1. Partnerships & Joint Development
Texas Rural Rental Housing Preservation Academy Session #3 April 11, 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.
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2. Resources for Assistance
Packagers
Consultants
Co-Owners
Partners / Development Partners
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3. Partnership Defined Merriam Webster: The state of being a partner
A legal relationship existing between two or more persons contractually associated as joint principals in a business
A relationship resembling a legal partnership and usually involving close cooperation between parties having specified and joint rights and responsibilities
A business organization owned by two or more persons who agree to share the profits and losses (Student Dictionary)
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4. Transaction Roles & Responsibilities1
Feasibility Analysis Co-Developer Applications Guarantees Construction Management Financial Management Compliance 2 3 4 5 6
Feasibility Analysis
Analyze the feasibility of rehabilitation, recapitalization and preservation utilizing various financial tools and structures.
Co-Developer
Serve as Co-Developer in and coordinate all due diligence, commission and approve all third party reports, arrange for architectural and construction services, and all other developer role requirements for the property. Advance all funds necessary to pay for pre-development / pre-closing transaction costs (repaid at closing).
Applications
Prepare and submit on behalf of the Ownership all applications as required for redevelopment.
Guarantees
Provide Construction Completion and Credit Delivery Guarantees (if necessary) as typically required by Lenders, Investors, etc.
Construction Management
Coordinate and assist with renovation activities, including the construction draw services.
Financial Management
Coordinate and secure all financing (debt and equity) on behalf of the Ownership. Coordinate and manage all construction draw services; coordinate and manage the cost certification process, and coordinate and assist with obtaining the IRS Tax Credit documents (8609).
Compliance
Assist with compliance and file reviews of first year tenant files. 7
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5. Partnership Benefits Human Capital Staffing
Finance, Construction, Development
Financial Capital and Strength
Predevelopment Expenses
Guarantees
Construction Completion, Credit Delivery, Operating Deficit
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6. Partnership Benefits Experience, Knowledge, and Expertise
HFAs, Lenders, Investors
Ability to Execute
Expand Capacity without Sacrificing Day-to-Day Operations
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7. Type of Partners For-Profit Non-Profit Tax-exemptions Set-a-sides
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8. Partnership Structures / Arrangements
Ownership – Real Estate (Long-term and Short-term)
Ownership – Development Entity / Developer of Record
Legal Documents
Development Agreements
Memorandum of Understandings
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9. Partnership – Typical Terms Negotiated
Roles & Responsibilities
Various Stages of the Transaction
Ownership
Financial Terms
Guarantees
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10. Partnerships – Final Thoughts
Consider All Options,
Determine Best Fit,
and
Choose Wisely!
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11. Thank you Will Eckstein Senior Vice President
Greystone Affordable Development
4025 Lake Boone Trail, Suite 209
Raleigh, NC
(919)
Copyright © 2017 Greystone & Co., Inc. All rights reserved.