website-advisory-photoWe are flexible in how we work with owners and can tailor our role to fit the situation and optimize the results. We understand the complexities of refinancing and rehabilitating properties under State and/or Federal programs, including: Section 236 properties; Section 42 LIHTC properties; Section 8 properties; HUD 202 projects, or other federal or state assisted properties, including HOME

We offer owners the flexibility to remain in the project, guiding them through the complicated redevelopment process, by incorporating them into Owner in Place Preservation (OPP). We work with expert contractor partners for rehabilitation of the units to help assure proper Agency & Investor compliance and viability of these projects for years to come.

FAQ’S

HVPG (we) would help your organization refinance through either a FHA/HUD refinance or a 4% Low Income Housing Tax Credit/Tax Exempt Bond transaction. We would work with local and state agencies to maximize the financial support for the project, typically in the form of subsidies and grants.
This would benefit your organization in several ways. You would get a newly renovated property at no out-of-pocket expense to your organization. You would also have the opportunity for an upfront cash payment as well as increased long-term cash flows from operational efficiencies.
Aside from having the prerequisite expertise and experience, we set ourselves apart in our flexibility. We are comfortable playing different roles, depending upon your organization’s interest and needs. We can simply act as a Fee Developer guiding your organization through the complicated process. We can also act as a development partner, providing financial guarantees and covering all out of pocket expenses with the project.
We would be happy to walk you and your organization through the details of how the transaction would be structured. In short, your organization will be able to maintain a long-term ownership position and can keep control of the operations if it desires.
This is entirely negotiable. You let us know what you want us to do. We would usually provide financial guarantees, obtain financing, oversee the construction, and assist in all aspects of permanent loan conversion. Our long-term involvement depends on the final deal structure and the guarantees provided. We would expect you to provide us with all pertinent information about the property. We would also expect to work closely with you in determining together what improvements should be made to the property and what services can be enhanced/offered.
Our compensation depends entirely on the role that we would play. The more financial risk we take on, the more
we would look to share in the economics of the transaction. We are flexible in what roles and responsibilities we would
take.

If the organization would like to retain ownership, 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.

It depends on how we finance the rehab. If we use tax credits, then we’d have to restructure ownership during the tax credit compliance period. The organization would maintain ownership (along with tax credit investors) during this time and have opportunity to control operations. After compliance, the tax credit investors exit and the organization retains ownership. If we did an FHA/HUD refinancing, then the current ownership of the building will not change.
This is relevant if we pursue refinancing utilizing tax credits and tax-exempt bonds. This is something with which we have extensive experience and expertise. We would oversee the entire process including working with the investors. The question about ownership is a complicated one. During the tax credit compliance period the tax credit investors technically are involved in ownership. They exit after compliance. The long-term ownership of the property is not impacted by this financing structure. To the extent that you want us to help with long-term financial guarantees, we can. We would look for a fair compensation for that risk (usually in the form of a split of ownership), which is entirely negotiable.
The organization can benefit in different ways, including but not limited to a potential upfront payment, management fees, and increased long-term cash flows from operational efficiencies.
If the HDFC acts as fee owner only, the potential cash payment would be paid to the sponsor. This can be structured to achieve your goals.

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