Revive communities by using this program to acquire and develop needed projects with favorable terms. Non-recourse and automatically allocated, these non-rated tax exempt bonds act more like mortgages than bonds. Wide variety of applications and uses.

1. Development Partners

2. “63-20” Project Finance
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“63-20” Non-Profit Corporations
(alter egos of a municipal entit or a thorit )
m nicipal entity authority)
have automatic access to municipal bond financing
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(without volume cap allocation restrictions)
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for project finance via a public/private partnership

3. What is the “63-20” Program?
 Since 1963, so-called “63-20” corporations have been authorized
by the IRS and formed under general state non-profit corporation
law.
 A “63-20” corporation has the power to issue municipal bonds
which are treated as debt obligations funded on behalf of a
political subdivision for public purposes.
 This allows municipalities to create an alter-ego entity that could
act in concert with the local government, but which would hold
separate ownership of the project.
 This allows the municipality to own assets in the entity that are not
direct obligations of the municipality.

4. Example
 A private developer (or the municipality) owns a particular
property (i.e., land), which has a cost basis lower than the current
appraisal.
 The landowner has designed a project for consideration, and the
municipality has a favorable opinion towards the project.
 To move the project forward, the municipality forms a state
organized not for profit (a “63-20” Corporation).
not-for-profit 63 20
 The land will be contributed (as equity) to the new not-for-profit.
 The landowner may agree to carry back a portion of the value as
“subordinate debt”, but may also receive cash at closing.
 The “63-20”
Th “63 20” would then obtain municipal bond financing and the
ld th bt i i i l b d fi i d th
developer would proceed to complete the project.
 The municipal bond financing would not be an obligation of the
municipality, and the debt would be repaid from project revenues.
 The municipality provides a Moral Obligation for the debt.
 Financing is typically 30-year amortization with level debt service
 Ownership of the project reverts to the “63-20” upon debt
repayment

5. “63-20” corporations must meet each of the following tests
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in order to achieve “on behalf of” issuer status:
 The corporation must engage in activities which are essentially
public in nature;
 The corporation must be one which is not organized for profit;
 The corporate income must not inure to any private person;
 The corporation must have been approved by the state or a
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political subdivision thereof, either of which must also have
approved the specific obligation issued by the corporation
 The state or a political subdivision thereof must have a beneficial
interest in the “63 20” corporation while the indebtedness remains
“63-20”
outstanding;
 The sponsoring municipality (state or political subdivision) must
have rights to obtain full title to the property of the “63-20”
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corporation, which was acquired by the indebtedness, at the
retirement of aforementioned borrowing.

6. The Financing Structure
 The new “63-20” is the qualifying party for the financing
 There are rules and guidelines for who can be members
and managers in the new not-for-profit corporation as well
not for profit corporation,
as who can be on the Board of Directors
 Proceeds of such a funding may be used for planning,
construction, and permanent financing
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 First Mortgage Revenue Bonds
 Non-Recourse to the Borrower
 30-Year Amortization with Level Debt Service
 Capitalized Interest / Debt Service Reserve Funds are funded
 Can fund up to 100% of the acquisition and development
 Soft Costs and Entitlement Costs are reimbursed at closing
 Construction and Permanent Financing via one structure
 Project ownership reverts to the municipality after debt repayment

7. Program Details
 Pricing is marked to market for the interest rate
 Costs and fees associated with the financing are relative
to the type, size and strength of the transaction
 Financing is available at $2 million minimum with no maximum
 In general, the time required to complete the financing is 90-120
days from receipt of complete submission package
 Our Banking Partner would act as Municipal Bond Underwriter and
Placement Agent, and the funds are provided by institutional and
accredited investors
 Most upfront costs associated with the financing (Appraisal,
Phase I Environmental, Engineering, Survey, Etc.) can be
reimbursed at closing
 Financing is available in all 50 states
Fi i i il bl i ll t t

8. OUR SERVICES
 Redbridge Development Partners acts as the real estate advisor
and coordinates the transaction with our Banking Partner on
behalf of the client.
 We work with the relative agencies to complete the submission
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package, obtain approvals and complete the funding through
our banking partner.
 We coordinate the documentation requirements from third parties.
 The client is aided and assisted by experts in this field throughout
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the entire course of the transaction.

9. What is Required?
 An Executive Summary of the planned project including property and
development information, site data, and property valuations;
Developer Information including bios and resumes, preliminary
Development Plans and Estimated Costs; and Proforma Financials
 The project must conform to the guidelines for acceptable uses
p j g p
(i.e. must have a municipal benefit component)
 Typical projects include but are not limited to: Real Estate / Housing
(Affordable, Workforce, Professional Moderate Income, and Low
Income Multi-family Housing; Senior Housing (Nursing Homes,
Assisted Living Facilities); Student Housing & Dormitories; Hotels and
Conference Centers; Industrial Parks and Business Parks;
Commercial Not-for-Profit Facilities (Office Buildings); Public Parking
Garages and Public facilities (Jails, Prisons & Detention Centers).

10. Contact information:
Development Partners
 William Beal, Managing Director
Beal
Direct: 818-800-1714
Fax: 866-816-1891
Email: william@redbridgedp.com
LinkedIn: www.linkedin.com/in/williambeal