Putting It All Together

Slides:

Advertisements

Similar presentations

Ownership Changes During the Compliance Period: structuring general partner transfers and secondary market sales Tom Mangum Vice President National Tax.

Advertisements

Asset Management of Debt and Equity Investments Presented by: Armando Pérez Principal, Director of Asset Management.

Structuring General Partner Transfers During the Compliance Period By: Thomas A. Giblin Nixon Peabody LLP.

Revitalizing Rural Developments Multi-Family Housing (MFH) Portfolio Saving decent, safe, and sanitary affordable homes for rural renters.

Virginia Housing Coalition 2013 Housing Credit Conference Deal Structuring, Fundamentals, and Financing and Legal Issues.

What Happens to Low-Income Housing Tax Credit Properties after 15 Years? September 12, 2012.

September 13, 2013 NALHFA Workshop The Trustee Role on 4% Tax Credit Multi-Family Housing Bonds Presented by: Greg Hasty, Vice President.

Florida Housing Coalition Annual Conference Preservation of Affordable Housing September 27, 2011.

A Brief Description of the Low Income Housing Tax Credit.

DEAL STRUCTURING AND SYNDICATION ESSENTIALS. PANEL OVERVIEW —Why invest in housing tax credits? —Common investment structures —Key business terms and.

Tax Exempt Bonds 1 Bonding 101 – Tax-Exempt Bonds as a Way to Finance Your Projects Vince O’Donnell, Vice President of Affordable Housing Preservation.

Rural Housing Service Multi-Family Housing Program Overview NCSHA’s HFA Institute Conference Washington, DC January 15, 2015.

How to make 4% LIHTC deal work: Case Study from Fairfax County Presented by: Aseem Nigam, Director, Real Estate Finance & Grants Management Division, Fairfax.

COMBINING TAXABLE RD/GNMA LOANS WITH TAX EXEMPT BONDS AND 4% TAX CREDITS June 2015.

Affordable Housing Preservation Summit An Overview of Financing and Servicing Options. Wells Fargo Bank Reine Yazbeck.

U.S. Dept. of Agriculture Rural Development 538 Program Offering Financial Advice and Solutions to Health Care, Senior Living, and Housing Providers. Brian.

How to Finance Affordable Housing with Low Income Housing Tax Credits July 10, 2007.

Year 15: Nonprofit Transfer Strategies for Expiring LIHTC Properties Supportive Housing Network of New York May 5, 2009 Presenters: Gregory Griffin, Director,

Pendergraph Development, LLC HUD MAP Tune-Up II Workshop September 19-20, 2007.

The Low Income Housing Tax Credit Program

Africa Rail 2009 Workshop 23 June 2009 Different Types of Financing for Mobile Equipment Greg McKenzie Head of Asset Finance, Investment Banking Division,

Ready, Set, Grow Invest in your business and plan for growth.

Tax Exempt Bonds with 4% Low- Income Housing Tax Credits September 3, 2014 Presented by: KENT S. NEUMANN, ESQ. (202) EICHNER.

Growing Latino Entrepreneurship, Building Local Economies Character and Culture in Assessing Risk in Economic Development Projects.

Community Stabilization in the Wake of the Foreclosure Crisis Ali Solis, Vice President, Public Policy & Industry Relations Enterprise Community Partners.

NCSHA – Preservation Strategies. Homes for America (HFA)  Is a regional nonprofit working in 4 mid-Atlantic States  Create and preserve housing enhanced.

SERC 2014 Judy Vandyke, CEO/Managing Partner, BGC Holly Knight, Vice President of Development, BGC

RD’s Revitalization Strategy Components of all deals – Project is needed in market – Post transaction Owner is eligible Basic Feasibility Thresholds –

Overview of the Housing Tax Credit Program 2015 Nebraska NAHRO Conference.

Asset Management The Next Generation. Challenges Preservation/Sustainability Competition/Mission.

Resources for Multifamily Development Rural Workforce Housing Summit The 7 Rivers Alliance June 1, 2016 Wisconsin Housing and Economic Development Authority.

Imagine a World without HUD: A look at Alternative Financing Options Presented by Gates Dunaway and Amy Schectman LeadingAge Annual Meeting Nashville,

New Mexico Housing Summit Get Smart About Financing a Multi- Family Remodel September 19-20, 2016 Presented by Bryan Hooper.

Economic Development Course December 6, 2016

Investment Program Overview

LIHTC: Real World Considerations and Advocacy Issues

Compliance Challenges in the RAD Portfolio June 22, 2017

Solar Market Pathways Leadership Academy

THOUGHTS on THE UPDATED MFH TRANSFER CHAPTER (Chapter 7, Handbook 3):

Preservation Strategies at Year 15: Issues and Options

How the Federal Home Loan Bank of Atlanta Can Assist its Members in Financing Supportive Housing Arthur L. Fleming Senior Vice President and Director of.

Agenda Maturing Mortgage Challenge Maturing Mortgage Exit Loan Tool

Units by Funding: FY08 to FY16

FHLB Atlanta - AHP Competitive Program

HAND Planning and Executing a Year 15 Exit Strategy

Housing Investment Fund Project Kent Housing Partnership 19th September 2016 Paul Beardmore Director of Housing Manchester City Council.

FIRST NATIONS HOUSING FINANCE by First Nations for First Nations NATIONAL AFN HOUSING AND INFRASTRUCTURE FORUM Montreal, Oct 30-Nov 1, 2017.

NC Affordable Housing Conference 2017

Minnesota Housing Responds to Growing Housing Needs

Overview of Rural Rental Housing 515 Program

Key preservation challenge How close to maturity is the loan?

Using LIHTCs to Preserve Rural Affordable Housing

Tax credit transactions

LIHTC Basics: Affordable Housing 101

Case Study Texas Rural Rental Housing Preservation Academy

Partnerships & Joint Development

Seller considerations

The Development Team Texas Rural Rental Housing Preservation Academy Session #4 June 6 – Start w/ brief overview of Greystone – who we are and what.

Financing your investment deals

Successful efforts need coordinated and cooperative stakeholders

Oakland Housing Authority MTW Conference May 2, 2018

Balanced deal Rehab cost ($20K) Seller payment ($20K)

2018 Midwestern Lender’s Conference 221(d)(4) Panel

Owner Financing and lease options

Portfolio transactions – Case study

Overview of Rural Rental Housing Program RD-USDA

The Harvest Plan Part 3 Developing the New Venture Business Plan.

How Small Developers and EPC Contractors Can Add PPA Financing to their Arsenals John Langhus, VP Business Development Midwest Solar Expo 2019 New Energy.

COMMUNITIES A PARTNER TO 2020 Levy Request County Board Workshop

“Creating Financial Solutions to address Community Needs”

Presentation transcript:

Putting It All Together Texas Rural Rental Housing Preservation Academy Session 5 & 6 September 11-12 2018 Start w/ brief overview of Greystone – who we are and what we do. And more importantly, what my team does in ways of preservation of affordable housing in the rural space across the country … Also hope it will put into context a little about us and our mission, our passion. Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Putting It All Together Rural Development, by the Numbers The Need, The Opportunity - Preservation Deal Structure – Pros, Cons, Benefits Georgia Preservation Transaction The Goods – Visuals! Keys to Success Final Thoughts Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Rural Housing Rural Development, by the Numbers Properties - 13,961 Texas, 662 (4.7%) Units - 425,705 Texas, 23,391 (5.6%) Properties Removed from Program, 2012 -2016 38 Properties 816 units 953 Households Housing Crisis Across the country, RD Peak Funding Years 1975 – 1985 (1000 loans each year); “Seasoned” – need rehab; Focus on Preservation Copyright © 2017 Greystone & Co., Inc. All rights reserved.

The Need, The Opportunity: Preservation Funding Sources HOME FHLB – AHP CDBG – DR Debt (538, FNMA, MF Bonds) Equity - Tax Credits 9% competitive credits 4% non-competitive credits (with tax-exempt bonds) Policy and Advocacy secure dollars. LIHTC – leverage private investment; Limited Resources - 9% uber competitive, 4% with bonds allows for volume Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Deal Structure: Portfolio Transactions Greater Reach, Greater Impact! Pooled Bond Issuance (not cross collateralized) Scattered Sites Single State Debt Equity - 4% Tax Credits (with Tax-Exempt Bonds) Additional Funding Sources Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Portfolio Transactions with Bonds & 4% Credits Pros Volume of Preservation Activity Transaction Costs, Multiple Sites Economic Impact, Rural Communities Outstanding Capital Needs Addressed Removed from 9% Funding Round Transfer of Ownership Cons Costs Volume of Work Complexity, Multiple Agencies Less Funding Sources (Larger GAP) In-Place Rehab Extended Timelines Properties that would never be rehabbed; too small to attract debt / equity or would not meet QAP requirements Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Portfolio Transactions, The Direct Benefit Marketability Resident Retention Resident Attraction Operations Reduced Expenses Reduced Maintenance Decreased Liabilities and Capital Calls Increased Realization of Return-to-Owner Preservation of Much Needed Affordable Housing Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Portfolio Transactions, The Preservation Process Identify Potential Properties (cooperative sellers) Initial Financial Feasibility Analysis Develop Scope of Work, Pricing Hard Costs, Design Standards Source Debt and Equity Validate Assumptions Applications – Tax Credit, Bond, RD Transfer, etc. Initial Closing Construction Period Construction Completion Place in Service Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Hallmark Georgia Preservation Portfolio 26 Properties (23 Post closing) 1,310 units Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Before, During, After Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Typical Exterior Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Typical Exterior Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Typical Exterior Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Typical Exterior Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Retaining Wall Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Playground Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Playground Upgrades Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Sample Renovation: Mail Facility Copyright © 2016 Greystone & Co., Inc. All rights reserved.

Portfolio Transaction: Key to Success Strong Development Team Long-Term Owner Manager / Operator (Self or Third-Party) Developer & Development Partner / Consultant Counsel – Developer / Borrower’s Counsel Syndicator / Equity Investor & Lender General Contractor & Architect Investment Banker / Underwriter & Bond Issuer Trustee Rural Development State HFA Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Development Team: Development Partner / Consultant The “Quarterback” Add Expertise & Capacity Development Experience Financial Strength Human Capital Specific Skill Sets Underwriting Applications Construction Management etc. Consider All Options, Determine Best Fit, Choose Wisely! Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Development Team: Development Partner / Consultant Typical Terms Negotiated Roles & Responsibilities Pre-Development, Post-Closing Ownership Long-Term v. Short-Term Economics Exit Strategy Financial / Economic Guarantees Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Portfolio Transaction: Final Thoughts Strong Development Team Communication, Communication, Communication Macro Economic Environment Tenant Education Flexible, Realistic Timelines Full Rehabilitation Enthusiasm & Persistence Timeline -12 to 24 months Copyright © 2017 Greystone & Co., Inc. All rights reserved.

Thank you Will Eckstein Senior Vice President Greystone Affordable Development 4025 Lake Boone Trail, Suite 209 Raleigh, NC 27607-2986 (919) 573.7516 Will.Eckstein@greyco.com Copyright © 2017 Greystone & Co., Inc. All rights reserved.