acdc tax credit investor prospectus
DESCRIPTION
Information regarding Low Income Housing Tax Credit opportunities with the Asian Community Development CorporationTRANSCRIPT
Low income housing tax credit opportunities2010
Asian CommunityDevelopment Corporation
22 years of community building 1987-2010
contact
timothy dohertyreaL estate project manager617.482.2380 x [email protected]
asian community deveLopment corporation38 oak street boston, ma 02111www.asiancdc.org
Introduction
LIHTC Investment Opportunities
Our Projects
9 6 Fort Street
13 Parcel 24
19 Oak Terrace
21 Metropolitan
Our Team
Community Development Programs
contents
3
7
9
25
29
Asian Community Development Corporation | Tax Credit Investment Opportunities
mission statement
The Asian Community Development Corporation, a community-
based organization, is committed to high standards of performance
and integrity in serving the Asian American community of Greater
Boston, with an emphasis on preserving and revitalizing Boston’s
Chinatown.
ACDC develops physical community assets, including affordable
housing for rental and ownership; promotes economic development;
fosters leadership development; builds capacity within the
community and advocates on behalf of the community.
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introduction
Asian Community Development Corporation (ACDC) offers direct tax credit investment opportunities
for investors interested in creating quality affordable rental housing while earning a secure return in the
form of a dollar-for-dollar reduction in federal and state taxes.
ACDC is a nonprofit developer that specializes in affordable housing development, having built
over $100 million of real estate in the Downtown and Greater Boston area over the last 21 years. We
have experience taking complex, mixed-use development proposals through multi-agency, multiple
stakeholder public approval processes. Amongst a multitude of other public subsidies, ACDC has
successfully secured tax credit allocations and maintained program compliance for previously awarded
projects.
about asian community deveLopment corporation
In 1987, Asian American activists and leaders, with the support of public officials, founded Asian
Community Development Corporation to respond to the affordable housing needs of the
Boston Chinatown community and to lead the burgeoning efforts to revitalize the surrounding
neighborhood. Most recently, ACDC completed The Metropolitan, an innovative 251-unit high-rise in
Boston’s Chinatown that was praised by the City of Boston as a model for mixed-income, mixed-use
developments. ACDC additionally offers complementary services that assist low and moderate income
families to secure quality affordable housing and make home ownership a reality (refer to page 29-31 for
more details.
Today, ACDC is expanding its programs to meet the dynamic needs of the growing Asian American
community in Greater Boston while maintaining a focus on preserving and fostering the vibrant live,
work, and play elements of Boston’s Chinatown. Asian Americans represent the fastest growing minority
group in the Boston metropolitan region with a 70% increase in the 1990s as compared to a 6% increase
in the general population. Much of this growth is occurring in suburban cities and towns, especially
in the last fifteen years. In 2008, ACDC expanded and diversified its real estate portfolio to include
a pipeline of projects in these suburban smart-growth nodes to better reach these now established
satellite communities. Meanwhile, ACDC continues to build on its successful track record of developing
large-scale, mixed-income, signature projects in Chinatown to directly meet the extraordinarily high
demand for affordable housing in this desirable downtown Boston core neighborhood.
Asian Community Development Corporation | Tax Credit Investment Opportunities
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experience in affordabLe housing deveLopment
Asian Community Development Corporation has the capacity and experience to complete complex
real estate developments, demonstrated by a strong track record of building mixed-income affordable
housing in Chinatown - both one of the poorest neighborhoods in Boston and one of the hottest real
estate markets in the nation. In 1995, ACDC completed Oak Terrace, an 88-unit rental development
notable for being one of the earlier projects in the country to utilize Low Income Housing Tax Credits
(LIHTC), now a standard for securing private equity for affordable housing development. At that time,
Oak Terrace was the first new construction project to come online in twenty years in Chinatown and
one of the largest residential projects in the City’s pipeline.
ACDC has pioneered innovative partnerships and collaborations with for-profit and public entities
to realize sophisticated, large-scale developments. The Metropolitan, a 251-unit, mixed-use, mixed-
income project completed in 2005, was a joint venture between ACDC and the respected for-profit
developer Edward A. Fish Associates. ACDC contributed to this partnership the valuable local knowledge
of developing affordable housing in Chinatown and garnered the engagement and strong support
of the various community and political stakeholders to successfully maneuver through the numerous
approvals and subsidy application processes, including securing a LIHTC allocation. The Metropolitan is
still the tallest affordable housing project built by a community development corporation in the country
and hailed as a “model of innovative financing and creative design” by MassHousing.
Groundbreaking of Oak Terrace in 1994
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about Low income housing tax credits
The Low Income Housing Tax Credit (LIHTC)
program offers affordable housing developers
with an indirect federal subsidy to finance the
construction and/or rehabilitation of affordable
rental housing. The program was established
under the Tax Reform Act of 1986 and is designed
to present incentives for the investment of private
equity into the development of affordable
housing.
The program gives investors a dollar-for-dollar
reduction in their federal tax liability in an amount
proportional to their capital investment towards
an affordable rental development. Tax credit
investments also allow developers to restrict rents
at rates accessible to low-income tenants.
States authorize allocations of LIHTCs to
developers who monetize their credits by finding
investors willing to contribute cash towards a
project. In exchange, the investor sees a return
In 2006, Ernst and Young LLP published
Understanding the Dynamics III: Housing Tax
Credit Investment Performance, a report on the
performance of low-income housing tax credit
properties and investments.
“Key findings from the report:
• Investment returns have been stable and
provide, on average, benefits that are 2 percent
higher than originally projected.
• Loans to housing credit properties continue to
operate with a foreclosure rate below that of other
real estate assets. As illustrated in the following
chart, the average annual foreclosure rate on
loans to properties receiving LIHTCs averaged 0.02
percent in 2004.
• From 2000 to 2004, median physical occupancy
levels in LIHTC properties ranged from 96 to 97
percent.”
in the form of a ten-year stream of tax credits. The investor enters as a limited partner in an operating
partnership with the developer, who becomes the general partner and owner of the affordable housing
property. The operating limited partnership uses cash from the limited partner to finance a portion of the
property construction or rehabilitation. Investors generally remain in the partnership for the duration of
the 15-year compliance period during which the project must continue to satisfy LIHTC requirements and
maintain affordable rental rates.
The Metropolitan, architectural detail
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Asian Community Development Corporation | Tax Credit Investment Opportunities6
Asian Community Development Corporation serves Boston’s Chinatown and the Greater Boston communities in which Asian/Asian-Americans reside.
boston metropoLitan area
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Asian Community Development Corporation is currently offering diverse Low Income Housing Tax
Credit investment opportunities in the following three projects. These highlighted projects are not
inclusive of all our pipeline activity, and additional investment opportunities exist.
Project Total LIHTC Units Annual Tax Credits Available Status
6 Fort Street
Ready and Straightforward34
FEDERAL LIHTC $765,000Allocation awarded January 2010
STATE LIHTC $554,000
Parcel 24
Signature and Large-scale69
FEDERAL LIHTC $1.242MApplication submitted Allocation expected
STATE LIHTC $1M
Oak Terrace
Proven success and Security60 FEDERAL LIHTC $901,200 received
1995-2005LIHTC compliance period ends 12/2009
6 Fort Street offers investors a ready opportunity to participate in the rehabilitation of a vacant
commercial building into much needed affordable housing. Located only 7.5 miles from downtown
Boston, this project launches Asian Community Development Corporation’s suburban initiative with 34
affordable rental units in Quincy, Massachusetts. 6 Fort Street will be one of Quincy’s first projects in
recent memory to use tax credits for family housing.
Parcel 24 offers investors an opportunity to participate in a signature downtown Boston project that
is one of the largest residential developments in Massachusetts. Parcel 24 will be a 325-unit transit-
oriented, LEED silver certifiable project in Chinatown that is located prominently at the terminus of the
Rose Kennedy Greenway. Parcel 24 will be a gateway into the City of Boston and includes 69 affordable
rental units and both affordable and market-rate homeownership opportunities to meet the relatively
high and steady demands of the downtown Boston core market.
Oak Terrace offers investors a proven investment opportunity in a completed project that is
professionally managed with a steady net operating income. The project is approaching the end of
its 15-year LIHTC compliance period in December of 2009 and new LIHTC investment opportunities is
expected. Asian Community Development Corporation has successfully maintained the 60 LIHTC units
for tax credit purposes and is committed to maintaining the long-term affordability of Oak Terrace.
Lihtc investment opportunities
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quincy, ma
The Asian Community Development Corporation is pleased to present its vision for 34 newly-
constructed family rental residences at 6 Fort Street in Quincy, MA. The project represents the adaptive
re-use of an under-utilized commercial building in a transit-oriented, Downtown Quincy Center
location. The program responds to the new Quincy Center Zoning District’s Design Guidelines, while
remaining sensitive to the surrounding, smaller-scale commercial and residential neighborhood.
Ultimately, the project will create some of the first family-focused, tax credit-financed affordable
housing to be developed in Quincy in recent memory.
6 fort street
6 Fort Street is a unique opportunity to introduce much needed affordable housing units in an excellent
location within City of Quincy, one of Greater Boston’s high-demand, high-cost inner core communities.
In short, the project enjoys an excellent location, situated in a convenient, environmentally responsible,
and walk able area. Regionally, the site is approximately 7.5 miles south of downtown Boston on the
southern edge of Quincy Center. Directly adjacent to a major supermarket (Star Market), a smaller local
grocery (The Fruit Basket) and a pharmacy (Rite Aide); 6 Fort Street sits within 0.25 miles of the Lincoln-
Hancock elementary school in one direction and downtown Quincy, the traditional commercial and
retail heart of the community, in another. In addition it is within 0.50 miles of major service providers
and employers including the Quincy Medical Center, Quincy City Hall, and Stop & Shop’s corporate
headquarters. Moreover, the subject is within 0.5 miles of the Quincy Center MBTA Red Line train station
and within a few blocks of five MBTA bus lines.
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type of space quantity gross sq. ft.
Residential 34 Units 42,000 +/-
Community Space 1,000 +/-
unit type # of units % of units
One bedroom 8 23%
Two bedroom 22 65%
Three bedroom 4 12%
Total Units 34 100%
Total Building 43,000 +/-
Parking 64 Spaces
anticipated program
26 Units (80% of total) 60% AMI level
8 Units (20% of total) 30% AMI level (rent-assisted)
34 Total LIHTC Units 100% Units Affordable
affordabiLity
project status and financing
awarded annuaL tax credit aLLocations* amount
Low Income Housing Tax Credits $765,000
State Low Income Housing Tax Credits $554,000
* Awarded in January 2010
The proposed project represents a green approach to affordable housing through the restoration of a
vacant and disinvested building in a smart-growth location. The project promotes the Commonwealth’s
Sustainable Development Principles, responds to the community’s vision for Quincy Center as expressed
in the recently adopted (2007) Quincy Center Zoning District (QCZD) Ordinance, minimize environmental
impacts, and maintain long-term affordability for 6 Fort’s future residents.
project scheduLe
Begin construction September 1, 2010
Construction Complete July 2011
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additionaL funding sources committed approx. amount
State Funds State HOME
Affordable Housing Trust (AHT)CBH
$550,000 $1 M$498,500
Local Funds (City of Quincy) $350,000
Other: The Life Initiative & CEDAC(acquisition and pre-development loan) $2.9 M
totaL deveLopment cost $11 M +/-
6 Fort Street lease rates will enjoy a significant market advanatage. In particular, Bonz and
Company, Inc. estimates that 6 Fort’s monthly rents will be between 40%-57% lower than their market
rate potential, which would be $1,175, $1,400, and $1,825 for the subject’s one-, two-, and three-bedroom
units, respectively. By contrast, 6 Fort Street’s 26 unsubsidized 60% AMI one-, two-, and three-bedroom
units will rent monthly for $835, $1,000, and $1,160.*
The City of Quincy has a limited supply of affordable housing (particularly family housing) relative
to demand. The Quincy Housing Authority (“QHA”) is a public agency that provides subsidizedhousing
to low-and moderate-income individuals and families. The Authority currently owns and manages over
1,600 units, all of which are fully occupied. The QHA also maintains a limited wait list, which is currently
comprised of 1,810 families and 1,147 elderly households (although reportedly over 7,000 households
have recently applied for QHA’s public housing). Moreover, the QHA reports that the vast majority of the
families on the wait list are seeking two and three-bedroom units, such as those offered at Fort Street (26
of Fort Street’s 34 units - or 76% - will be two- and three-bedrooms). *
The market demand for 6 Fort’s affordable Units is robust. In particular, Bonz and Company, Inc
estimates the demand market for 6 Fort Street’s units conists of almost 24,000 income-qualified households.
Of these households, approximately 10,290 are renter households, yielding a capture rate of less than
1% for the 34 tax credit units. A more focused demand analysis, based on demand generated from
households facing rental hardship, from households living in substandard housing, and from households
moving, indicates there are 2,919 income-qualified households that would be attracted to the subject’s
34 new units. This indicates a required capture rate of 1.2%. Of these, 1,478 would be specifically qualified
for the 30% units and 1,441 would be income qualified for the non-rent assisted 60% units.*
6 Fort Street provides a superior product in a market of older rental housing stock. Approximately
80% of Quincy’s rental housing stock was constructed prior to 1980. The proposed unit plans and
renovation scope will be physically superior and favorably competitive to the majority of the area’s
existing rental units.
strong demand for affordabLe housing in quincy, ma
16 Fort Street Market Study, completed by Bonz and Company, Inc, June 22, 2009.
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parceL 24
Parcel 24, LLC, a joint venture of Asian Community Development Corporation (ACDC) and New Boston
Fund, Inc. (New Boston), was designated by the Massachusetts Turnpike Authority (MTA) to develop
Parcel 24. The proposed project will provide much needed mixed-income housing while restoring the
vibrancy of the neighborhood that existed on Hudson Street more than forty years ago. In the 1950s and
1960s, homes and businesses on the east side of Hudson Street were cleared to make way for a highway
ramp. The removal of the ramp as part of the Big Dig project allows this block to be reknit into the urban
fabric as a smart growth, transit-oriented development.
The Parcel 24 Plan has affordable rental and homeownership units, market-rate homeownership
units, open space, commercial and community space, and underground parking, incorporated into
a neighborhood-sensitive, sustainable design. This program responds to the Community Vision
developed by Hudson Street for Chinatown (HSC), a coalition of community organizations and current
and former residents. The MTA’s Request for Proposals incorporated the Boston Redevelopment
Authority’s Development Guidelines, which referenced HSC’s Community Vision.
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anticipated program
type of space quantity gross sq. ft.
Residential 325 units 366,550 gsf
Commercial/retail 5,500 gsf
Community Use 6,050 gsf
Parking 175 spaces
Total building 456,200 gsf
Central open space 10,000 gsf
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* Tenants in Section 8-supported units pay only 30% of their income and Section 8 covers the balance.
community benefits
Hudson Street restored to a vibrant residential community near centers of employment
and public transportation;
325 rental and homeownership opportunities, with the exceptional goal of 50% of all
units affordable;
Terraced open space provides access between Hudson and Albany Street and
enhances Chinatown’s civic space;
Ground-floor commercial and community space activates Kneeland Street commercial
corridor and open space;
Sustained affordability promoted through a green design that emphasizes energy
efficiency and durability
Economic development in the form of ~700 annual FTE construction-period jobs and
~27 permanent on-site jobs;
Long-term community investment maintained through ownership and management
of affordable rental units by ACDC.
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type of space # units bedrooms affordabiLity
Market rate condominium Approx. 157-190
27% one-bedroom
Market Rate62% one-bedroom
11% one-bedroom
Affordable Condominium Approx. 66-99
31% one-bedroom
Average 80% AMI48% one-bedroom
21% one-bedroom
LIHTC Affordable Rental Approx 69
35% one-bedroom 8 units at 30% AMI
45 units at 60% AMI
17 units with Section 8*
44% one-bedroom
21% one-bedroom
Total 325 170 rental + 255 condominium
parceL 24 LLc: strong deveLopment partnership
ACDC, New Boston and their respective staffs and consultants have successfully completed thousands
of units of high-rise and affordable housing in the Greater Boston area and beyond. ACDC and New
Boston both have recent experience successfully taking complex, mixed-use development proposals
through multi-agency, multiple stakeholder public approval processes. New Boston recently completed
One Brigham Circle, an award-winning mixed-use commercial development in partnership with Mission
Hill Neighborhood Housing Services, and has partnered with Lena Park CDC to develop Olmsted
Green, one of the largest developments in the City of Boston in over 60 years. Tax credits were utilized
on Olmsted Green. New Boston’s Urban Strategy America (“USA”) Fund will bring the equity capital
necessary to expeditiously bring the project to construction and will offer its development expertise to
complete construction on time and to the highest standards.
Goody Clancy, the project architect, has designed award-winning affordable, mixed-use and mixed-
income urban housing developments since 1955, including the prototypical Tent City, which won a UN
World Habitat Award, and Harbor Point. Goody Clancy designs incorporate green/sustainable practices
and 65% of their staff of 115 architects, planners, and urban designers are LEED accredited.
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quaLity product in prime downtown boston Location
With some of the highest housing costs in the country, affordable housing is a primary concern for
Boston’s residents. This problem is even more acute in Chinatown, where institutional uses and luxury
housing developments compete for land in a dense and land scarce neighborhood. Chinatown’s
desirable downtown location at the end of the Rose Kennedy Greenway is attractive to those seeking
the conveniences and amenities of the City of Boston but it is also an important gateway for many new,
low- and moderate-income immigrants who are linguistically isolated. Parcel 24’s diverse residential
opportunities are uniquely positioned near cultural and employment opportunities to meet both market
demands and community needs.
poised to move ahead: site controL, permitting, and zoning secured
Parcel 24 is poised to move ahead expediently with an experienced development team. We have full site
control. Parcel 24 LLC was designated to develop the property in March 2006. A Development Agreement
was signed in November 2007 and Parcel 24 LLC will take ownership of the approximately 1.5 acre parcel
upon execution of the ground lease just prior to construction start. The affordable rental component
will be transferred to the new tax credit partnership once construction completion allows the master
condominium agreements to be executed.
The Boston Redevelopment Authority (BRA) Board has approved the project under Article 80 large
project review and the Zoning Commission approved the Planned Development Area zoning for Parcel
24 in November, 2008. We have completed schematic design and our development team is adept at
coordinating the public and private financing resources that will bring the community vision for Parcel 24
to completion. The site is currently vacant and graded. The site is served by all major utilities and ready
for redevelopment.
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demonstrated need and demand for affordabLe housing in chinatownParcel 24 is a rare opportunity for affordable housing in a mixed-income development in Boston’s
downtown core. Similar affordable projects of new construction in the area have been oversubscribed by
a ratio of at least 4:1 with limited marketing times.
Lihtc rentaL unitsThe most basic measures of need indicate an undeniable shortage of affordable housing in Chinatown.
Waitlists for surrounding affordable rental developments extend for multiple years. The purchase to
rent spread is 30.5, making renting the only viable option for many. A recent market study supports
the development of affordable rental housing at Parcel 24. Asian Community Development Corporation
and the development team members have solid track records of successful affirmative marketing and
outreach. Nearly seventy percent of Chinatown’s population is Asian with a median household income
of $14,289. The 69 affordable rental units will be owned and managed by ACDC, and will be affordable to
households with incomes up to 60% of area median income (AMI). This arrangement not only ensures a
maintained community presence in the development, but also the commitment to at least a thirty-year
term of affordability. The compliance period for LIHTC investors is 15 years.
The inherent value in Parcel 24’s core downtown Boston location is supported by the fact that pricing has
remained relatively steady and has performed distinctly from the outer Boston neighborhoods. The prime
location, nearby commercial activity, easy access to employment hubs and recreational facilities, splendid
views of the Boston skyline and Rose Kennedy Greenway, and access to public transportation are all
amenities that make the condominiums an attractive investment to market rate buyers. New Boston’s
USA Fund is encouraged by the outlook for the Boston marketplace upon the project’s completion and is
committed to providing the necessary predevelopment equity to bring the project to construction.
The rate of homeownership is less than 10% in Chinatown, considerably lower than the City of Boston’s
rate of 28%. The affordable condominiums currently target households with an average income of 80%
area median income and will double the affordable homeownership stock in Chinatown. A survey of
surrounding market rate condominiums would show a price approximately more than three times that
of an affordable unit - making these units a worthwhile investment compared to units outside the core
neighborhoods. The Metropolitan, a comparable mixed-income project a few blocks from Parcel 24, had
approximately 3,000 participants pick up applications during the lottery for 115 affordable units. Market
rate condominiums in Boston’s downtown core have remained relatively strong in the past year and
demand for this product type is projected to increase in early 2011, prior to the delivery of units at Parcel
24. Generally new construction is selling better than rehab and Parcel 24 is poised to move forward as
one of the very few developments providing this type of product.
home ownership opportunities
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additionaL funding sources (Italics denote funds secured to date) approx. amount
State Funds AHT loaned at AFR or less
State HOMEHIF/HSFFCF/CBHTOD (committed $50,000)Massachusetts Technology Collaborative (committed)
$2,000,000 $2,000,000 $620,000$1,275,000 $2,050,000 $50,000
Local Funds City HOME
BRA Inclusionary HousingNHT Housing Creation ($632,748 committed)
$2,000,000$1,840,000 $1,900,000
project status and financing
The Parcel 24 LLC completed the permitting process for the project in November 2008. The schematic
design has also been completed. The development team is currently assembling public subsidies and
submitted an application in the the Fall 2008 round of State rental subsidies. LIHTC allocations are
expected.
The City has already committed $1.75M to the rental component in addition to $2.5M to the affordable
homeownership component.
totaL deveLopment cost $125 M +/-
expected annuaL tax credit aLLocations* amount
Low Income Housing Tax Credits $1.242 M
State Low Income Housing Tax Credits $1 M
*Application filed in October 2008
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oak terrace
Asian Community Development Corporation
(ACDC) won the right to develop Oak
Terrace on land owned by the City of
Boston in 1987 and completed development
in 1995, skillfully maneuvering and thus
surviving the deep recession of the late
1980’s and early 1990’s. Oak Terrace is one
of the earlier developments in the country
to utilize the now standard Low Income Tax
Credit (LIHTC) program and was then the
boston, ma - compLeted 1995Lihtc compLiance period 1995-2009
overview
first new construction project in Chinatown in over two decades. Today, Oak Terrace is home to over
300 residents, the majority of whom have low to moderate incomes, and provides community space
and ground-floor retail space along the now revitalized Washington Street corridor.
type of unit affordabLe units market rate units unit sq. ft.
1 Bedroom 6 8 600
2 Bedroom 21 11 820
3 Bedroom 25 8 1150
4 Bedroom 8 1 1350
Total 60 28
program
affordabLe units by subsidy quantity
Project-based Assistance Section 8 25
Section 8 (MBHP) 1
Section 8 (BHA) 3
Section 8 (Warren Housing Authority) 1
50% AMI 14
60% AMI 16
Of the total 88 units, approximately 1/3 are low-income, 1/3 moderate-income, and 1/3 market rate:
ACDC holds the Master Lease to the 4 commercial spaces totaling 2,775 square feet, including the
Community Room, on the ground floor. A secure central courtyard is 6,000 square feet.
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Limited partners received tax credits beginning in 1995 in the annual allocated amount of $907,200
for a ten-year period. The credits were calculated at 8.30% of certain expenditures incurred in
connection with building construction. A minimum of 60 low-income apartment units (68% of the
total) have successfully been maintained for purposes of the tax credit.
A new round of LIHTC investment opportunities may exist following the end of 2009, which marks
the end of the initial 15-year LIHTC compliance period for the original investors. ACDC is committed
to maintaining the affordability of Oak Terrace. Oak Terrace offers new investors the opportunity
to participate in a successful project with demonstrated returns and a stabilized income.
new Lihtc investment opportunities in stabiLized project
type source
Rental subsidy HUD Section 8 Housing Assistance
Equity LIHTC
Loan Mass Housing, Permanent First Mortgage
Grants/subsidies Neighborhood Housing TrustFHLB Federal Home Loan Affordable Housing ProgramAFL-CIO Housing Investment TrustBoston Redevelopment Authority
financiaL overview
totaL deveLopment cost $13,360,443 ($151,823/unit)
People waiting to apply for housing in Oak Terrace when the building first opened - the line stretched around the block.
Oak Terrace is owned by Oak Terrace Limited Partnership with Oak Terrace Corporation, a subsidiary
wholly controlled by Asian Community Development Corporation, as the managing general partner with a
1% ownership. Other partners are limited partners owning a 99% ownership. Oak Terrace is professionally
managed and is approaching the end of its 15 year LIHTC compliance period, having successfully complied
with all regulations and operating procedures of the various funding sources thus far.
ownership structure
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boston, ma - compLeted 2005
The Metropolitan leveraged the experience of Asian Community
Development Corporation (ACDC) in developing Oak Terrace
to take on new challenges: the 5% owner-occupancy rate in
Chinatown and the increasingly expensive cost of housing in
Boston’s downtown core. The result is a mixed use 23-story high
rise containing 251 rental and homeownership units, 115 (or 46%)
of which are affordable to low and moderate income families.
overview
Over 3000 applicants entered the
lottery for the affordable units at
the Metropolitan in late 2003. All
the affordable rental units have
been occupied since March, 2004.
ACDC successfully incorporated an extraordinary number of affordable units by capturing and capitalizing
on the intrinsic value of the site’s desirable location in downtown Boston, access to a plethora of public
transportation options, and existing diversity and density that allowed the market-rate condominiums to
subsidize the affordable housing component.
Asian Community Development Corporation (ACDC) partnered with for-profit developer Edward A. Fish
Associates (EAFA) to complete development of The Metropolitan in 2005. The $89 million high-rise project
includes 251 rental and homeownership units, 115 of which are affordable to low and moderate income
families. The 133 rental units have rents ranging from $365 for the formerly homeless to luxury units
renting at $2,600 per month and the 138 for-sale condominiums sold at prices affordable to families
earning 80% of area median income (AMI) to prices in excess of $1 million for the penthouse units, the first
in the neighborhood. Additionally, The Metropolitan includes community space for community-based
social service groups; street-level retail and commercial space; and two-levels of underground parking
with 283 spaces. The 23-story Metropolitan remains the tallest affordable housing project in the country
sponsored by a community development corporation. At 46% affordable and with over 40,000 square
feet of community space for public use and agencies, The Metropolitan certainly reached new heights of
community development.
the metropoLitan
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type of space quantity gross sq. ft.
Residential 251 305,007
Rentals 133 151,275
Condominiums 138 153,732
Community Use 32,214
Commercial 7,600
Parking 238 74,974
Total 419,795
type of space # units bedrooms affordabiLity
Market rate condominium 84
18 one-bedroom
Market58 two-bedroom
8 three-bedroom
Affordable Condominium 34
8 one-bedroom26.5% at 80% AMI 47% at 100% AMI 26.5% at 120% AMI
20 two-bedroom
6 three-bedroom
Market Rate Rental 52
11 one-bedroom
Market30 two-bedroom
11 three-bedroom
Affordable Rental 81
6 one-bedroom
Up to 60% AMI30 two-bedroom
10 three-bedroom
35 studios
Total 251 138 condos + 133 rentals 115 (46%)
program
The residential component consists of the following:
The limited partner Sun America Affordable Housing Partners received an annual tax credit amount of
$999,945 for a ten-year period. The credits were calculated at 8.23% of certain expenditures incurred in
connection with building construction. A total of $7,748,799 of tax credit equity was contributed to the
project.
Lihtc
“The Metropolitan utilizes the well-respected model of mixed-income development
coupled with the emerging emphasis for mixed-use development to create a dynamic new
project that serves myriad populations successfully within a sound financial structure. The
Metropolitan is the future.” - MassHousing
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for saLe condos (10th through 23rd fLoors)Individual units (affordable and market-rate) are owned by individual owners.
rentaL units (2nd through 9th fLoors)owned by rentaL LLc: sun yi LLc + ea fish associates Rental LLC is the borrower with respect to MassHousing and other debt on the rentals.
affordabLe rentaLs (scattered throughout)Owned by Community LLC: Sun Yi LLC (.01% interest, ACDC controlled)EA Fish Associates (.01%)Tax Credit Investor (99.98%)
market rentaLs (scattered throughout)Owned by Metro LLC, whose members are EA Fish Associates (100% interest)
commerciaL condo (1st fLoor)
ACDC office space
BRAoffice space
EA Fish Associates owns remainder of commercial space
garage condo (underground)Owned by EA Fish Associates
sources amount
LIHTC (Federal) (3 rounds) $7,750,000
State Funds Affordable Housing Trust (AHT)
State HOME
$2,000,000 $750,000
Local Funds City HOME/CDBG
City Demolition ContributionLinkage and HousingBRA LoanBRA Acquisition
$1,500,000$300,000
$1,810,000$750,000$920,000
Total Sales $55,320,000
Total Perm Loan $15,250,000
Total Other Sources $3,020,000
financiaL overview
totaL deveLopment cost $89,270,000
Asian Community Development Corporation | Tax Credit Investment Opportunities 25
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our team
jeremy Liu - executive directorJeremy has managed a wide range of initiatives including community organizing, neighborhood planning,
over $120 MM of housing and commercial real estate development, technology development projects,
youth and leadership development, and cultural heritage preservation. Over the past 13 years he has
worked for and with communities of color, seniors, and youth, to creatively confront issues of social and
environmental equity, affordable housing, and community empowerment.
Jeremy has developed a number of innovative community development efforts, including technology
for limited English proficiency individuals, community development finance, participatory planning
for community control of development, and non-profit/for-profit partnerships for affordable housing
development. He serves as a member of the Board of Directors for the Citizens’ Housing and Planning
Association and the Massachusetts Affordable Housing Alliance; he is a Trustee of The Boston Foundation
for Architecture and the New England Foundation for the Arts.
janeLLe chan - reaL estate project managerJanelle is a community advocate with experience in participatory urban planning, resource development,
and real estate development and finance. At ACDC, Janelle primarily manages the development of the
Parcel 24 project and ACDC’s asset portfolio which includes Oak Terrace and The Metropolitan. Prior
to joining ACDC, Janelle managed grants and events and assisted in major donor cultivation at Asian
Neighborhood Design, a San Francisco non-profit that provides architectural and planning services in
affordable housing and community facilities. For the past decade, she has worked with and for the Asian/
Asian American community and broader coalitions of color that serve immigrant workers, including
the International Institute of the East Bay and the American Federation of State, County and Municipal
Employees. Janelle has a Master in City Planning with a specialization in Housing, Community, and
Economic Development from MIT and a bachelor degree in Public Policy and Ethnic Studies from the
University of California, Berkeley.
timothy doherty - reaL estate project managerTim brings experience in city planning, real estate finance and development, and commercial real estate
valuation and market analysis. Prior to working with ACDC, Tim was an associate at Bonz and Company, Inc,
a Boston-based commercial real estate consulting firm. At Bonz, Tim provided comprehensive real estate
advisory, consulting, and valuation services to a wide range of clients, including developers, planners,
financial institutions, and public agencies. Over the course of his three years at Bonz, Tim appraised a wide
range of investment properties and development sites, including vacant land, downtown and suburban
office, market rate and mixed income housing, mixed use properties, retail centers, and industrial facilities
with an aggregate value in excess of $300,000,000. Tim received his Master in City Planning from the
University of Pennsylvania. He received his Bachelor of Arts in Economics/Accounting from the College of
the Holy Cross, Worcester, MA.
seLect staff
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michaeL tow - presidentA CERTIFIED FINANCIAL PLANNER practitioner, Michael is president and founder of New Boston Financial.
He has an extensive background in personal finance. For over 13 years, he has been managing investments
and personal finances for individuals, small businesses, and organizations. Prior to New Boston Financial,
Michael was an account vice president at UBS and managed a brokerage branch of H&R Block Financial
Advisors.
Michael was appointed as a member of the Massachusetts Workforce Investment Board, a board that
advises the Governor of Massachusetts on Workforce Development Issues. He is on the Board of the Friends
of the Needham Elderly. He was a member of Dougies Marathon Team, marathon runners supporting the
Doug Flutie Foundation for Autism. Michael has given seminars focusing on financial literacy to senior
groups, the Boston Adult Self Sufficiency program (BASS), the Massachusetts Boston Housing Partnership
(MBHP) and many others.
peter madsen - chair, reaL estate deveLopment committeePeter is the Managing Director of Edo Essex Properties, a real estate development firm investing in residential
projects for sale or lease on well-situated sites. Previously, Peter was founder and Managing Director
of Pembroke Real Estate, a Boston-based real estate investment and management firm wholly owned
by Fidelity Investments. Pembroke acquires, designs, develops, and manages high-profile properties
worldwide, including office buildings, high-end residential complexes, and mixed-use developments.
Prior to establishing Pembroke, Peter served for more than 20 years as President of the Gunwyn Company,
a real estate development and management firm affiliated with the renowned Graham Gund Architects
in Cambridge, Mass.
Peter is affiliated with a number of professional organizations. He is also active in community, arts, and
alumni organizations. He has served as a Director and former Vice President of The Trustees of Reservations;
an Overseer of the Boston Lyric Opera and Overseer of the New England Conservatory of Music; a Trustee
and former Chair of the Society for the Preservation of a New England Antiquities; Treasurer of the Career
Collaborative; and President of the Frog Pond Foundation. He was a member for four terms of the Harvard
Graduate School of Design Alumni Council, twice serving as its Treasurer, remains active in the Real Estate
Academic Initiative at Harvard, and is a Director of the Harvard Alumni Association. He has served on
building committees for numerous civic, church, and school projects, and for the Essex Shipbuilding
Museum, which he helped found in 1976. Also, Peter co-authored A Traveler’s Guide to India, which was
published by Scribner’s in 1973.
yasuna murakami - vp of fundraising & investor committeeYasuna is a managing partner and portfolio manager of MC2 Capital Management. This is a private
equity hedge fund based in Cambridge, MA, which specializes in small to medium market capitalization
equity investments. In addition, he is a co-founder and board member of MyCyMoney, a secure and safe
management system based on the internet that is aimed toward younger people learning how to accrue,
manage, spend and invest their money wisely and prudently. He received an A.B. from Brown University,
where he majored in political science with a concentration in science, finance, and economics. He was
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also a member of the Brown University Program of Liberal Medical Education (P.L.M.E.), granting him
acceptance to the Brown University School of Medicine as an undergraduate. Yasuna has a dual graduate
JD/MBA from Suffolk University.
terry kwan - investor committeeTerry is an educator by training and experience - teaching, supervising, and training teachers in public
and private institutions. With an interest in curricular and facilities design, Terry has worked on public
school building projects in Massachusetts for more than thirty years professionally, as an elected
School Committee member, and currently as an appointed board member of the Massachusetts School
Building Authority. She is co-author and contributor of several books and articles for teachers and school
administrators. Terry has also been engaged in residential real estate sales in the Greater Boston area for
more than twenty years. Terry serves as a community representative to Institutional Biosafety Committees
for the Harvard Medical School and the Dana Farber Cancer Institute, and served as a non-science member
of the NIH Recombinant DNA Advisory Committee for a four-year term. She holds a BA from Binghamton
University and a MSEd from Hofstra University.
kenneth minkLei - investor committeeKen is responsible for the portfolio management and manager evaluation for SCS’s hedge fund program.
Prior to joining SCS, Ken was a Managing Director and hedge fund specialist at Cambridge Associates
where he constructed and managed custom fund of hedge funds portfolios for leading endowments and
foundations. He also led the Strategic Financial Advisory Group, which advised clients on large equity and
debt capital market transactions and specialized portfolio hedging and risk management projects. Ken was
also a Vice President at J.P. Morgan where his responsibilities included managing the interest rate options
portfolio and the emerging markets sovereign debt options portfolio. Ken earned his undergraduate
degree in Economics at the State University of New York at Binghamton.
peter munkenbeck - project consuLtantMr. Munkenbeck serves as the development consultant for both Parcel 24 and 6 Fort Street. He previously
consulted for ACDC on the completed Oak Terrace and Metropolitan projects. As an experienced consultant
to neighborhood non-profit organizations, he works to assist them in the financing and development of
affordable housing. He has also been engaged to provide assistance to cities, churches, service providers
and national intermediaries to develop housing and commercial space, plan for neighborhoods and build
stronger community development programs.
Since 1997, he has been actively involved in development and/or financing of 19 multifamily properties
containing more than 2500 apartments on behalf of 11 CDC’s in Boston. He is involved in all elements
of planning and implementing these projects including financial structuring, analysis of physical needs,
structure of the entities, arranging for debt and equity, obtaining public approvals, coordinating the
closing and overseeing the improvements. Prior to 1997, he was employed for 16 years at The Community
Builders, where he was responsible, as Deputy Director, for real estate development, administration and
finance. TCB is a regional non-profit developer and manager of affordable housing with 400 employees,
15,000 units developed and 6,000 units under management.
consuLtant
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board of directors
Syam BuradaguntaBlue Sky Collaborative
Prabal ChakrabartiFederal Reserve Bank of Boston
Nick ChauTai Tung Realty
Chong ChowAccenture
Gim FongSweetHeart Plastics Co. (retired)
Soni GuptaAffordable Housing Consultant
Cuong HoangMott Philanthropic
Terry KwanEducator
Janet LinFormer Special Assistant to Massachusetts Governor Deval Patrick
Zena LumWGBH
Peter MadsenEdo Essex Properties, LLC
Kenneth MinkleiSCS Financial Services
Leverett WingLee Wing Management
officers
PresidentMichael TowNew Boston Financial
VP FundraisingYasuna MurakamiMC2 Capital Management, LLC
VP OperationsHarvey LeongHarvey Leong, LLC
VP StrategyPaul W LeeGoodwin Proctor LLP
TreasurerJeffrey WongShanghai Printing
ClerkMichael S. GrecoK&L Gates
Immediate Past PresidentCaroline ChangU.S. Dept. for Health & Human Services (retired)
Asian Community Development Corporation | Tax Credit Investment Opportunities 29
The following programs allow Asian Community Development Corporation to sustain their success in
affordable housing development and preservation. Our ongoing planning and community organizing
work creates a supportive environment for our development projects, especially during the critical
planning and permitting stages. Our financial, social, and leadership-building services are accessible to
low- and moderate-income residents of our affordable housing units can access. By increasing the self-
sufficiency our residents, our programs complement our affordable housing development efforts and
improve and stabilize the neighborhoods in which our projects are in.
homebuyer and financiaL Literacy educationTo prepare potential homeowners in the local community, ACDC continues to provide homebuyers with
assistance and education through the Comprehensive Home Ownership Program (CHOP) in Cantonese,
Mandarin, and English. ACDC’s workshops, bi-lingual information mailings, and one-on-one counseling
have helped families in the process of purchasing their first home. CHOP has served over 450 clients
since its inception. CHOP will serve an estimated additional 360 households in the next two years, and
recent graduates have indicated in exit surveys their desire to live in Chinatown.
To ensure that our constituents are well-prepared to take full advantage of the affordable housing
opportunities we create, we invite financial professionals as guest speakers in workshops to offer
perspectives and educate students about the many products and services available to first-time
homebuyers and affordable housing applicants. Many of our CHOP clients earn very low incomes, and
although they may qualify for affordable housing and some available home-buying resources, it is often
the case that a client’s assets and earnings are not sufficient for the purchase of a house right away.
For these clients, home ownership is a long-term goal, and the CHOP education equips them with the
knowledge and financial literacy tools to plan for their path to home ownership.
Chinatown has the lowest home ownership rate amongst all Boston neighborhoods and yet is one of
the most desirable locations in the Boston metropolitan area to live. The demand for affordable rental
options is undeniable and the demand for affordable homeownership remains relatively high given
market rate homeownership in the local area is more than twice the cost of affordable units. ACDC
works to both increase the supply of affordable housing as well as the number of qualified applicants
by providing assistance to those who are hindered by financial illiteracy, language barriers, and limited
access to community resources.
youth Leadership deveLopmentAsian Voices of Organized Youth for Community Empowerment (A-VOYCE) is ACDC’s dynamic youth
development program that uses the power of dialogue and storytelling to advocate for positive change
in the community. Increasing the supply of affordable housing and broadcasting the needs of the
our programs:buiLding capacity within our community
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community are mainstays in this effort. The program serves youth ages 13-19 from the Greater Boston
area, with an emphasis on low-income youth in local affordable housing developments.
The A-VOYCE Radio Project and the A-VOYCE Chinatown Walking Tours highlight the current issues
faced by the communities in which we serve, especially the need for affordable housing. The A-VOYCE
Radio Show is a weekly, live public affairs and music radio show written and run entirely by the youth
and have included original pieces on Asian American history, local and national political events, and
topics in Asian and Asian American popular culture. The youth-led Chinatown Walking Tours give
visitors new historical, cultural, and personal interpretations of the neighborhood and spotlights
significant developments in the neighborhood, including our past affordable housing projects.
Significant projects like Parcel 24 can make significant contribution to their surrounding community.
HD-OD is premised on the idea that physical place and the people who live there are inextricably
interrelated and must be planned for together. HD-OD is a planning tool that allows families, individuals
and small businesses to adapt to all the changes that take place in a neighborhood undergoing heavy
development, whether physical, economic or social. In the case of Parcel 24, HD-OD and its physical
Community Change Center gives community stakeholders proper notification and access to tools to
prepare for the affordable and market rate housing opportunities and job opportunities that will be
made available.
community organizing and pLanningCommunity outreach and organizing is an integral part of our development process for real estate and
affordable housing projects, especially during the critical planning and permitting phases. For example,
our Parcel 24 program responds to the Community Vision document developed by the Hudson Street
for Chinatown, a coalition of community organizations and residents in which ACDC was a founding
member. This Community Vision was referenced in the Boston Redevelopment Authority’s Design
Guidelines that was subsequently included in the Request for Proposal issued the site. ACDC and
its development partner successfully responded to this RFP and gained development rights directly
because of its extensive organizing work.
ACDC continues to be an active force in Chinatown as a leader in participatory planning efforts. As one
of the leading agencies in the Chinatown Gateway Community Coalition, we helped to implement the
community planning process and produced a visioning report for Chinatown. ACDC currently provides
planning and development expertise to the Coalition in an initiative to develop and implement the
2010 Chinatown Master Plan (CMP).
increasing access to servicesNon-English speaking individuals, particularly new immigrants, face tremendous barriers that limit their
ability to access day-to-day needs. Communicating with sales personnel, reporting crime, and seeking
medical attention or legal assistance all become dangerously difficult tasks when language barriers
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interfere. Communication barriers also compromise immigrant status in society, contributing to social
isolation and community disenfranchisement. Although there have been attempts by the government
and social service organizations to provide more multilingual services, the demand still far outstrips the
capacity to deliver such services. As a result, non-English speakers are often unable to access essential
services to improve their quality of life and hasten their participation in mainstream society.
In practice, Speakeasy is not a new concept as many multilingual individuals are already serving
as informal interpreters for their family members and friends, but often with uneven results and
compromising privacy. Speakeasy leverages the wide-spread use of cell phones and connects non-
English speakers to guides promptly, reducing the undue burdens placed on callers’ families and friends.
Speakeasy provides individuals access to critical social services and resources that may provide them
with the resources and means to improving their lives.
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