0
Innovative Financing ToolsInnovative Financing Tools 
to Support Mixed‐Income 
Transit‐Oriented 
Development
Wednesday, 
O...
Innovative Financing Tools to Support MixedInnovative Financing Tools to Support Mixed--
I T itI T it O i t d D l tO i t d...
About Urban Land Conservancy (ULC)
• 501(c)(3) nonprofit, supporting organization to the Denver Community Foundation.
Esta...
Make-Up of Denverp
598,707 residents
240,000 households
15,000 businesses
13 000 nonprofits (metro-wide)13,000 nonprofits ...
Opportunities during difficult economic times;
TOD FundTOD Fund
Build out of FasTracks over the next decade
Over 120 miles...
How the TOD Fund works
Finance land and property acquisition
1 200 ff d bl h th t 101,200 affordable homes over the next 1...
How the TOD Fund works (cont…)
ULC: 10% investor and sole borrower
Enterprise Community Partners: Assemble loan capital; f...
TOD Fund Waterfall
Position Organization Amount/ Rate
Equity Urban Land Conservancy $1.5 million /0%
First Loss City of De...
Economics of Affordable Housing on the
West CorridorWest Corridor
h 1 424 ff d bl h i hi ½ il di f h C idThere are 1,424 a...
Context
9
The West Line Corridor
10
Jody Apartments
Located less than 300 feet from a future RTD light rail
Model for the TOD Fund
Located less than 300 feet ...
First TOD Fund Acquisitions
Yale CircleYale Circle
1.2 acre of vacant land located next to the
Yale light rail station (be...
Future of TOD Fund
TOD Fund addresses less than 5% of the Metro Denver work force housing needsTOD Fund addresses less tha...
Deciding to Partner on TOD Fund
Advantages:Advantages:
Expertise
RiskRisk
Innovation
Enhance community relationshipsEnhanc...
National Perspective
Approximately 15 acquisition funds exist around the country
Most target affordable housing
Some targe...
Why TOD matters
Low and moderate income families spend a disproportionate
percentage of their income on housing and transp...
Trends
Phil th i i t t i i iti f dPhilanthropic interest in acquisition funds
Funds are always challenging to establish an...
Benefits of Transit-Oriented Development
Gives developers a financing tool to help mitigate risk at transit
sites & encour...
Creating Great Communities for the Bay Area
Creating Great Urban Land Institute
Washington, DC
October 2010
Heather Hood, ...
Mission of the Foundation
The San Francisco Foundation mobilizese Sa a c sco ou dat o ob es
resources and acts as a cataly...
www.sff.org 3
A Growing Region
Berkeley
Oakland
San Jose
Marin
San Francisco
Silicon Valley
www.sff.org 4
New Transit Investments Lead the Way
• $60 million MTC• $60 million- MTC
planning funds
• 100 station area
plansplans
• $1...
Our Goal
By 2030 all people in the
Bay Area will live in
complete communities,
affordable across all
incomes, with access ...
Strategy
• Engage deeply in 25 local
planning efforts to influence
100 plans
• Target low and moderate
income neighborhood...
www.sff.org 8
www.sff.org 9
1. CAPACITY BUILDING
2. POLICY AND ADVOCACY
3. DEVELOPMENT
Need a picture of affordable hsg here
• Secure sites for mixed-...
Bay Area Development Opportunities
Scarcity of Development Sites Near Transit
Near
Existing or
30.0
35.0
ndsofAcres
g
Plan...
The “capital stack” for the
Bay Area TOD Fund for Affordable HousingBay Area TOD Fund for Affordable Housing
1 Senior loan...
Innovative Financing Tools to
Support Mixed-Income TOD
Brian Prater
Managing Director, Western Region
Low Income Investmen...
Low Income Investment Fund
(LIIF)
• National Community DevelopmentNational Community Development
Financial Institution (CD...
LIIF’s VisionLIIF s Vision
The Low Income Investment FundThe Low Income Investment Fund
creates pathways of opportunity fo...
LIIF’s ActivitiesLIIF s Activities
• Mission-driven organizationMission-driven organization
• Poverty alleviation
i i l h•...
LIIF ProgramsLIIF Programs
• Affordable housing• Affordable housing
• Education
• Childcare and child development
• Green ...
What We’ve DoneWhat We ve Done
• Invested $900 million in communitiesInvested $900 million in communities
nationwide
• Lev...
The CDFI ApproachThe CDFI Approach
• Support holistic strategySupport holistic strategy
• Community engagement
li / d• Pol...
CDFIs and TODCDFIs and TOD
• Partner to deliver neededPartner to deliver needed
program, policy and technical
assistance s...
Possible Needs for TOD
• Low cost, patient capital for
predevelopment and acquisition
• Creative solutions to “carry” prob...
CDFI Financing Toolsg
• Fund and fund like structures• Fund and fund-like structures
• Direct loans, including bridges
S d...
E l f F d St tExample of a Fund Structure
LA County Housing
Innovation Fund
• $60MM, 5 year fund$60MM, 5 year fund
• LIIF, Century Housing, CSH, LA
County Citi and ...
Los Angeles County Housing Innovation Fund
Structure
Class A Senior
Lender
Class A Senior
Lender
OriginatingLIIF
(Administ...
S f B A TODSummary of Bay Area TOD
Fund and Proposed Program
Equitable TOD
• TOD projects have historically benefited
affluent populationsaffluent populations
– Market rate/high end h...
Program/Fund Overview
• Competitive RFP for $10MM in MTC
bl f drecoverable grant funds
• CDFI Consortium – comprised of si...
ComponentsComponents
• Loan Fund: $50MM or moreLoan Fund: $50MM or more
• Proposed Grant Pool
h i l A i• Technical Assista...
Loan Fund StructureLoan Fund Structure
• Uses $10MM in MTC funds as top lossUses $10MM in MTC funds as top loss
protection...
Bay Area TOD Fund Structure
($50MM Fund)
CDFIs and Banks
(Class A Lenders)
Up to $25MM
LIIF
(Administrative Agent
($50MM F...
Fund PrioritiesFund Priorities
• Creation and preservation of affordableCreation and preservation of affordable
housing
• ...
Loan Fund ProductsLoan Fund Products
• Maximum loan size up to $7 5MMMaximum loan size up to $7.5MM
• Acquisition (7 yr te...
Favorable Product TermsFavorable Product Terms
• Better than regular CDFI productsBetter than regular CDFI products
• Up t...
TimelineTimeline
• Currently finalizing capital raisingCurrently finalizing capital raising
• $45MM in preliminary pipelin...
Innovative Financing Tools to Support Mixed Income Transit Oriented Development
Innovative Financing Tools to Support Mixed Income Transit Oriented Development
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Innovative Financing Tools to Support Mixed Income Transit Oriented Development

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2010 ULI Fall Meeting Presentation
October 13, 2010
10:45 am to 12:00 pm

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Transcript of "Innovative Financing Tools to Support Mixed Income Transit Oriented Development"

  1. 1. Innovative Financing ToolsInnovative Financing Tools  to Support Mixed‐Income  Transit‐Oriented  Development Wednesday,  October 13 10:45 a.m. ‐ 12:00 p.m.
  2. 2. Innovative Financing Tools to Support MixedInnovative Financing Tools to Support Mixed-- I T itI T it O i t d D l tO i t d D l tIncome TransitIncome Transit--Oriented DevelopmentOriented Development ULI Fall Meeting Washington DCULI Fall Meeting Washington DC O t b 13 2010O t b 13 2010October 13, 2010October 13, 2010 AaronAaron MiripolMiripol Urban Land Conservancy (ULC)Urban Land Conservancy (ULC)Urban Land Conservancy (ULC)Urban Land Conservancy (ULC) Denver, ColoradoDenver, Colorado www.urbanlandc.orgwww.urbanlandc.org
  3. 3. About Urban Land Conservancy (ULC) • 501(c)(3) nonprofit, supporting organization to the Denver Community Foundation. Established 2003, staffed 2007 • Mission: To acquire, develop, and preserve community assets in urban areas in the Denver Metro area • Invested over $21 million in real estate, serving over 10,000 low and moderate income peoplepeople • 400 full and part-time jobs are supported by ULC real estate investments • Promote community development; strengthen neighborhoods through preservation of key areas of influenceareas of influence • Preserve community assets in existing or emerging neighborhoods to ensure their continued public benefit • Acquire strategic sites in anticipation of market changes through land banking along 2 q g p g g g g transit corridors • When possible use 99 year land lease with partners to ensure permanent public benefit
  4. 4. Make-Up of Denverp 598,707 residents 240,000 households 15,000 businesses 13 000 nonprofits (metro-wide)13,000 nonprofits (metro-wide) Land locked Both a City and a County “St M ” liti l t“Strong Mayor” political system
  5. 5. Opportunities during difficult economic times; TOD FundTOD Fund Build out of FasTracks over the next decade Over 120 miles of additional track and 59 new stations- Over 120 miles of additional track and 59 new stations Increased demand for housing within ½ mile of light rail stations 40% of growth projected from households at or below 80% AMI 4 Opportunity to purchase land now
  6. 6. How the TOD Fund works Finance land and property acquisition 1 200 ff d bl h th t 101,200 affordable homes over the next 10 years - 60% AMI rental, 95% AMI ownership - Goal of 15% of homes for 30% AMI- Goal of 15% of homes for 30% AMI Quickly provides patient, high-risk capital at low cost Purchase and hold sites for up to 5 years
  7. 7. How the TOD Fund works (cont…) ULC: 10% investor and sole borrower Enterprise Community Partners: Assemble loan capital; fundEnterprise Community Partners: Assemble loan capital; fund manager; largest investor City of Denver: Top loss funding of $2 5 millionCity of Denver: Top loss funding of $2.5 million MacArthur Foundation Housing Preservation Award: $2 illi PRI d $250 000 t f l i tmillion PRI and $250,000 grant for early warning system
  8. 8. TOD Fund Waterfall Position Organization Amount/ Rate Equity Urban Land Conservancy $1.5 million /0% First Loss City of Denver $2.5 million/0% Second Loss Enterprise Community Partners $1 million/ 2% Third Loss Mac Arthur Foundation $2 million/ PRI 2% Third Loss CHFA $2 million/ 2% Third Loss Rose Community Foundation $500,000/ 2% Senior Debt Enterprise Community Loan Fund (with Wells Fargo and US Bank) $6 million / 5% Senior Debt Mile High Community Loan Fund $500,000/ 4%g y , TOTAL $ 15 Million/ 3.5%
  9. 9. Economics of Affordable Housing on the West CorridorWest Corridor h 1 424 ff d bl h i hi ½ il di f h C idThere are 1,424 affordable homes within a ½ mile radius of the West Corridor light rail line today. The West Corridor will add roughly 15,000 total homes by 2030 f l f h h ff d bl i ld d bl hIf only 10% or 1,500 of these homes are affordable, it would double the number of affordable homes currently within ½ mile of the West Corridor According to an National Association of Home Builders (NAHB) model, the i i t f b ildi th ff d bl h ld beconomic impact of building these affordable homes would be: First year of construction: $140,488,000 in local income, $12,195,000 in taxes and other revenue for local government, and 1,785 local jobs. A l i l l i t $40 732 000 i l l i $5 609 760 i 8 Annual, ongoing local impacts: $40,732,000 in local income, $5,609,760 in taxes and other revenue for local government, and 468 local jobs.[1] [1] Source: “The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors,” NAHB Housing Policy Department, June 2010.
  10. 10. Context 9
  11. 11. The West Line Corridor 10
  12. 12. Jody Apartments Located less than 300 feet from a future RTD light rail Model for the TOD Fund Located less than 300 feet from a future RTD light rail stop on the West Corridor. ULC has extended a 99-year land lease to a nonprofit, NEWSED, that bought the improvements on the site: four rental buildings serving over 100 residents. 52 of the 62 apartments are permanently affordable, with 12 of the 52 committed to households at 30% AMI and below.30% AMI and below. Total acquisition and rehab: $3.25 million
  13. 13. First TOD Fund Acquisitions Yale CircleYale Circle 1.2 acre of vacant land located next to the Yale light rail station (below) Land Price= $1.45 million/$25sq. Ft. Preliminary plans include a 70+ multi-family apartment complex utilizing 9% Low Income Housing Tax Credits; application of taxHousing Tax Credits; application of tax credits would occur in 2011. Total Development Costs = $11.5 million Dahlia ApartmentsDahlia Apartments Dahlia went into foreclose in 2008 and consists of six buildings with thirty-six 2-bedroom apartment homes in northeast Denver. Dahlia was the first TOD Fund acquisition and includes the use of Neighborhood Stabilization Funds (NSP) of $450,000. Enterprise Community Loan Fund, provided a $1,000,000 loan from theLoan Fund, provided a $1,000,000 loan from the Fund and ULC is partnering with Hope Communities with the permanent take out. Total acquisition and rehab: $1.75 million
  14. 14. Future of TOD Fund TOD Fund addresses less than 5% of the Metro Denver work force housing needsTOD Fund addresses less than 5% of the Metro Denver work force housing needs. Expand to at least $25 million by 2012 (regional fund) Need investments from other local municipalities beyond Denver to succeed as “regional”Need investments from other local municipalities beyond Denver to succeed as “regional” Fund New enabling legislation allows RTD to partner with for profit and non-profit developers at transit stations Get beyond silo thinking: State Divisions of Housing, Transportation, Energy, Labor need to invest in Fundto invest in Fund Over $150 million of investments leveraged by Fund and more than 2,200 jobs created
  15. 15. Deciding to Partner on TOD Fund Advantages:Advantages: Expertise RiskRisk Innovation Enhance community relationshipsEnhance community relationships Disadvantages: L f t lLoss of control Layers of complexity
  16. 16. National Perspective Approximately 15 acquisition funds exist around the country Most target affordable housing Some target transit corridors Denver, Portland – few examples specific to both TOD and affordable housing funds in development in Bay Area and 15 Washington DC
  17. 17. Why TOD matters Low and moderate income families spend a disproportionate percentage of their income on housing and transportation Low income households are most likely to utilize public transit regularly and pay cash fares Green TOD yields important environmental rewards including reduced sprawl, traffic and green house gasses 16 Transit access improves education, job and amenity access
  18. 18. Trends Phil th i i t t i i iti f dPhilanthropic interest in acquisition funds Funds are always challenging to establish and operate Each story is unique and dependent on existing local collaborations and culture Collaboration is key, regional collaboration is increasingly required! 17 Nonprofits need to know regional entities to succeed
  19. 19. Benefits of Transit-Oriented Development Gives developers a financing tool to help mitigate risk at transit sites & encourages partnerships with CDCssites & encourages partnerships with CDCs. Fund preserves land and buildings around transit corridors to ensure long term community benefite su e o g e co u y be e Increases ridership on public transit Balances redevelopment efforts along transit Provides employers with access to an expanded workforce Infill development (high density) helps reduce negative 18 environmental impact with infrastructure already in place.
  20. 20. Creating Great Communities for the Bay Area Creating Great Urban Land Institute Washington, DC October 2010 Heather Hood, Initiative Officer www.sff.org
  21. 21. Mission of the Foundation The San Francisco Foundation mobilizese Sa a c sco ou dat o ob es resources and acts as a catalyst for change to build strong communities, foster civic leadership and promotecivic leadership, and promote philanthropy. www.sff.org 2
  22. 22. www.sff.org 3
  23. 23. A Growing Region Berkeley Oakland San Jose Marin San Francisco Silicon Valley www.sff.org 4
  24. 24. New Transit Investments Lead the Way • $60 million MTC• $60 million- MTC planning funds • 100 station area plansplans • $12 billion- local bonds • $1.5 billion- state i f t t f dinfrastructure funds • Potential of what could come from the R th i ti f thReauthorization of the Federal Transportation Bill in 2011 www.sff.org 5
  25. 25. Our Goal By 2030 all people in the Bay Area will live in complete communities, affordable across all incomes, with access to quality transit. www.sff.org 6
  26. 26. Strategy • Engage deeply in 25 local planning efforts to influence 100 plans • Target low and moderate income neighborhoodsg • Get mixed-income TOD built • Build a regional policy• Build a regional policy framework www.sff.org 7
  27. 27. www.sff.org 8
  28. 28. www.sff.org 9
  29. 29. 1. CAPACITY BUILDING 2. POLICY AND ADVOCACY 3. DEVELOPMENT Need a picture of affordable hsg here • Secure sites for mixed- income development • Develop property acquisition fund W k ith iti t id tif• Work with cities to identify land and new partnerships Cr t rk t i ti• Create market incentives for developers • Craft messages and media www.sff.org 10 Craft messages and media with regional agencies
  30. 30. Bay Area Development Opportunities Scarcity of Development Sites Near Transit Near Existing or 30.0 35.0 ndsofAcres g Planned Transit20.0 25.0 Thousan 10.0 15.0 0.0 5.0 www.sff.org 11 Vacant or Underutilized Land
  31. 31. The “capital stack” for the Bay Area TOD Fund for Affordable HousingBay Area TOD Fund for Affordable Housing 1 Senior loans • Banks, insurance companies • Other direct commercial lenders B d fi i 2 L i l 1. Senior loans • Bond financing • Foundations and Intermediaries 2. Low-interest loans (Program-Related Investments) (Such as the Ford Foundation, the Fund Manager and other CDFI’s, and community foundations’ PRIs) 3. Equity or Grant $3. Equity or Grant $ • State & local funds (Such as the Metropolitan Transportation Commission) • Federal funds www.sff.org 12 • Foundation grants
  32. 32. Innovative Financing Tools to Support Mixed-Income TOD Brian Prater Managing Director, Western Region Low Income Investment Fund October 13th, 2010
  33. 33. Low Income Investment Fund (LIIF) • National Community DevelopmentNational Community Development Financial Institution (CDFI) • 501(c)3 nonprofit organization• 501(c)3 nonprofit organization • Headquartered in San Francisco, with ffi i LA N Y k d D Coffices in LA, New York, and D.C. • Primarily work on Eastern seaboard and in the Western U.S. • Founded in 1984 (26 years old)( y )
  34. 34. LIIF’s VisionLIIF s Vision The Low Income Investment FundThe Low Income Investment Fund creates pathways of opportunity for low income people and communities. LIIF serves the most vulnerable peopleLIIF serves the most vulnerable people and places.
  35. 35. LIIF’s ActivitiesLIIF s Activities • Mission-driven organizationMission-driven organization • Poverty alleviation i i l h• Financing – loans, grants, other • Fund structuring and management • New Markets Tax Credits • Technical AssistanceTechnical Assistance • Policy work
  36. 36. LIIF ProgramsLIIF Programs • Affordable housing• Affordable housing • Education • Childcare and child development • Green and sustainable developmentGreen and sustainable development • Transit-oriented development (TOD) H l h f d• Healthy foods
  37. 37. What We’ve DoneWhat We ve Done • Invested $900 million in communitiesInvested $900 million in communities nationwide • Leveraged $5 4 billion of additional• Leveraged $5.4 billion of additional investments P d h l 55 000 i f• Partnered to help create 55,000 units of housing, 159,000 childcare d 50 000 f dspaces, and 50,000 seats for students
  38. 38. The CDFI ApproachThe CDFI Approach • Support holistic strategySupport holistic strategy • Community engagement li / d• Policy/advocacy • Public/private partnerships • Complementary programs • Technical assistanceTechnical assistance
  39. 39. CDFIs and TODCDFIs and TOD • Partner to deliver neededPartner to deliver needed program, policy and technical assistance supportpp • Consult with partners and design tools to deliver needed financial productsp • Aggregate public, CDFI and/or private capital into structures that share riskp • Assist in identification of new sources for community projectsy p j • New paper: CDFIs and TOD
  40. 40. Possible Needs for TOD • Low cost, patient capital for predevelopment and acquisition • Creative solutions to “carry” problem • Flexible capital to fill construction period gaps • Mini-perm or permanent capital to complement other sources • Methods to share risk across partners • Regional solutionsg
  41. 41. CDFI Financing Toolsg • Fund and fund like structures• Fund and fund-like structures • Direct loans, including bridges S di ti / ti i ti• Syndications/participations • New Markets Tax Credits • Other facilities with top loss • Limitations: Term and total $$ size
  42. 42. E l f F d St tExample of a Fund Structure
  43. 43. LA County Housing Innovation Fund • $60MM, 5 year fund$60MM, 5 year fund • LIIF, Century Housing, CSH, LA County Citi and OneCalifornia BankCounty, Citi, and OneCalifornia Bank • $20MM County, $8MM CDFI, and $32MM f i t it l$32MM of private capital • Layered structure to provide risk protection to private capital • Delivers acquisition/predevelopment loans of up to 100% LTV at 6-6.5%
  44. 44. Los Angeles County Housing Innovation Fund Structure Class A Senior Lender Class A Senior Lender OriginatingLIIF (Administrative Agent Structure Class A Senior Lender Lender LIIF Lender Lenders Mezzanine Position (Administrative Agent And Master Servicer) Lender LACHIF LLC LA County Fund, LLC • Up to $60MM fund • Class A Senior Lenders will lend up to $32.1MM; Class B Lenders up to $8.1MM; and LACHIF investment up to $19.8MM. Class B Lenders will share ownership of LA LIIF (Class B Lender) Century Housing Holds $19.8MM loan from County County Fund, LLC. • Project loans will be funded by Class A lenders (53.5%), Class B Lenders (13.5%), and the County (33%). • Pooled Risk for Class A Senior Lenders. County funds will support Class A Senior Lender funds until all County funds are exhausted Century Housing (Class B Lender) CSH Loan are exhausted. (Class B Lender) A PieceA PieceA Piece Project B Piece (CSH) County Funds B Piece (Century) County Funds B Piece (LIIF) County Funds Project Loans (Up to $5MM each)
  45. 45. S f B A TODSummary of Bay Area TOD Fund and Proposed Program
  46. 46. Equitable TOD • TOD projects have historically benefited affluent populationsaffluent populations – Market rate/high end housing and shops • Yet TOD can greatly benefit low income• Yet TOD can greatly benefit low income communities – Families making $20,000 to $50,000 pay asFamilies making $20,000 to $50,000 pay as much as 57% in housing + transportation – Public transportation can save families as much $as $9,000 annually – Connect LMI people to the regional economy
  47. 47. Program/Fund Overview • Competitive RFP for $10MM in MTC bl f drecoverable grant funds • CDFI Consortium – comprised of six CDFIs with complementary skills • Partnership amongp g foundations, CDFIs, banks, and public sector • Regional scale – 9-county Bay Area • Demand Analysis• Demand Analysis
  48. 48. ComponentsComponents • Loan Fund: $50MM or moreLoan Fund: $50MM or more • Proposed Grant Pool h i l A i• Technical Assistance • Program Assessment • Learning through case studies, best practices and conveningsp g
  49. 49. Loan Fund StructureLoan Fund Structure • Uses $10MM in MTC funds as top lossUses $10MM in MTC funds as top loss protection for other lenders • Maximizes ability to attract investors• Maximizes ability to attract investors through risk structure R d b• Reduces costs to borrowers • Allows more flexibility of loan products • Ensures fund sustainabilityy
  50. 50. Bay Area TOD Fund Structure ($50MM Fund) CDFIs and Banks (Class A Lenders) Up to $25MM LIIF (Administrative Agent ($50MM Fund) Bay Area TOD Fund, LLC Up to $25MM(Administrative Agent And Master Servicer) Originating CDFIs (mezzanine) MTC Grants $10MM to LLC • Class A Senior Lenders will lend up to $25MM; Class B Lenders (originating CDFI/mezzanine) up to $7.75MM; PRI up to $6.5MM; Class C Lenders (originating CDFI) up to $750M and MTC investment (grant) at $10MM. CDFIs will share ownership of Bay Area TOD Fund, LLC. • Project loans will be funded by Class A lenders (50%) (Class B Lenders) Up to $7.75MM Originating• Project loans will be funded by Class A lenders (50%), Class B Lenders (15.5%), PRI (13%), Class C Lenders (1.5%) and the MTC (20%). • Pooled Risk for Class A Senior Lenders. MTC funds will support Class A Senior Lender funds until all MTC funds are exhausted. PRI Source(s) Loans up to Originating CDFIs (Class C Lenders) Up to $750M Class A Project p $6.5MM to LLC Class A Class A MTC Project Loans (Up to $7.5MM each) PRI Class B Class C MTC PRI Class B Class C MTC PRI Class B Class C
  51. 51. Fund PrioritiesFund Priorities • Creation and preservation of affordableCreation and preservation of affordable housing • Mixed income housing• Mixed-income housing • Complementary services, such as hild h l h li ichildcare, health clinics, etc • Healthy foods • Neighborhood retail
  52. 52. Loan Fund ProductsLoan Fund Products • Maximum loan size up to $7 5MMMaximum loan size up to $7.5MM • Acquisition (7 yr terms) d l• Predevelopment • Construction bridge loans • Leverage loan (NMTCs) • Mini-permanent loansMini permanent loans
  53. 53. Favorable Product TermsFavorable Product Terms • Better than regular CDFI productsBetter than regular CDFI products • Up to 110% Loan-to-value f l h 6%• Interest rate of less than 6% • Terms of up to 7 years • Larger loan sizes ($7.5M) • Potential for larger financing packagesPotential for larger financing packages • Multiple takeout scenarios
  54. 54. TimelineTimeline • Currently finalizing capital raisingCurrently finalizing capital raising • $45MM in preliminary pipeline G hi ll di j• Geographically diverse projects • Nonprofit and for profit developers • Projected fund closing 1st quarter 2011 • Drinks for allDrinks for all
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