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
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List of Board Members with
Terms
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Organization By-Laws Field not completed.
Articles of Incorporation Field not completed.
Current Year Operating
Budget
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Most Recent Financial
Statement
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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
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Evidence of appropriate
zoning
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Preliminary site plan Field not completed.
Evidence of water/sewer
availability
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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.