Greening Nonprofit Affordable Housing Projects

Cindy Ross, Loan/Portfolio OfficerNelson Black, Director of Lending

September 22, 2009 2:00 – 3:15pm2009 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: $1millionFixed rates 5.50% to 6.875%Origination fees as low as 1%Application fee $250Terms of up to 10 yearsAmortizations up to 30 yearsLoan-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™ InitiativeEstablished with support from The Home Depot FoundationA partnership with Enterprise and Florida Green Builders CoalitionTo encourage and assist nonprofit developers to renovate GreenGrants available from FCLF and EnterpriseSubsidized rates from FCLF and Enterprise for Green projectsTA available through FGBC

FCLF’s Green Initiatives

The Green Building Loan PoolEstablished with support from The Home Depot Foundation and other investorsTo encourage and assist nonprofit developers to renovate and build green:

Affordable HousingSupportive HousingCommunity 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 yearsAmortization as appropriate for request

Reduced Interest Rate:4.50% fixed rate on first $250,000 borrowedFCLF’s standard rates less 0.25% for amounts over $250,000

FCLF’s Green Loan Pool 2.0

Reduced Origination Fee:Waived for first $250,0001.00% 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 BuildingsNew Construction

Eligible Purposes:Affordable HousingSupportive HousingCommunity Facilities

Projects must meet green certification requirementsProjects 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, orLEED for Homes standard, orEnterprise Green Communities ™ ™ Criteria

For Facilities:FGBC Commercial Building StandardLEED 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 Standardwww.floridagreenbuilding.org

LEED for Homes standardwww.usgbc.org/Leed/Homes

Enterprise Green Communities™ Criteria:

www.greencommunitiesonline.org

Lessons Learned

Nonprofits continue to be interested in GreenIn 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 environmentSubsidies 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 OfficeDirector of Lending

Cindy Ross 813-985-9553 Tampa OfficeLoan/Portfolio Officer

Joy Beaton 941-360-1445 Sarasota OfficeDirector of Government Relations