Sugarwood Apartments
Common Application - Project Description
For VCDP, VHCB, HOME and VHFA
I.
PROJECT OVERVIEW
This application is for the rehabilitation of Sugarwood Apartments, a 12-unit family
rental housing development in Middlebury, Vermont (“Sugarwood” or the “Project”).
Sugarwood was built in 1981 and contains six buildings with two units per building and grounds
with parking and lawns. The purpose of this Application is to finance significant rehabilitation
and energy efficiency upgrades necessary for the Project to continue to provide quality family
housing affordable and a suitable living environment. In addition, this rehabilitation will ensure
the long-term affordability of all 12 of Sugarwood’s affordable units, which are at-risk due to the
year-to-year HAP contract under which the Project currently operates.
The Project is currently owned by Sugarwood Associates and is being developed by
Green Mountain Development Group, Inc. (“GMDG” or “Applicant”). The owners of GMDG
are Charles N. Brush and John C. Giebink. Mr. Brush and Mr. Giebink have extensive
experience developing and managing affordable residential properties in Vermont, New
Hampshire, and New York, as set forth in greater detail in this Application. The Property is
managed by Summit Property Management Group, which is also owned by Mr. Brush and Mr.
Giebink. Mr. Brush and Mr. Giebink will develop this Project as the general partners in
conjunction with a to-be-determined tax credit investor as the limited partner. The Project
financing will leverage multiple resources through a mix of 4% Low Income Housing Tax
Credits, Vermont State Tax Credits, and direct and interest subsidies through the Federal Home
Loan Bank’s Affordable Housing Program (AHP).
A substantial rehabilitation is necessary in order to continue to provide high quality,
affordable family housing and bring energy efficiency upgrades to various aspects of the
property that have become outdated. The proposed rehabilitation includes replacement roofs on
the remaining 5 buildings, replacement of kitchen appliances with new energy efficient
appliances, replace the heating units with energy-efficient mini-splits, improved insulation,
replacement of windows, siding, doors and carpets, as well as interior and exterior painting. In
addition, significant site work is necessary, including parking lot paving and replacement of the
retaining walls. The rehabilitation work will begin in April 2016 and be completed by
December 2016.
II.
EVALUATION CRITERIA
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The Project meets the priorities of the Consolidated Plan as well as the other VHFA
evaluation criteria as set forth below
A. State Consolidated Plan: Top Tier Priorities
The project meets the following Top-Tier priorities as set forth in the State Consolidated
Plan:
1. Rehabilitation and Energy Efficiency Upgrades
This Project will meet the highest priorities of the Consolidated Plan by rehabilitating
and preserving quality affordable housing in Vermont. The rehabilitation will promote a
sustainable living environment by renovating numerous outdated features of this 34 year old
Project to a high degree of energy efficiency. As set forth in greater detail in this Application,
the rehabilitation will include replacement of all kitchen appliances with high efficiency units;
replacement of the aging Rennai heaters with energy efficient mini-splits,;ventilation, thermal
shell, and lighting renovation in accordance with Efficiency Vermont’s Multifamily New
Construction and Major Rehabilitation Program standards; improved insulation; siding, window
and exterior door replacement; and numerous additional upgrades to the site and unit finishes.
This rehabilitation and energy efficiency upgrade will assist in making the project financially
sustainable for the long-term.
The Project further meets the central priorities of the Consolidated Plan by implementing
the above measures in a cost-effective way that will be sustainable by not requiring recurring
infusions and meeting regional housing needs. Applicant’s history of developing and managing
this and other affordable properties demonstrates continued and sustained success in operating
such properties without requiring additional public funds.
2. Family Housing
The Project provides family housing with all units being 2 bedrooms or larger. As set
forth in the Middlebury Town Plan, there is significant need for affordable family housing in the
area (the “Plan”). In fact, the Plan specifically calls out the goal of promoting the provision of
fair, decent and affordable housing to meet the needs of the area’s low to moderate income
residents. See Page 60. Moreover, the 2010 Vermont Housing Needs Assessment indicates that
Vermont has an insufficient supply of rental housing. This project will directly meet a
demonstrated need by rehabilitating existing units in a community with a tight housing market
and very low vacancy rates. Middlebury is listed on the Consolidated Plan’s list of communities
estimated to have a high level of need for federal housing programs that include project based
subsidies. See Appendix B to Consolidated Plan.
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3. Project is near designated downtown
This Project is located approximately 1 mile from Middlebury’s designated downtown.
See Tab 28 (Map of Proximity to Designated Downtown). It is within walking distance of
numerous services and is also located on a designated bus route that serves the community.
B. State Consolidated Plan: Second Tier Priorities
The project meets the following Second Tier Priorities as set forth in the State Consolidated
Plan:
1. Project serves households on public housing waiting list as set forth in the
documentation in Tab 31.
2. The Project is served by public transportation as set forth in the documentation
submitted herewith in Tab 28 (proximity to designated downtown and availability
of bus services). The project is located on the MSB-Shaw’/Peterson Terrace
Loop route which operates at regular times on fixed routes and is used by the
public.
C. Preference to Lowest Income Tenants and Longest Affordability Period:
Through this application, Sugarwood will permanently preserve the affordability of all 12 units
by extending the current HAP contract. Developer is proposing to extend the HAP contract 20
years and to restrict 8 of the 12 units to 50% MAI and the other 4 units to 60% MAI for the term
of the Housing Subsidy Covenant.
D. Acquisition and Rehabilitation of Existing Projects That is Federally Subsidized
and At-Risk: Sugarwood is currently operating under a year-to-year Housing Assistance
Payments (HAP) contract, applicable to all 12 units. Through this acquisition and rehabilitation
the Project, Developer intends to extend the HAP contract for 20 years and thereby provide
affordable housing to Middlebury’s low-income families for the long-term.
E. Geographic Targeting: The Project is in a location that has been underserved
historically in having its affordable housing needs met, as set forth in the Plan and discussed
above.
F. Project Design Meets National Green Building Standards: All rehabilitation work
will meet VHFA’s Green Building and Design Standards as set forth in greater detail in this
Application.
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