1. Presented by Brian M. Hogan Prime Consulting Services
2008 Real Estate Update:
Affordable Housing in
Today’s Market
December 10–12 
San Juan, Puerto Rico
Financing Your Project In Puerto Rico
Presented by
Brian M. Hogan Prime Consulting Services
Sponsored by
Reznick Group, Nixon Peabody LLP and IPED, Inc.

2. Financing Your Project In Puerto Rico Discussion Outline
What Syndicators Are Looking For In Project Structuring and Why Puerto Rico Poses Special Challenges
Section 42 Rent Issues, Subsidy Availability and Why Critical
Reserve and Debt Requirements
Pricing Disparity
Potential Depreciable Life Issues
Notarial Fees (Legal Fees and Basis Issues)
High Financing Costs and Why “One-Stop Shopping” May Cause Potential Tax Issues
Extreme Increases In Development Costs and Why Per Unit Limits For Both HOME and LITHC May Constrain Development in Puerto Rico
Case Study On How A Puerto Rico Project was Financially Structured “Pre-Act” and How It Might Look “Post-Act” Assuming Pricing Drops to $0.64

3. Pre-Housing and Economic
Recovery Act of 2008
Analysis
Calculation of Maximum Tax Credit Availability:
Total Eligible Basis $11,252,924
130% High Cost Area Adjustment ,375,877
Adjusted Eligible Basis $14,628,801
Tax Credit Rate X %
Maximum Tax Credit Available on Basis $ 1,180,544
Equity Gap Calculation:
Total Project Costs $13,098,181
Less:
Permanent Loan $ ,000
HOME Funds/Sponsor Loan 3,915,000
( 4,665,000)
Equity Gap $ 8,433,181
Tax Credit Price Per Dollar 72%
Maximum Amount of Tax Credit Available $ 1,180,544
Multiply by 10 Years X
Result $11,805,440
Value of the Credits X %
Proceeds From Tax Credits $ 8,499,917
Equity Needed ,433,181
Excess (Shortfall) Equity $ ,736
Total Credit Actually Requested $ 1,171,275

4. Post-Housing and Economic Recovery Act of 2008 An Analysis
For 2009 Syndication
Calculation of Maximum Tax Credit Availability:
Total Eligible Basis $11,252,924
130% High Cost Area Adjustment ,375,877
Adjusted Eligible Basis $14,628,801
Tax Credit Rate X %
Maximum Tax Credit Available on Basis $ 1,316,592
Equity Gap Calculation:
Total Project Costs $13,098,181
Less:
Permanent Loan $ ,000
HOME Funds/Sponsor Loan 3,915,000
( 4,665,000)
Equity Gap $ 8,433,181
Tax Credit Price Per Dollar 64%
Maximum Amount of Tax Credit Available $ 1,316,592
Multiply by 10 Years X
Result $13,165,920
Value of the Credits X %
Proceeds From Tax Credits $ 8,426,189
Equity Needed ,433,181
Excess (Shortfall) Equity ($ ,992)
Total Annual Credits Needed Now $ 1,316,592
Total Annual Credits Applied For ( 1,171,275)
Increase in Annual Credits Needed $ ,317

5. Presented by Brian M. Hogan Prime Consulting Services
2008 Real Estate Update:
Affordable Housing in
Today’s Market
December 10–12 
San Juan, Puerto Rico
Financing Your Project In Puerto Rico
Presented by
Brian M. Hogan Prime Consulting Services
Sponsored by
Reznick Group, Nixon Peabody LLP and IPED, Inc.