1. Units by Funding: FY08 to FY16
Year 15 Universe
Units by Funding: FY08 to FY16
16,053 units in 179 transactions 1

2. What does year 15 mean for your project?
Year 15 and You
What does year 15 mean for your project?
Receive Capital Subsidy to Address Capital Needs
Amend FDA to allow for cash flow release
Modify and extend existing debt
Address operational issues
Resize Reserves
Extend Regulatory Term 2

3. Level of rehabilitation HDC/HPD Resyndication
Year 15 Universe
At year 15
Operations Healthy?
Without doubt
Could improve
No Intervention-
City may approve
limited partner exit
Level of rehabilitation
required?
Minimal
Up to $20,000 per DU
HPD Repositioning
Private Debt
More than $20,000 per DU
HDC/HPD Resyndication 3

4. Program Models Standard Repositioning – HPD Senior Lender
LIHTC Preservation/Year 15 Strategies
Program Models
Standard Repositioning – HPD Senior Lender
Tax Benefit Only
Funded
Private Debt – HPD Subordinate Lender
Tax Benefit Only
Funded
Re-syndication – HDC Tax Exempt Bonds/Tax Credit Equity
Tax Benefit Only
Funded

5. LIHTC Preservation/Year 15: Other Tools
Tax Exemptions
Article XI
420C
Cash flow releases
FDA may be amended to release portion of ongoing cash flow after reserve targets are met.
Rent restructuring possible in certain circumstances to ensure rental income covers expenses and debt service.
Regulatory Agreement
For non-TC units and/or TC units post-extended use period, affordability targets may be adjusted to accommodate higher AMIs for projects that can reduce subsidy, leverage other sources of funds and/or pay down existing debt.
10% homeless set aside or extension of existing homeless requirements.
Portfolio Consolidation
LIHTC and similar Projects can be combined to enhance operations efficiency and to leverage sources. 5

6. Application Submission
Repositioning Preparation
PTC
Phases
Details
6 months
PMs review financials and GPNA to determine if the project needs a loan and review due diligence
Application Submission
Owner, HPD PM, TAP will start bi-weekly calls
Third party reports are ordered (if needed)
UW is distributed for review
Tenant Meetings for rent restructuring takes place
Check In Calls
Scope is finalized
Bid packages sent to GCs
Bid walkthrough and closed bid process
Bidding
HPD Legal is engaged in closing calls
Commitment Letter and other closing docs are distributed
Construction loan converts to permanent loan
Closing
4months
2 months
1 month

7. What can you do now? Repositioning Preparation
Address Violations, Arrears and LIHTC and HOME Non-Compliance issues
on the Project and Sponsor Portfolio.
All HPD violations must be cleared and municipal arrears over $1,000 must be paid before a project can close. All ECB and ERPs must be paid.
Order GPNA (submit 3 proposals to HPD).
Understand M&O Issues.
Develop a Repositioning Strategy.
Collect Existing Loan Documents.
Check Certificates of Occupancy for accuracy and ensure there are no expired TCOs.
Finalize any pending reserve withdrawals.
Request issuance of certificates of completion, if needed. 7

8. Integrated Physical Needs Assessments (IPNAs) and Benchmarking
Repositioning Preparation
Integrated Physical Needs Assessments (IPNAs) and Benchmarking
Required for all projects closing in FY18.
Initial and ongoing annual Benchmarking will be required
Qualified Lists of IPNA and Benchmarking providers are available online at: 8