mandatory **Total

Gdn Apt 2 1025 24 3 375 144 0 519

Gdn Apt 3 1220 32 3 400 170 0 570

Utilities included in rents: Water/Sewer Electric Gas Other trash

Employee Units (will add to Low Income Unit total)

Total # Monthly Utility Mandatory **Total

Utilities included in rents: Water/Sewer Electric Gas Other

Market Rate Units

Total # Monthly Utility Mandatory **Total

Utilities included in rents: Water/Sewer Electric Gas Other

All Gross Monthly

Low Income....... 56 6 21800

Proposed number of residential buildings: 4 Maximum number of stories in buildings: 2

Community space within residential bulding(s) - Sq. Ft. (Floor Area):

Elevators - Number of Elevators:

Square Footage Information

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Gross Floor Square Footage: 74,589

Total Net Sq. Ft. (All Heated Areas): 65,702