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WHY IS TBIS PROJECT REEDED Calibre is a unique product in Roseville and especially attractive for family living. Most Roseville rental housing is in traditional 2-1/2 story walk-up apartment buildings with security doors and detached garages. By providing an attached garage and private entrance to each unit at Calibre Ridge, children have free access and residents have greater control over their security. The 1992 Ramsey County Comprehensive Housing Affordability Strategy (CHAS) states that the HOME program should facilitate the acquisition of property for the development of rental housing available at below-market rates. Calibre rents are scheduled to be $100-$200 less per month than market rents (refer to the section on who benefits in this Exhibit). The CHAS further states preference should be given to developments which include three and four bedroom units in the development plan. Calibre Ridge will provide 30 three bedroom units. The CHAS also supports development of "in-fill" projects that redevelop small areas within already developed areas. Calibre Ridge site is part of several former single family homesites adjacent the Rice Street commercial strip. FINANCING Financing for Calibre Ridge has been structured to meet requirements of the low income tax credit program. The proposed first mortgage of $1,732,000 is structured as a 30 year loan at 9.875% fixed interest with a 1.15 debt cover ratio. The AFL/CIO is the financing source, GMAC Mortgage the loan originator with a Fannie Mae underwriting. This loan will be placed in service 3 months after rent-up is 90% completed. The Minneapolis/St. Paul Family Housing Fund is providing a $220,000, thirty year, 2% deferred interest loan. The remaining gap financing is being sought through the City of Roseville and Ramsey County which would be applied to land acquisition. Since the first mortgage lender will not allow additional debt servicing, it's proposed that this loan also be deferred for 30 years at 2% interest. It is anticipated that the remalnlng construction budget will be covered by a $2,503,900 syndication investment. Minnesota Housing Financing Agency has awarded Calibre Ridge $357,092 annual tax credits. Metropolitan Low Income Neighborhood Housing Limited Partnership II has indicated it's interested in being part of the limited partnership investment. Premier Bank has expressed interest in providing construction financing. Operating income, loss and credit reported on the annual federal income tax return will be allocated 99% to the limited partner and 1% to the general partner. Generally, a development qualifying for the low income tax credit is occupied by individuals with incomes below a certain percentage of the applicable area median gross income throughout a 35 year compliance period. Specifically, to satisy this occupancy requirement 100% of the vacant units in the development will be rented to individuals with incomes equal to or less than 60% of the -2-