AFFORDABLE HOUSING PRESERVATION

Ensuring Long-Term Success

-Presenter Jennifer G. Rodriguez

The Thrill of the Deal

“Okay we got the financing…now make the deal work.”

Acquisition Rehab Phases

• Need for AH• Available

Resources• Initial Feasibility

Initial Phase

• Secure Financing

• Acquisition Rehab/Development process starts

2nd Phase • Qualify Households

• Close Financing• Manage

Funding Requirements

3rd Phase

Failure to Launch

Lack of Due Diligence Regulations Rents

Lack of preliminary communication between Front-end and Back-end Development Team

TIP: Appoint a main point of contact between development team members

© 2009-2012 Eclipse Digital Imaging, Inc.

Other Considerations

Initial Resident Eligibility File Audits State differences Program differences

UPCS Inspections Requires Reserve Accounts

Deferred Maintenance Lender Requirements

Staying Ahead of the Game Strong Back-end

Development Teams Include (but not limited to) board

members (managing GPs), management agents, & supportive service providers

Experienced (Lender may have specific loan requirements regarding Managing Agents)

Open communication (Pre & Post Development)

Strong commitment to Development

Network with “Affordable Housing” Experts

Use Regulations to your Benefit

Copyright 2004 © Mark Jeantheau

Proven Successes“You may never know what results come of your action, but if you do nothing there will be no result.”

Mahatma Gandhi

© 2009 Barry Overstreet

Springridge Apartments

Springridge Apartments is located in South Dallas, Texas and was built in 1964. Renovated in 1993; 196 units.

Pre – Acquisition Rehab 25% delinquency High crime Numerous complaints

about drug activity Post – Rehab

Zero delinquency Huge reduction in crime No complaints about

drug activity

The Odds Against Springridge

Property divided by main street; undesired activities

Surrounded by two partially demolished communities (drugs, prostitution, vagrants, etc.)

Gulfstream Apartments

Gulfstream Apartments is located in Dania Beach, Florida and was built in 1960. Renovated in 2000; 96 units.

Pre – Acquisition Rehab Severely distressed High crime Surrounding

neighborhood suffered from years of decline

The property was a major negative factor in the neighborhood

Added Community Value

A total renovation, including all major mechanical systems, roofs, windows and interior finishes

The transformation of Gulfstream has helped to stabilize the neighborhood, providing a catalyst for other redevelopment.

Tipping the Scale withResident Services

Project A

Project B

Great Amenities

Great Community

Supportive Services

Great Amenities

Great Community

Citations

"Failure to Launch." Cartoon. Presenter Media. Eclipse Digital Imaging, Inc. Web. 11 Apr. 2012. <http://www.presentermedia.com/index.php?target=closeup&maincat=clipart&id=6282>.

Gulfstream Apartments. Digital image. Reliance Housing Foundation. Integritive. Web. 16 Apr. 2012. <http://reliancehousing.org/pages/developments/gulfstream-apartments-dania-beach-fl.php>.

How to Be Successful. Digital image. Barry Overstreet. MLM Blog Theme, 2009. Web. 16 Apr. 2012. <http://barry-overstreet.com/do-you-know-how-to-be-successful/>.

Nowicki, Terrence. The Hand-Off. Digital image. This Is Historic Times. Wordpress, 19 Sept. 2011. Web. 16 Apr. 2012. <http://thisishistorictimes.com/2011/09/the-hand-off/>.

Springridge Apartments. Digital image. Hotpads.com. HotPads, Inc. Web. 16 Apr. 2012. <http://hotpads.com/apartments/3604-Legendary-Lane-Dallas-TX-75224--31wabg4p1upa#lat=32.69974&lon=-96.84066&zoom=20&previewId=31wabg4p1upa&previewType=listing&detailsOpen=true&listingTypes=rental,sublet,room,corporate&loan=30,0.04,0&resultsPerQuad=24>.

Summer Olympics Cartoon. Digital image. Grinning Planet. Grinning Planet, 2004. Web. 18 Apr. 2012. <http://www.grinningplanet.com/2004/08-17/olympics-cartoon-criminal-joke.htm>.