Hanley Wood

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Nuts and Bolts of Acquisition
Presentation by Scott Kline October 28, 2009
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National Housing Trust

• Committed to safeguarding affordable housing.
• Only national nonprofit engaged in housing
  preservation through real estate development,
  lending and public policy initiatives.
• The National Housing Trust
• Lends early money to developers to help them
  purchase and renovate affordable apartments.
  Loans have helped preserve nearly 5,000 homes.
• Educates policymakers of the need to dedicate
  resources towards the revitalization of existing
  affordable apartments.
• Acquires, recapitalizes, and preserves affordable
  apartments through development arm,
  NHT/Enterprise Preservation Corporation.
  NHT/Enterprise has participated in the
  preservation of over 5,000 homes.

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Todays Message Forget About the Cookie
Cutter

• Never really has been a cookie cutter process,
  but . .
  ..
• Tax-exempt bonds
• Low income housing tax credits
• IRP De-couplings
• Mark to Market additional funds
• Mark up to Market
• Todays transactions on which we are able to
  make some progress, have a unique
  something(s)
• The unique somethings are highlighted on the
  following project slides.

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Hollybrooke Apartments

• Jacksonville, FL
• 182 family units
• 100 Section 8
• Owner Local Nonprofit
• Brownfield Site
• Mark to Market

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Hollybrooke Continued

• FINANCING PLAN
• Mark to Market underwriting may yield exception
  rents.
• Level of exception rents determine whether
  additional funds are needed Private Activity
  Bonds 4 credits.
• Investor interested in 2009 closing verbal
  indication of interest for 2010 closing.
• City of Jacksonville may be willing to provide
  some soft gap financing.
• City of Jacksonville will take care of ash
  remediation
• Enterprise Green Communities Grant of 75,000
  secured.
• M2M Restructuring Note will be assigned to
  NHT/Enterprise
• Weatherization Funds ? ? ?

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Oakland Terrace Apartments

• 60 family units
• 100 Section 8
• Owner Local Nonprofit Who Wants
  Out
• Failed 2 REAC Inspections
• New Local Partner assisting NHT/Enterprise
• Section 8 Abatement in Process
• Compliance, Enforcement Disposition Plan

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Oakland Terrace Continued

• Drafted and Submitted CEDP, which commits
• Within 60 days existing management will be
  replaced with a qualified third party management
  company with substantial experience managing
  Section 8 properties and who shall be approved by
  HUD.
• Within 90 days, all Exigent Health and Safety
  items at the property shall be repaired (Phase I
  Repairs). Estimated costs of 10 - 15,000 to be
  funded by NHT/Enterprise and local partner with
  assistance from LISC.
• Within 180 days of HUDs approval of this CEDP,
  all repairs shall be complete as needed to pass a
  REAC inspection. (Phase II Repairs). Funded the
  same as Phase I Repairs.
• Current Owner will transfer property to
  NHT/Enterprise and its local partner and dissolve

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Oakland Terrace Continued
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Need Lender or HUDs Cooperation through a
foreclosure process to access NSP1
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St. Dennis Apartments

• Washington, DC
• 32 unit walk-up building
• Vacant
• Eyesore in a hip neighborhood of
  young professionals that want to see
  affordable housing retained
• High profile
  politically sensitive project

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St. Dennis Continued

• Acquired property pursuant to legal settlement
  using bridge loan with
  some City participation (50)
• Applied for and received reservation of 9 low
  income housing tax credits
• This neighborhood in Washington, DC still
  desirable for low income housing tax credit
  investment
• City has requested and our investor has agreed to
  fund 60 of equity, assuming City will cover the
  balance with Exchange Funds.
• Sources assumes inclusion of DDOE Weatherization
  Program Funding of 288,000
• Sources include equity raised from sale of
  historic tax credits
• Project still suffers a 2.1 million gap for
  which weve applied to receive an allocation of
  TCAP funds. Allocation of this gap funding
  subject to competitive process. Application
  submitted October 15th.

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Maison DeVille

• Pensacola, FL
• 144 units
• In foreclosure
• I.C.E. Loan
• Local PHA interested in ownership

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Maison DeVille Continued
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For more information

• E-mail skline_at_nhtinc.org
• Address 1101 30th St, NW, Suite 400
  Washington, DC 20007
• Phone [phone]
• Web www.nhtinc.org