A%20MuniMae%20Company

1
A MuniMae Company
, Inc.

• General Partner Changes During the Compliance
  Period
• The Investor and Sellers View
• Presented By Michael H. Gladstone, Esq.
• November 20, 2008

2

• Two Categories
• Defensive
• Market

3

• Defensive---Problems with the Property or General
  Partner
• Investor Exercises or Threatens to Exercise
  Removal Right
• Protect Tax Credits and Asset
• As Syndicator we dont want to be GP

4

• Market Transaction
• 15 Years is a long time (LIHTC rules mandate GP
  sale not property sale)
• Change in Business or Focus
• Take Advantage of Strong Market
• New GP may be able to mine additional
  opportunities (PM, Dev)
• As Syndicator we dont want to be a Long Term GP

5

• What is the Syndicator Looking For? Our Primary
  Concern is the Tax Credits
• Experience and Reputation (local?) No more 3 A.M.
  Calls
• Financial Resources
• Commitment (Guarantees)
• Reliability to Close
• Special Needs (Non-Profit, PM, Construction,
  Turnaround)

6

• What Else is the Syndicator Looking For?
• Opportunity (Tag Along? bulk up GP Interest)
• Exit Strategy
• New World
• Waterfall
• Fix Tax Issues
• Leverage Issues (new debt)
• Reimburse Costs
• Capital Needs?
• Strengthen Removal Rights (test drive)

7

• Other Considerations
• Lender Approvals
• Environmental
• Key Principal
• State Agency

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Remember Get to Us Early in the Process