Amy Rowland Field Director – Salt Lake City, UT

Improving  Communi-es    Enhancing  Lives  NDC  is  the  na-on’s  oldest  non-­‐profit  provider  of  community  and  economic  development,  technical  assistance  and  training.

Training

Financial Products

Development Services

Technical Assistance

NDC’s  Services

3 National Development Council

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•  In  Utah  Only  –  GSLDC  Loan  Fund

Financial  Products

5 National Development Council

•  NDC  Corporate  Equity  Fund,  L.P.  (CEF)  –  Low  Income  Housing  Tax  Credit  Equity

•  Grow  America  Fund  (GAF)  –  Small  Business  Loans

•  HEDC  New  Markets,  Inc.  (HEDC-­‐NM)  –  New  Market  Tax  Credit  Investment

GSLDC  Loan  Fund  Ini-al  Capitaliza-on  of  $10MM  

 4  Ini-al  Lending  Par-cipants  –  Morgan  Stanley,  GE  Capital,  Synchrony  and  Zions  Bank

 Primary  Loan  Types ü  SBA  Guaranteed  for  Small  Businesses-­‐  can  be  up  to  25  years ü  Non  SBA-­‐eligible  real  estate  loans  –  3  to  5  year  term ü  Land  Acquisi-on  or  bridge  loans  for  mixed  use  projects

 Loan  Loss  Reserves  (6%)

National Development Council

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What  Keeps  Lenders  Up  at  Night?

RISK!  Parking  ra-os  not  typical  Unproven  demand     Homeownership   Market  rate  housing

 Higher  Density  Add’l  Design  or  Use  Criteria  Environmental  Issues

 Limited  Comparables

Wide  Market  Differences      NYC  or  Chicago Community  Norms  for  TOD

•  Paying  to  park  is  standard •  Higher  rents  for  easy  access  to  transit

• Mix  of  uses  near  residen-al •  Transit  stops  in  areas  where  dense  development  is  already  typical

Salt  Lake  (or  Denver  or  Dallas) •  Car-­‐centric   •  Varying  degrees  of  

density  phobia •  Lack  of  experience/

comfort  with  mix  of  uses

•  Akemp-ng  to  shape  future  growth  through  rail-­‐based  transit

ETOD  Assump-ons Mature  Market Young  Market

Land  costs  near  stops  are  higher Yes Maybe

Demand  near  stops  is  higher Yes Maybe

Reduced  need  for  parking Yes Maybe

Affordable  housing  more  difficult  to  finance Maybe No

Loan  Pool  Advantages Shared  risk  among  mul-ple  lenders Provides  underwri-ng  exper-se  in  specific  financing  tools   LIHTC   NMTC   Public  Sources Loan  Loss  Reserves  or  Top  Loss  Lender  provides  addi-onal  security   Primarily  nonprofit,  founda-on  and  public  sector  sources  

Utah  ETOD  Fund

•  $30MM  Pool  with  same  lenders  as  GSLDC •  Managed  by  exis-ng  nonprofit  –  Utah  Center  for  Neighborhood  Stabiliza-on

•  Predevelopment,  acquisi-on  and  construc-on  loans  for  affordable  housing  located  within  ½  mile  of  rail  transit  or  frequent  bus  service

Remaining  Gap  for  ETOD  Financing  Fixed  Rate,  Permanent  Financing  (25+  year  term  and  amor-za-on)

 Some  Availability  for  Affordable  Housing   HUD  221  (d)4,  Fannie/Freddie,  T.E.  Bonds   Some  Conven-onal  Lenders  (especially  with  LIHTC  Equity)   Small  project/loans  are  more  difficult  Mixed  Use  Especially  Tricky