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Financing StrategiesInnovative Chris Hilbert, VHDA

Strategic Markets

Development Manager

VHC Tax Credit Conference

September 5, 2013

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STRATEGIC MARKETS LENDING

GROUP

Aligning our programs with local /regional priorities

Encouraging public/private partnerships

Providing technical assistance

Demonstrating commitment for mission-driven lending through long term investment

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SPARC Multifamily Rental Loan Program

• General Standards

• Guidelines

• Application Process

• Example Properties

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General Standards

Loan Limit: $950,000 (NoVA $1,500,000)Loan Rates: REACH at 2.95% FixedLoan Term: 25 - 30 years (depending upon age)

Loan Fee: 0.5% Due at applicationInc. Restrictions: 50% residents @ 50% AMILoan Security: First lien deed of trustAppraisal: MAI appraiser requiredEnvironmental: Phase I/Environmental Screen

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General Standards (contd.)Replacement Reserve: Min. $250 PUPA

Debt Service Coverage: Minimum 110%

Arch. & Engineering Review: Required

Rehab Investment Minimum: $15,000/unit

Property Mgmt. Certification: New Requirement

Readiness: Use and funding in place

Loan Documents: Non-negotiable

Construction/Perm: Only permanent financing

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GuidelinesProject must address at least one of the five following critical housing needs in the Commonwealth:

• Frail Elderly (Assisted or Independent Living)

• Homelessness (Permanent Supportive Housing Only)

• Persons with Disabilities (Housing with Services)

• Preservation of Affordable Rental Housing (Expiring Subsidy)

• Revitalization (Need $1,000/unit local match and must be located in a Revitalization Area)

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Application Process

VHDA Website Link to applicationhttp://www.vhda.com/BusinessPartners/MFDevelopers/MFFinancing/Pages/MF-SPARC-Program-Guidelines.aspx•Application•Application Checklist•Exhibits to the Application•SPARC Program Guidelines

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Cloverleaf Apartments• Developer: Virginia Supportive Housing• Critical Housing Need: Homelessness• Adaptive Reuse of former skating rink• Commercial Corridor (lowered NIMBY)• 60 units of Permanent Supportive Housing• Targeted towards Chronically Homeless• One of the first regional SRO in the nation

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Cloverleaf ApartmentsVirginia Beach

Before After

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Hilltop Homes• Developer: Lynchburg Neighborhood Dev.

Foundation• Critical Housing Need: Revitalization• Scattered-Site Historic Rehab• 24 units located on 12 sites and 13 structures• Avoids concentration of poverty• Lowers NIMBY barriers vs. higher management costs• Funding Sources:

– Low Income Housing Tax Credits– VHDA SPARC– DHCD and Local - HOME

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Hilltop HomesLynchburg

Before After

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Contact Information:

Chris Hilbert

Strategic Markets Dev. Manager

804.343.5741

chris.hilbert@vhda.com