Preview
LOWNDES GouNTY. ag eras
IN THE SUPERIOR COURT OF LOWNDES COUNTY ~
STATE OF GEORGIA WIODEC 19 AMIO: 34
Baths G Heenan
HERON LAKE IT APARTMENTS, LP CLERK R STATE
Appellant. Civil Action File No. 2 Ol RN24!
vs.
LOWNDES COUNTY BOARD OF
TAX ASSESSORS
Appellee
CERTIFICATION OF APPEAL
Comes Now the Lowndes County Board of Tax Assessors and certifies to the Clerk of
the Court the appeal of and attached staff information from the file of the Board of Tax
Assessors as to the 2018 assessment of parcel number 0151A-270.
Res; lly submited,
Walter G. Elliott
Ga. Bar No. 244855
William G. Elliott
Ga. Bar No. 557642
Elliott, Blackburn & Gooding, P.C.
3016 North Patterson Street
Valdosta, Georgia 31602
229-242-3333
Attorneys for
Lowndes County Board of Tax Assessors
ainih hy Y, GESR! GIA,
:
Agreement to Initiate Appeal Directly to Superior Court: \N SFFIC
This Agreement, entered into by and between Heron Lake II Apag@MQWA Or BB shi: S8na the
Lowndes County Board of Tax Assessors (the “Assessors”);
Le
Ll Aas AL
WITNESSETH:
WHEREAS, Taxpayer appealed the Assessors’ Assessment for Digest Year 2018 of ‘parcel number
0151A 270 (the “subject appeal”) to a hearing officer under OCGA § 48-5-311(e.1);
WHEREAS, on October 5, 2018, the Assessors mailed notice to Taxpayer pursuant to OCGA §
48-5-311(e.1)(5) that the Assessors determined no changes or corrections to the Assessor’s Assessment
‘were warranted;
WHEREAS, OCGA § 48-5-311(e.1)(5) provides Taxpayer may elect to forward the subject appeal
to the board of equalization within 30 days of the mailing of the Assessors’ notice of no changes or
corrections;
WHEREAS, OCGA § 48-5-311(g)(1) provides, by mutual written agreement, Taxpayer and the
Assessors may waive an appeal to the board of equalization and initiate an appeal to superior court;
NOW THEREFORE, Taxpayer and the Assessors mutually agree:
1. Taxpayer and the Assessors waive an appeal to a hearing officer or the board of equalization
and shall initiate the subject appeal directly to superior court under OCGA § 48-5-311(g).
2. The provisions of OCGA § 48-5-311(g)(2) regarding notice of and participating in a settlement
conference do not apply.
3. Taxpayer shall pay the $25 filing fee required by OCGA § 48-5-311(g)(2) to the clerk of superior
court within 20 days of the execution of this Agreement on behalf of Taxpayer.
4. Within 30 days of receipt of proof of payment of said filing fee to the clerk of the superior court,
the Assessors shall certify the subject appeal to the clerk of the superior court pursuant to OCGA § 48-5-
311(g)(2).
It is so agreed.
Ait
Roy E. Barhes
Attomey and Agent for Taxpayer
Date:
Walter G. Elliott
Attorney for of Tax Assessors
Date: 18
03830
00001
22890 001 H12.GA
FICE
wo BB3O2 1
07 JUN26 PH 3:31
aT LE co!
2 OF SUPERIOR coues
010627
‘After recording,
return to:
Jobn G. Grubb,J.
P.0. Box 447
Georgie 30553
Project#
DECLARATION OF LAND USE RESTRICTIVE COVENANTS
FOR LOW-INCOME HOUSING TAX CREDITS
THIS DECLARATION OF LAND USE RESTRICTIVE COVENANTS (this
“Agreement”), dated as of June 25, 2007, by Heron Lake I! Apartments, LP, a Georgia
limited partnership (with its successors and assigns, the “Owner"), and the Georgia
Housing and Finance Authority, an instrumentality of the State of Georgia and a public
corporation (with any successor to its rights, duties, and obligations, “GHFA” or the
“Authority”), is made as a condition precedent to the Authority’s allocation of Federal
and State housing tax credits (the “Credits”) to Owner.
RECITALS:
A. — Owner owns land in the City of Valdosta, Lowndes County, Georgia,
more particularly described in the attached Exhibit A (the “Land”), on which is or will be
located a project composed of:
34 Low-income units, including zero income-producing employee units (the
“Low-Income Units”)
Market rate units, including zero income-producing employee units
03830
00002
239830 00
1 ‘Common space management/employee units (non-income-producing)
64 Total unit count
to be known as “Heron Lake I] Apartments” (the Land and all improvements on it now or
in the future are collectively referred to as the “Project”).
B. The Governor of the State of Georgia has designated the Authority as the
housing credit agency for the State, and the Authority is responsible for the allocation of
the Credits.
Cc. Owner has applied to the Authority for and received allocation of Credits
to the Project in an amount not to exceed $537,092.00 tax credit dollars annually.
D. ‘The Authority has relied upon the facis, statements, and
the Owner’s Application for Credits (the “Application”) in deciding to allocate Credits o
the Project.
E. To satisfy the requirements of Section 42, this Agreement will impose
certain covenants and restrictions on the rent, use, occupancy, and transfer of the Land
and Project, which covenants and restrictions will be restrictive covenants running with
NOW, THEREFORE, in consideration of the promises and covenants in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:
SECTION 1 - DEFINITIONS
In addition to terms defined elsewhcre in this Agreement, the following terms
shall have the following meanings:
“t ie” means the Internal Revenue Code; “Section
42" meons Section 42 of the Code; “Household” includes individuals and means all
occupants of a Low-Income Uni ‘Person” means a natural person or entity;
“Regulations” means al} current and future regulations, rules, rulings, notices, policies,
procedures, or other official statements promulgated or proposed by the U. S. Department
of Treasury (“Treasury”), the Internal Revenue Service (“IRS"), or Housing and Urban
Development (“HUD”) pertaining to Section 42 and low-income housing credits. All
words and phrases defined in Section 42 or in the Regulations shall have the same
nearing in this Agreement unless otherwise provided. When used in this Agreement,
‘including” means “including (but not limited to)” unless otherwise specified.
SECTION2- RECORDING AND FILING; COVENANTS TO RUN WITH THE
@) Owner shall have the responsibility to record the executed original of this
Agreement in the real estate records of Lowndes County, Georgia, and pay all fees and
charges for the recording. After this Agreement is recorded, if it is returned to Owner by
the recording authority, Owner shall immediately send to the Authority the recorded,
* 93830
00003
* 3830 P6003
executed original of the Agreement, which must show the date, deed book, and page
numbers of record, GHFA will not issue any Form 8609 for the Project, and Owner may
not claim any Credits for the Project, until GHFA receives: the original, recorded
(b) Owner intends, declares, and covenants that this Agreement and the
covenants and restrictions in it regulating and restricting the rent, use, occupancy, and
wansfer of the Land and the Project (including, but not limited to, the “Section 42 Rent
und Gccupancy Restrictions” and the “GHFA Rent, Income and Occupancy
Restrictions,” and the “Additional, Site, Use and Occupancy Restrictions," as defined
below); (1) are covenants running with the Land, encumbering and burdening the Land
for the term of this Agreement, as set forth in Section 5 (the “Term”); (2) are not merely
personal covenants of Owner; and (3) shall bind Owner and its successors and assigns
and all future owners and operators of the Project and the Land during the Term. This
Agreement and the covenants and restrictions in it shall inure to the benefit of the
Authority and its successors and assigns and any past, present, or prospective tenant of
the Project. Owner agrees that all requirements of Georgia law for such covenants and
restrictions to constitute restrictive covenants running with the Land have been satisfied
in full and that it and the Authority intend that any requirement of privity of estate shall
be satisfied, or. in the alternative, that an equitable servitude has been created to insure
that such covenants and restrictions run with the Land for the Term.
(©) For the Compliance Period or the Term, whichever is longer, cach and
every contract, deed, or other instrument (collectively, an “Instrument") subsequently
executed conveying all or any part of the Project or Land shall expressly provide that
such conveyance is subject to this Agreement and the covenants and restrictions in it, but
‘such covenants and restrictions shall survive, be effective, and bind the Land and the
successors and assigns of Owner whether or not the Instrument provides thut such
conveyance is subject to this Agreement. Each Instrument shall be conclusively deemed
to have been executed, delivered, and accepted subject to such covenants and restrictions.
SECTION 3 - OWNER'S REPRESENTATIONS, COVENANTS, AND
Owner hereby represents, covenants, and warrants as follows:
(a) Owner is a limited partnership, duly organized and validly existing under
Georgia law and qualified to do business in Georgia. Owner has the power and authority
to own its assets and to carry on its business as now being conducted and has the legal
right, power, and authorily to execute and deliver this Agreement and subject the Land
and the Project to the covenants and restrictions in it. The Person or Persons signing this
Agreement on behalf of Owner have been duly authorized to do so.
(b) Owner's execution and performance of this Agreement (1) do not and will
not violate any applicable law, rule, or regulation or any order of any court, agency, or
governmental body, and (2) do not and will not violate any indenture, agreement,
03830
3830 P6004
mortgage, mostgage note, or other instrument binding Owner, the Land, or the Project;
and (3) wil} not result in the creation or imposition of any prohibited encumbrance.
(c) There js no action, suit, or proceeding at law or in equity or by or before
any governmental instrumentality or other agency now pending against Owner, the Land,
or the Project, or,.to the knowledge of Owner, threatened against or affecting Owner, the
Land, or the Project.
(d) During the Term, the Project is or will be a “qualified low-income
project,” as defined in Section 42 and the Regulations.
() During the Term, each Low-Income Unit is or will be a “low-income
unit,” as defined in Section 42(iX3)(A), and suitable for occupancy, as defined in Section.
42 and the Regulations, and contains or will contain complete facilitics for living,
sleeping, eating, cooking, and sanitation. Subject to the exceptions in Section 42(3(3)(B),
‘each Low-Income Unit is or will be used on other than a transient basis.
® During the Term, all Low-Income Units shall be for use by the general
public, as defined in Section 1.42-9 of the Regulations, and shall only be Jeased to
persons who qualify as Low-Income Tenants (or otherwise qualify for occupancy of the
Low-Income Units) under the election of Owner under Section 42(g), as set forth in
section 4(a) of this Agreement.
(g) During the Term, Owner is prohibited from refusing to lease a Low-
Income Unit to a holder of a voucher or certificate of eligibility under Section 8 of the
United States Housing Act of 1937 (“Section 8") because of the status of the prospective
tenant as such a holder.
(h) During the Term, Owner may not sell, transfer, or exchange (individually
and collectively, “convey” in this subsection) any portion of any building to which this
Agreement applies to any Person unless all of such building is conveyed to such Person.
Subject to the requirements of Section 42 and this Agreement, Owner may convey the
entire Project at any time, but Owner shall notify in writing and obtain the agreement of
any Person acquiring the Project that such sale, transfer, or exchange (collectively,
¢" in this subsection) is subject to the requirements of this Agreement,
Section 42, and the applicable Regulations. Owner shall notify the Authority in writing of
Owner's intent to convey all or any part of the Project before any such conveyance. This
provision shall not act to waive any other restriction
on conveyance of the Project or any
fow-income portion of the Project. Owner agrees that the Authority may void any
conveyance of all or any part of the Project if the acquiring Person fails to assume in
writing the requirements of this Agreement, Section 42, and the applicable Regulations.
@ During the Term, Owner shall not demolish any part of the Project or
substantially subtract from any real or personal property of the Project or permit the use
of any residential rental unit for any purpose other than rental housing, less required to
do so
by law,
03830
(00005
+3830 e005
@ If all
or any part of the Project is damaged or destroyed or is condemned
or acquired for public use, Owner will use its best efforts to repair and restore the Project
to substantially the sume condition us existed before the event causing such damage or
destruction or to relieve or reduce to the maximum extent practical the effects of the
condemnation and render the Project usable for residential housing purposes to the
maximum extent practical and thereafter to operate the Project in accordance with the
tens of this Agreement.
&) ‘The representations, statements, materials, and other matters contained in
or submitted in connection with the Application were true and compicte in all material
respects as of the date of submission to the Authority and did not omit any fact or
circumstance necessary to make the statements contained in them not misleading. Owner
is aware of no event that would require any amendment to the Application (other than an
amendment which has been filed with and approved by the Authority) or that would
make such representations, statements, and other mutters or materials not truc and
complete in all material respects or make them misleading in any material respect, During
the Term, Owner will abide by all policy statements of the Authority in place at the time
of Application and will not take any action that conflicts with or negates any
representation mude to the Authority in the Application. Before Owner may make any
change in any matier set forth in the Application, Owner must request in writing and
receive. val from the Authority, which approval may be granted or withheld in the
Authority’s sole and absolute discretion.
() During the Compliance Period, Owner will include and maintain site
amenities for the benefit of the Low-Income Tenants, as represented in the Application
and set forth in Exhibit C.
(m) During the Term, Owner is prohibited from evicting a Low-Income
‘Tenant or terminating the lease of a Low-Income Tenant, except for good cause within
the meaning of Section 42, and is prohibited from increasing the gross rent of a Low-
Income Tenant, unless such increase is permitted under Section 42.
(a) If the tenant of a Low-Income Unit pays directly the cost of any utilities
(other than telephone), the gross rent for that Low-Income Unit includes the applicable
utility allowance.
‘Owner will provide the following utilities:
Chsewer J trash
Oleas Delectricity (CD water Dother,
Tenant will pay:
Bsewer (trash
Deas Welectricity Bwater [other
03630
33890 PcO0G
SECTION 4 - RENT, INCOME, OCCUPANCY, SITE AND USE RESTRICTIONS
(a) Section 42 Elections. Owner covenants and that the
Term and to satisfy the requirements of Section 42 (“Section 42 Rent and Occupancy
Restrictions”):
a) 2 At least 20% of the units in the Project will continuously be
maintained as both rent-restricted Low-Income Units and occupied by
Households whose income is 50% or less of Area Median Gross Income.
for)
Q) wB At least 40% of the units in the Project will continuously be
ined as both rent-restricted Low-Income Units and occupied by
Households whose income is 60% or less of Area Median Gross Income.
and
Q) At least 40% or more of the residential units in each building
that is part of
the Project will be occupied by tenants whose Household income is 50% or tess of
Area Median Gross Income.
) GHFA Rent, Income and Occupancy Restrictions. In its Application,
Owner made certain representations to the Authority about certain restrictions it would
honor in connection with the Project that are more restrictive than the requirements of
Section 42 (the “GHFA Rent, Income and Occupancy Restrictions"). Owner
acknowledges and agrees that such representations were material and the Authority relied
upon such representations in deciding to allocate Credits to Owner. The additional rent
and income restrictions are set forth on Exhibit B, which is incorporated herein and made
a part of this Agreement. Owner covenunts and agrees that throughout the Compliance
Period, Owner shall neither charge nor accept tenant rent that is more than the rents
specified on Exhibit B. Further, Owner shall comply with the occupancy and income
restrictions set forth in that Exhibit.
(c) Additional Site, Use, and Occupancy Restrictions. In its Application,
Owner made certain representations to the Authority about certain covenants it would
honor in connection with the Project that are more restrictive than the requirements of
Section 42 (the “Additional Site, Use, and Occupancy Restrictions”), and Owner
acknowledges and agrees that such representations were material and the Authority relied
upon such representations in deciding to allocate Credits to Owner. These Additional
Site, Use, and Occupancy Restrictions are set forth on Exhibit C, which is incorporated
herein and made a part of this Agrcement. Owner covenants and agrees that throughout
the Compliance Period, Owner shall comply with these Additional Site, Use, and
Occupancy Restrictions.
"93830
00007
£3830 007
@ Eligibility
Q) For each taxable year in the “extended use period” (as defined in section
5), the “applicable fraction,” as defined in Section 42(c)(1), for each building in the
Project shall not be less than the smaller of the “ jit fraction” and the “floor space
fraction” for the building, as those terms are defined in Section 42(c)(1).
@ Before permitting 2 Household to rent and occupy a Low-Income Unit,
Owner shall determine whether the Household’s income exceeds the income limit
{including asset income) under this Agreement. Such determination will be made in
accordance with the requirements of Section 42, the Regulations, and the Authority. At
the time a Household signs a lease for a Low-Income Unit, it must be income-cligible
{such a tenant is referred to as a “Low-Income Tenant"). At least anmuaily, Owner shal)
determine whether each Low-Income Tenant still meets the low-income requirements of
this Agreement on the basis of the current income of such Low-Income Tenant, as
determined in accordance with Section 42, the Regulations, und the Authority's
requirements. Upon re-examination ofa Low-Income Tenant's income. if the tenant's
income is more than 140% of the allowable Houschold income, the tenant will be
considered “over-income,” and Section 42(g(2(D) will apply with respect to Owner’s
treatment of the tenant and the Low-Income Unit.
SECTION 5-TERM OF AGREEMENT
(a) Untess terminated earlier pursuant to subsection 5(b), this Agreement and
the covenants and restrictions in it, including the Section 42 Rent and Occupancy
Restrictions shall remain in effect throughout the “extended use period.” In accordance
with Section 42, the extended use period shall commence with the first day in the
Compliance Perivd on which any building that js part of the Project is placed in service
and end on the date which is 15 years after the close of the Compliance Period. The
GHFA Rent, Income and Occupancy Restrictions and the Additional Site, Use, and
Occupancy Restrictions shall remain in effect through the Compliance Period. The
“Compliance Period” shall be the period of 15 taxable years beginning with the first
wxable yor of the credit period,
(0) Notwithstanding subsection 5(a), unless the Secretary of the Treasury
determines that an acquisition is part of an arrangement with Owner, the purpose of
which is to terminate the extended use period, the extended use period for any building
that is part of the Project shall terminate:
aw On the date the building is acquired by foreclosure or instrument in lieu of
foreclosure; or
Q) On the last day of the one-year period that begins on the date Owner
properly submits a written request to the Authority, asking the Authority to assist in
procuring « “qualified contract,” as defined in Section 42(h)(6)(F), for the acquisition of
the low-income portion of the building, but only if the Authority is unable to present a
qualified contract during such one-year period; provided, however, such request may not
03830
00008
#38390 008
be made before the end of the 14" year of the Compliance Period or at the time specified
in Exhibit C, whichever is later,
@) At the end of the Compliance Period if a plan for tenant ownership is in
place as more fully set forth in Exhibit C.
() Notwithstanding subsection 5(b) or any otherprovision of | this Agreement,
the rent requirements in the Section 42 Rent and Occupancy ions and GHFA
Rent, Income and Occupancy Restrictions shall continue for a period of three years
following the termination of the extended use period under subsection 5(b)(1) or 5(b)(2).
During such three-year period, Owner shall not evict the tenant of a Low-Income Unit or
terminate the tenancy of an existing tenant of any Low-Income Unit other than for good
cause and shall not increase the gross rent above the maximum allowed under the Code
with respect to any such Low-Income Unit.
SECTION 6 - ENFORCEMENT OF RESTRICTIONS
@) During normal business hours and upon reasonable notice, Owner shali
permit any authorized representative of the Authority to inspect any books and records of
‘Owner relating to the Project and the incomes of Low-Income Tenants,
(b) Owner shall submit any other information, documents, or certifications
requested by the Authority to substantiate Owner’s compliance with the provisions of the
GHFA Rent, Income, and Occupancy Restrictions.
(©) Owner covenants that it will not knowingly take or permit any action that
would result in a violation of the requirements of Section 42, the Regulations, or this
Agseement. Moreover, Owner covenants to take any lawful action (including amendment
of this Agreement, as may be necessary in the opinion of the Authority) to comply fully
with Section 42, the Regulations, and this Agreement.
(d) | Owner acknowledges that the primary purpose for requiring Owner to
comply with the restrictions provided in this Agreement is to assure compliance of the
Project and Owner with Section 42 and the Regulations. IN CONSIDERATION FOR
RECEIVING THE CREDITS, OWNER AGREES AND CONSENTS THAT THE
AUTHORITY AND ANY INDIVIDUAL WHO MEETS THE INCOME
LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER A
PROSPECTIVE, PRESENT, OR FORMER OCCUPANT) SHALL BE
ENTITLED, FOR ANY BREACH OF THIS AGREEMENT, AND IN ADDITION
TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY,
SPECIFICALLY ENFORCE IN A STATE COURT OF COMPETENT
JURISDICTION THE REQUIREMENTS AND PROHIBITIONS OF THIS
AGREEMENT. Owner further specifically acknowledges and agrees that the
beneficiaries of Owner’s obligations under this Agreement cannot be adequately
compensated by monetary damages in the event of any default under this Agreement.
(c) If there is a breach of any provision of this Agreement, the Authority may
require the Owner to perform any action necessary to meet the requirements of this
03830
0009
*3830 Pc009
Agreement. The Authority may, in its discretion, apply to any court having jurisdiction of
the subject matter for specific performance of this Agreement or for an injunction against
any violation of this Agrecment.
(f) Owner agrees that the Authority and all persons interested in Project
compliance under Section 42 and the Regulations may rely upon the representations and
covenants set forth in this Agreement.
Owner acknowledges that Section 42 and the applicable Regulations
require the Authority to monitor the Section 42 Rent and Restrictions.
Additionally, the Authority has elected to monitor the GHFA Rent, Income and
Occupancy Restrictions. Owner will take any and all actions reasonably necessary and
required by the Authority to substantiate Owner’s compliance with the Section 42 Rent
and Occupancy Restrictions and GHFA Rent, Income and Occupancy Restrictions and
will pay a reasonable fee to the Authority for its monitoring activities.
SECTION 7 - MISCELLANEOUS
(a) The invalidity of any clause, part, or provision of this
Agreement shell not affect the validity of the remaining portions of this Agreement.
Notices. All notices to be given pursuant to this Agreement shall be in
writing and shall be deemed given when mailed by certified mail, return receipt
requested, to the other party at the address set forth below.
or!
Georgia Housing and Finance Authority
60 Executive Park South, N.E.
Atlanta, Georgia 30329
Attn: Tax Credit Program Manager
Heron Lake I] Apartments,
LP
920 Florence Boulevard, P.O. Box 220
Florence, Alabama 35631-0220
Attn: Allan Rappuhn
‘The Authority and Owner may, by notice given in accordance with this section, designate
any further or different address to which subsequent notices, certifications, or other
communications shall be sent.
|. Owner agrees that it will take all actions necessary to effect
amendment of this Agreement as may be necessary to comply with the Code and any
applicable Regulations.
(d) Subordination of Agreement. This Agreement and the restrictions in it are
subordinate to any loan and loan documents on the Project, except as set forth in section
546).
03830
00010
313830 Poole
() Governing Law. This Agreement shall be governed by Georgia law and,
where applicable, federal law.
© f igations. Owner’s obligations in this Agreement and in the
Application shall survive the allocation of the Credits and shall not be deemed to
terminate or merge with the awarding of the allocation.
@) Recitals. The recitals and premises are a part of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement with the
intention that this Agreement take effect as an instrument under seal, as of the above date.
HERON LAKE II APARTMENTS, LP
Signed, sealed, and delivered on By: Gateway Heron Lake II, LLC
June 25, 2007, in the presence of: Its sole General Partner
Witness Allan Rappuhn, Manager
Ties AML4,
Notar
SAOTAR)
15, 2008 GEORGIA HOUSING AND FINANCE
Sign on AUTHORITY
June Sane
ray OU nce of:
a
UW By:
Witness fart, Director
Office Affeoriaie Housing
4S Attest:
Carmen Chubb
KOTARPNP Assistant Commissioner for Housing
fax COMMISSION
wa 15, 2008
Ye Sie Puy? ‘s error
——
perme
LOTS
EAL
HF
10 Mon a
oe
03830
00011
a3830 PeO1)
EXHIBIT A
All that tract or parcel of land in Land Lot 104 of the 1h Land District of the City of
Valdosta, Lowndes County, Georgia, being Lot 1 of Heron Lake Subdivision, as recorded
in Plat Cabinet “A” on page 2430 in the real estate records of Lowndes County, Georgia,
and more particularly described as follows:
Asa point of reference only commence at a broken concrete monument marking
the intersection of 8 curved miter in the west margin of right-of-way of Tyndall
Drive (50' right-of-way) with the south margin of right-of-way of Summit Drive
(50 right-of-way); thence proceed the south margin of Summit Drive North
89°33'32" West a distance of 110,99' to a 5/8” iron rebar found at the south corner
of the dead end of Summit Drive and the Point of Beginning; thence leaving said
dead end of Summit Drive proceed South 00°24'46" West a distance of 152.82'
a 5/8" iron rebar placed; thence proceed North 88°40'56" West a distance of
143.00’ to a 5/8" iron rebar placed at the northeast corner of the dead end of
Sheridan Place (50' right-of-way); thence across the dead end of Sheridan
Place North 88°40'S6" West a distance of 51.69’ to a 5/8" iron rebar placed at the
northwest comer of the dead end of Sheridan Place; thence proceed North
88°40'S6" West a distance of 176.10’ to an iron rebar found; thence proceed North
88°37'29" West e distance of 199.80' to a 5/8" iron rebar found; thence proceed
North 01°22'41" East a distance of 150.00’ to a 5/8" iron rebar found; thence
proceed North 27°33'17" West a distance of 57.13’ to # 5/8" iron rebar found
thence proceed North 01°22'4}" Easta distance of 124.83" to a 5/8" iron rebar
found; thence proceed North 88°37'19" West a distance of 40.00' to a 5/8" iron
rebar found; thence proceed North 01°22'41" East a distance of 115.38' to a 5/8"
iron rebar found; thence proceed South 88°37'19" East a distance of 630.79 toa
5/8" iron rebar found; thence proceed South 00°14'46" West a distance of 51.45’
to a 1/2" iron rebar found; thence proceed South 00°29'25" West a distance of
85.26' to a concrete monument found; then proceed South 00°24'46" West a
distance of 100,34" to a concrete monument found at the north comer of the dead
end of Summit Drive; thence proceed along said dead end South 00°24'46" Westa
distance of 50.00’ to # 5/8” iron rebar and the Point of Beginning.
Said Lot 1 contains 6.00 acres (261,360 square feet). Said Lot 1 of Heron Lake
Subdivision is bounded on the north by Lot 2 of Heron Lake Subdivision as recorded in
Plat Cabinet "A” on page 2430, being property of Heron Lake Apartments LP; bounded
on the east by Forrestwood Estates Subdivision, block "A" units 4 & 5 of section 2 as
recorded in Plat Book “C“ on pages 112 & 170, being property of Steven B. Paul,
Romaria Dean, Charles Foster, the publicly dedicated t/w of Summit Drive, property of
Klaus W. Ballard & of Susan E. Taylor; bounded on the south by Forrestwood Estates
Section I as recorded in Plat Book "G" on page 95, being property of East n’ West
Investments Inc., the publicly dedicated right-of-way of Sheridan Place, and property of
Bette Jean Daughasty ef al. and by property of Village Associates Lid.; and bounded on
the west by property of Valdosta City Schools by and through the Valdosta Board Of
Education.
W
03830
00012
3890 reoi2
EXHIBIT B
GHFA RENT, INCOME AND OCCUPANCY RESTRICTIONS
(TAX CREDIT ONLY)
{check all restrictions that were elected at the time of Application]
L Rent/Income Restrictions
& 28 Low-Income Units are restricted to Households with an Annual Income of 60%
of AMI or less and are subject
to the following rental restrictions: 30% of 60%
of AMI,
jjusted according to bedroom size, on a monthly basis (yearly AMI divided by 12) less
the applicable Utility Allowance.
Q 19 Low-Income Units are restricted to Households with an Annual Income of 50%
of AMI or less and are subject to the following rental restrictions: 30% of 50% of AMI,
adjusted according to bedroom size, on a monthly basis (yearly AMI divided by 32) Icss
the applicable Utility Allowance.
Q 7 Low-Income Units are restricted to Households with an Annual Income of 30%
of AMI or less and are subject to the following rental restrictions: 30% of 30% of AMI,
adjusted according to bedroom size, on a monthly basis (yearly AMI divided by 12) less
the applicable Utility Allowance.
i Other Restrictions
(1 PBRA Governmental
units will receive project-based rental assistance from a governmental entity for at
least five years
() ~~ PBRA Non Governmental
% of units to receive project-based rental assistance from a non-governmental entity
for at least
five years
Q Mixed Income Project
Project is designated for both low income and market rate tenants. 9 units will be
designated as market rate units.
0 PHA Units
% of units to be reserved and rented to public housing tenants for at least five years
2
03830
00013
663830 PCO19
EXHIBIT C
ADDITIONAL SITE AND USE RESTRICTIONS
ACCESSIBILITY
Ata minimum, 5% of the total units must be equipped for persons with mobility
impairments and 2% of the total units shall be made accessible for persons with
hearing or visual impairments. In addition, 2% of the units will be equipped for
the mobility disabled, and each of such units shall include a roll-in shower.
EXTENSION OF CANCELLATION OPTION
Owner has the right to request the Authority’s assistance in i ified
contract for acquisition of any building in the Project after the end of the 14” year
of the Compliance Period. Owner has agreed to waive its right to request such
assistance for a period of 15 additional years,
MATERIAL PARTICIPATION BY QUALIFIED NONPROFIT
ORGANIZATION
Throughout the Compliance Period, a “qualified nonprofit organization” within
the meaning of Section 42(h)(5)(C) of the Code shalJ hold a controlling interest in
the Project, as required by the Authority’s rules and guidelines, shall materially
participate (within the meaning of Section 469(h) of the Code) in the development
and operation of the Project and shall otherwise meet the requirements of Scction
42(h)(5) of the Code.
UNIT AMENITIES
During the Term, Owner will include and maintain the following unit amenities
for the benefit of the Low-Income Tenants: HVAC system, refrigerator,
oven/range with exhaust hood, water heater, microwave oven, in-sink garbage
disposal, bui)t-in dishwasher, washer and dryer, and carbon monoxide suppression
system above the over/range.
SITE AMENITIES
During ‘the Term, Owner will include and maintain the following site amenities
for the benefit of the Low-Income Tenants: walking path with exercise stations or
sitting arcas, an equipped playground, covered picnic pavilion with barbecuc
facilities, equipped exercise/fitness center, equipped volleyball area, equipped
computer center, parking for 128 vehicles.
TENANCY CHARACTERISTICS
Throughout the Compliance Period, unless otherwise permitted by the Authority,
this Project must be:
3
03830
00014
a3e30 roi
Family Project
‘Operated for occupancy
by families.
Elderly Project
Intended for and solely occupied by Elderly persons. “Elderly” shall be
defined as 62 years of age or older. 100% of the units must be accessible
and adaptable. All units must have un installed cal] system, including e
buzzer and light to the exterior. Elevators must be provided for access to
units above the ground floor.
Housing for Older Persons Project
Accessible, adaptable, and intended for and operated for occupancy by
persons 55 years of age or older. 80% of the total housing units in the
Project must be occupied by at least one person who is 55 years of age or
older. Up to 20% of the units may be occupied by others, including the
landlord's employees, surviving spouses or children of residents who were
55 years of age or older when they died, and caregivers. Owner must
adhere to policies and procedures that demonstrate intent of Owner and
manager to provide housing for persons 55 years of age or older.
Special Needs Project
Operated for the homeless, persons with disabilities (mental, physical,
developmental), abused spouses and their children, persons with alcohol or
other drug addiction, person living with HIV/AIDS and migrant farm
workers. At least 50% of the total project dwelling units must be restricted.
SUPPORTIVE SERVICES
Throughout the Compliance Period, unless otherwise permitted by the Authority,
Owner has agreed to provide the following:
Q Family Project
Owner must provide 5 on-going services designed for the physical or
social needs of the tenant population.
o Elderly Project
Owner must provide at least one activity/service designed to meet the
physical or social needs of elderly persons, in at least two of the following
categories: recreation/social, transportation, health/weliness, education,
counseling, and security (a total of two different services). In addition,
Owner must provide additional services designed to meet the
physical or social needs of the tenant population.
Housing for Older Persons Project
4
een
03830
00015
#3830 P6015
Owner must provide at least 4 different activities/services designed to
meet the physical or social needs of tenants aged 55 and older in at least
three of the following categories: recreation/social, transportation,
health/wellness, education, counseling, and security. In addition, Owner
must provide ___ additional services designed to meet the physical or
social needs of the tenant population.
Special Needs Project
Owner must provide at least 3 on-going services designed to meet the
special needs of the targeted tenant population. In addition, the Owner
must provide ___ additional services designed to meet the physical or
social needs of the tenant population.
1s
re A THE GATEWAY COMPANIES
M anag em en t “Construction Development
March 14, 2018
Lowndes County Tax Commissioner
300 North Patterson Street
Valdosta, GA 31603
RE: Heron Lake Apartments, LP
Account # 15830
Property ID # 0149C 128
Heron Lake II Apartments, LP
Account # 41407
Property ID # 0151A 270
Woodlawn Terrace Apartments, LP
Account # 48525
Property ID # 0155A 096A
To whom it may concern:
Please find the attached PT-50R valuation forms attached. | have also included the
audited financials for these 3 properties from 2017. Please use the NOI from 2017 to
apply the income approach for valuation this year.
If you need any additional information, feel free to contact me at 256-760-9657 or at the
address below.
Sincerely,
Sl
Craig S. McMurtrey
Preview
LOWNDES GouNTY. ag eras IN THE SUPERIOR COURT OF LOWNDES COUNTY ~ STATE OF GEORGIA WIODEC 19 AMIO: 34 Baths G Heenan HERON LAKE IT APARTMENTS, LP CLERK R STATE Appellant. Civil Action File No. 2 Ol RN24! vs. LOWNDES COUNTY BOARD OF TAX ASSESSORS Appellee CERTIFICATION OF APPEAL Comes Now the Lowndes County Board of Tax Assessors and certifies to the Clerk of the Court the appeal of and attached staff information from the file of the Board of Tax Assessors as to the 2018 assessment of parcel number 0151A-270. Res; lly submited, Walter G. Elliott Ga. Bar No. 244855 William G. Elliott Ga. Bar No. 557642 Elliott, Blackburn & Gooding, P.C. 3016 North Patterson Street Valdosta, Georgia 31602 229-242-3333 Attorneys for Lowndes County Board of Tax Assessors ainih hy Y, GESR! GIA, : Agreement to Initiate Appeal Directly to Superior Court: \N SFFIC This Agreement, entered into by and between Heron Lake II Apag@MQWA Or BB shi: S8na the Lowndes County Board of Tax Assessors (the “Assessors”); Le Ll Aas AL WITNESSETH: WHEREAS, Taxpayer appealed the Assessors’ Assessment for Digest Year 2018 of ‘parcel number 0151A 270 (the “subject appeal”) to a hearing officer under OCGA § 48-5-311(e.1); WHEREAS, on October 5, 2018, the Assessors mailed notice to Taxpayer pursuant to OCGA § 48-5-311(e.1)(5) that the Assessors determined no changes or corrections to the Assessor’s Assessment ‘were warranted; WHEREAS, OCGA § 48-5-311(e.1)(5) provides Taxpayer may elect to forward the subject appeal to the board of equalization within 30 days of the mailing of the Assessors’ notice of no changes or corrections; WHEREAS, OCGA § 48-5-311(g)(1) provides, by mutual written agreement, Taxpayer and the Assessors may waive an appeal to the board of equalization and initiate an appeal to superior court; NOW THEREFORE, Taxpayer and the Assessors mutually agree: 1. Taxpayer and the Assessors waive an appeal to a hearing officer or the board of equalization and shall initiate the subject appeal directly to superior court under OCGA § 48-5-311(g). 2. The provisions of OCGA § 48-5-311(g)(2) regarding notice of and participating in a settlement conference do not apply. 3. Taxpayer shall pay the $25 filing fee required by OCGA § 48-5-311(g)(2) to the clerk of superior court within 20 days of the execution of this Agreement on behalf of Taxpayer. 4. Within 30 days of receipt of proof of payment of said filing fee to the clerk of the superior court, the Assessors shall certify the subject appeal to the clerk of the superior court pursuant to OCGA § 48-5- 311(g)(2). It is so agreed. Ait Roy E. Barhes Attomey and Agent for Taxpayer Date: Walter G. Elliott Attorney for of Tax Assessors Date: 18 03830 00001 22890 001 H12.GA FICE wo BB3O2 1 07 JUN26 PH 3:31 aT LE co! 2 OF SUPERIOR coues 010627 ‘After recording, return to: Jobn G. Grubb,J. P.0. Box 447 Georgie 30553 Project# DECLARATION OF LAND USE RESTRICTIVE COVENANTS FOR LOW-INCOME HOUSING TAX CREDITS THIS DECLARATION OF LAND USE RESTRICTIVE COVENANTS (this “Agreement”), dated as of June 25, 2007, by Heron Lake I! Apartments, LP, a Georgia limited partnership (with its successors and assigns, the “Owner"), and the Georgia Housing and Finance Authority, an instrumentality of the State of Georgia and a public corporation (with any successor to its rights, duties, and obligations, “GHFA” or the “Authority”), is made as a condition precedent to the Authority’s allocation of Federal and State housing tax credits (the “Credits”) to Owner. RECITALS: A. — Owner owns land in the City of Valdosta, Lowndes County, Georgia, more particularly described in the attached Exhibit A (the “Land”), on which is or will be located a project composed of: 34 Low-income units, including zero income-producing employee units (the “Low-Income Units”) Market rate units, including zero income-producing employee units 03830 00002 239830 00 1 ‘Common space management/employee units (non-income-producing) 64 Total unit count to be known as “Heron Lake I] Apartments” (the Land and all improvements on it now or in the future are collectively referred to as the “Project”). B. The Governor of the State of Georgia has designated the Authority as the housing credit agency for the State, and the Authority is responsible for the allocation of the Credits. Cc. Owner has applied to the Authority for and received allocation of Credits to the Project in an amount not to exceed $537,092.00 tax credit dollars annually. D. ‘The Authority has relied upon the facis, statements, and the Owner’s Application for Credits (the “Application”) in deciding to allocate Credits o the Project. E. To satisfy the requirements of Section 42, this Agreement will impose certain covenants and restrictions on the rent, use, occupancy, and transfer of the Land and Project, which covenants and restrictions will be restrictive covenants running with NOW, THEREFORE, in consideration of the promises and covenants in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: SECTION 1 - DEFINITIONS In addition to terms defined elsewhcre in this Agreement, the following terms shall have the following meanings: “t ie” means the Internal Revenue Code; “Section 42" meons Section 42 of the Code; “Household” includes individuals and means all occupants of a Low-Income Uni ‘Person” means a natural person or entity; “Regulations” means al} current and future regulations, rules, rulings, notices, policies, procedures, or other official statements promulgated or proposed by the U. S. Department of Treasury (“Treasury”), the Internal Revenue Service (“IRS"), or Housing and Urban Development (“HUD”) pertaining to Section 42 and low-income housing credits. All words and phrases defined in Section 42 or in the Regulations shall have the same nearing in this Agreement unless otherwise provided. When used in this Agreement, ‘including” means “including (but not limited to)” unless otherwise specified. SECTION2- RECORDING AND FILING; COVENANTS TO RUN WITH THE @) Owner shall have the responsibility to record the executed original of this Agreement in the real estate records of Lowndes County, Georgia, and pay all fees and charges for the recording. After this Agreement is recorded, if it is returned to Owner by the recording authority, Owner shall immediately send to the Authority the recorded, * 93830 00003 * 3830 P6003 executed original of the Agreement, which must show the date, deed book, and page numbers of record, GHFA will not issue any Form 8609 for the Project, and Owner may not claim any Credits for the Project, until GHFA receives: the original, recorded (b) Owner intends, declares, and covenants that this Agreement and the covenants and restrictions in it regulating and restricting the rent, use, occupancy, and wansfer of the Land and the Project (including, but not limited to, the “Section 42 Rent und Gccupancy Restrictions” and the “GHFA Rent, Income and Occupancy Restrictions,” and the “Additional, Site, Use and Occupancy Restrictions," as defined below); (1) are covenants running with the Land, encumbering and burdening the Land for the term of this Agreement, as set forth in Section 5 (the “Term”); (2) are not merely personal covenants of Owner; and (3) shall bind Owner and its successors and assigns and all future owners and operators of the Project and the Land during the Term. This Agreement and the covenants and restrictions in it shall inure to the benefit of the Authority and its successors and assigns and any past, present, or prospective tenant of the Project. Owner agrees that all requirements of Georgia law for such covenants and restrictions to constitute restrictive covenants running with the Land have been satisfied in full and that it and the Authority intend that any requirement of privity of estate shall be satisfied, or. in the alternative, that an equitable servitude has been created to insure that such covenants and restrictions run with the Land for the Term. (©) For the Compliance Period or the Term, whichever is longer, cach and every contract, deed, or other instrument (collectively, an “Instrument") subsequently executed conveying all or any part of the Project or Land shall expressly provide that such conveyance is subject to this Agreement and the covenants and restrictions in it, but ‘such covenants and restrictions shall survive, be effective, and bind the Land and the successors and assigns of Owner whether or not the Instrument provides thut such conveyance is subject to this Agreement. Each Instrument shall be conclusively deemed to have been executed, delivered, and accepted subject to such covenants and restrictions. SECTION 3 - OWNER'S REPRESENTATIONS, COVENANTS, AND Owner hereby represents, covenants, and warrants as follows: (a) Owner is a limited partnership, duly organized and validly existing under Georgia law and qualified to do business in Georgia. Owner has the power and authority to own its assets and to carry on its business as now being conducted and has the legal right, power, and authorily to execute and deliver this Agreement and subject the Land and the Project to the covenants and restrictions in it. The Person or Persons signing this Agreement on behalf of Owner have been duly authorized to do so. (b) Owner's execution and performance of this Agreement (1) do not and will not violate any applicable law, rule, or regulation or any order of any court, agency, or governmental body, and (2) do not and will not violate any indenture, agreement, 03830 3830 P6004 mortgage, mostgage note, or other instrument binding Owner, the Land, or the Project; and (3) wil} not result in the creation or imposition of any prohibited encumbrance. (c) There js no action, suit, or proceeding at law or in equity or by or before any governmental instrumentality or other agency now pending against Owner, the Land, or the Project, or,.to the knowledge of Owner, threatened against or affecting Owner, the Land, or the Project. (d) During the Term, the Project is or will be a “qualified low-income project,” as defined in Section 42 and the Regulations. () During the Term, each Low-Income Unit is or will be a “low-income unit,” as defined in Section 42(iX3)(A), and suitable for occupancy, as defined in Section. 42 and the Regulations, and contains or will contain complete facilitics for living, sleeping, eating, cooking, and sanitation. Subject to the exceptions in Section 42(3(3)(B), ‘each Low-Income Unit is or will be used on other than a transient basis. ® During the Term, all Low-Income Units shall be for use by the general public, as defined in Section 1.42-9 of the Regulations, and shall only be Jeased to persons who qualify as Low-Income Tenants (or otherwise qualify for occupancy of the Low-Income Units) under the election of Owner under Section 42(g), as set forth in section 4(a) of this Agreement. (g) During the Term, Owner is prohibited from refusing to lease a Low- Income Unit to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 (“Section 8") because of the status of the prospective tenant as such a holder. (h) During the Term, Owner may not sell, transfer, or exchange (individually and collectively, “convey” in this subsection) any portion of any building to which this Agreement applies to any Person unless all of such building is conveyed to such Person. Subject to the requirements of Section 42 and this Agreement, Owner may convey the entire Project at any time, but Owner shall notify in writing and obtain the agreement of any Person acquiring the Project that such sale, transfer, or exchange (collectively, ¢" in this subsection) is subject to the requirements of this Agreement, Section 42, and the applicable Regulations. Owner shall notify the Authority in writing of Owner's intent to convey all or any part of the Project before any such conveyance. This provision shall not act to waive any other restriction on conveyance of the Project or any fow-income portion of the Project. Owner agrees that the Authority may void any conveyance of all or any part of the Project if the acquiring Person fails to assume in writing the requirements of this Agreement, Section 42, and the applicable Regulations. @ During the Term, Owner shall not demolish any part of the Project or substantially subtract from any real or personal property of the Project or permit the use of any residential rental unit for any purpose other than rental housing, less required to do so by law, 03830 (00005 +3830 e005 @ If all or any part of the Project is damaged or destroyed or is condemned or acquired for public use, Owner will use its best efforts to repair and restore the Project to substantially the sume condition us existed before the event causing such damage or destruction or to relieve or reduce to the maximum extent practical the effects of the condemnation and render the Project usable for residential housing purposes to the maximum extent practical and thereafter to operate the Project in accordance with the tens of this Agreement. &) ‘The representations, statements, materials, and other matters contained in or submitted in connection with the Application were true and compicte in all material respects as of the date of submission to the Authority and did not omit any fact or circumstance necessary to make the statements contained in them not misleading. Owner is aware of no event that would require any amendment to the Application (other than an amendment which has been filed with and approved by the Authority) or that would make such representations, statements, and other mutters or materials not truc and complete in all material respects or make them misleading in any material respect, During the Term, Owner will abide by all policy statements of the Authority in place at the time of Application and will not take any action that conflicts with or negates any representation mude to the Authority in the Application. Before Owner may make any change in any matier set forth in the Application, Owner must request in writing and receive. val from the Authority, which approval may be granted or withheld in the Authority’s sole and absolute discretion. () During the Compliance Period, Owner will include and maintain site amenities for the benefit of the Low-Income Tenants, as represented in the Application and set forth in Exhibit C. (m) During the Term, Owner is prohibited from evicting a Low-Income ‘Tenant or terminating the lease of a Low-Income Tenant, except for good cause within the meaning of Section 42, and is prohibited from increasing the gross rent of a Low- Income Tenant, unless such increase is permitted under Section 42. (a) If the tenant of a Low-Income Unit pays directly the cost of any utilities (other than telephone), the gross rent for that Low-Income Unit includes the applicable utility allowance. ‘Owner will provide the following utilities: Chsewer J trash Oleas Delectricity (CD water Dother, Tenant will pay: Bsewer (trash Deas Welectricity Bwater [other 03630 33890 PcO0G SECTION 4 - RENT, INCOME, OCCUPANCY, SITE AND USE RESTRICTIONS (a) Section 42 Elections. Owner covenants and that the Term and to satisfy the requirements of Section 42 (“Section 42 Rent and Occupancy Restrictions”): a) 2 At least 20% of the units in the Project will continuously be maintained as both rent-restricted Low-Income Units and occupied by Households whose income is 50% or less of Area Median Gross Income. for) Q) wB At least 40% of the units in the Project will continuously be ined as both rent-restricted Low-Income Units and occupied by Households whose income is 60% or less of Area Median Gross Income. and Q) At least 40% or more of the residential units in each building that is part of the Project will be occupied by tenants whose Household income is 50% or tess of Area Median Gross Income. ) GHFA Rent, Income and Occupancy Restrictions. In its Application, Owner made certain representations to the Authority about certain restrictions it would honor in connection with the Project that are more restrictive than the requirements of Section 42 (the “GHFA Rent, Income and Occupancy Restrictions"). Owner acknowledges and agrees that such representations were material and the Authority relied upon such representations in deciding to allocate Credits to Owner. The additional rent and income restrictions are set forth on Exhibit B, which is incorporated herein and made a part of this Agreement. Owner covenunts and agrees that throughout the Compliance Period, Owner shall neither charge nor accept tenant rent that is more than the rents specified on Exhibit B. Further, Owner shall comply with the occupancy and income restrictions set forth in that Exhibit. (c) Additional Site, Use, and Occupancy Restrictions. In its Application, Owner made certain representations to the Authority about certain covenants it would honor in connection with the Project that are more restrictive than the requirements of Section 42 (the “Additional Site, Use, and Occupancy Restrictions”), and Owner acknowledges and agrees that such representations were material and the Authority relied upon such representations in deciding to allocate Credits to Owner. These Additional Site, Use, and Occupancy Restrictions are set forth on Exhibit C, which is incorporated herein and made a part of this Agrcement. Owner covenants and agrees that throughout the Compliance Period, Owner shall comply with these Additional Site, Use, and Occupancy Restrictions. "93830 00007 £3830 007 @ Eligibility Q) For each taxable year in the “extended use period” (as defined in section 5), the “applicable fraction,” as defined in Section 42(c)(1), for each building in the Project shall not be less than the smaller of the “ jit fraction” and the “floor space fraction” for the building, as those terms are defined in Section 42(c)(1). @ Before permitting 2 Household to rent and occupy a Low-Income Unit, Owner shall determine whether the Household’s income exceeds the income limit {including asset income) under this Agreement. Such determination will be made in accordance with the requirements of Section 42, the Regulations, and the Authority. At the time a Household signs a lease for a Low-Income Unit, it must be income-cligible {such a tenant is referred to as a “Low-Income Tenant"). At least anmuaily, Owner shal) determine whether each Low-Income Tenant still meets the low-income requirements of this Agreement on the basis of the current income of such Low-Income Tenant, as determined in accordance with Section 42, the Regulations, und the Authority's requirements. Upon re-examination ofa Low-Income Tenant's income. if the tenant's income is more than 140% of the allowable Houschold income, the tenant will be considered “over-income,” and Section 42(g(2(D) will apply with respect to Owner’s treatment of the tenant and the Low-Income Unit. SECTION 5-TERM OF AGREEMENT (a) Untess terminated earlier pursuant to subsection 5(b), this Agreement and the covenants and restrictions in it, including the Section 42 Rent and Occupancy Restrictions shall remain in effect throughout the “extended use period.” In accordance with Section 42, the extended use period shall commence with the first day in the Compliance Perivd on which any building that js part of the Project is placed in service and end on the date which is 15 years after the close of the Compliance Period. The GHFA Rent, Income and Occupancy Restrictions and the Additional Site, Use, and Occupancy Restrictions shall remain in effect through the Compliance Period. The “Compliance Period” shall be the period of 15 taxable years beginning with the first wxable yor of the credit period, (0) Notwithstanding subsection 5(a), unless the Secretary of the Treasury determines that an acquisition is part of an arrangement with Owner, the purpose of which is to terminate the extended use period, the extended use period for any building that is part of the Project shall terminate: aw On the date the building is acquired by foreclosure or instrument in lieu of foreclosure; or Q) On the last day of the one-year period that begins on the date Owner properly submits a written request to the Authority, asking the Authority to assist in procuring « “qualified contract,” as defined in Section 42(h)(6)(F), for the acquisition of the low-income portion of the building, but only if the Authority is unable to present a qualified contract during such one-year period; provided, however, such request may not 03830 00008 #38390 008 be made before the end of the 14" year of the Compliance Period or at the time specified in Exhibit C, whichever is later, @) At the end of the Compliance Period if a plan for tenant ownership is in place as more fully set forth in Exhibit C. () Notwithstanding subsection 5(b) or any otherprovision of | this Agreement, the rent requirements in the Section 42 Rent and Occupancy ions and GHFA Rent, Income and Occupancy Restrictions shall continue for a period of three years following the termination of the extended use period under subsection 5(b)(1) or 5(b)(2). During such three-year period, Owner shall not evict the tenant of a Low-Income Unit or terminate the tenancy of an existing tenant of any Low-Income Unit other than for good cause and shall not increase the gross rent above the maximum allowed under the Code with respect to any such Low-Income Unit. SECTION 6 - ENFORCEMENT OF RESTRICTIONS @) During normal business hours and upon reasonable notice, Owner shali permit any authorized representative of the Authority to inspect any books and records of ‘Owner relating to the Project and the incomes of Low-Income Tenants, (b) Owner shall submit any other information, documents, or certifications requested by the Authority to substantiate Owner’s compliance with the provisions of the GHFA Rent, Income, and Occupancy Restrictions. (©) Owner covenants that it will not knowingly take or permit any action that would result in a violation of the requirements of Section 42, the Regulations, or this Agseement. Moreover, Owner covenants to take any lawful action (including amendment of this Agreement, as may be necessary in the opinion of the Authority) to comply fully with Section 42, the Regulations, and this Agreement. (d) | Owner acknowledges that the primary purpose for requiring Owner to comply with the restrictions provided in this Agreement is to assure compliance of the Project and Owner with Section 42 and the Regulations. IN CONSIDERATION FOR RECEIVING THE CREDITS, OWNER AGREES AND CONSENTS THAT THE AUTHORITY AND ANY INDIVIDUAL WHO MEETS THE INCOME LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER A PROSPECTIVE, PRESENT, OR FORMER OCCUPANT) SHALL BE ENTITLED, FOR ANY BREACH OF THIS AGREEMENT, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, SPECIFICALLY ENFORCE IN A STATE COURT OF COMPETENT JURISDICTION THE REQUIREMENTS AND PROHIBITIONS OF THIS AGREEMENT. Owner further specifically acknowledges and agrees that the beneficiaries of Owner’s obligations under this Agreement cannot be adequately compensated by monetary damages in the event of any default under this Agreement. (c) If there is a breach of any provision of this Agreement, the Authority may require the Owner to perform any action necessary to meet the requirements of this 03830 0009 *3830 Pc009 Agreement. The Authority may, in its discretion, apply to any court having jurisdiction of the subject matter for specific performance of this Agreement or for an injunction against any violation of this Agrecment. (f) Owner agrees that the Authority and all persons interested in Project compliance under Section 42 and the Regulations may rely upon the representations and covenants set forth in this Agreement. Owner acknowledges that Section 42 and the applicable Regulations require the Authority to monitor the Section 42 Rent and Restrictions. Additionally, the Authority has elected to monitor the GHFA Rent, Income and Occupancy Restrictions. Owner will take any and all actions reasonably necessary and required by the Authority to substantiate Owner’s compliance with the Section 42 Rent and Occupancy Restrictions and GHFA Rent, Income and Occupancy Restrictions and will pay a reasonable fee to the Authority for its monitoring activities. SECTION 7 - MISCELLANEOUS (a) The invalidity of any clause, part, or provision of this Agreement shell not affect the validity of the remaining portions of this Agreement. Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by certified mail, return receipt requested, to the other party at the address set forth below. or! Georgia Housing and Finance Authority 60 Executive Park South, N.E. Atlanta, Georgia 30329 Attn: Tax Credit Program Manager Heron Lake I] Apartments, LP 920 Florence Boulevard, P.O. Box 220 Florence, Alabama 35631-0220 Attn: Allan Rappuhn ‘The Authority and Owner may, by notice given in accordance with this section, designate any further or different address to which subsequent notices, certifications, or other communications shall be sent. |. Owner agrees that it will take all actions necessary to effect amendment of this Agreement as may be necessary to comply with the Code and any applicable Regulations. (d) Subordination of Agreement. This Agreement and the restrictions in it are subordinate to any loan and loan documents on the Project, except as set forth in section 546). 03830 00010 313830 Poole () Governing Law. This Agreement shall be governed by Georgia law and, where applicable, federal law. © f igations. Owner’s obligations in this Agreement and in the Application shall survive the allocation of the Credits and shall not be deemed to terminate or merge with the awarding of the allocation. @) Recitals. The recitals and premises are a part of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement with the intention that this Agreement take effect as an instrument under seal, as of the above date. HERON LAKE II APARTMENTS, LP Signed, sealed, and delivered on By: Gateway Heron Lake II, LLC June 25, 2007, in the presence of: Its sole General Partner Witness Allan Rappuhn, Manager Ties AML4, Notar SAOTAR) 15, 2008 GEORGIA HOUSING AND FINANCE Sign on AUTHORITY June Sane ray OU nce of: a UW By: Witness fart, Director Office Affeoriaie Housing 4S Attest: Carmen Chubb KOTARPNP Assistant Commissioner for Housing fax COMMISSION wa 15, 2008 Ye Sie Puy? ‘s error —— perme LOTS EAL HF 10 Mon a oe 03830 00011 a3830 PeO1) EXHIBIT A All that tract or parcel of land in Land Lot 104 of the 1h Land District of the City of Valdosta, Lowndes County, Georgia, being Lot 1 of Heron Lake Subdivision, as recorded in Plat Cabinet “A” on page 2430 in the real estate records of Lowndes County, Georgia, and more particularly described as follows: Asa point of reference only commence at a broken concrete monument marking the intersection of 8 curved miter in the west margin of right-of-way of Tyndall Drive (50' right-of-way) with the south margin of right-of-way of Summit Drive (50 right-of-way); thence proceed the south margin of Summit Drive North 89°33'32" West a distance of 110,99' to a 5/8” iron rebar found at the south corner of the dead end of Summit Drive and the Point of Beginning; thence leaving said dead end of Summit Drive proceed South 00°24'46" West a distance of 152.82' a 5/8" iron rebar placed; thence proceed North 88°40'56" West a distance of 143.00’ to a 5/8" iron rebar placed at the northeast corner of the dead end of Sheridan Place (50' right-of-way); thence across the dead end of Sheridan Place North 88°40'S6" West a distance of 51.69’ to a 5/8" iron rebar placed at the northwest comer of the dead end of Sheridan Place; thence proceed North 88°40'S6" West a distance of 176.10’ to an iron rebar found; thence proceed North 88°37'29" West e distance of 199.80' to a 5/8" iron rebar found; thence proceed North 01°22'41" East a distance of 150.00’ to a 5/8" iron rebar found; thence proceed North 27°33'17" West a distance of 57.13’ to # 5/8" iron rebar found thence proceed North 01°22'4}" Easta distance of 124.83" to a 5/8" iron rebar found; thence proceed North 88°37'19" West a distance of 40.00' to a 5/8" iron rebar found; thence proceed North 01°22'41" East a distance of 115.38' to a 5/8" iron rebar found; thence proceed South 88°37'19" East a distance of 630.79 toa 5/8" iron rebar found; thence proceed South 00°14'46" West a distance of 51.45’ to a 1/2" iron rebar found; thence proceed South 00°29'25" West a distance of 85.26' to a concrete monument found; then proceed South 00°24'46" West a distance of 100,34" to a concrete monument found at the north comer of the dead end of Summit Drive; thence proceed along said dead end South 00°24'46" Westa distance of 50.00’ to # 5/8” iron rebar and the Point of Beginning. Said Lot 1 contains 6.00 acres (261,360 square feet). Said Lot 1 of Heron Lake Subdivision is bounded on the north by Lot 2 of Heron Lake Subdivision as recorded in Plat Cabinet "A” on page 2430, being property of Heron Lake Apartments LP; bounded on the east by Forrestwood Estates Subdivision, block "A" units 4 & 5 of section 2 as recorded in Plat Book “C“ on pages 112 & 170, being property of Steven B. Paul, Romaria Dean, Charles Foster, the publicly dedicated t/w of Summit Drive, property of Klaus W. Ballard & of Susan E. Taylor; bounded on the south by Forrestwood Estates Section I as recorded in Plat Book "G" on page 95, being property of East n’ West Investments Inc., the publicly dedicated right-of-way of Sheridan Place, and property of Bette Jean Daughasty ef al. and by property of Village Associates Lid.; and bounded on the west by property of Valdosta City Schools by and through the Valdosta Board Of Education. W 03830 00012 3890 reoi2 EXHIBIT B GHFA RENT, INCOME AND OCCUPANCY RESTRICTIONS (TAX CREDIT ONLY) {check all restrictions that were elected at the time of Application] L Rent/Income Restrictions & 28 Low-Income Units are restricted to Households with an Annual Income of 60% of AMI or less and are subject to the following rental restrictions: 30% of 60% of AMI, jjusted according to bedroom size, on a monthly basis (yearly AMI divided by 12) less the applicable Utility Allowance. Q 19 Low-Income Units are restricted to Households with an Annual Income of 50% of AMI or less and are subject to the following rental restrictions: 30% of 50% of AMI, adjusted according to bedroom size, on a monthly basis (yearly AMI divided by 32) Icss the applicable Utility Allowance. Q 7 Low-Income Units are restricted to Households with an Annual Income of 30% of AMI or less and are subject to the following rental restrictions: 30% of 30% of AMI, adjusted according to bedroom size, on a monthly basis (yearly AMI divided by 12) less the applicable Utility Allowance. i Other Restrictions (1 PBRA Governmental units will receive project-based rental assistance from a governmental entity for at least five years () ~~ PBRA Non Governmental % of units to receive project-based rental assistance from a non-governmental entity for at least five years Q Mixed Income Project Project is designated for both low income and market rate tenants. 9 units will be designated as market rate units. 0 PHA Units % of units to be reserved and rented to public housing tenants for at least five years 2 03830 00013 663830 PCO19 EXHIBIT C ADDITIONAL SITE AND USE RESTRICTIONS ACCESSIBILITY Ata minimum, 5% of the total units must be equipped for persons with mobility impairments and 2% of the total units shall be made accessible for persons with hearing or visual impairments. In addition, 2% of the units will be equipped for the mobility disabled, and each of such units shall include a roll-in shower. EXTENSION OF CANCELLATION OPTION Owner has the right to request the Authority’s assistance in i ified contract for acquisition of any building in the Project after the end of the 14” year of the Compliance Period. Owner has agreed to waive its right to request such assistance for a period of 15 additional years, MATERIAL PARTICIPATION BY QUALIFIED NONPROFIT ORGANIZATION Throughout the Compliance Period, a “qualified nonprofit organization” within the meaning of Section 42(h)(5)(C) of the Code shalJ hold a controlling interest in the Project, as required by the Authority’s rules and guidelines, shall materially participate (within the meaning of Section 469(h) of the Code) in the development and operation of the Project and shall otherwise meet the requirements of Scction 42(h)(5) of the Code. UNIT AMENITIES During the Term, Owner will include and maintain the following unit amenities for the benefit of the Low-Income Tenants: HVAC system, refrigerator, oven/range with exhaust hood, water heater, microwave oven, in-sink garbage disposal, bui)t-in dishwasher, washer and dryer, and carbon monoxide suppression system above the over/range. SITE AMENITIES During ‘the Term, Owner will include and maintain the following site amenities for the benefit of the Low-Income Tenants: walking path with exercise stations or sitting arcas, an equipped playground, covered picnic pavilion with barbecuc facilities, equipped exercise/fitness center, equipped volleyball area, equipped computer center, parking for 128 vehicles. TENANCY CHARACTERISTICS Throughout the Compliance Period, unless otherwise permitted by the Authority, this Project must be: 3 03830 00014 a3e30 roi Family Project ‘Operated for occupancy by families. Elderly Project Intended for and solely occupied by Elderly persons. “Elderly” shall be defined as 62 years of age or older. 100% of the units must be accessible and adaptable. All units must have un installed cal] system, including e buzzer and light to the exterior. Elevators must be provided for access to units above the ground floor. Housing for Older Persons Project Accessible, adaptable, and intended for and operated for occupancy by persons 55 years of age or older. 80% of the total housing units in the Project must be occupied by at least one person who is 55 years of age or older. Up to 20% of the units may be occupied by others, including the landlord's employees, surviving spouses or children of residents who were 55 years of age or older when they died, and caregivers. Owner must adhere to policies and procedures that demonstrate intent of Owner and manager to provide housing for persons 55 years of age or older. Special Needs Project Operated for the homeless, persons with disabilities (mental, physical, developmental), abused spouses and their children, persons with alcohol or other drug addiction, person living with HIV/AIDS and migrant farm workers. At least 50% of the total project dwelling units must be restricted. SUPPORTIVE SERVICES Throughout the Compliance Period, unless otherwise permitted by the Authority, Owner has agreed to provide the following: Q Family Project Owner must provide 5 on-going services designed for the physical or social needs of the tenant population. o Elderly Project Owner must provide at least one activity/service designed to meet the physical or social needs of elderly persons, in at least two of the following categories: recreation/social, transportation, health/weliness, education, counseling, and security (a total of two different services). In addition, Owner must provide additional services designed to meet the physical or social needs of the tenant population. Housing for Older Persons Project 4 een 03830 00015 #3830 P6015 Owner must provide at least 4 different activities/services designed to meet the physical or social needs of tenants aged 55 and older in at least three of the following categories: recreation/social, transportation, health/wellness, education, counseling, and security. In addition, Owner must provide ___ additional services designed to meet the physical or social needs of the tenant population. Special Needs Project Owner must provide at least 3 on-going services designed to meet the special needs of the targeted tenant population. In addition, the Owner must provide ___ additional services designed to meet the physical or social needs of the tenant population. 1s re A THE GATEWAY COMPANIES M anag em en t “Construction Development March 14, 2018 Lowndes County Tax Commissioner 300 North Patterson Street Valdosta, GA 31603 RE: Heron Lake Apartments, LP Account # 15830 Property ID # 0149C 128 Heron Lake II Apartments, LP Account # 41407 Property ID # 0151A 270 Woodlawn Terrace Apartments, LP Account # 48525 Property ID # 0155A 096A To whom it may concern: Please find the attached PT-50R valuation forms attached. | have also included the audited financials for these 3 properties from 2017. Please use the NOI from 2017 to apply the income approach for valuation this year. If you need any additional information, feel free to contact me at 256-760-9657 or at the address below. Sincerely, Sl Craig S. McMurtrey