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1 Bending the Cost Curve – Strategies & Considerations New Construction Average TDC YearAverageNew York CaliforniaAlabama 2012$188,000$242,000$333,000$159,000.

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Presentation on theme: "1 Bending the Cost Curve – Strategies & Considerations New Construction Average TDC YearAverageNew York CaliforniaAlabama 2012$188,000$242,000$333,000$159,000."— Presentation transcript:

1 1 Bending the Cost Curve – Strategies & Considerations New Construction Average TDC YearAverageNew York CaliforniaAlabama 2012$188,000$242,000$333,000$159,000 2013$183,600$246,000$381,000$164,000 2014$192,600$279,000$383,000$172,000 Hard to compare 2012 – 2014 increase –Nationally 4.9% –CA 15% –NY 15.3% –Al 8.1% RJTCF Recent Portfolio properties closed since 2012 –231 properties 157 New and 74 Rehab –35 states + DC –$3.1BN in TDC –17,049 units

2  Promote Cost-Effectiveness through Consolidation, Coordination, and Simplification  Coordinate and consolidate monitoring and due diligence activities  Market studies, appraisals, ESAs, pre construction and construction monitoring  Participation structure  Typical in large loans  Equity has different risk profile / recourse  Remove Barriers to Reducing Construction Costs and Delays  Implement smart parking  Review unit size and amenity requirements Bending the Cost Curve – Strategies & Considerations 2

3 3  Facilitate a More Efficient Deal Assembly and Development Timeline  Adopt efficient deadlines for deal assembly and project development  Specified closing dates  Improve and Align Incentives  Provide flexibility in housing credit allocation amounts i.e. lower allocations Bending the Cost Curve – Strategies & Considerations

4 4  Improve the Flexibility of Existing Sources of Financing and Create New Financial Products to Better Meet Needs  Reserves  Substitute guarantees for a portion of reserves  Explore opportunities for corporate-level or pooled reserves  Provide greater flexibility in 4% LIHTC investments  Support the Development and Dissemination of Information and Best Practices  What is the appropriate way to measure cost?  Per unit, square foot, per bedroom  How about Bending the Cost Curve – Strategies & Considerations

5 James Horvick VP, Director of Originations Office: (727) 567-1964 Mobile: (813) 503-6002 james.horvick@raymondjames.com ____________ rjtcf.com raymondjames.com ____________ Raymond James Tax Credit Funds, Inc. 880 Carillon Parkway I St. Petersburg, FL 33716 Toll Free: 800-438-8088 I Fax: 727-567-8455 Raymond James Tax Credit Funds Contact Information 5


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