1. Housing Tax Credit Case Studies – Part 2: The Art of the Deal
Moderator:
Diana McIver, DMA Development Co., LLC
Panelists:
Nathan Kelley, Nantucket Housing, LLC
David Knoll, Ryan Companies US, Inc.
Dan Kierce, RBC Capital Markets
Drew Foster, Redstone Equity Partners, LLC

2. Today’s Session Two Developers/Two Case Studies (one 9%, one 4%)
Each Developer will walk through how they identified the site (and why), QAP considerations, community involvement, any site constraints or environmental issues, design, market, and financial projections.
Investors will analyze the deal specifics and provide feedback, commentary, and recommendations.

3. Urban 9% Deal – Houston, Texas
Urban 9% - Houston, Texas

4. Urban 9%, cont. Development Notes: Located in City of Houston ETJ
Existing neighborhood uses include single-family, light industrial and some commercial
Water & sewer utilities provided by private utility company
Water line pressure not sufficient for fire suppression, so an agreement with the City of Houston will be necessary
Existing water well on site. It could be repurposed for irrigation.
Abandoned oil transmission pipeline traversing site
Current site use: RV/mobile home park plus 18-wheeler trailer storage lot
Existing tenants on month-to-month leases
Buried septic tanks and water line tied to RV/Mobile homes
Two existing single-family homes with some asbestos-containing construction materials
Noise mitigation necessary due to higher than average truck traffic

5. Urban 9%, Cont.

6. Urban 9%, cont. 150 Units (General Development)
Mixed Income with 126 Affordable Units & 24 Market Units Potential Gross Monthly Income: $117,949 Effective Gross Monthly Income: $109,103 Effective Gross Annual Income: $1,309,233
Annual Operating Expenses: $754,532 Expense to Income Ratio: % Net Operating Income (before debt service): $554,803 Annual Debt Service: $408,796 Debt Coverage Ratio: 1.36x Net Cash Flow: $146,007

7. Urban 9%, cont.
Sources & Uses

8. Urban 4% - Austin

9. Urban 4%, cont. PROS: LIHTC & MF Market Demand
Neighborhood & Councilmember Garza (District 2)
School / Transit / Retail Proximity
CONS:
LIHTC - Public Perceptions
Powerlines
Access / Visibility – Flag Lot
Timing / Closing

10. Urban 4%, cont.

11. Urban 4%, cont. 194 Units (Affordable Family Development)
Potential Gross Monthly Income: $179,934 Effective Gross Monthly Income : $166,439 Effective Gross Annual Income : $1,997,267
Annual Operating Expenses: $815,508 ( Requires Ad Valorem Tax Exception) Expense to Income Ratio: 40.8% Net Operating Income (before debt service): $1,181,760 Annual Debt Service: $957,461 Debt Coverage Ratio: Net Cash Flow: $224,299

12. Urban 4%: Sources & Uses