HomeMy WebLinkAbout04-04-11 CAHAB materials for agenda item 1 M ,*,PNTANA
Department of Commerce
MONTANA BOARD OF HOUSING
P O Box 200528*Helena.Montana 59620-0528*www housing mt gov
Phone 406-841-2840*1-800-761-6264*Fax 406-841-2841 *TDD 406-641-2702
March 14, 2011
Mayor Jeff Krauss
City of Bozeman
121 North Rouse
Bozeman, MT 59715
RE: Request Comments for Hyalite Apartments
Dear Mayor Krauss:
The Montana Board of Housing (MBOH) administers the Low Income Housing Tax Credit Program in the
State of Montana. Congress established the Low Income Housing Tax Credit with the provisions of the
Tax Reform Act of 1986 to provide for retention, rehabilitation, and construction of rental housing for low
income individuals and families.
The Montana Board of Housing has received an application for Hyalite Apartments in your area. Please
see attached "Summary of Project Application"schedule(s) for the project's details.
We ask for your input because we are extremely interested in any comments you may have regarding the
project(s). We realize you or your organization may have expressed support for this project previously,
however we are required to solicit comments independently. Please answer the following questions
specifically:
1. Do the rents address current housing needs for low income residents in your area?
2. Is the size of the project appropriate for the community?
3. Is this type of housing appropriate for area housing market concerns?
4. Is the project located in a community identified hard to develop or distressed area?
5. Is the project located in an area with a high percentage of substandard units?
6. Is the project location close to other low income projects of similar type?
7. Is the project close to services, such as medical care, grocery shopping, schools (if
applicable)?
If you cannot specifically answer any of the above questions please indicate so and provide any general
comments you feel necessary.
The input from the local communities is critical to our review process. Any comments you or your staff
may have would be extremely helpful. We are also soliciting comments from other sources in the
community.
We would appreciate a response as soon as possible.
Sincerely,
Mary S. Bair✓
Multifamily Program Officer
Montana Board of Housing
enc
Hyalite Apartments
Bozeman/Gallatin
Income Number of Net Total
Targeting Units Rent Rent
2-bdrm 40% 2 $496 $992
2-bdrm 50% 13 $645 $8,385
2-bdrm 60% 5 $773 $3,865
3-bdrm 40% 3 $554 $1,662
3-bdrm 0% 13 $736 $9,568
3-bdrm 0% 5 $879 $4,395
41 $28,867
vacancy factor 7.00% ($2,021)
Adjusted Rent $26,846
58
$27,304
x 12 months 12
Total Annual Income $327,652
Expenses
Administration $18,250
Management $19,572
Maintenance $47,674
Operating $33,000
Taxes $31,192
Replacement Reserve $12,600
Total Expenses $162,288
Net Income Before Debt Service $165,364
Sources and Uses
TAX CREDIT UNITS IN BOZEMAN
Boston Capital Perm $1,600,000 FAMILY ELDERLY TOTAL
$0 $0 228 0 228
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Deferred Developer Fee $42,930 %paid by Tax Credits: 74.3%
Tax Credits $4,744,650 Assumes tax credits of: $616,250
0 $0 being sold for: $0.77
Total Sources: $6,387,580
Total Uses: $6,387,580
Difference: $0
Debt Coverage Ratio(DCR)
Net Income Before Debt Service $165,364
Total Debt Service $134,249
Debt Coverage Ratio 123.18%