Greening Nonprofit  Affordable Housing Projects Cindy Ross, Loan/Portfolio Officer Nelson Black, Director of Lending Septe...
<ul><li>About the Loan Fund </li></ul><ul><li>Our Green Initiative </li></ul><ul><li>Results and Timeline </li></ul><ul><l...
About the Loan Fund
<ul><li>Our Vision:   Every community in Florida is productive and sustainable. </li></ul><ul><li>Our Mission:   The Flori...
<ul><li>FCLF is a statewide federally certified Community Development Financial Institution (CDFI). </li></ul><ul><li>Foun...
<ul><li>From our Community Development Loan Pool, FCLF makes commercial loans primarily to non-profits. All loans must hav...
<ul><li>FCLF was the first Florida-based allocatee of New Markets Tax Credits. </li></ul><ul><ul><li>3 projects received $...
<ul><li>Community Development Loan Pool Terms : </li></ul><ul><ul><li>Maximum Loan size: $1million </li></ul></ul><ul><ul>...
FCLF’s Green Initiatives
FCLF’s Green Initiatives <ul><li>The  Florida Green Communities ™  Initiative </li></ul><ul><li>Established with support f...
FCLF’s Green Initiatives <ul><li>The  Green Building Loan Pool </li></ul><ul><li>Established with support from The Home De...
Results and Timeline
<ul><li>Bonita Springs Area Housing Development Corporation:   Renaissance at Rosemary Park - 39 units – awarded grant and...
<ul><li>Closed Loans </li></ul><ul><ul><li>Transition House:  4 units – awarded subsidized loan rate with grant to be awar...
<ul><li>Commitments : </li></ul><ul><li>Bonita Springs Area Housing Development Corporation:   Red Hibiscus - 26 units – a...
<ul><li>Commitments : </li></ul><ul><li>Neighborhood Renaissance Westgate In-Fill project:   18 units – approved subsidize...
<ul><li>Commitments : </li></ul><ul><li>Okeechobee Non-Profit Housing:   6 units – approved subsidized loan rate and award...
<ul><li>Coalition for the Hungry & Homeless of Brevard:   10 units of supportive housing – completed using SIP constructio...
FCLF’s Green Loan Pool  2.0 <ul><li>Loan Amount: </li></ul><ul><ul><li>Up to $1 million </li></ul></ul><ul><li>Loan Term: ...
FCLF’s Green Loan Pool  2.0 <ul><li>Reduced Origination Fee: </li></ul><ul><ul><li>Waived for first $250,000 </li></ul></u...
FCLF’s Green Loan Pool  2.0 <ul><li>Eligible Uses:  </li></ul><ul><ul><li>Renovation of Existing Buildings </li></ul></ul>...
FCLF’s Green Loan Pool  2.0 <ul><li>Green Certification Requirements:  </li></ul><ul><ul><li>For Housing: </li></ul></ul><...
FCLF’s Green Loan Pool  2.0 <ul><li>Special FCLF Incentives for Housing:  </li></ul><ul><ul><li>$2,000 per housing unit fo...
FCLF’s Green Loan Pool  2.0 <ul><li>FGBC Green Home Standard </li></ul><ul><li>www.floridagreenbuilding.org </li></ul><ul>...
Lessons Learned
<ul><li>Nonprofits continue to be interested in Green </li></ul><ul><li>In the current environment Green Projects (as well...
<ul><li>Projects’ economics are not working;  cheaper to buy a used home than new home </li></ul><ul><li>FCLF‘s Green Pool...
<ul><li>Green certifications are important in the long-term, but obsessing about them in the short-term simply increases c...
The Future
<ul><li>What is FCLF going to be doing in the future regarding Green? </li></ul><ul><li>FCLF’s Green Pool has been tweaked...
<ul><li>What is FCLF going to be doing in the future regarding Green? </li></ul><ul><li>With new Green projects and commit...
Contacting the Loan Fund www.fclf.org Ignacio Esteban 407-246-0846 Orlando Main Office  Executive Director Nelson W. Black...
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Considering Green Opportunities Black

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Considering Green Opportunities Black

  1. 1. Greening Nonprofit Affordable Housing Projects Cindy Ross, Loan/Portfolio Officer Nelson Black, Director of Lending September 22, 2009 2:00 – 3:15pm 2009 Florida Housing Coalition Conference – Orlando
  2. 2. <ul><li>About the Loan Fund </li></ul><ul><li>Our Green Initiative </li></ul><ul><li>Results and Timeline </li></ul><ul><li>Lessons Learned </li></ul><ul><li>The Future of Green (from a lender’s perspective) </li></ul>Greening Nonprofit Affordable Housing Projects
  3. 3. About the Loan Fund
  4. 4. <ul><li>Our Vision: Every community in Florida is productive and sustainable. </li></ul><ul><li>Our Mission: The Florida Community Loan Fund harnesses the power of financial capital and human creativity to transform lives and communities. </li></ul>About the Loan Fund Our Guiding Principles: 1. We will maintain, preserve and grow a culture that affirms that community benefit is the focal point of our work; 2. We will integrate green or environmentally sustainable approaches into all of our work; and 3. We will serve the needs of both urban and rural communities.
  5. 5. <ul><li>FCLF is a statewide federally certified Community Development Financial Institution (CDFI). </li></ul><ul><li>Founded in 1994 to provide a statewide source of flexible financing for non-profits working in community development. </li></ul><ul><li>Since FCLF began lending in 1996, we have closed 143 loans totaling $37million for projects totaling $212million. </li></ul>About the Loan Fund
  6. 6. <ul><li>From our Community Development Loan Pool, FCLF makes commercial loans primarily to non-profits. All loans must have a community development or social service purpose and serve low-income clients or communities. </li></ul><ul><li>Beginning in 2009, FCLF has elected to make loans to mission-based projects developed by for-profits on a selected basis. </li></ul>About the Loan Fund
  7. 7. <ul><li>FCLF was the first Florida-based allocatee of New Markets Tax Credits. </li></ul><ul><ul><li>3 projects received $15million in funding. </li></ul></ul><ul><li>With initial funding from Florida Housing Finance Corporation, FCLF has begun assembling the new $25million Florida Preservation Fund for acquisition funding to preserve multi-family affordable units Orange, Pasco and Palm Beach counties. </li></ul>About the Loan Fund
  8. 8. <ul><li>Community Development Loan Pool Terms : </li></ul><ul><ul><li>Maximum Loan size: $1million </li></ul></ul><ul><ul><li>Fixed rates 5.50% to 6.875% </li></ul></ul><ul><ul><li>Origination fees as low as 1% </li></ul></ul><ul><ul><li>Application fee $250 </li></ul></ul><ul><ul><li>Terms of up to 10 years </li></ul></ul><ul><ul><li>Amortizations up to 30 years </li></ul></ul><ul><ul><li>Loan-to-value (LTV) at 85% to 95% </li></ul></ul><ul><ul><li>No legal fees on typical transactions </li></ul></ul>About the Loan Fund
  9. 9. FCLF’s Green Initiatives
  10. 10. FCLF’s Green Initiatives <ul><li>The Florida Green Communities ™ Initiative </li></ul><ul><li>Established with support from The Home Depot Foundation </li></ul><ul><li>A partnership with Enterprise and Florida Green Builders Coalition </li></ul><ul><li>To encourage and assist nonprofit developers to renovate Green </li></ul><ul><li>Grants available from FCLF and Enterprise </li></ul><ul><li>Subsidized rates from FCLF and Enterprise for Green projects </li></ul><ul><li>TA available through FGBC </li></ul>
  11. 11. FCLF’s Green Initiatives <ul><li>The Green Building Loan Pool </li></ul><ul><li>Established with support from The Home Depot Foundation and other investors </li></ul><ul><li>To encourage and assist nonprofit developers to renovate and build green: </li></ul><ul><ul><ul><li>Affordable Housing </li></ul></ul></ul><ul><ul><ul><li>Supportive Housing </li></ul></ul></ul><ul><ul><ul><li>Community Facilities </li></ul></ul></ul><ul><li>Grants and subsidized rates available from FCLF </li></ul>
  12. 12. Results and Timeline
  13. 13. <ul><li>Bonita Springs Area Housing Development Corporation: Renaissance at Rosemary Park - 39 units – awarded grant and subsidized loan rates – 12 units complete to-date – project currently stalled due to market conditions. </li></ul><ul><li>Casa San Juan Bosco: originally 125 units – awarded grant and subsidized loan rates – project re-cast as 98-units due to loss of funding – estimated to move into construction by end of 2009. </li></ul><ul><li>Dupuis Pointe: 27 units – awarded grants and subsidized loan rate – land has developed infrastructure complete and in place – has not yet moved to construction. </li></ul>Florida Green Communities ™ Initiative
  14. 14. <ul><li>Closed Loans </li></ul><ul><ul><li>Transition House: 4 units – awarded subsidized loan rate with grant to be awarded on completion – in construction </li></ul></ul>FCLF Green Loan Pool
  15. 15. <ul><li>Commitments : </li></ul><ul><li>Bonita Springs Area Housing Development Corporation: Red Hibiscus - 26 units – approved subsidized loan rate and award commitment – project currently stalled due to market conditions and loan has not closed. </li></ul>FCLF Green Loan Pool
  16. 16. <ul><li>Commitments : </li></ul><ul><li>Neighborhood Renaissance Westgate In-Fill project: 18 units – approved subsidized loan rate and award commitment – project still in development and loan has not yet closed. </li></ul>FCLF Green Loan Pool
  17. 17. <ul><li>Commitments : </li></ul><ul><li>Okeechobee Non-Profit Housing: 6 units – approved subsidized loan rate and award commitment – project currently stalled due to market conditions and loan has not closed. </li></ul><ul><li>Community Housing and Resources, Inc.: 14 units - approved subsidized loan rate and award commitment – Borrower negotiated full commitment from co-lender and withdrew request from FCLF . </li></ul>FCLF Green Loan Pool
  18. 18. <ul><li>Coalition for the Hungry & Homeless of Brevard: 10 units of supportive housing – completed using SIP construction process with estimated R-40 rating </li></ul><ul><li>UM Life Science Research Park: LEED Certified Commercial building – construction to begin Fall ’09 – 118,000sf </li></ul>FCLF Other Green Projects
  19. 19. FCLF’s Green Loan Pool 2.0 <ul><li>Loan Amount: </li></ul><ul><ul><li>Up to $1 million </li></ul></ul><ul><li>Loan Term: </li></ul><ul><ul><li>Up to 7 years </li></ul></ul><ul><ul><li>Amortization as appropriate for request </li></ul></ul><ul><li>Reduced Interest Rate: </li></ul><ul><ul><li>4.50% fixed rate on first $250,000 borrowed </li></ul></ul><ul><ul><li>FCLF’s standard rates less 0.25% for amounts over $250,000 </li></ul></ul>
  20. 20. FCLF’s Green Loan Pool 2.0 <ul><li>Reduced Origination Fee: </li></ul><ul><ul><li>Waived for first $250,000 </li></ul></ul><ul><ul><li>1.00% on amounts over $250,000 </li></ul></ul><ul><li>Application Fee: </li></ul><ul><ul><li>$250.00 </li></ul></ul><ul><li>Eligible Borrowers: </li></ul><ul><ul><li>Mission-based non-profit organizations only </li></ul></ul><ul><li>Timeline: </li></ul><ul><ul><li>Applications accepted until Green Loan Pool is fully deployed </li></ul></ul>
  21. 21. FCLF’s Green Loan Pool 2.0 <ul><li>Eligible Uses: </li></ul><ul><ul><li>Renovation of Existing Buildings </li></ul></ul><ul><ul><li>New Construction </li></ul></ul><ul><li>Eligible Purposes: </li></ul><ul><ul><ul><li>Affordable Housing </li></ul></ul></ul><ul><ul><ul><li>Supportive Housing </li></ul></ul></ul><ul><ul><ul><li>Community Facilities </li></ul></ul></ul><ul><ul><li>Projects must meet green certification requirements </li></ul></ul><ul><ul><li>Projects must serve low-income clients or neighborhoods in Florida </li></ul></ul>
  22. 22. FCLF’s Green Loan Pool 2.0 <ul><li>Green Certification Requirements: </li></ul><ul><ul><li>For Housing: </li></ul></ul><ul><ul><ul><li>FGBC Green Home standard, or </li></ul></ul></ul><ul><ul><ul><li>LEED for Homes standard, or </li></ul></ul></ul><ul><ul><ul><li>Enterprise Green Communities ™ ™ Criteria </li></ul></ul></ul><ul><ul><li>For Facilities: </li></ul></ul><ul><ul><ul><li>FGBC Commercial Building Standard </li></ul></ul></ul><ul><ul><ul><li>LEED Commercial Standard for New Construction or Existing Buildings </li></ul></ul></ul>
  23. 23. FCLF’s Green Loan Pool 2.0 <ul><li>Special FCLF Incentives for Housing: </li></ul><ul><ul><li>$2,000 per housing unit for eligible uses; up to $10,000 maximum per project. </li></ul></ul><ul><ul><li>Funding made in the form of a loan advance with no principal or interest payment required until maturity. </li></ul></ul><ul><ul><li>When the project is Green-certified, the special advance loan will be forgiven. </li></ul></ul><ul><ul><li>Limited to specific eligible hard and soft costs. </li></ul></ul>
  24. 24. FCLF’s Green Loan Pool 2.0 <ul><li>FGBC Green Home Standard </li></ul><ul><li>www.floridagreenbuilding.org </li></ul><ul><li>LEED for Homes standard </li></ul><ul><li>www.usgbc.org/Leed/Homes </li></ul><ul><li>Enterprise Green Communities™ Criteria: </li></ul><ul><li>www.greencommunitiesonline.org </li></ul>
  25. 25. Lessons Learned
  26. 26. <ul><li>Nonprofits continue to be interested in Green </li></ul><ul><li>In the current environment Green Projects (as well as other non-Green projects) are stalled </li></ul><ul><ul><ul><li>It is nearly impossible to sufficiently incentivize Green in the current environment </li></ul></ul></ul><ul><ul><ul><li>Subsidies of any kind are difficult to find </li></ul></ul></ul>Lessons Learned
  27. 27. <ul><li>Projects’ economics are not working; cheaper to buy a used home than new home </li></ul><ul><li>FCLF‘s Green Pool is an incentive, but other resources need to be there. </li></ul><ul><li>For FCLF, with a short track record of successful projects to point to, it is more difficult to bring in new resources. </li></ul>Lessons Learned
  28. 28. <ul><li>Green certifications are important in the long-term, but obsessing about them in the short-term simply increases costs and slows project. </li></ul><ul><li>There are many shades of Green. </li></ul>Lessons Learned
  29. 29. The Future
  30. 30. <ul><li>What is FCLF going to be doing in the future regarding Green? </li></ul><ul><li>FCLF’s Green Pool has been tweaked </li></ul><ul><li>FCLF will likely re-look at this Pool again in January 2010 </li></ul><ul><li>FCLF’s Green Pool can be re-deployed when each loan is repaid </li></ul>The Future
  31. 31. <ul><li>What is FCLF going to be doing in the future regarding Green? </li></ul><ul><li>With new Green projects and commitments, FCLF can work to attract additional investments </li></ul><ul><li>FCLF organizationally remains committed to growing and expanding its resources to help nonprofits build green </li></ul>The Future
  32. 32. Contacting the Loan Fund www.fclf.org Ignacio Esteban 407-246-0846 Orlando Main Office Executive Director Nelson W. Black 904-215-0459 Jacksonville Office Director of Lending Cindy Ross 813-985-9553 Tampa Office Loan/Portfolio Officer Joy Beaton 941-360-1445 Sarasota Office Director of Government Relations

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