l'enfant trust revolving fund
DESCRIPTION
Thoughts on starting up a new revolving fund.TRANSCRIPT
A recent Historic Macon Foundation restoration
Raising funds through properties workSeptember 28, 2012
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Today’s talk
1. History of Historic Macon’s revolving funds1.1. Saving mansions1.2. Vernacular houses1.3. Neighborhood revitalization1.3.1. Huguenin Heights1.3.2. Beall’s Hill1.3.2.1. Partnerships1.3.2.2. Results1.4. Spot Properties2. Case studies3. Risks4. Ideas5. Summary
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Motivation
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Motivation
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
First property
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
First property
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Vernacular buildings
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Vernacular buildings
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Small area
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Small area
Relative size of Huguenin Heights compared to Pleasant Hill
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Vernacular buildings
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Vernacular buildings
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
10%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
66%
100%
10%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
66%
100%
10%
100%
15%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Homes sold Home Ownership Crime
66%
100%
10%
100%
15%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Obsolete housing demolished
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revitalization Partners
!
Each partner pays $75,000 in dues/ year
into a revolving fund
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Days on Market
0
38
75
113
150
Historic Macon National Average
Days on Market
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Property Tax
$40,000/ year
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Property Tax Sales Tax
$40,000/ year $60,000
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Economic Development
Property Tax Sales Tax Jobs
56 Jobs$40,000/ year $60,000
Wednesday, October 10, 12
Recent Beall’s Hill Projects
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
Recent Beall’s Hill Projects
!!P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Current management
•Executive Director identifies projects, drafts pro formas•ED negotiates and signs contracts for acquisition•Full-time interior designer drafts rehab proposal•Before acquired, Preservation Committee and Board approve acquisition, rehab and sale•ED either hires a General Contractor or Construction Manager not-at-risk (usually the latter for rehab)•Next report to the Board is net performance after sale
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
306 Orange St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
923 Washington Ave.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1212 Ross St.
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1212 Ross St.
Wednesday, October 10, 12
Spot Properties
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
Spot Properties
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$300,000
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$600,000$300,000
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$550,000
$600,000$300,000
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$200,000
$550,000
$600,000$300,000
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Revolving Funds
$200,000
$550,000
$600,000$300,000
$800,000
Preservation Fund Knight Fund Hills and Heights FundPeyton Anderson Fund Facade Funds
•$2.4 million total
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Risks
Management Real Estate challenges
•Staff specializing in Real estate is expensive•Even if you outsource construction, you need more staff• Board and staff relationships can strain•Have to be a market expert to acquire and sell property• Very hard to produce enough operating income to cover additional staff, much less help with existing operations
• Preservation and profit compete• Resource intensive• Without doing an entire neighborhood, you don’t control comps, infrastructure• Risks multiply with environmental concerns, market fluctuations• Some properties are worth less than $0• Every neighborhood has a different target buyer, and you don’t have the marketing money to reach them
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Ideas
•$1 million in endowment yields 5%• Same funds used in revolving fund•Turn twice a year (6 month projects)• Take a 6% developer’s fee/ project• Net a 12% return instead of 5%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Ideas
•$1 million in endowment yields 5%• Same funds used in revolving fund•Turn twice a year (6 month projects)• Take a 6% developer’s fee/ project• Net a 12% return instead of 5%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Ideas
•$1 million in endowment yields 5%• Same funds used in revolving fund•Turn twice a year (6 month projects)• Take a 6% developer’s fee/ project• Net a 12% return instead of 5%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Ideas
•$1 million in endowment yields 5%• Same funds used in revolving fund•Turn twice a year (6 month projects)• Take a 6% developer’s fee/ project• Net a 12% return instead of 5%
Wednesday, October 10, 12
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Ideas
•In kind donations have never been a source of savings•Prefer to pay for work and products and have vendors make donations-- cleaner for taxes and benefits operating•Allow us to develop new expertise•Having rehab experience makes it easier to deal with the private market•Sometimes you can use real estate know-how to get a private developer to save a property instead of you!•Also builds relationships with new donors
Wednesday, October 10, 12
Before & Afters
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
Before & Afters
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Wednesday, October 10, 12
Josh Rogers, Executive [email protected]
phone 478-742-5084 • fax 478-742-2008email [email protected] • site www.historicmacon.org
Wednesday, October 10, 12
CASE STUDY
Purchase a home with tax credits in place
Wednesday, October 10, 12
Homes
Wednesday, October 10, 12
Homes
Wednesday, October 10, 12
Restored homes from Historic Macon Foundation
include tax credits
Homes
Wednesday, October 10, 12
Restored homes from Historic Macon Foundation
include tax credits
Homes
Wednesday, October 10, 12
Restored homes from Historic Macon Foundation
include tax credits
This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax
credits.
Homes
Wednesday, October 10, 12
Restored homes from Historic Macon Foundation
include tax credits
This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax
credits.
Homes
Wednesday, October 10, 12
Restored homes from Historic Macon Foundation
include tax credits
This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax
credits.
The net monthly cost to own this $130,000 home is
$500 per month
Homes
Wednesday, October 10, 12
HomesHistoric home
Any other home
House Price $135,000 $135,000
Down Payment $4,725 $4,725
You Get a Raise! $2,700/year $0
Reduced Property Tax $205 $2,260
Total Savings $44,480 $0
Total Monthly Cost $500 $1,160
Wednesday, October 10, 12
HomesHistoric home
Any other home
House Price $135,000 $135,000
Down Payment $4,725 $4,725
You Get a Raise! $2,700/year $0
Reduced Property Tax $205 $2,260
Total Savings $44,480 $0
Total Monthly Cost $500 $1,160
Wednesday, October 10, 12
Down Payment Assistance
Wednesday, October 10, 12
Down Payment Assistance
The City of Macon offers down payment assistance up to $25,000 for people of low
to moderate incomes
Wednesday, October 10, 12
Down Payment Assistance
The City of Macon offers down payment assistance up to $25,000 for people of low
to moderate incomes
Mercer University offers $20,000 to all employees for
down payments
Wednesday, October 10, 12
Down Payment Assistance
The City of Macon offers down payment assistance up to $25,000 for people of low
to moderate incomes
Mercer University offers $20,000 to all employees for
down payments
Georgia Dream can offer $5,000 to $7,500 to help with
down payment and closing costs
Wednesday, October 10, 12
Sales Sheets
Wednesday, October 10, 12