cra affordable housing fund i white paper 7-2015
TRANSCRIPT
Fund Overview
The objective of the CRA Affordable Housing Fund, LLC (“Fund”) is to generate income and to assist in satisfying financial institutions Community Reinvestment Act requirements by directly investing in affordable multifamily housing. The Fund will seek cash on cash returns, paying quarterly returns to investors. The Fund seeks to provide financial institutions a unique investment, which is responsive to the needs of the community.
Acquired properties may still be within the original compliance period of 15 years, however; the Fund will also invest in affordable properties past the 15 year period. All of the investments will qualify for CRA Community Development investments. Many of the investments will have deed covenants mandating affordability. The size of the acquired developments will be in proportion to the markets they serve. The fund investment duration is 3 to 5 years (compared to 15 year LIHTC).
About PHG Financial, LLC
PHG Financial, LLC is Michigan Limited Liability Company (LLC) acting as the Managing Member of the CRA Affordable Housing Fund, LLC, a private investment registered in Delaware.
The Managing Member is led by a Gerald Haan, an experienced real estate professional with more than 20+ years’ experience. The Managing Member is experienced in affordable housing, syndication, and compliance. The firm offers the CRA Affordable Housing Fund, LLC to financial institutions.
PHG Financial, LLC ▪ Office: 312-637-5673 ▪ [email protected]
Complex
◾◾Determined to be a complex investment due to compliance, rent restrictions, and state reporting regulations
◾◾ Fund manager is experienced tax credit developer and property manager with a successful track record of affordable LIHTC development and property management
Responsive
◾◾Fund is responsive to communitiesby preserving affordable housing
Innovative
◾◾5 year term allows investors to recirculate their CRA investments
◾◾ PHG Financial; CRA Affordable Housing Fund is a pioneer in year 15 funds
◾◾Investors’ yield is not dependent on federal corporate tax rates
◾◾No complex tax accounting; straightforward real estate equity fund
◾◾ Investors are paid quarterly
Phoenix Holding Group PHG Financial PHG Financial
CRA Affordable Housing Fund
The CRA Affordable Housing Fund, LLC invests in affordable multifamily properties, constructing a stable portfolio of income producing real estate assets.
Summary
CRA Affordable Housing Fund Advantages
Investment Terms
Account Structure Limited Liability Company
Investor Status Qualified Investor or Qualified Purchaser
Minimum Investment $500,000
Management Fee 1.50%
Incentive Allocation Tiered incentive allocation
Lock-up 5 years
Acquisition Fee 1%
Disposition Fee TBD
Preferred Annual Distribution 5% annually
Legal, Administrative, Accounting & Custody
At PHG Financial, we encourage open and transparent communication with each of our clients. As part of this commitment we employ independent third-party professionals in the areas of fund accounting, administration, custody, and legal counsel.
Legal Barnes and Thornburg LLP
Administration Northern Trust Bank
Bank/Custody TBD
Auditor Plante Moran
Disclaimer
THIS IS NOT AN OFFERING OR THE SOLICITATION OF AN OFFER TO PURCHASE AN INTEREST IN CRA AFFORDABLE HOUSING FUND, LLC (THE “FUND”). ANY SUCH OFFER OR SOLICITATION WILL ONLY BE MADE TO QUALIFIED INVESTORS BY MEANS OF A CONFIDENTIAL OFFERING MEMORANDUM AND ONLY IN THOSE JURISDICTIONS WHERE PERMITTED BY LAW.
AN INVESTMENT IN THE FUND IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. OPPORTUNITIES FOR WITHDRAWAL, REDEMPTION AND TRANSFERABILITY OF INTERESTS ARE RESTRICTED, SO INVESTORS MAY NOT HAVE ACCESS TO CAPITAL WHEN IT IS NEEDED. THERE IS NO SECONDARY MARKET FOR THE INTERESTS AND NONE IS EXPECTED TO DEVELOP.
THE FEES AND EXPENSES CHARGED IN CONNECTION WITH THIS INVESTMENT MAY BE HIGHER THAN THE FEES AND EXPENSES OF OTHER INVESTMENT ALTERNATIVES AND MAY OFFSET PROFITS. NO ASSURANCE CAN BE GIVEN THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED OR THAT AN INVESTOR WILL RECEIVE A RETURN OF ALL OR PART OF HIS OR HER INVESTMENT. INVESTMENT RESULTS MAY VARY SUBSTANTIALLY OVER ANY GIVEN TIME PERIOD.
Phoenix Holding Group PHG Financial PHG Financial
CRA Affordable Housing Fund
Mid-West:Harris Bank Building115 S. LaSalle Street, Suite 2600Chicago, IL 60603
Western Office: 11811 N. Tatum Blvd., Suite 1081Phoenix, AZ 85028
Gerald Haan Phone: 312-637-5673Email: [email protected]
Paul HenleyPhone: 312-637-5674Email: [email protected]