1 / 21

What’s Old Is New: Preservation Projects

What’s Old Is New: Preservation Projects. Yorkshire Manor & Canterbury Village Mike Bouchee, Rocky Mountain Development Group. Joint Venture Partners. Canterbury Village. Canterbury Village 2513 Willow St, South Sioux City. Multifamily 96 Units / 4 Buildings 88 Units - Section 8

coby
Télécharger la présentation

What’s Old Is New: Preservation Projects

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What’s Old Is New: Preservation Projects Yorkshire Manor & Canterbury Village Mike Bouchee, Rocky Mountain Development Group

  2. Joint Venture Partners

  3. Canterbury Village

  4. Canterbury Village2513 Willow St, South Sioux City • Multifamily • 96 Units / 4 Buildings • 88 Units - Section 8 • Constructed 1971 • Developed by Sheldon Harris • Managed by Jim Harris & Pete Godwin • Original 221(d)(3) Mortgage • 1994 refinance - subordinate 241(f) LIHPRHA loan

  5. Yorkshire Manor

  6. Yorkshire Manor2600 North Laverna St, Fremont • Multifamily • 84 Units / 4 Buildings • 84 Units - Section 8 • Constructed 1971 • Developed by Sheldon Harris • Managed by Jim Harris & Pete Godwin • Original 236 Mortgage • 1994 refinance - subordinate 241(f) LIHPRHA loan

  7. The “Twins” • Same owner / same management company • Strong seller desire for simultaneous closings • Family legacy properties • Same subordinate 241(f) LIHPRHA financing • 2010 LIHTC Applicants • Contractor – Barry Larson & Son • Architect – Alley Poyner Macchietto Architecture • Similar substantial rehabilitation projects

  8. Substantial Rehabiliations • New Roofs • New HVAC Systems • New Doors and Windows • Foundation Waterproofing • New Kitchens and Bathrooms • New Flooring and Paint • Site and Safety Improvements • New Community Buildings • ACM and LBP Abatement

  9. Rent Increase & LIHPRHA • Rehab construction budgets ~ $40,000/unit • Total development budgets ~ $9MM • Necessitated rent increase of ~ 15% • HAP Contracts: OCAF or BBRI • LIHPRHA Use Agreements: OCAF or BBRI • Recent HUD guidance – new debt service includable BBRI factor in LIHPRHA projects. • Preserving LIHPRHA became project imperative

  10. Original Financing Strategy • Assume existing subordinate 241(f) LIHPRHA loans with Midland Bank • LIHPRHA loans can only be subordinate to HUD financing • Pay off existing primary mortgages • Combine with new 221(d)(4) financing from Wells Fargo Bank • LIHTC Equity from Midwest Housing Equity Group • Omaha HUD - Production Office: • TPA, 221(d)(4), BBRI, HAP Assignment and Extension

  11. Round One Applications January 2010 • Assumption of 241(f) subordinate loans – Midland Bank • New 221(d)(4) loans – Wells Fargo Bank • Syndicator – Midwest Housing Equity Group March 2010 • Both properties failed to pass threshold review • Back to the drawing board for Round Two

  12. Round Two Applications March 2010 • Assumption of 241(f) subordinate loans – Midland Bank • New 221(d)(4) loans – Wells Fargo Bank • Syndicator – Raymond James Tax Credit Funds May 2010 • Canterbury Village awarded tax credits! • Yorkshire Manor not awarded tax credits • Projects are now decoupled

  13. Key LIHPRHA Discovery May 2010 • Previously understood BBRI tied to continued existence of 241(f) loans. • Instead, BBRI is tied to existence of LIHRPHA Use Agreements; existence of 241(f) loan immaterial. • Ability to pay off 241(f) loans opened up new financing strategies.

  14. Revised Financing Strategy • Pay off 241(f) LIHPRHA loans • Original thought - larger 221(d)(4) loans • Too slow and cumbersome • Freddie Mac Mod-Rehab Loans • PNC Multifamily Capital • Freddie Mac Waiver (~$18K/unit vs. ~$40K/unit) • LIHTC Equity • Boston Financial Investment Management • Des Moines HUD – Asset Management Office • Preservation, BBRI, HAP Assignment and Extension

  15. Round Three Application • Yorkshire Manor only • Open to all Round 2 unsuccessful applicants July 2010 • Pay off 241(f) subordinate loans • New Mod-Rehab loans – PNC Multifamily Capital • Syndicator – Boston Financial Investment Management September 2010 • Yorkshire Manor awarded tax credits!

  16. Decoupled Twins • Canterbury Village – May award • Alert NIFA to new Canterbury Village financing and equity partners/structure • Submit revised Yorkshire Manor application with new financing and equity partners/structure • Yorkshire Manor – September award • Extend site control (both) • Financing and equity due diligence (both) • LIHTC reservation extension (both)

  17. The Closing Table • Finalize due diligence and underwriting • Negotiate reserves and guarantees • Negotiate partnership and closing documents • Ready to close both properties in early December • Fannie Mae decides properties are now de-stabilized! • Both transactions close simultaneously: December 29, 2010

  18. Rehab is Underway • Notices to Proceed – December 29 • 12-month construction schedules • Projects will be complete and placed in service in 2011

  19. Canterbury Rehab

  20. Yorkshire Rehab

  21. Preservation “Best Practices” • Minimize Subsidy/Unit • Work with LIHTC-experienced partners • Develop sufficient and consistent specifications • Give due diligence highest level of scrutiny • Fully understand QAP; ensure partners do as well

More Related