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Considering Green Opportunities  Black Considering Green Opportunities Black Presentation Transcript

  • 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
    • About the Loan Fund
    • Our Green Initiative
    • Results and Timeline
    • Lessons Learned
    • The Future of Green (from a lender’s perspective)
    Greening Nonprofit Affordable Housing Projects
  • About the Loan Fund
    • Our Vision: Every community in Florida is productive and sustainable.
    • Our Mission: The Florida Community Loan Fund harnesses the power of financial capital and human creativity to transform lives and communities.
    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.
    • FCLF is a statewide federally certified Community Development Financial Institution (CDFI).
    • Founded in 1994 to provide a statewide source of flexible financing for non-profits working in community development.
    • Since FCLF began lending in 1996, we have closed 143 loans totaling $37million for projects totaling $212million.
    About the Loan Fund
    • 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.
    • Beginning in 2009, FCLF has elected to make loans to mission-based projects developed by for-profits on a selected basis.
    About the Loan Fund
    • FCLF was the first Florida-based allocatee of New Markets Tax Credits.
      • 3 projects received $15million in funding.
    • 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.
    About the Loan Fund
    • Community Development Loan Pool Terms :
      • Maximum Loan size: $1million
      • Fixed rates 5.50% to 6.875%
      • Origination fees as low as 1%
      • Application fee $250
      • Terms of up to 10 years
      • Amortizations up to 30 years
      • Loan-to-value (LTV) at 85% to 95%
      • No legal fees on typical transactions
    About the Loan Fund
  • FCLF’s Green Initiatives
  • FCLF’s Green Initiatives
    • The Florida Green Communities ™ Initiative
    • Established with support from The Home Depot Foundation
    • A partnership with Enterprise and Florida Green Builders Coalition
    • To encourage and assist nonprofit developers to renovate Green
    • Grants available from FCLF and Enterprise
    • Subsidized rates from FCLF and Enterprise for Green projects
    • TA available through FGBC
  • FCLF’s Green Initiatives
    • The Green Building Loan Pool
    • Established with support from The Home Depot Foundation and other investors
    • To encourage and assist nonprofit developers to renovate and build green:
        • Affordable Housing
        • Supportive Housing
        • Community Facilities
    • Grants and subsidized rates available from FCLF
  • Results and Timeline
    • 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.
    • 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.
    • Dupuis Pointe: 27 units – awarded grants and subsidized loan rate – land has developed infrastructure complete and in place – has not yet moved to construction.
    Florida Green Communities ™ Initiative
    • Closed Loans
      • Transition House: 4 units – awarded subsidized loan rate with grant to be awarded on completion – in construction
    FCLF Green Loan Pool
    • Commitments :
    • 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.
    FCLF Green Loan Pool
    • Commitments :
    • 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.
    FCLF Green Loan Pool
    • Commitments :
    • 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.
    • 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 .
    FCLF Green Loan Pool
    • Coalition for the Hungry & Homeless of Brevard: 10 units of supportive housing – completed using SIP construction process with estimated R-40 rating
    • UM Life Science Research Park: LEED Certified Commercial building – construction to begin Fall ’09 – 118,000sf
    FCLF Other Green Projects
  • FCLF’s Green Loan Pool 2.0
    • Loan Amount:
      • Up to $1 million
    • Loan Term:
      • Up to 7 years
      • Amortization as appropriate for request
    • Reduced Interest Rate:
      • 4.50% fixed rate on first $250,000 borrowed
      • FCLF’s standard rates less 0.25% for amounts over $250,000
  • FCLF’s Green Loan Pool 2.0
    • Reduced Origination Fee:
      • Waived for first $250,000
      • 1.00% on amounts over $250,000
    • Application Fee:
      • $250.00
    • Eligible Borrowers:
      • Mission-based non-profit organizations only
    • Timeline:
      • Applications accepted until Green Loan Pool is fully deployed
  • FCLF’s Green Loan Pool 2.0
    • Eligible Uses:
      • Renovation of Existing Buildings
      • New Construction
    • Eligible Purposes:
        • Affordable Housing
        • Supportive Housing
        • Community Facilities
      • Projects must meet green certification requirements
      • Projects must serve low-income clients or neighborhoods in Florida
  • FCLF’s Green Loan Pool 2.0
    • Green Certification Requirements:
      • For Housing:
        • FGBC Green Home standard, or
        • LEED for Homes standard, or
        • Enterprise Green Communities ™ ™ Criteria
      • For Facilities:
        • FGBC Commercial Building Standard
        • LEED Commercial Standard for New Construction or Existing Buildings
  • FCLF’s Green Loan Pool 2.0
    • Special FCLF Incentives for Housing:
      • $2,000 per housing unit for eligible uses; up to $10,000 maximum per project.
      • Funding made in the form of a loan advance with no principal or interest payment required until maturity.
      • When the project is Green-certified, the special advance loan will be forgiven.
      • Limited to specific eligible hard and soft costs.
  • FCLF’s Green Loan Pool 2.0
    • FGBC Green Home Standard
    • www.floridagreenbuilding.org
    • LEED for Homes standard
    • www.usgbc.org/Leed/Homes
    • Enterprise Green Communities™ Criteria:
    • www.greencommunitiesonline.org
  • Lessons Learned
    • Nonprofits continue to be interested in Green
    • In the current environment Green Projects (as well as other non-Green projects) are stalled
        • It is nearly impossible to sufficiently incentivize Green in the current environment
        • Subsidies of any kind are difficult to find
    Lessons Learned
    • Projects’ economics are not working; cheaper to buy a used home than new home
    • FCLF‘s Green Pool is an incentive, but other resources need to be there.
    • For FCLF, with a short track record of successful projects to point to, it is more difficult to bring in new resources.
    Lessons Learned
    • Green certifications are important in the long-term, but obsessing about them in the short-term simply increases costs and slows project.
    • There are many shades of Green.
    Lessons Learned
  • The Future
    • What is FCLF going to be doing in the future regarding Green?
    • FCLF’s Green Pool has been tweaked
    • FCLF will likely re-look at this Pool again in January 2010
    • FCLF’s Green Pool can be re-deployed when each loan is repaid
    The Future
    • What is FCLF going to be doing in the future regarding Green?
    • With new Green projects and commitments, FCLF can work to attract additional investments
    • FCLF organizationally remains committed to growing and expanding its resources to help nonprofits build green
    The Future
  • 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