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LMN Advisors ApplicationWorkforce Housing Services Program - Request for Proposals FY23-24 *indicates a required field Applicant Information Corporate/Entity Name LMN Advisors Type of Applicant For-Profit Corporation Applicant Established Date & State August 3, 2023 Organization Principal Name and Title John Eugene Pennington, Vice-President Principal Email Address kpplanner1@fastmail.com Principal Phone Number 7062944420 Please include the name, phone number, and email address of the person that should receive updates about the status of your proposal. Contact Name James Powell Contact Email Address kpplanner1@fastmail.com Phone Number 7062944420 Preferred Contact Method Email In addition to the above, non-profit organizations must provide: • 501(c)3 Determination Letter • List of Board Members with Terms • Organization By-laws • Articles of Incorporation • Current Year Operating Budget • Most Recent Financial Statement, Audit, and 990 501(c)3 Determination Letter Field not completed. List of Board Members with Terms Field not completed. Organization By-Laws Field not completed. Articles of Incorporation Field not completed. Current Year Operating Budget Field not completed. Most Recent Financial Statement Field not completed. Most Recent Audit Field not completed. Most Recent 990 Field not completed. Project Summary Project/Program Name Workforce Housing Services-Low income housing Number of Units/Households to be Assisted 150-200 Estimated Total Project/Program Cost 27,000,000 WHSP Funding Requested (Maximum $1.5 Million) 1,500,000 Project Location/Address Multiple-we are looking at development sites within 10 miles of Wilmington. Please upload a location map clearly indicating the project site or program service area. Possible Laland land tract.jpeg Are you requesting an award in the form of a low- interest loan or a grant? Grant If requesting a loan, please describe the loan terms/interest rate requested. Field not completed. Indicate if the request is for pre-development or construction financing. Construction Financing Project Type Construction (including site work, infrastructure, operational, and design costs) of new affordable single-family or multifamily housing units for sale or rent Project Narrative Earliest Project/Program Start Date October 1, 2023 Anticipated completion date of sale/ rental/ occupancy October 2025 Strategic Goals Addressed Increasing Housing Stock, Improving Housing Stock, Increasing Housing Access Describe how your project will address the strategic goal(s) listed above. We will help increase housing stock by building 150-200 new construction homes. 100% of our housing will be allocated the HUD voucher holders. There is a housing crisis as you know. We hope to help address this problem. We have plans to build even more than the first 150-200 homes. We have investor money ready to develop their own homes. These investors will own their own houses going forward. Our company will provide rental management services and make sure all WHA policies are adhered to. We believe that new construction is so much better than renovating existing homes. I was the manager of AMAST Property Mgt that had 92 houses in the 2020 timeframe. We worked closely with WHA in placing voucher holders in our homes. It was difficult because the average age of the homes in that portfolio was 88 years old. Old homes like that just are not good fits for these families as there are always infestation issues, HVAC issues, wiring problems, leaking roofs, etc. We know that by building new homes, our tenants will be much safer and more comfortable. We wish to develop a sense of community for our properties. Ideally we will build 4-5 houses per acre. Your grant will help us upgrade these homes with privacy fences, additional bathroom, etc. We will have rent to own programs in place for every tenant. We will have recognition events for mom and grandma. We will offer money to children for achieving good grades. We will have annual gatherings to celebrate our communities. Strategic Priorities Addressed Shovel Ready/Operational by July 2024 Yes. We hope to break ground in October of 2023. No additional staffing will be required. Leverage of Funding My clients will own their own homes. We have made a great deal of money in the stock market in recent years. That money has been earmarked by many clients to invest in low-income real estate. The plan now is for each investor to obtain mortgages in their names after paying 25% to 30% down. The management company will insure that all financial commitments will be met from projected cash flows. I have enough commitments from clients at this time to build the first 75 to 100 homes. Once other clients see photos of the houses and the cash flow model, I have no doubt that many more will commit to building houses. I have met with many builders and we have a group that has up to 8 builders that will work together on our project. So building new homes should go fairly quickly. Period of Affordability I am not certain what you are asking. I believe you are asking how long the properties will remain as low income housing. And the plan is they remain low income houses in perpetuity. There is no plan to do anything else with these or flip them for higher prices if the underlying values accelerate in the future as they have in the past two to three years. In fact the clients I have talked to about that have indicated that they will pull equity out of existing homes to build more houses. I have been positioning this with clients for the past 2-3 years. I have the highest level of confidence our model will work and is sustainable and it the best option for low-income housing moving forward. I expect others to copy our model because it is going to be so successful. Target AMI 60% to 120% 100%. This is our commitment. Acceptance of Housing Choice Vouchers I worked with AMAST Property Mgt and WHA for about two years. I am intimately aware of the process and how it works and what we need to do. Describe how WHSP funding will expand existing programs and/or projects, if applicable. With this funding, we can build privacy fences between units. We can also go from 3BR, 1.5 BTHs to 2 full baths. All our homes will be 3BR. I hope to put some stainless steel appliances such as refrigerators in our units and lower end granite. Again, we want to present an elevated housing option to voucher holders when in the past they have been forced to take whatever was available. I believe with our promotional goals, we will establish a sense of community and a sense of home ownership. Funding will allow us to leave land available for community gardens also. There are numerous food deserts in our country. Harvard white papers have shown that just planting vegetables improves our health by up to 18%. Then if we eat what we grow and add to a healthier diet, we can improve longevity even more. Many food deserts have food but lack nutritional value. Having community gardens will have a significant impact on our tenants and your funding will help us do even more gardens. Tell us how your proposal supports New Hanover County's commitment to diversity, equity, and inclusion. We have no other agenda in this area. Our team is composed of whites, African Americans, Mexicans, women and men. There will never be an issue in this area. Describe how your development will comply with the Federal Fair Housing Act. Fair housing is very important in our country. However, by renting 100% of our units to those people with HUD vouchers, that will not be an issue for our organization. We will do background checks on any applicants but that will be focused on past criminal activity. Additional Information Project Budget/Pro Forma (must be the spreadsheet provided) Housing costs grid not detailed.xlsx Tell us if/how the project is supported by any other New Hanover County grant, funding, or contribution. Please include the type and amount of funding, contribution, etc. Let's assume that we can build 150 homes in the next two years. We would be willing to work with WHA to release $10,000 per house once construction begins. That should make it easier for all of us. Or if the money needs to be distributed, we can invest it in a local bank money market and only pull funds out as described. We are willing to meet with a WHA committee to show what houses are ready to be built and request funds be approved at that time. This is very flexible for us. Our Resume of staff who will manage the project. KP resume 8.2023.docx Three examples of past experience, including project title, description, number of units/households assisted, project year, and location. Work experience with real estate in the past for J.docx Site/Eligibility Criteria • Evidence the site is not impacted by environmental problems such as a brownfield and flood hazard, if applicable • Evidence of appropriate zoning for proposed project, if applicable • Preliminary site plan for project site, if applicable • Evidence of water and sewer accessibility and availability, if applicable Evidence that site is not impacted by environmental problems Field not completed. Evidence of appropriate zoning Field not completed. Preliminary site plan Field not completed. Evidence of water/sewer availability Field not completed. Describe how your policies and procedures give access to housing for residents with credit challenges or who may have been involved with the legal system (or upload to the right, if applicable). Our background checks will only apply to serious criminal activity. We feel this is appropriate for to protect investor capital. I can provide resumes in the next week. I only learned of this grant today. I can provide letters of interest from clients to fund these projects also. Fair Housing policies/procedures Field not completed. Letters of support from other funding sources. Field not completed. Additional Uploads Field not completed. Additional Uploads Field not completed. Additional Uploads Field not completed. Is there anything else you'd like to tell us about your proposal? I believe that our project is the absolute best model to address the housing crisis in the US today. I have a lot of experience working with WHA in the past 4-5 years. We will not have one large tract of land for the development. Our team feels that it is better to build on many 1-2 acre sites instead of a large site that my appear to be a "project." Again, we want to develop a sense of community and a neighborhood. We don't wan to build 150 homes on a 30 acre tract. I can provide any supporting documents the committee would like to see. I will have the resumes next week. We are currently looking for land now. As we find tracts, we can provide that data to the committee. I can provide the spreadsheet showing the financial cash flows and anticipated costs. I apologize for not having all those today. Again, I just learned of these grants a few hours ago.