Our compensation depends entirely on the role that we would play. The more financial risk we take on, the more we’d look to share in the economics of the transaction. We are flexible in what roles and responsibilities we would take on. If the Organization would like to retain ownership,versight of contractor, L conNYS and federal agencies) rs be paid to the sponsor. This can be structured to acheive ease-up and we would provide development expertise, pre-development funding and construction-completion guarantees on a fee-for-service basis. In this case, we would act as a Fee Developer and not join in the ownership of the property. We would only receive payment out of developer fees which are paid by the rehabilitation budget – NOT by the Organization. In a co-development scenario where we assume all or a portion of the construction-period financial guarantees, the Organization could potentially receive the up-front payment, a portion of the developer fee and cash flow.

 

Fee Developer

 

Co-Developer

RESPONSIBILITY

HVPG

Org

 

HVPG

Org

 

 

 

 

 

 

Funding pre-development costs

x

 

 

X

 

Creation of construction scope

x

 

 

X

 

Obtain construction pricing

x

 

 

X

 

Oversight of construction

x

 

 

X

 

Create financial underwriting

x

 

 

X

 

Negotiate with agencies, lenders and tax credit investors

x

 

 

X

 

Hire and manage consultants (architect, engineers, expeditors, sustainability consultants, etc)

x

 

 

X

 

Manage relationships with Local Government and Federal Agencies

x

 

 

X

 

 

 

 

 

 

 

Construction completion guarantee

x

 

 

X

x

Lease-up guarantee

x

 

 

X

x

Operating deficit guarantee

 

x

 

X

x

Long-term LIHTC guarantee

 

x

 

X

x

 

 

 

 

 

 

COMPENSATION

 

 

 

 

 

Potential up-front cash payment

 

x

 

 

x

Developer fee

x

 

 

X

x

Cash flow

 

x

 

X

x