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Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital , LLC

Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital , LLC. Working through the Damage 450,000 People Displaced $5.5 Billion in Damage to Infrastructure 56% of Schools in Affected Areas Remain Closed

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Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital , LLC

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  1. Rebuilding Communities After • Hurricane Katrina With • New Markets Tax Credits • James D. Howard, Jr. • TransCapital , LLC www.newmarketstaxcredits.com

  2. Working through the Damage • 450,000 People Displaced • $5.5 Billion in Damage to Infrastructure • 56% of Schools in Affected Areas Remain Closed • 30% Smaller Labor Force in New Orleans • 39% Increase in Rent in New Orleans • 661,057 Housing Units Damaged • Sources: MS Chamber of Commerce, 2005 Louisiana Hurricane Impact Atlas, FEMA 548 2006, Brookings Institute www.newmarketstaxcredits.com

  3. TransCapital's Involvement in the NMTC Program • TransCapital has been extensively involved in the NMTC Program • since its inception: • Successfully supported NMTC applicants which have received in excess of $2 billion in allocations of New Markets Tax Credits. • Structured, marketed and closed NMTC funds with committed debt and/or equity in excess of $400,000,000 of QEIs. • Closed QEIs utilizing leveraged and non-leveraged structures including tax-exempt bond financing. • First NMTC Go Zone transaction closed in January of 2007. www.newmarketstaxcredits.com

  4. NMTC Go Zone Transactions • Completed and Pending • Enta: Business Loan to Start-up Louisiana Technology Company in Baton Rouge, Lousiana • Mixed-Use Workforce Housing Project in Biloxi, Mississippi • Revitalization of a Severally Damaged Historic Building in Hattiesburg, Mississippi • Mixed-Use Workforce Housing Project in Jackson, Mississippi www.newmarketstaxcredits.com

  5. Enta: One of the First NMTC GO ZONE Transactions Completed • $13,325,000 QEI • Enta is a start-up technology company that provides low-cost ticketing services to sports and entertainment venues nationally • Enta chose to locate in Louisiana due to the Go Zone credits ultimately selecting the Louisiana Technology Park located in a low-income community in Baton Rouge • The Company expects to provide approximately 40 direct jobs in one of the poorest areas of Baton Rouge • Favorable NMTC financing allows the Company to direct its cash toward expansion, instead of to providing returns for equity investors • Mississippi www.newmarketstaxcredits.com

  6. Mixed-Use 250 Unit Workforce Housing Development • $66,000,000 mixed-use workforce housing project targeting Biloxi and Gulf Coast residents • The project will address Biloxi’s residential housing shortage while providing competitive retail and commercial space • Multiple CDEs are providing allocation to the project • Challenges include inflated land costs, escalation of construction costs, insurance premiums, and access to skilled labor www.newmarketstaxcredits.com

  7. Revitalization of Katrina Damaged Historic Building • Severally damaged building remaining vacant and in need of repair • Combined effort with University of Southern Mississippi and local lenders to utilize as university classrooms and offices • Approximately $12,000,000 in rehabilitation costs • Challenges include conversion to functional use while maintaining historic attributes, rising cost of construction, and ability cash flow at market rates www.newmarketstaxcredits.com

  8. Mixed-Use For-Sale Housing in Jackson • $32,000,000 mixed-use for-sale housing development in Jackson, Mississippi • Combined effort with Jackson State University and multiple CDEs • 106 for-sale units sold offered up to 25% below market value, subsidized by NMTCs • 25,000 SF retail with 78 for rent student housing apartments • Innovative below market rate for-sale units offered to university staff and targeted priority groups www.newmarketstaxcredits.com

  9. Succeeding in the Go Zone • Patience • Innovative capital structure to maximize subsidy and local community impact • Persistence to work with local lenders, municipalities, developers, and agencies often with disparate views • More patience and persistence www.newmarketstaxcredits.com

  10. James D. Howard, Jr. • jhoward@transcapitaltaxcredits.com • 2930 East Camelback Road, Suite #215 • Phoenix, AZ 85016 • Phone: (602) 468-9400 • Fax: (602) 468-2775 www.newmarketstaxcredits.com

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