rbc capital markets tax credit equity group strictly private and confidential august 20-22, 2014...
TRANSCRIPT
RBC Capital MarketsTax Credit Equity Group
Strictly Private and Confidential
August 20-22, 2014Prepared for New Mexico Housing Summit
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Successful Approaches to Public Private PartnershipsLuna Lodge & The Sundowner
Problem Identification
Project Description
Public Benefit
Project Participants
Development Financing
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Problem Identification
Vacant motels lending to blighted conditions
Need to jumpstart Near Heights Metropolitan and East Gateway Sector Redevelopment Plan Areas
Lack of quality affordable housing options in the area
Desire to preserve the historic integrity of Route 66
Redevelopment Plan Objectives:
Eliminate blight and prevent further deterioration of property values in the area • Revitalization of vacant motel properties
Stimulate public and nonprofit/private investment in the area • Private equity and federal resources leveraged through local investment
Increase the number of jobs in the area and increase the patronage of local businesses
• Construction job creation and attraction of new residents to support local businesses
Empower residents while furthering economic self-sufficiency and sustainability • New affordable and supportive housing options
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Luna Lodge & The Sundowner
Luna Lodge
Adaptive reuse of 1950s 28-room motel listed on the National Register
Redeveloped into 30-unit (14 units in original motel building + 16 new construction units on an adjacent parcel) residential community
Community space, including a demonstration kitchen for the residents seeking to acquire skills in the food industry
10 units set-aside for persons with Special Needs
Utilized Low Income Housing and Historic Tax Credits as a component of financing
The Sundowner
Adaptive reuse of 1950s 110-room motel
Redeveloped into 71-unit mixed-income residential community
Includes a community room, computer room, tot lot, limited access gate, courtyard, covered patio/picnic area, laundry facilities, community garden
18 units set-aside for persons with Special Needs
Utilized Low Income Housing Tax Credits as a component of financing
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Public BenefitsLuna Lodge & The Sundowner
Elimination of Blighting Influences Furtherance of Redevelopment Plan objectives
Reactivation of long vacant properties
Much needed investment in an undercapitalized area
Increased public safety
Increased supply of affordable housing 101 new affordable residential dwelling units (10% - 50% market advantage)
28 units for special needs households (on-site supportive services)
Introduction of street frontage activating uses
Historic preservation Architecture consistent with Route 66 historic past
Spotlights the potential for motels to serve as an asset in the community
Winner of several historic preservation awards
Leverage of non-local resources Local resources served to secure private equity, federal subsidy, and state loan/grant funding
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Luna Lodge & The Sundowner
Public
US Department of Housing & Urban Development
New Mexico Mortgage and Finance Authority
City of Albuquerque
Metropolitan Redevelopment Agency
Private
NewLife Homes, Inc.
RBC Capital Market
Garrett Smith Ltd.
Local General & Sub Contractors
JL Gray Company
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Project Financing
Luna Lodge (TDC ~ $4.8MM)
Tax Credit Equity - $3,151,529 (66% of total)
NM MFA First Mortgage - $138,000
City of Albuquerque - $1,241,523
NMED - $50,000
FHLB AHP - $210,000
Deferred Developer Fee - $31,796
The Sundowner (TDC ~ $9.3 MM)
Tax Credit Equity - $5,428,296 (58% of total)
NM MFA First Mortgage - $500,000
Primero Grant & Loan - $274,844
City of Albuquerque - $2,112,908
HUD CoC & NMED - $431,952
FHLB AHP - $500,000
Deferred Developer Fee - $20,174
Non-local leveraged funding$3.55 Million
Non-local leveraged funding$7.14 Million