Financing the Deal
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Transcript of Financing the Deal
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Financing the Deal
Presented ByRob Curry – Cleveland Housing Network
J. David Heller – The NRP Group LLC
May 20, 2004Page 1
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Financing the Deal
Financing with 9% Tax Credits
Financing with 4% Tax Credits and Tax-Exempt Bonds
Pro Forma Analysis
Filling the Gaps
May 20, 2004Page 2
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Glenhaven Senior Apartments
May 20, 2004Page 3
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Financing with 9% Tax Credits Administered by Ohio Housing Finance Agency
(OHFA)
Competitive Application Process
Awarded based on Project Characteristics, Project Location, Local Government Support, Project Costs, and Application Characteristics
Sale of Credits Provides the Equity
Debt is a Minor Component of Project Sources
Gaps are Filled with Creative and Resourceful Partners
May 20, 2004Page 4
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Willowbrook Senior Homes
May 20, 2004Page 5
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Financing with 4% Tax Credits and Tax-Exempt Bonds Administered by OHFA
Almost All Applicants are Awarded Credit – More Supply than Demand for Volume Cap
Complex Deal Structure
High Transaction Costs
Need Larger Number of Units to Spread Costs
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Falls Pointe at the Park
May 20, 2004Page 7
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Pro Forma Analysis – 9% Tax Credits
May 20, 2004Page 8
Assumptions: 42 unit development All two bedroom (855 square feet) 70% affordable (29 units) 30% market rate (13 units) Affordable Rents $570 per month Market Rents $1,075 per month
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Pro Forma Analysis – 9% Tax Credits
May 20, 2004Page 9
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Pro Forma Analysis – 9% Tax Credits
May 20, 2004Page 10
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Pro Forma Analysis – 9% Tax Credits
Other Sources of Financing
State of Ohio - $290,000 Cuyahoga County Funds - $300,000 Misc. - $17,186
May 20, 2004Page 11
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St. Agnes Terrace Apartments
May 20, 2004Page 12
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Pro Forma Analysis – 4% Tax Credits and Tax-Exempt Bonds
Assumptions:
• 120 unit development• All two bedroom (855 square feet)• 75% affordable (90 units)• 25% market rate (30 units)• Affordable Rents $730 per month• Market Rents $1,000 per month
May 20, 2004Page 13
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Pro Forma Analysis – 4% Tax Credits and Tax-Exempt Bonds
May 20, 2004Page 14
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Pro Forma Analysis – 4% Tax Credits and Tax-Exempt Bonds
May 20, 2004Page 15
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Pro Forma Analysis – 4% Tax Credits and Tax-Exempt Bonds
May 20, 2004Page 16
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Filling the Gaps
Tax Abatement
May 20, 2004Page 17
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Filling the Gaps
Tax Abatement
May 20, 2004Page 18
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Filling the Gaps
Tax Abatement and Land Contribution
May 20, 2004Page 19
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Filling the Gaps
Tax Abatement and Land Contribution
May 20, 2004Page 20
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Thank You !