Microsoft Word - Clean Final CUR report-Pinnacle 441.docx

FloridaHousingFinanceCorporation

CreditUnderwritingReport

Pinnacle441

HousingCreditFinancingforAffordableHousingDevelopmentsLocatedinBroward,Duval,

Hillsborough,Orange,PalmBeachandPinellasCounties

RFA2020‐202(2021‐017C)

HousingCreditProgram



InvitationtoParticipatefortheConstructionHousingInflationResponseProgram

2022CHIRP

SectionA ReportSummary

SectionB HCAllocationRecommendationandContingencies

SectionC SupportingInformationandSchedules



Preparedby

SeltzerManagementGroup,Inc.

FinalReport

July6,2022

SMG

_____________________________________________________________________________

JULY 6, 2022



Pinnacle441

TABLEOFCONTENTS



Page

SectionA

ReportSummary

 RecommendationA1‐A8



 OverviewA9‐A11



 UsesofFundsA12‐A18



 OperatingProFormaA19‐A21



SectionB



 HCAllocationRecommendationandContingencies B1 



SectionC



SupportingSchedules

 AdditionalDevelopmentandThirdPartyInformationC1‐C6



BorrowerInformationC7‐C10

 SyndicatorInformationC11

 GeneralContractorInformationC12‐C13

 PropertyManagerInformationC14



Exhibits

15YearProForma1

Features/AmenitiesandResidentPrograms21‐6

CompletenessandIssuesChecklist31‐2

HCAllocationCalculation41‐3



SMG

_____________________________________________________________________________

JULY 6, 2022



SectionA

ReportSummary

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-1

JULY 6, 2022

Recommendation

SeltzerManagement Group, Inc. (“SMG” or “Seltzer”) recommendsanannual9%competitiveHousing

Credit (“HC”) allocation of $2,882,000, plus an additional $500,000 from the Construction Housing 

InflationResponseProgram(“CHIRP”),foratotalannualallocation of$3,382,000beawardedbyFlorida

HousingFinanceCorporation(“FHFC”or“FloridaHousing”)forconstructionand

permanentfinancingof

Pinnacle441(“Development”).

DevelopmentName:

RFA/ProgramNumbers: /

Address:

Ci ty: ZipCode: County: CountySize:

DevelopmentCategory: DevelopmentType:

Constructi on Type:

DemographicCommi tment:

Primary: oftheUnits

UnitComposition:

#ofELIUnits: ELIUnitsAreRestrictedto AMI,orless. Total#ofunitswithPBRA?

#ofLinkUnits: AretheLinkUnitsDemographicallyRestricted? #ofNHTFUnits:

Pinnacle441

$1,832

$429

$1,144

$2,610

$484

$1,107

$467

Net

Restricted

Rents

$344

$922

MKT

25%

$414

$1,107

$2,610

$467

$414

AnnualRental

Income

$8,256

$21,978

60%

1,194

2.0

22.0

32.0

$1,2683

32.0

DEVELOPMENT&SET‐ASIDES

Bed

Rooms

1.0

2.0

Bath

Rooms

1.0

PBRA

Contr

Rents

1.0

2.0

256

$105

$572

$1,373

$2,759

731

973

2,372

1,194

2021‐017C

NewConstruction HighRise

Masonry

2020‐202

LargeBroward33024Hollywood

NStateRoad7(US441),SWCornerofNStateRoad7(US441)andJohnsonSt

for 100%

AMI%

25%

MKT

Family

25%

Utility

Allow.

$68

Yes

GrossHC

Rent

$412

$990

731

73111

$81

Units

LowHOME

Rents

60%

MKT

High

HOME

RentsSquareFeet

25%

60%

$495

$1,188

$105

CURents

$344

$922

$1,831.50

Applicant

Rents

$357

$952$68

$1,310

$467

$1,107

$2,610

$121,704

Appraise r

Rents

$344

$922

$1,831.50

$414

$743,904

$31,320

$16,812

$471,696

$34,776

$1,268

$33,102

$1,268

$2,758.5 $2,758.50



115,695113 $1,483,548



Buil di ngs: Resi dential ‐ Non‐Residential‐

Parking: ParkingSpaces‐ AccessibleSpaces‐

Se tAsides: Program

Term(Years)%AMI#ofUnits%ofUnits

200 7

10.0%

90.0%

25% 50

5060%



TheApplicantselectedtheminimumsetasidecommitmentof40%ofunitsat60%AreaMedianIncome

(“AMI”)orlower.Therefore,theDevelopmentmustsetaside10.0%ofthetotalunits(12units)asELISet‐

Aside units at 25% AMI or lower. Persons with Special Needs Set‐Aside Commitment:

The proposed

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-2

JULY 6, 2022

Developmentmustsetaside50percent(50%)oftheELISet‐Asideunits(6units)asLinkunitsforPersons

withSpecialNeeds.InordertomeetthecommitmenttosetasideELIasLINKunitsforPersonswithSpecial

Needs,theApplicantmustdevelopandexecuteaMemorandumofUnderstanding

(“MOU”)withatleast

onedesignatedSpecialNeedsHouseholdReferralAgencythatprovidessupportiveservicesforPersons

with Special Needs in Broward County. The MOU  was approved by Florida Housing on September 15,

2021.FHFCalsoapprovedtheTenantSelectionPlanonJanuary6,2022.

AbsorptionRate unitspermonthfor months.

OccupancyRateatStabilization: PhysicalOccupancy EconomicOccupancy

Occu pancyComments

DDA: QCT: M ulti‐PhaseBoost: QAPBoost:

SiteAcre age: Density: Fl oodZoneDesignation:

Zoning: FloodInsuranceRequired?:

95.00%

4.5

Yes No

C‐JS,Cen tralJohnsonStreetDistrict

3.045 37.1100

Yes

96.00%



Pinna c le441,LLC

%Owners hi p

0.00%

Applicant/Borrower:

Apprai s er:

ManagementCompany:

Archi tect:

General Contractor1:

Member

DEVELOPMENTTEAM

MitchellM.Friedman

99.99%

PC441,LLC

BankofAmeri ca ,N.A.,oritsaffili ates("BofA")

SpecialMe mber

Developer:

Member

BancofAmeri ca CDCSpecialHoldingCompa ny,Inc.

DavidO.Deutch

Pinna c leCommunities,LLC

Meri dianAppraisal Group

PCBuilding,LLC

Synd icator:

0.01%

Jose phB.Kaller&Associates,P.A.d/b/a KallerArchi tecture

MarketStudyProvi der:

Pr ofes sionalManagement,Inc.

Meri dian

Apprai sal Group

Principa l1

Principa l2

Principa l3

LouisWolfsonIII

BofA





HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-3

JULY 6, 2022

NLP

BrowardCounty

$9,200,000

$100,000

LienPos iti on

0.00%

5.1

Opera ti ngDeficit&

DebtServiceReserves

DebtServiceCoverage

Restricte dMarket 

Fi nanc ingLTV

#ofMonthscovered

bytheReserves

1.171

N/A

16.0

30.0

Second

22.0%

20.5% 20.7%

1.171

Other

$359,382

LoantoCost‐

Cumulative

2ndSource

1stSourc e

67.3% 68.0%

21.8%

Lender/Grantor

Amount

UnderwrittenInterest

Rate

LoanTerm

5.47%

MarketRate/Market

Fi nanc ingLTV

Amorti zati on

Fi rstMortgage

5thSource4thSource3rdSource

PERMANENTFINANCINGINFORMATION

35.0



$0.94

HousingCr edit(HC)SyndicationPri c e

Year15Pr oFo rmaIncomeEs cal ati onRate

DeferredDeveloperFee

MarketRent/MarketFin ancin gStabilizedVal ue

HCAnnual Allocation‐Initi alAward

$2,882,000

RentRestrictedMarketFinan cingStabilizedValue

HCAnnual Allocation‐QualifiedinCUR

ProjectedNetOper a tingIncome(NOI) ‐15 Year

3.00%

ProjectedNetOper a tingIncome(NOI) ‐Year1

$691,440

$3,510,000

$3,382,000

$13,680,000

$3,851,893

$42,220,000

$776,869

$3,382,000

As‐IsLa ndVa lue

HCAnnual Allocation‐Equi tyLetterofInterest

Year15Pr oFo rmaExpenseEscal ati onRate

2.00%



LocalGovernmentSubsidy

HCEquity

$397,694.81

PermLoan/UnitPe rmanentConstructionLenderSource

BofA

NLP

BrowardCounty

BofA

Developer

$100,000

$14,304,429

$81,415.93

$100,000

$31,787,621

$3,851,893

$9,200,000

RegulatedMortgage

CONSTRUCTION/PERMANENTSOURCES:

$2,735,085

$884.96

$281,306.38

$34,087.55

$27,800,000

DeferredDeveloperFee

TOTAL $44,939,514 $44,939,514

$0.00





HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-4

JULY 6, 2022

COMPARISONCRITERIA YES NO

Does the level of experience of the current team equal or  exceed that of the team

describedintheapplication?

X

AreallfundingsourcesthesameasshownintheApplication?1

Are all local government recommendations/contributions still in place at the level

describedintheApplication?

X

IstheDevelopmentfeasiblewithallamenities/featureslistedintheApplication? X

Dothesiteplans/architecturaldrawingsaccountforallamenities/featureslistedinthe 

Application?

X



DoestheApplicanthavesitecontrolatorabovethelevelindicatedintheApplication?  X

DoestheApplicanthaveadequatezoningasindicatedintheApplication? X

HastheDevelopmentbeenevaluated forfeasibilityusingthetotallengthofset‐aside

committedtointheApplication?

X

Have the Development costs remained equal to or less than those listed in the

Application?

 2

IstheDevelopmentfeasibleusingtheset‐asidescommittedtointheApplication? X

If the Development has committed to serve a special target group (e.g. elderly,large

family, etc.), do the development and operating plans contain specific provisions for

implementation?

X

HOMEONLY:Ifpointsweregivenformatchfunds,isthematchpercentagethesameas

orgreaterthanthatindicatedintheApplication?

N/A

HC ONLY: Is the rate of syndication the same as or greater than that shown in the

Application?

X

Is the Development in all other material respects the same as presented in the

Application?

 3

Thefollowingareexplanationsofeachitemchecked“No”inthetableabove

1. FirstMortgage:

The first mortgage construction/permanent lender changed from Citibank, N.A. (“Citi”) to Bank of

America,N.A.(“BofA”)astheconstructionlenderandNeighborhoodLendingPartnersofFlorida,Inc.

(“NLP”)asthepermanentlender.

ThesyndicatorchangedfromCititoBofA.



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-5

JULY 6, 2022

2. HigherDevelopmentCosts:

TotalDevelopment Costsunderwrittenforthe Developmentare$44,939,514,whichrepresents an

increaseof$9,763,651fromthe$35,175,863intheFHFCApplica tion.Majorfactorscontributingto

theincreaseare:

a. The$25,967,968ConstructionContractforPinnacle441is$6,631,940higherthantheprojected

figureof$19,336,028.

b. Estimat edhardcostcontingency,

costofaletter‐of‐credit,demolitionofexistingstructures,retail

spaceallowance,buildingpermits,FHFCadministrativefees,constructionloaninterest,financing

fees, developer fee, and operating deficit reserves represent the remaining increases in Total

DevelopmentCostscomparedtothe Application.

3. OtherMaterialChanges:

a. An EUA Amendment was filed by the Applicant on April 23, 2021 to change the number of

buildingsfromtwotoonebuil ding.FHFCapprovedtherequestonMay11,2021.

b. ApplicantrequestedaRuleWaivertoaddthreeadditionalmarketrateunitswithanadjustment

totheset

‐asidepercentag efrom100%to97%,whichwasapprovedattheFHFCMarch4,2022

BoardMeeting.



c. An EUA Amendment was filed by the Applicant on March 4, 202 2 to change the unit mix and

definetheset‐asidesreflectedbelowandwasapprovedbyFHFConApril

8,2022.



d. TheApplicantappliedforadditionalFHFCLoanfundingthroug hFHFC’sInvitationtoParticipate

(“ITP”) for CHIRP.The additionalfunds will be an increase in the an nual  housing credits in the

amountof$500,000,increasingtherecommendeda mountfrom$2,882,000to$3,382,000.

e. OnJuly7,2021,

theApplicantmadetworequeststoFHFC:1)arequesttochangetheowner’s

address(typographicalerr o r)and2)aslightchangetothelegaldescriptiontoaccuratelyreflect

thepriordedicationmadebythecurrentownertotheFloridaDepartmentofTransportationfor

rightofwaypurposes.Thetwochanges

wereapprovedbyFHFCStaffonAugust4,2021.

HC CREDIT UNDERWRITING REPORT SMG

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JULY 6, 2022

f. Broward County Housing Finance Division (“Broward County”) provided a June 21, 2022 Term

Sheetchangingtheprevious$100,000Grantintoa$100,000loan.Theloanwillhaveaninterest

rateof0%withatermof30years.Theloanwillbenon‐amortizingandthePromissoryNotewill

contain

aprovisionforforgiveness attheend oftheloantermatBrowardCounty’ssolediscretion.

TheloanrequiresthattherebetwoSHIP‐assistedunitsanditconstitutesthe“LocalGovernment

Contribution”reflectedintheapplication.TheDirectorofBrowardCountyconfirmedinaJune

27, 2022 email that

the two SHIP units are permitted to float and are  not allocated to any 

particularbedroomsizeandarerestrictedatorbelow80%ofAverageMedianIncome(“AMI”).

The above changes have no material adverse impact to Seltzer’s HC recommendation for the

Development.

Does the De velopment  Team have any FHFC

 Financed Developments on the PastDue/Noncompliance

Report?



FloridaHousing’sPastDueReport, datedMay27,2022,reflectsnoPastDueitemsfortheDevelopment

Team.

ThedatareflectedinthelatestAssetManagementNoncomplianceReport(June9,2020)isconsidered

staleandwasnotrelieduponbythecreditunderwriterforpurposesofthisanalysis/recommendation.

FHFC’sAsset

ManagementDepartmentwillconfirmthattheDevelopmentTeamhasnooutstandingpast

dueand/ornoncomplianceitemspriortoclosing.

Seltzer’s Annual HC Recommendation is subject to satisfactory resolution of any outstanding past due

and/ornoncomplianceitemspriortotheissuanceoftheannualHCAllocation. 

Strengths

1. The Principals, Developer and General Contractor are experienced in the development and

constructionofaffordablemultifamilyhousing.

2. ThePrincipalsandtheManagementCompanyhavetheexperiencenecessarytosuccessfullymanage

theDevelopment.

3. TheAppraisal reflects aweightedaverageoccupancywithintheDevelopment’sCompetitiveMarket

Area of 100%, and

 low capture rates, which indicates a strong market and demand for affordable

housing.

OtherConsiderations:None

WaiverRequests/SpecialConditions:

1. TheApplicantestimatedahardcostcontingencyof7.00%.Thiscontingencypercentageissupported

by the Plan and Cost Analysis (“PCA”) completed by GLE Associates, Inc. (“GLE”), however, the

percentageisinexcessoftheRuleandRFArequirements.PertheRFAandRules,themaximumhard

costcontingency is

5% .  At theApril1,  2022, FHFC Telephonic Boardmeeting,theBoardde legated

staffthe authority to approve contingency reserve increases upon recommendations by the credit

underwriter. Seltzer recommendsthat FHFC approve the contingencyof7.00%.Applicant madea

formal request to FHFC on June 23, 2022 to approve the

increase in hard cost contingency and is 

pendingFHFCapproval.

HC CREDIT UNDERWRITING REPORT SMG

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JULY 6, 2022



AdditionalInformation:

1. ToensurethattheadjustedfirstmortgagemeetsorexceedsaminimumDSCof1.10to1.00,based

on the projections/estimates and loan amounts in this report, the interest rate of the permanent

periodFirstMortgageLoanmaynotexceed5.99.However,Seltzerwillnotbeinvolvedintheclosing



processandsizingofthefirstmortgagewillbeatthediscretionofthefirstlender.

2. TheBorrowerhasappliedtotheITPforCHIRPandSeltzerhasreceivedtheapplication.Basedonthe

sizingcriteriaandparameterssetforth  intheCHIRPITP,theDevelopmentwillreceive$50 0,000

in

additionalfunding.ItisrequiredthattheBorrowerdeferatleast30%oftheDeveloperFee,whichis

currently estimated at 69.10%. It is anticipated that this funding will have terms and conditions

identicaltotheHCfundingappliedforthroughRFA2020‐202.Receiptandsatisfactoryreviewofthe



amount of CHIRP funding is a condition to close.Note that the CHIRP calculation was based on

maximum 2021 rents.It is anticipated that the Development would be able to achieve maximum

2022rents.SeltzerperformedtheCHIRPcalculationusingboth2021and2022maximu mrents(see

bothcalculationsat

theendof theCUR).Itwasde terminedthatmaximum2022rentswouldalso

qualifytheDevelopmentfor$500,000inCHIRP.

3. Applicant provided an  Application and Agreement for Irrevocable Standby Letter of Credit to City

NationalBankofFloridadatedMay25,2022intheamountof$2,596,797(10%of

theGCContract)in

thenameoftheApplicant,with BofA listed as the beneficiary.Theconstruction lender,BofA,has

statedwithinitsTermSheetthata10%Letter‐of‐Creditwillberequired.BeingthatFHFCdoesnot

havealoaninvolvedinthistransaction,Seltzerdeemsthe10%

requirementacceptable.

4. According to the RFA, the Corporation will review the limited partnership  agreement or limited

liability company operating agreement language on reserves for compliance with the RFA

requirement.Ifthelimitedpartnershipagreementorlimitedliabilitycompanyoperatingagreement

doesnotspecificallystatethattheparties willcomplywith

theCorporation’sRFArequirements,the

CorporationwillrequireanamendmentoftheagreementandwillnotissueIRSform(s)8609untilthe

amendmentisexecutedandprovidedtotheCorporation.TheRFAincludeslanguagerestrictingthe

dispositionofanyfunds remaininginanyoperatingdeficitreserve(s)after thetermof

thereserve’s

original purpose has terminated or is near termination. The  RFA also requires the Corporation to

reviewthelimitedpartnershipagreementorlimitedliabilitycompanyoperatingagreementlanguage

onreservesforcompliancewiththeRFArequirement.WhileFloridaHousingwillcontinuetorequire 

theApplicanttoadheretoallrequirements

intheRFAincludingtherestrictionsonthedispositionof

any funds in an operating deficit reserve account, Florida Housing will not monitor the limited

partnership agreement or limited liability company operating agreement lang uage for compliance

withtheserequirements,asthiswouldrequireanalysisofalegalcontract.Thisdeviation

wasincluded

asanInformationItemintheApril29,2022FHFCBoardMeeting.

5. TheUnitedStatesiscurrentlyunderanationalemergencyduetothespreadofthevirusknownas 

COVID‐19.Theextentofthevirus’impacttotheoveralleconomyisunknown.Morespecifically,itis



unknown as to the magnitude and timeframe the residential rental market (e.g. absorption rates,

vacancyrates,collectionlosses,appraisedvalue,etc.)andtheconstructionindustry(e.g.construction

schedules, constructioncosts,subcontractors,insurance,etc.)willbeimpacted.Recommendations

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-8

JULY 6, 2022

madebySeltzerinthisreport,inpart,relyuponassumptionsmadeby third‐partyreportsthatare

unabletopredicttheimpactsofthevirus.

IssuesandConcerns:None

MitigatingFactors:None

Recommendation

SMGrecommendsFHFCapprovea$3,382,000($2,882,000originalawardand$500,000CHIRP)annual

HCallocationbeawardedtoPinnacle441.

This recommendation is based upon the assumptions detailed in the Report Summary (Section A) and

SupportingInformationandSchedules(SectionC).Inaddition,thisrecommendationissubjecttotheHC

Allocation

 Contingencies reflected in Section B. The reader is cautioned to refer to these sections for

completeinformation.



Thisrecommendationisonlyvalidforsix(6)monthsfromthedateoftheCreditUnderwritingReport.

Preparedby:Reviewedby:

 

KeithWhitakerJoshScribner

SeniorCreditUnderwriterCreditUnderwritingManager



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-9

JULY 6, 2022

Overview

ConstructionFinancingSources

Source Lender Applicant

Revised

Applicant Underwriter

Interest

Rate

Construction

DebtService

Fi rs tMortgage BofA $27,600,000 $27,800,000 $27,800,000 4.59% $2,023,362

Se cond Mortga ge Browa rdCounty $100,000 $100,000 $100,000 0.00% $0

HCEquity BofA $3,976,764 $14,304,429 $14,304,429

DeferredDeve l operFee Developer $3,499,099 $2,817,391 $2,735,085

Total $35,175,863 $45,021, 820 $44, 939,514 $2,023,362

FirstMortgageLoan

ApplicantprovidedaTermSheetfromBofAdatedMay31,2022toprovideafirstmortgageconstruction

loan for a  maximum loan amount of $27,800,000.The loan will  have a floating interest rate during

construction of 226 basis points over the Bloomberg Short Term  Bank Yield Index Daily Fl oating Rate

(“BSBY”).

TheBSBYrateasofJune13,2022is0.83477%,whichishigherthan thefloorrateof0.75%.

SMG included a 150 basis point cushion to account for possible interest rate increases resulting in an 

estimatedrateof4.59%.Interestonlyshallbepaidmonthly.Theloanwillhave

a30‐monthtermfrom

closingwithacommitmentfeeof0.50%oftheloanamount.SeltzerhasutilizedtheApplicant’sestimate

forconstructionloaninter estintheamountof$2,023,362basedontheanticipatedconstructiondraw

schedule.

SecondMortgageLoan–BrowardCounty

Broward County provided a June 21, 2022 Term Sheet changing the previous $100,000 Grant into a

$100,000loan.Theloanwillhaveaninterestrateof0%withatermof30years.Theloanwillbenon‐

amortizingandthePromissoryNotewillcontainaprovisionforforgivenessatthe

endoftheloantermat

Broward County’s sole Discretion.The loan requires that there be two SHIP‐assisted units and it

constitutesthe“LocalGovernmentContribution”reflectedintheapplication.TheDirectorofBroward

County confirmed in  a  June 27, 2022 emailthatthe two SHIP units are permitted

to float and are not

allocatedtoanyparticularbedroomsizeandarerestrictedatorbelow80%ofAMI.

OtherConstructionSourcesofFunds

Additional sources of funds for construction of the Development include HC equity from BofA in the

amountof$14,304,429andDeferred DeveloperFeeof$2,735,085.SeethePermanentFinancingSources

sectionbelowfordetails.

Construction/StabilizationPeriod:

AMay4, 2022, executed AIA Standard Form ofAgreementbetween Owner andContractor where the

basisofpaymentistheCostoftheWorkPlusaFeewithaGuaranteedMaximumPricereflectsPCBuilding,

LLC(“PCBuilding”)achievingsubstantialcompletionoftheDevelopmentnolaterthan487calendardays



(orapproximately16months)fromthedateofcommencement.InMeridian’srentalmarketanalysis,the

absorption performance of comparable/competitive apartment rentals was analyzed. It is Meridian’s

opinionthattheDevelopmentwillhaveanaverageabsorptionrateof25unitspermonth.Duetothe

currentstrongandconsistentdemandfor

low‐incomeaffordablehousing,Meridiananticipatesstabilized

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-10

JULY 6, 2022

occupancyof96%within4.5monthsoffinalconstru ctioncompletion(assumingallunitsarecompleted

asscheduled).Tobeconservative,SMGhasutilizedthefirstlender’s30‐monthconstruction/stabilization

periodforpurposesofthiscreditunderwritingreport.

PermanentFinancingSources

Source Lender Applicant

Revised

Applicant Under writ er

Interest

Rate

Amor t.

Yrs.

Term

Yrs.

Annual

Debt

Fi rs tMortga ge NLP $6,000,000 $9,200,000 $9,200,000 5.47% 35 16 $590,698

Se cond Mortgage BrowardCounty $100,000 $100,000 $100,000 0.00% N/A 30 $0

HCEqui ty BofA $26,511,749 $31,787,621 $31,787,621

Def.De ve l operFee De vel oper $2,564,114 $3,934,199 $3,851,893

Total $35,175,863 $45,021,820 $44,939,514 $590,698



FirstMortgageLoan

ApplicantprovidedaLetterofIntent(“LOI”)datedMay19,2022fromNeighborhoodLendingPartnersof

Florida,Inc.(“NLP”)toprovideafirstmortgagepermanentloanupto$9,200,000.Theinterestratewill

befixedata rateequaltothe10‐yearTreasuryplus265basispoints,withanall

‐infloorrateof5.00%.

Thecurrent10‐yearTreasuryRateasofJuly5,2022is2.82%.Theall‐inrateasofJuly5,2022wouldbe

5.47%.Principalandinterestpaymentswillbeduemonthly,basedona35‐yearamortizationwitha16‐

yearterm.An

originationfeeequalto1.00%($92,000)ofthemaximumPermanentloanamountwillbe

payableatpermanentloanconversion.AnApplicationFeeof$7,500andaLoanProcessingFeeof$3,000

willalsoberequired.

SecondMortgageLoan–BrowardCounty

Broward County provided a June 21, 2022 Term Sheet changing the previous $100,000 Grant into a

$100,000loan.Theloanwillhaveaninterestrateof0%withatermof30years.Theloanwillbenon‐

amortizingandthePromissoryNotewillcontainaprovisionforforgivenessatthe

endoftheloantermat

Broward County’s sole discretion.The loan requires that there be two SHIP‐assisted units and it

constitutesthe“LocalGovernmentContribution”reflectedintheapplication.TheDirectorofBroward

County confirmed in  a  June 27, 2022 emailthatthe two SHIP units are permitted

to float and are not

allocatedtoanyparticularbedroomsizeandarerestrictedatorbelow80%ofAMI.

HousingCredits

ApplicantappliedtoFHFCtoreceive9%HC.AccordingtotheMay31,2022LOIfromBofA,HCequitywill

be provided to Applicant by BofA, and, or, its affiliates according to the following terms and pay‐in

schedule:

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-11

JULY 6, 2022

CapitalContributions Amount

Percentof

Total WhenDue

1s tIns tallment $7,946,905 25.00% AtCl os i ng

2ndInsta l l me nt $3,178,762 10.00% At50%completionandnoearliertha n2/1/2023.

3rdIns tal l me nt $3,178,762 10.00% At95%compl etionandnoearliertha n10/1/2023.

4thInstal l ment $16,529,563 52.00% Constructi oncompl eti on,min i mu mDSC1.15x3

cons e cutive months ,90%occupi ed,perm.loans

fu n d e d ,C.O.issued,res e rvedfu n d ed ,dra ftcostcert.,

noearliertha n4/1/2024.

5thInsta l l ment $953,629 3.00% Form

8609

Tota l $31,787,621 100.00%



AnnualTaxCreditsperSyndicationAgreement: $3,382,000

TotalHCSyndication:$33,816,618

SyndicationPercentage(limitedpartnerinterest): 99.99%

CalculatedHCExchangeRate(perdollar): $0.94

ProceedsAvailableDuringConstruction:  $14,304,429

At least 15%  of the total equity will be provided prior to or simultaneously with the closing of the

constructionfinancing.

Deferred

DeveloperFee

InordertobalancetheSourcesandUsesofFundsafterallloanproceedsandcapitalcontributionshave

beenreceived,thedeveloperwillhavetodefer$3,851,893ofDeveloperFee.Thisamountis69.10%of

thetotalDeveloperFeeof$5,663,984,whichmeetstherequirementoftheCHIRP ITPtodefer

atleast

30%oftheDeveloperFee.



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-12

JULY 6, 2022

UsesofFunds

CONSTRUCTIONCOSTS:

ApplicantCosts

Revised

ApplicantCosts

Underwriters

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

Acces s oryBui ldings

$0 $0

Demolition

$150,000 $0

InstallationofPreFabUni ts

NewRentalUnits

$16,829,850 $20,672,624 $20,672,598 $182,943 $1,176,000

Off‐SiteWork

RecreationalAmenities

RehabofExistingCommonAreas

RehabofExistingRentalUni ts

SiteWork

$2,076,389 $2,076,389 $18,375 $1 03,819

SwimmingPool

Fur niture,Fix tur e,&Equipment

HardCostConti ngency‐inConstr.Cont.

Constr.Con tr .CostssubjecttoGCFee

$16,979,850 $22,749,013 $22,748,987 $ 201,318 $1,279,819

General Conditions

$2,356,178 $3,184,832 $1,364,939 $12,079

Overhea d

$454,980 $4,026

Profit

$1,364,939 $12,079

Builder'sRiskInsurance

General LiabilityInsurance

Pa ymentandPer for ma nc eBonds

ContractCostsnotsubjecttoGCFee

$34,123 $34,123 $302

TotalCons tructi onContract/Costs

$19,336,028 $25,967,968 $25,967,968 $ 229,805 $1,279,819

HardCostConti ngency

$988,454 $1,817,757 $1,817,757 $16,086

PnPBondpaidouts ideConstr.Contr .

FeesforLOCusedasCon str.Surety

DemolitionpaidoutsideConstr.Contr .

$116,450 $ 116,450 $1,031 $116,450

FF&EpaidoutsideConstr.Contr.

$587,000 $535,600 $535,600 $4,740 $135,600

Other: RetailSpaceAl l owance

$202,800 $ 202,800 $1,795 $202,800

$20,911,482 $28,640,575 $28,640,575 $253,456 $1,734,669

TotalConstructionCosts:



NotestotheActualConstructionCosts:

1. The Applicant has provided an executed AIA Document A102‐2017 Standard Form of Agreement

betweenOwner,Pinnacle441,LLC,andContractor,PCBuilding,LLC,wherethebasisofpaymentis

theCostoftheWorkplusaFeewithaGuaranteedMaximumPricedated

May4,2022.Thecontract

isintheamountof$25,967,968andcallsforachievementofsubstantialcompletionnotlaterthan

487calendardaysfromthedateofcommencement.Thedateofcommencementisfivedaysafterall

requiredpermitsand approvalsfromallgovernmen t agenciesandauthoritieshavebeen

approved

andreadytobepulledbythecontractor,thedateawrittennoticetoproceedisissuedbytheowner

tothecontractorandtheownerrecordstheNoticeofCommencement.TheContractrequires10%

retainage held throughout construction on all work performed through the first 50% percent of

construction,

then0%retainagewillbe heldthereafter.

TheOwner’sfinalpaymenttotheContractorshallbemadenolaterthan30daysaftertheArchitect’s

finalCertificateforPayment.

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-13

JULY 6, 2022

Theconstructioncontract,ScheduleofValues(“SOV”)andPCAhavebeenreviewedandthefollowing

allowanceswerenoted:Signage($52,000),Irrigation($75,000)andBuildingAccessControlandCCTV

($75,000).GLEstatestheallowancesarewithinanacceptablerangeforthescopeofworkindicated.

2. SMGreceivedtheGeneralContractor’sCertification

ofRequirementsindicatinganunderstandingof 

GCconditionsperRule67‐48,F.A.C.

3. IneligiblecostsrelatedtoNewRentalUnitsincludestheshellconstructionoftheretailspace.

4. IneligiblecostsrelatedtoSiteWorkarebasedonSeltzer’sestimate.

5. GeneralContractorfeesas statedare  within the

14%maximumperthe Rule. Costofthe Letter of

Credit ($34,123) is included within the GC Contract but excluded from the general contractor fee

calculation.

6. TheHardCostContingencyforthisdevelopmenthasbeenlimitedtotheApplicant’srequestof7.00%

of the total construction contract, which exceeds the

 5% limit per Rule for new construction.

However,thePCAproviderrecommendsbetweena 6%to8%contingencyforadevelopmentofthis

scopeandsizeandisdeemedreasonablebySeltzer.Thehardcostcontingencyisnotincludedinthe

constructioncontractamount.

7. SMGengagedandreceiveda

PCAfromGLEdatedMay13,2022.Completeresultsaresetforthin

SectionCofthiscreditunderwritingreport.

8. Thereisalsodemolitionandasbestosabatementcostof$96,500underseparatecontractwithFlorida

Demolition,Inc.asevidencedbyaStandardContractAgreementdatedOctober21,2021.GLEstates



theAgreementappears satisfactory butdoesnotincludea cost breakdown of General Conditions,

Profitand Overhead.The Applicant statedon  May 10,2022that demolitioniswell underway and

therearesomechangeordersduetoanasbestospipebelowtheslab.TheApplicanthasbudgeted

demolitionandasbestos

abatementcostat$116,450.

9. The FF&E paid outside  of the Construction  Contract includes costs for furniture, fixtures and

equipment($400,000)andpurchasesofincomeproducingwashersanddryers($135,600),whichare

shownasineligiblecosts.

10. The Development contains retail  space of  approximately 6,760 square feet.The Applicant has

budgeted

 a retail space allowance of $202,800 for the ground floor retail space based on $30 per

squarefoot.Thetenantwillperformthefinished,buildoutworkwiththisallowance.Thecostwill

notbeincludedineligiblebasis.



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-14

JULY 6, 2022

GENERALDEVELOPMENTCOSTS:

ApplicantCosts

Revised

ApplicantCosts

Underwriters

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

AccountingFees

$75,000 $75,000 $75,000 $664 $37,500

Apprai s al

$11,200 $6,500 $6,500 $58

Archi tect's Fee‐Site/BuildingDesign

$517,500 $464,400 $464,400 $4,110

Archi tect's Fee‐Supervision

$57,500 $51 ,600 $51,600 $457

Bui ldingPermi ts

$479,374 $561,706 $561,706 $4,971

Builder'sRiskInsurance

$211,046 $233,712 $233,712 $2,068

Capita lNeeds Assessment/Rehab

EngineeringFees

$354,025 $383,400 $383,400 $3,393

EnvironmentalReport

$45,000 $62 ,550 $62,550 $554

FederalLaborStanda r dsMonitoring

FHFCAdmi ni s trati veFees

$259,380 $304,380 $304,380 $2,694 $304,380

FHFCApplicationFee

$3,000 $3,000 $3,000 $27 $3,000

FHFCCreditUnderwriti ngFee

$14,546 $14 ,721 $19,717 $174 $19,717

FHFCComplianceFee

$219,296 $219,333 $223,180 $1,975 $223,180

FHFCOtherProc es singFee(s)

$25,500 $25,500 $226 $25,500

ImpactFee

$370,990 $297,223 $297,223 $2,630

LenderInspectionFees/ConstAdmi n

$60,000 $48 ,900 $48,900 $433

Gree nBuildingCert.(LEED,FGBC,NGBS)

$35,000 $30 ,000 $30,000 $265

HomeEnergyRatingSystem(HERS)

Insurance

$99,000 $79 ,100 $79,100 $700

Legal Fees‐Organi zati onalCosts

$400,000 $400,000 $400,000 $3,540 $200,000

Loca l SubsidyUnderwriti ngFee

Market Study

$5,500 $5,500 $5,500 $49 $5,500

MarketingandAdvertising

$100,000 $100,000 $100,000 $885 $100,000

Pl anandCostReviewAnal ysi s

$1,400 $12

PropertyTaxes

$218,400 $222,000 $222,000 $1,965

SoilTest

$5,000 $6,950 $6,950 $62

Sur vey

$62,475 $42 ,600 $42,600 $377 $10,650

TenantRe locationCosts

Titl eInsuranceandRecordingFees

$200,000 $200,000 $200,000 $1,770 $50,000

TrafficStudy

UtilityConnection Fees

$362,901 $343,133 $343,133 $3,037

SoftCostContingency

$208,306 $209,260 $209,260 $1,852

Other: CHIRP UWFee

$4,000 $0

$4,374,439 $4,398,468 $4,400,711 $38,944 $979 ,427

TotalGeneralDevelopmentCosts:



NotestotheGeneralDevelopmentCosts:

1. TheAppraisalandMarketStudylineitemsreflecttheactualcostofthesethirdpartyreportsordered

bySMGandthelenders.

2. Architect’sFeesforSite/BuildingDesignandSupervisionarebasedoncontractedandanticipatedfees

asstipulatedintheArchitectContractdated

January27,2021betweentheApplicantandJosephB.

Kaller&Associates,P.A.d.b.a.KallerArchitect.

3. EngineeringFeesarebasedonthefeeschedulestipulatedintheAgreementforProfessionalServices

datedDecember17,2020betweentheApplicantandKeithandAssociates,Inc.d.b.a.KEITH.

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JULY 6, 2022

4. TheFHFCAdministrativeFeeisbasedon9%oftherecommendedannualallocationofHC.TheFHFC

Application Fee is reflective of the application fee stated in RFA 2020‐202. The total FHFC Credit

UnderwritingFeereflectstheactualfeespaidfor9%housingcredits($13,063),thePreliminaryReport

($1,658)

andConstructionHousingInflationResponseProgram(“CHIRP”)underwriting($4,996).The

ComplianceFeeisestimatedbasedon2022ComplianceFeeCalculatorSpreadsheet.TheFHFCOther

Processing Fees include $25,000 for a Carryover extension fee (including a $10,000 Notice of

CommencementExtension,$10,000LPAextensionanda$5,000CURextension).

5. Applicant

committed to ICC 700 National Green Building Standard (“NGBS”) and provided a NGBS

contractfromAbney+AbneyGreenSolutionsdatedJanuary12,2021.

6. ThePCAlineitemreflectstheactualcostofthePCApreparedbyGLEandengagedbySeltzer.

7. The Soft Cost Contingency budget does not

 exceed the maximum per Rule of 5% of general

developmentcosts.

8. OtherGeneralDevelopmentCostsarebasedonApplicant’sestimates,whichappearreasonable.

ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

Cons tructi onLoanCommi tmentFee

$461,000 $139,000 $139,000 $1,230

Cons tructi onLoanClosingCosts

Cons tructi onLoanInteres t

$1,415,998 $2,023,362 $2,023,362 $1 7,906 $1,007,367

Cons tructi onLoanServicingFees

Per manentLoanAppli cati onFee

$10,500 $10,500 $93 $10,500

Per manentLoanUnderwri tingFee

$0 $0

Per manentLoanSubsidyLayeringRev.

$0 $0

Per manentLoanCommitmentFee

$60,000 $92 ,000 $92,000 $814 $92,000

Legal Fees‐FinancingCosts

$100,000 $ 100,000 $885 $1 00,000

$1,936,998 $2,364,862 $2,364,862 $20,928 $1 ,209,867

$27,222,919 $35,403,905 $35,406,148 $313,329 $3,923,963

Dev.CostsbeforeAcq.,Dev.Fee&Reserves

FINANCIALCOSTS:

TotalFinancialCosts:



NotestotheFinancialCosts:

1. ConstructionLoanCommitmentFeeof$139,000is0.50%oftheBofAconstructionloanamountof

$27,800,000.

2. ConstructionLoanInterestisanesti mateprovidedbytheApplicantbasedontheConstructionDraw

Schedule.

3. Permanent Loan Application Fee of $10,500 represents an Application Fee

of $7,500 plus a Loan

ProcessingFeeof$3,000.

4. Permanent Loan Commitment Fee of $92,000 is 1% of the approved permanent loan amount of

$9,200,000bythelender.

5. LegalFees–FinancingCostsareestimatedlegalfeesbytheApplicant.

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PINNACLE 441 PAGE A-16

JULY 6, 2022

ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

BrokerageFees‐Building

Bui ldingAcquisiti onCost

Develo perFeeonNon‐LandAcq.Costs

$0 $0

$0 $0 $0 $0 $0

NON‐LANDACQUISITIONCO STS

TotalNon‐LandAcquisitionCosts:



NotestotheNon‐LandAcquisitionCosts:

1. Sincethisisanewconstructiondevelopment,th ere arenonon‐landacquisitioncosts.

ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

Develo perFee‐Una pportioned

$4,352,944 $5,663,984 $5,573,984 $4 9,327

DFtofundOper ati ngDebtReserve

DFtoBroke rageFees‐Land

DFtoExcessLandCosts

$90,000 $796

DFtoExcessBldgAcquisitionCosts

DFtoConsulta ntFees

DFtoGuarantyFees

$4,352,944 $5,663,984 $5,663,984 $50,124 $0

DEVELOPERFEEONNON‐ACQUISTIO NCO STS

TotalOther DevelopmentCosts:



NotestotheDeveloperFeeonNon‐AcquisitionCosts:

1. DeveloperFeeiswithin16%oftheTotalDevelopmentCost,exclusiveoflandacquisition costsand

reserves,asrequiredperRule.

ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

BrokerageFees‐Land

$0 $0

LandAcquisitionCost

$3,600,000 $3,600,000 $3,510,000 $3 1,062 $3,510,000

Land

$0 $0

LandLeasePa yment

$0 $0

LandCarryingCosts

$0 $0

$3,600,000 $3,600,000 $3,510,000 $31,062 $3,510,000

LANDACQUISITIONCOSTS

TotalAcquisitionCosts:



NotestotheLandAcquisitionCosts:

1. The Applicant provided an executed Closing Statement dated November 30, 2021 between Betty

Andrews Lantz, individually and as personal representative of the Estate of Constantine P. Lantz

(“Seller”) and Pinnacle 441 (“Buyer”), reflecting a purchase price of $3,600,000.Applicant also

providedanexecuted

SpecialWarrantyDeedbetweensaidpartiesdatedNovember30,2021.

Basedonthe“as‐is”appraisedvalueof$3,510,000,thereareexcesslandacquisitioncostsof

$90,000,whichareshownasasubsetofDeveloperFeeasreflectedabove.

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PINNACLE 441 PAGE A-17

JULY 6, 2022

ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

TotalCost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

Opera ti ngDeficitRe serve(FHFC)

$0 $0

Opera ti ngDeficitRe serve(Lender )

$0 $0

Opera ti ngDeficitRe serve(Synd icator)

$353,931 $ 359,382 $3,180 $359,382

$0 $3 53,931 $359 ,382 $3,180 $3 59,382

RESERVEACCOUNTS

TotalReserveAccounts:



NotestotheTotalReserveAccounts:

1. Perthe May31,2022 LOIfromthe Syndicator,theOperatingDeficit Reservewillbefundedinthe

amountof$359,382basedonuptothreemonthsofoperatingexpenses.

InexchangeforreceivingfundingfromFHFC,FHFCreservestheauthoritytorestrict

thedisposition

of any funds remaining in any operating deficit reserve(s) after the term of the reserve’s original

purposehasterminatedorisneartermination.Authorizeddispositionusesarelimitedtopayments

towardsanyoutstandingloanbalancesoftheDevelopmentfundedfromFHFC,anyoutstandingFHFC

fees,anyunpaidcostsincurred

inthecompletionoftheDevelopment(i.e.deferredDeveloperFee),

the Development’s capital replacement reserve account (provided, however, that any operating

deficit reserve funds deposited to the replacement reserve account will not replace, negate, or

otherwise be considered an advance payment or  pre‐funding of the Applicant’s obligation to

periodically

fundthereplacementreserveaccount),thereimbursementofanyloan(s)providedbya

partner,memberorguarantorassetforthintheApplicant’sorganizationalagreement(i.e.,operating

orlimitedpartnershipagreement)wherebyitsfinaldispositionremainsunderthissamerestriction.

The actual direction of the disposition is at the Applicant’s discretion

 so long as it is an option

permittedbyFHFC.Innoevent,shallthepaymentofamountstotheApplicantortheDeveloperfrom

anyoperatingdeficitreserveestablishedfortheDe velopment  causetheDev eloper Feeor  General

Contractorfeetoexceedtheapplicablepercentagelimitationsprovidedforin

theRFA.

Attheendofthecomplia nceperiod, anyremainingbalanceof theODR lessamountsthat  maybe

permittedtobedrawn(whichincludesDeferredDeveloperFeeandreimbursementsforauthorized

member/partner and guarantor loan(s) pursuant to the operating/partnership agreement), will be

usedtopayFHFCloandebt;if

thereisnoFHFCloandebtontheproposedDevelopmentattheendof

thecomplianceperiod,anyremainingbalanceshallbeusedtopay anyoutstanding FHFCfees.Ifany

balance is remaining in the ODR after the payments above, the amount should be placed in a

ReplacementReserve

accountfortheDevelopment.Innoevent shallthepaymentsofamountsto

applicantortheDeveloperfromtheReserveAccountcausetheDeveloperFeeorGeneralContractor

Feetoexceedtheapplicablepercentagelimitations providedforintheRule.Anyandalltermsand

conditionsoftheODRmustbe

acceptabletoFloridaHousing,itsLegalCounselanditsServicer.



ApplicantCosts

Revised

ApplicantCosts

Underwrite rs

Total Cost s‐CUR CostPerUnit

HCIneligible

Costs‐CUR

$35,175,863 $45,021,820 $44,939,514 $397,695 $7,793,345

TOTALDEVELOPMENTCOSTS:

TOTALDEVELOPMENTCOSTS



1. PerRFA2020‐202,theFHFCTotalDevelopmentCost(“TDC”)arelimitedonaperunitbasis,basedon

the construction type of the units. The Applicant indicated a construction type of High Rise (new

construction),whichat applicationhadaTDCperunitlimitationof$343,000.Basedonchanges

to

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-18

JULY 6, 2022

TDClimitsasapprovedattheApril1,2022TelephonicBoardMe eting,themaximumallowableper

unit cost is $513,429.84. The Development’s final  TDC per unit (without land and reserves) is

$360,627.27,whichdoesnotexceedthemaximumTDC.

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-19

JULY 6, 2022

OperatingProforma

ANNUAL PERUNIT

$1,483,548 $13,129

$0 $0

$67,600 $598

$13,560 $120

$47,460 $420

$0 $0

$1,612,168 $14,267

Economi cLos s ‐Percenta ge : 0.0% $0 $0

Physi ca l VacancyLos s ‐Pe rce nta ge : 4.0% ($64,487) ($571)

Col l e cti onLoss‐Percenta ge : 1.0% ($16,122) ($143)

$1,531,560 $13,554

GroundLeas e $0 $0

Sub ‐Grou nd Lease $0 $0

$243,177 $2,152

$84,750 $750

Other $0 $0

Ma na geme ntFe e ‐Percenta ge: 5.0% $76,578 $678

$45,200 $400

$158,200 $1,400

$110,175 $975

$5,650 $50

$22,600 $200

$0 $0

$37,290 $330

$0 $0

$33,900 $300

$840,120 $7,435

$691,440 $6,119

$590,698 $5,227

$0 $0

AllOtherMortga ge s Fe e s‐ $0 $0

$590,698 $5,227

$100,742 $892

Fi rs tMo rtgage Fees‐NLP

Se condMortga ge Fe e s‐Browa rdCounty

OPERATINGPROFORMA

INCOME

GrossPotentia l Ren ta lIncome

Re n tSub s id y(ODR)

OtherIncome:

Anci l l a ryIncome‐Reta ilSpace

Mi s ce l l a ne ous

Wash er/DryerRe n ta ls

Cabl e/Satel l i teIncome

Re n tConcessions

AlarmIncome

GrossPotentia l Income

Less:

TotalEffectiveGrossRevenue

TotalExpenses

Ge nera landAdministrative

Pa yrol l Expens es

Utilities

Ma rke ti ngandAdvertising

Ma i ntena nceandRe p airs

Grounds Ma i ntena nceandLa nds ca ping

EXPENSES

Fi xe d:

Re alEs ta teTaxes

Insurance

Variable:

Res i de ntProgra ms

Contra ctSe rvices

Se curity

Other‐Pe s tControl

Re se rve fo rReplacements

NetOperatingIncome

DebtServicePayments

DEBTSERVICE

Fi rs tMo rtgage ‐NLP

Se condMortga ge ‐Browa rdCounty

TotalDebtServicePayments

CashFlowAfterDebtService



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-20

JULY 6, 2022

1.171

54.9%

89.0%

DSC‐Se co nd Mortgage plus Fe e s

DebtServiceCoverageRatios

DSC‐Fi rs tMortga ge pl usFe e s

OperatingExpe nseRa ti o

Break‐EvenRati o

FinancialRatios



NotestotheOperatingProformaandRatios:

1. ThisDevelopmentwillbeutilizingHCfinancingwhichwillimposerentrestrictions.Therestrictedrent

schedule is based upon the lesser of 2021 maximum net HC rents, the Appraiser’s estimates or

management’s projections. The Appraiser estimates the property will achieve 2021

maximum HC

rents, less utility allowances as required by the HC Program based upon a  HUD Utility Allowance

ScheduleforBrowardCountyHousingAuthority(HighRise),datedJanuary1,2022.Theallowances

reflectthere sidentpayingforelectricityandtheApplicantpayingforwater,sewer,trashremovaland

pestcontrol.The

rentrollisshownbelow:

MSA/County: FortLauderdaleHMFA;Miami‐FortLauderdale‐WestPalmBeach/Broward

$1,832

$429

$1,144

$2,610

$484

$1,107

$467

Net

Restricted

Rents

$344

$922

MKT

25%

$414

$1,107

$2,610

$467

$414

AnnualRental

Income

$8,256

$21,978

60%

1,194

2.0

22.0

32.0

$1,2683

32.0

Bed

Rooms

1.0

2.0

Bath

Rooms

1.0

PBRA

Contr

Rents

1.0

2.0

256

$105

$572

$1,373

$2,759

731

973

2,372

1,194

AMI%

25%

MKT

Utility

Allow.

$68

GrossHC

Rent

$412

$990

731

73111

$81

Units

LowHOME

Rents

60%

MKT

High

HOME

RentsSquareFeet

25%

60%

$495

$1,188

$105

CURents

$344

$922

$1,831.50

Applicant

Rents

$357

$952$68

$1,310

$467

$1,107

$2,610

$121,704

Appraiser

Rents

$344

$922

$1,831.50

$414

$743,904

$31,320

$16,812

$471,696

$34,776

$1,268

$33,102

$1,268

$2,758.5 $2,758.50



115,695113 $1,483,548



2. MeridianestimatesRetailSpaceIncomebasedon$10persquarefoot(6,760sq/ft)or$67,600.

3. MiscellaneousIncome (i.e., vending income,latecharges, petdeposits, forfeited security deposits,

etc.)at$10perunitpermonth(or$13,560annually)isconsistentwithmarketcomparablesandthe

MeridianAppraisal.

4. Applicant

will offer full‐size washer/dryer appliances to rent to residents.Meridian projects a

participationrateof70%andamonthlypremiumof$50,or$47,460annually.

5. Vacancy Loss at 4.0% and Collection Loss Allowance at 1.0% are projected by Meridian, which

projectionsappearreasonable.

6. ApplicantprovidedanexecutedManagement

AgreementbeginningJuly 1,2023andendingJuly1,

2024andthereafterforyearlyperiods.TheManagementFeeisequaltothegreaterof$3,500per

monthor5%ofthemonthlygrossreceiptsfromoperations.

7. ResidentProgramcostsarecoveredunderGeneralandAdministrativecost.

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE A-21

JULY 6, 2022

8. Replacement Reserves of $300 per unit per year are required by BofA, which meets the Florida

HousingRuleminimumreserverequirementof$300perunitperyear.

9. Otheroperatingexpenseprojectionsarebaseduponmarketcomparablesthataresupportedbythe

Appraisal.

10. A15‐yearincomeandexpense

projectionreflectsincreasingdebtservicecoveragethroughoutthe15

years.ThisprojectionisattachedtothisreportasExhibit1.



SMG

JULY 6, 2022



SectionB

HC Allocation Recommendation and Contingencies

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 PAGE B-1

JULY 6, 2022

HousingCreditAllocationRecommendation

Seltzer Management Group, Inc. recommends a Prelimi nary Annual Housing Credit Allocation of

$3,382,000($2,882,000originalawardand$500,000CHIRP).Pleasesee the HC Allocation Calculation

sectionofthisCreditUnderwritingReportforfurtherdetails. 

Contingencies

Seltzer’sAnnualHCAllocationRecommendationiscontingentuponreceiptandsatisfactoryreviewofthe

following items by Seltzer Management Group, Inc., (“SMG” or “Seltzer”) and Florida Housing Finance

Corporation(“FHFC” or“FloridaHousing”)bythede adlineestablishedinthePreliminaryHCAllocation.

Failuretosubmittheitemswithinthistimeframemay

resultinforfeitureoftheHCAllocation.

1. Satisfactoryresolution(asdeterminedbyFHFC)ofanyoutstandingPastDueand/orNoncompliance 

items.

2. AnyreasonablerequirementsofFloridaHousingand/orSMG.



Exhibit1

Pinnacle441

15YearIncomeandExpenseProjection

Year1Year2Year3Year4Year5Year6Year7Year8Year9Year10 Year11 Year12 Year13 Year14 Year15

$1,483,548 $1,513,219 $1,543,483 $1,574,353 $1,605,840 $1,637,957 $1,670,716 $1,704,130 $1,738,213 $1,772, 977 $1,808, 437 $1,844, 605 $1,881,498 $1,919,128 $1,957,510

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$67,600 $68,952 $70,331 $71,738 $73,172 $74,636 $76,129 $77,651 $79,204 $80,788 $82,404 $84,052 $85,733 $87,448 $89,197

$13,560 $13,831 $14,108 $14,390 $14,678 $14,971 $15,271 $15,576 $15,888 $16,205 $16,530 $16,860 $17,197 $17,541 $17,892

$47,460 $48,409 $49,377 $50,365 $51,372 $52,400 $53,448 $54,517 $55,607 $56,719 $57,853 $59,011 $60,191 $61,395 $62,622

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$1,612,168 $1,644,411 $1,677,300 $1,710,846 $1,745,062 $1,779,964 $1,815,563 $1,851,874 $1,888,912 $1,926, 690 $1,965, 224 $2,004, 528 $2,044,619 $2,085,511 $2,127,221

EconomicLoss‐Percentage:

PhysicalVacancyLoss‐Percentage: 4.0% ($64,487) ($65,776) ($67,092) ($68,434) ($69,803) ($71,199) ($72,623) ($74,075) ($75,556) ($77,068) ($78,609) ($80,181) ($81,785) ($83,420) ($85,089)

CollectionLoss‐Percentage: 1.0% ($16,122) ($16,444) ($16,773) ($17,108) ($17,451) ($17,800) ($18,156) ($18,519) ($18,889) ($19,267) ($19,652) ($20,045) ($20,446) ($20,855) ($21,272)

$1,531,560 $1,562,191 $1,593,435 $1,625,303 $1,657,809 $1,690,966 $1,724,785 $1,759,281 $1,794,466 $1,830, 355 $1,866, 963 $1,904, 302 $1,942,388 $1,981,236 $2,020,860

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$243,177 $250,472 $257,986 $265,726 $273,698 $281,909 $290,366 $299,077 $308,049 $317,291 $326,810 $336,614 $346,712 $357,114 $367,827

$84,750 $87,293 $89,911 $92,609 $95,387 $98,248 $101,196 $104,232 $107,359 $110,580 $113,897 $117,314 $120,833 $124,458 $128,192

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ManagementFee‐Percentage: 5.0% $76,578 $78,110 $79,672 $81,265 $82,890 $84,548 $86,239 $87,964 $89,723 $91,518 $93,348 $95,215 $97,119 $99,062 $101,043

$45,200 $46,556 $47,953 $49,391 $50,873 $52,399 $53,971 $55,590 $57,258 $58,976 $60,745 $62,567 $64,444 $66,378 $68,369

$158,200 $162,946 $167,834 $172,869 $178,055 $183,397 $188,899 $194,566 $200,403 $206,415 $212,608 $218,986 $225,555 $232,322 $239,292

$110,175 $113,480 $116,885 $120,391 $124,003 $127,723 $131,555 $135,501 $139,566 $143,753 $148,066 $152,508 $157,083 $161,796 $166,650

$5,650 $5,820 $5,994 $6,174 $6,359 $6,550 $6,746 $6,949 $7,157 $7,372 $7,593 $7,821 $8,056 $8,297 $8,546

$22,600 $23,278 $23,976 $24,696 $25,436 $26,200 $26,986 $27,795 $28,629 $29,488 $30,373 $31,284 $32,222 $33,189 $34,185

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$37,290 $38,409 $39,561 $40,748 $41,970 $43,229 $44,526 $45,862 $47,238 $48,655 $50,115 $51,618 $53,167 $54,762 $56,404

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $33,900 $34,917 $35,965 $37,043 $38,155 $39,299

$840,120 $863,541 $887,649 $912,465 $938,009 $964,303 $991,370 $1,019,232 $1,047,912 $1,077,435 $1,108,843 $1,141,175 $1,174,458 $1,208,720 $1,243,991

$691,440 $698,650 $705,786 $712,839 $719,800 $726,662 $733,415 $740,049 $746,554 $752,920 $758,120 $763,127 $767,930 $772,515 $776,869

$590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698 $590,698

$100,742 $107,952 $115,088 $122,141 $129,103 $135,965 $142,717 $149,351 $155,857 $162,223 $167,422 $172,429 $177,232 $181,818 $186,171

1.171 1.183 1.195 1.207 1.219 1.230 1.242 1.253 1.264 1.275 1.283 1.292 1.300 1.308 1.315

54.9% 55.3% 55.7% 56.1% 56.6% 57.0% 57.5% 57.9% 58.4% 58.9% 59.4% 59.9% 60.5% 61.0% 61.6%

89.0% 88.7% 88.4% 88.1% 87.9% 87.6% 87.4% 87.2% 87.0% 86.8% 86.7% 86.6% 86.6% 86.5% 86.5%

AllOtherMortgages‐

FirstMortgageFees‐NLP

AllOtherMortgagesFees‐

TotalDebtServicePayments

Break‐EvenRatio

DSC‐AllMortgagesandFees

FinancialRatios

OperatingE xpenseRatio

DebtServiceCoverageRatios

DSC‐FirstMortgageplusFees

CashFlowAfterDebtService

DEBTSERVI

FirstMortgage‐NLP

TotalExpenses

NetOperatingIncome

DebtServicePayments

EXPENSES

Fixed:

GroundLease

Sub‐GroundLease

RealEstateTaxes

Other‐PestControl

ReserveforReplacements

TotalEffectiveGrossRevenue

Security

Insurance

Other

Variable:

GeneralandAdministrative

PayrollExpenses

Utilities

MarketingandAdvertising

MaintenanceandRepairs

GroundsMaintenanceandLandscaping

ResidentPrograms

ContractServices

FINANCIALCOSTS:

OPERATINGPROFORMA

INCOME

GrossPotentialRentalIncome

RentSubsidy(ODR)

OtherIncome:

AncillaryIncome‐Parking

Miscellaneous

Washer/DryerRentals

Cable/SatelliteIncome

RentConcessions

AlarmIncome

GrossPotentialIncome

Less:

SeltzerManagementGroup,Inc. Page1of1 7/6/2022

HC CREDIT UNDERWRITING REPORT SMG

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐



‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

PINNACLE 441EXHIBIT 2, PAGE 1

PINNACLE441

RFA2020‐202(2021‐017C)

DESCRIPTIONOFFEATURESANDAMENITIES



TheDevelopmentwillconsistof:



113apartmentunitslocatedin1high‐riseresidentialbuildings.



UnitMix:



Fourteen(14)onebedroom/onebathunits;



Sixty‐four(64)twobedroom/twobathunits;and



Thirty‐five(35)threebedroom/twobathunits.



113TotalUnits



Allunitsareexpectedtomeetall

requirementsasoutlined below.IftheproposedDevelopmentconsists

of rehabilitation, the proposed Development’s ability to provide all construction features will be

confirmedasoutlinedinExhibitF.ThequalityoftheconstructionfeaturescommittedtobytheApplicant

issubjecttoapprovaloftheBoardofDirectors.

a. FederalRequirements

andStateBuildingCodeRequirementsforallDevelopments

All proposed Developments must meet all federal requirements and state building code

requirements,includingthefollowing,incorporatingthemostrecent amendments,regulations,

andrules:



 Florida Accessibility Code for Building Construction as adopted pursuant to Section

553.503,FloridaStatutes;

 TheFair

HousingActasimplementedby24CFR100;

 Section504oftheRehabilitationActof1973*;and

 TitlesIIandIIIoftheAmericanswithDisabilities Actof1990asimplementedby28CFR

35.



*All Developments must comply with Section 504 of the Rehabilitation Act of 1973,

 as

implementedby24CFRPart8(“Section504anditsrelatedregulations”).AllDevelopments

mustmeetaccessibilitystandardsofSection504.Section504accessibilitystandardsrequire

a minimum of 5 percent of the total dwelling units, but not fewer than one unit, to be

accessible for individuals with mobility

impairments.An additional 2 percent of the total

units, but not fewer than one  unit, must be accessible for  persons with hearing or vision

impairments.



To the extent that a Development is not otherwise subject to Section 504 and its related

regulations, the Development shall nevertheless comply with Section 504 and

 its related

regulationsasrequirementsoftheCorporationfundingprogramtothesameextentasifthe

HC CREDIT UNDERWRITING REPORT SMG



PINNACLE 441EXHIBIT 2, PAGE 2

DevelopmentweresubjecttoSection504anditsrelatedregulationsinallrespects.Tothat

end, all Corporation funding shall be deemed “Federal financial assistance” within the

meaningofthattermasusedinSection504and

itsrelatedregulationsforallDevelopments.



b. GeneralFeatures



TheDevelopmentwillprovidethefollowingGeneralFeatures:

 Termiteprevention;

 Pestcontrol;

 Windowcove ringforeachwindowandglassdoorinsideeachunit;

 CableorsatelliteTVhook‐upineachunitand,iftheDevelopment

offerscableorsatellite

TVservicetotheresidents,thepricecannotexceedthemarketrateforserviceofsimilar

quality available to the Development’s residents from a primary provider of cable or

satelliteTV;

 Washer and dryer hook ups in each of the Development’s units or an on‐site

 laundry

facilityforresidentuse.IftheproposedDevelopmentwillhaveanon‐sitelaundryfacility,

thefollowingrequirementsmustbemet:



o Theremustbeaminim umofoneEnergyStarcertifiedwasherandoneEnergyStar

certifiedorcommercialgrade dryerperevery15 units.Todeterminethe

required

numberofwashersanddryersfortheon‐sitelaundryfacility;dividethe totalnumber

of the Development’s units by 15, and then round the equation’s  total up to the

nearestwholenumber;

o At leastone washing machine and one dryer shall be front loading that meets the

accessibilitystandardsofSection504;

o If theproposedDevelopmentconsistsofScatteredSites,thelaundryfacilityshallbe

locatedoneachoftheScatteredSites,ornomorethan1/16milefromtheScattered

Sitewiththemostunits,oracombinationofboth;



 Atleasttwofull

bathroomsinall3bedroomorlargernewconstructionunits;

 Bathtub with shower in at least one bathroom in at least 90 percent of the new

constructionnon‐Elderlyunits;

 Elderly Developments must have a  minimum of one elevator per residential building

providedforallEld erly  Set‐Aside Units

thatare located on a floor higher than the first

floor;and

 Full‐sizerangeandoveninallunits.



c. RequiredAccessibilityFeatures,regardlessoftheageoftheDevelopment

Federal and state law and building code regulations requires that programs, activities, and

facilitiesbereadilyaccessibleto

andusablebypersonswithdisabilities.FloridaHousingrequires

thatthedesign,construction,oralterationofitsfinancedDevelopmentsbeincompliancewith

federalandstateaccessibilityrequirements.Whenmorethanonelawandaccessibilitystandard

applies, the Applicant shall comply with the standard (2010 ADA Standards, Section 504, Fair

HousingAct,orFloridaBuildingCode,Accessibility)whichaffordsthegreaterlevelofaccessibility

fortheresidentsandvisitors.Areasrequiredtobemadeaccessibletomobility‐impairedresidents

HC CREDIT UNDERWRITING REPORT SMG



PINNACLE 441EXHIBIT 2, PAGE 3

andtheirvisitors,includingthoseinw heelchairs,shallinclude,butnotbelimitedto,accessible

routes and entrances, paths of travel, primary function areas, parking,  trash bins, mail and

package receiving areas for residents, pool and other

 amenities, including paths of travel to

amenitiesandlaundryrooms,includingwashersanddryers.

(1) RequiredAccessibilityFeaturesinallUnits

 Primary entrance doors on an accessible route shall have a threshold with no

morethana½‐inchrise;

 All door handles on primary entrance door and

interior doors must have lever

handles;

 Leverhandlesonallbathroomfaucetsandkitchensinkfaucets;

 Mid‐point on light switches and thermostats shall not be more than 48 inches

abovefinishedfloorlevel;and

 Cabinetdrawerhandlesandcabinetdoorhandlesinbathroomandkitchenshall

leverorD‐pulltypethatoperateeasilyusingasingleclosedfist.



(2) Inadditiontothe5percentmobilityrequirementoutlined above,allFamilyDemographic

Developmentsmustprovidereinforcedwallsforfutureinstallationofhorizontalgrabbars

in place around each tub/shower and toilet, or a Corporation‐approved

 alternative

approachforgrabbarinstallation.Theinstallationofthegrab barsmustmeetorexceed

the2010ADAStandardsforAccessibleDesign.



At the request of and at no charge to a resident household, the Development shall

purchaseandinstallgrabbarsaround eachtub/showerunitandtoiletin

thedwellingunit.

Theproductspecificationsandinstallationmustmeetorexceed2010ADAStandardsfor

Accessible Design. The Development shall inform a prospective resident that the

Development,uponaresidenthousehold’srequestandatnochargetothehousehold,

willinstallgrabbarsaround adwellingunit’stub/showerunit

andtoilet,pursuanttothe

2010 ADA Standards. At a minimum, the Development shall inform each prospective

lesseebyincludinglanguageintheDevelopment’swrittenmaterialslistinganddescribing

theunit’sfeatures,aswellasincludingthelanguageineachhousehold’slease.



d. RequiredGreenBuildingFeaturesinallDevelopments



(1) Allunitsmusthavethefeatureslistedbelow:



 LoworNo‐VOCpaintforallinteriorwalls(Low‐VOCmeans50gramsperliterorless

forflat;150gramsperliterorlessfornon‐flatpaint);

 Low‐flowwaterfixturesinbathrooms—WaterSenselabeled

productsor

thefollowingspecifications:

o Toilets:1.28gallons/flushorless,

o Urinals:0.5 gallons/flush, 

o LavatoryFaucets:1.5gallons/minuteorlessat60psiflowrate,

o Showerheads:2.0gallons/minuteorlessat80psiflowrate;

 EnergyStarcertifiedrefrigerator;

 EnergyStarcertifieddishwasher;

HC CREDIT UNDERWRITING REPORT SMG



PINNACLE 441EXHIBIT 2, PAGE 4

 EnergyStarcertifiedventilationfaninallbathrooms;

 Waterhea terminimumefficiencyspecifications:

o ResidentialElectric:

 Upto55gallons=0.95EFor0.92UEF;or

 Morethan55gallons=Energy

Starcertified;or

 Tankless=0.97EFandMaxGPMof≥2.5overa77◦riseor0.87UEFandGPM

of≥2.9overa67◦rise;

o ResidentialGas(storageortankless/instantaneous):EnergyStarcertified;

o CommercialGasWaterHeater:EnergyStarcertified;

 EnergyStarcertifiedceiling

fanswithlightingfixturesinbedrooms;

 AirConditioning (in‐unitorcommercial):

o Air‐SourceHeatPumps–EnergyStarcertified:

 ≥8.5HSPF/≥15SEER/≥12.5EERforsplitsystems

 ≥ 8.2 HSPF≥15 SEER/≥12 EER for single package equipment including

gas/electricpackageunits

o CentralAir

Conditioners–EnergyStarcertified:

 ≥15SEER/≥12.5EER*forsplitsystems

 ≥15 SEER/≥12 EER* for single package equipment including gas/electric

packageunits.

NOTE: Window air conditioners and portable air conditioners are not allowed.

Package Terminal Air Conditioners (PTACs) / Package Terminal Heat Pumps

(PTHPs)are

allowedinstudioand1bedroomunits;



(2) In addition to the required Green Building features outlined in (1) above, this New

ConstructionDevelopmentcommitstoachievethefollowingGreenBuildingCertification

Program:

________LeadershipinEnergyandEnvironmentalDesign(LEED);

________FloridaGreenBuildingCoalition(FGBC);

________EnterpriseBuilding

Communities;or

   ____X____ICC700NationalGreenBuildingStandard(NGBS).

e. ThisFamilyDevelopmentwillprovidethefollowingresidentprograms:

 (1) AdultLiteracy

The Applicant or its Management Company must make available, at no cost to the

resident,literacytutor(s)whowillprovideweeklyliteracylessonstoresidentsinprivate



spaceon‐site.Variousliteracyprogrammingcanbeofferedthatstrengthenspa rticipants’

reading,writingskills,andcomprehension,butataminimum,thesemustincludeEnglish

proficiencyandbasicreadingeducation.



Trainingmustbeheldbetweenthehours of8:00a.m.and7:00p.m.andelectronicmedia,

ifused,mustbe

usedinconjunctionwithliveinstruction.IftheDevelopmentconsistsof

HC CREDIT UNDERWRITING REPORT SMG



PINNACLE 441EXHIBIT 2, PAGE 5

ScatteredSites, this residentprogram  mustbeprovided ontheScattere d Site withthe

mostunits.



(2) HomeownershipOpportunityProgram



Applicant commits to provide a financial  incentive which includes the following

provisions:



 Theincentive

mustbeapplicabletothehomeselectedandmaynotberestricted

toorenhancedbythepurchaseofahomeinwhichtheApplicant,Developer,or

otherrelatedpartyhasaninterest;

 theincentivemustbenotlessthan5percentoftherentreceivedbytheowner

for

theunitduringtheentireoccupancybythehousehold(Note:Theincentive

will be paid for all months for which the household is in compliance with the

termsandconditionsofthelease.Damagestotheunitinexcessofthesecurity

depositwillbedeductedfromtheincentive.);



thebenefitmustbeintheformofagiftorgrantandmaynotbealoanofany

nature;

 thebenefitsoftheincentivemustaccruefromthebeginningofoccupancy;

 thevestingperiodcanbenolongerthan2yearsofcontinuousresidency;and

 no

fee,depositoranyothersuchchargecanbeleviedagainstthehouseholdasa

conditionofparticipationinthisprogram.



(3) FinancialManagementProgram



 TheApplicantorits Management Company shall provide a series of classes to provide 

residentstraininginvariousaspectsofpersonalfinancialmanagement.Classes

mustbe

heldatleastquarterly,consistingofatleasttwohoursoftrainingperquarter,andmust

be conductedby parties that are qual ifiedto provide training r egardingthe respective

topicarea.IftheDevelopmentconsistsofScatteredSites,theResidentProgrammustbe

heldon theScatteredSite

withthemostunits.Residentsresidingattheothersitesofa

ScatteredSiteDevelopmentmustbeofferedtransportation,atnocosttothem,tothe

classes.Thetopicareasmustinclude,butnotbelimitedto:



 Financial budgeting andbi ll‐payingincludingtrainin g intheuseoftechnologies

andweb‐basedapplications;

 Taxpreparationincludingdo’sanddon’ts,commontips,andhowandwhereto

file,includingelectronically;

 Fraudpreventionincludinghowtopreventcreditcardandbankingfraud,identity

theft,computerhackingandavoidingcommonconsumerscams;

 Retirement planning & savings options including preparing a

 will and estate

planning;and

 Homebuyer education including how to prepare to buy a home, and how to 

accesstofirst‐timehomebuyerprogramsinthecountyinwhichthedevelopment

islocated.

 Differenttopicareasmustbeselectedforeachsession,andnotopicareamaybe

repeatedconsecutively.

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 EXHIBIT 3 - PAGE 1

JULY 6, 2022

COMPLETENESSANDISSUESCHECKLIST

DEVELOPMENTNAME:Pinnacle441

DATE:July6,2022     

In accordance with applicable Program Rule(s), the Applicant is required to submit the information

required to evaluate, complete, and determine its sufficiency in satisfying the requirements for Credit

UnderwritingtotheCreditUnderwriterinaccordancewiththescheduleestablishedbytheFlor idaHousing

FinanceCorporation(“FloridaHousing”or“FHFC”). Thefollowing

itemsmustbesatisfactorilyaddressed.

“Satisfactorily”meansthattheCreditUnderwriterhasreceivedassurancesfromthirdpartiesunrelatedto

theApplicant thatthetransactioncanclosewithintheallottedtimeframe.Unsatisfactoryitems,ifany,

arenotedbelowandinthe“IssuesandConcerns”sectionoftheExecutiveSummary.

CREDIT

UNDERWRITING

REQUIREDITEMS:

STATUS NOTE

Satis./

Unsatis.



1. The development’s final “as submitted for permitting ” plans and

specifications.

Note: Final “signed, sealed, and approved for construction” plans and

specificationswillberequiredthirtydaysbeforeclosing. 

Satis.

2. Finalsiteplanand/orstatusofsiteplanapproval. Satis.

3. PermitStatus. Satis.

4. Pre‐constructionanalysis(“PCA”). Satis.

5. Survey. Satis.

6. Complete,thoroughsoiltestreports. Satis.

7. Full or self‐contained appraisal as defined by the Uniform Standards of

ProfessionalAppraisalPractice.

Satis.

8. MarketStudyseparatefromtheAppraisal. Satis.

9. EnvironmentalSiteAssessment–PhaseIand/orPhaseIIifapplicable(IfPhase

Iand/orIIdisclosedenvironmental problemsrequiring remediation, a plan,

includingtimeframeandcost,fortheremediationisrequired).Ifthereport

is not dated within one year of the application date, an update from the



assessormustbeprovidedindicatingthecurr entenvironmentalstatus.

Satis.

10. Audited financial statements for the most recent fiscal year ended or

acceptable alternative as stated in the Rule for credit en hancers, applicant,

generalpartner,principals,guarantorsandgeneralcontractor.

Satis.

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 EXHIBIT 3 – PAGE 2

JULY 6, 2022

11. Resumes and experience of applicant, general contractor and managemen t

agent.

Satis.

12. Creditauthorizations;verificationsofdepositsandmortgageloans. Satis.

13. ManagementAgreementandManagementPlan. Satis.

14. Firmcommitmentfromthecreditenhancerorprivateplacementpurchaser,

ifany.

N/A

15. Firmcommitmentletterfromthesyndicator,ifany. Satis.

16. Firmcommitmentletter(s)foranyotherfinancingsources. Satis.

17. Updatedsourcesandusesoffunds. Satis.

18. Draft construction draw schedule showing sources of funds during each

monthoftheconstructionandlease‐upperiod.

Satis.

19. Fifteen‐yearincome,expense,andoccupancyprojection. Satis.

20. Executedgeneralconstructioncontractwith“nottoexceed”costs. Satis.

21. HCONLY:15%of the totalequitytobeprovidedpriortoor simultaneously

withtheclosingoftheconstructionfinancing.

Satis.

22. Anyadditionalitemsrequiredbythecreditunderwriter. Satis.



NOTESANDAPPLICANT’SRESPONSES:None

HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 EXHIBIT 4 – PAGE 1

JULY 6, 2022

HCAllocationCalculation

$44,939,514

Les s LandCos t ($3,510,000)

Les s Fe d e ral Fu nds $0

Les s OtherIneligibleCos t ($4,283,345)

Les s Di s proporti onate Sta nd a rd $0

$37,146,169

96.2859241972427%

130.00%

$46,496,491

9.00%

$4,184,684

SectionI:QualifiedBasisCalculation

De ve l opmentCos t

TotalEligibleBasis

ApplicableFra ction

DDA/QCTBasisCre di t

QualifiedBasis

HousingCre di tPercenta ge

AnnualHo usin gCre di tAllocation



NotestotheQualifiedBasisCalculation:

1. OtherIneligibleCostsprimarilyincludedemolition,retailspace,certainsitework,washer/dryercosts,

FHFCadministrative,applicationandHCcompliancefees,portionsoftheaccounting,surveyandtitle

insurance,marketing,legalfees,permanentloanoriginationfees,closingcostsandoperatingdeficit

reserverequiredby

thesyndicator.

2. Applicantcommitted to a 97% set aside;therefore,theapplicablefraction is the lesseroftheunit

fractionof97.35%orthefloorfractionof96.2859241972427%.

3. This development is located in Broward County and is located in a SADDA, 33024.Ther efore,  a

130.00%BasisCredithasbeen

applied.

4. The HC percentage is  9.00% per the Fiscal Year 2016 Omnibus Spending and Tax Bill passed by

Congress.



HC CREDIT UNDERWRITING REPORT SMG

PINNACLE 441 EXHIBIT 4 – PAGE 2

JULY 6, 2022

$44,939,514

Les s Mortgages ($9,300,000)

Les s Gra n ts $0

$35,639,514

99.99%

$0.94

$37,918,168

$3,791,817

TotalDe ve l opmentCos t(Incl udi ngLa ndandIneligibleCosts)

SectionII:GapCalculation

Equi tyGap

Percenta ge toInvestmentPartne rs hi p

HCSyndicationPricing

HCRe qu ired toMeetGap

AnnualHCRe q uire d



NotestotheGapCalculatio n:

1. Thequalifyingfirstmortgageof $7,124,661.81 asdetermined by Chapter67‐48.0072(29)(g), isless

than the actual first mortgage and therefore does not apply.Mortgages represent NLP’s First

MortgageLoanof$9,200,000and$100,000BrowardCountySecondMortgage.

2. HCSyndicationPricing andPercentage

toInvestmentPartnershiparebasedupontheMay31,2022

LOIfromBofA.

$3,382,000

$4,184,684

$3,791,817

$3,382,000

HCperQualifiedBasis

SectionIII:Summary

HCperApplicantReque s t

HCperGapCalculation

AnnualHCRe comme n de d



NotestotheSummary:

1. Seltzer’sAnnualHCRecommendationislimitedbyApplicantRequest.

 