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Year 15 Universe

Year 15 Universe. Units by Funding: FY08 to FY16. 16,053 units in 179 transactions. Year 15 and You. What does y ear 15 mean for your project?. Receive Capital Subsidy to Address Capital Needs Amend FDA to allow for cash flow release Modify and extend existing debt.

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Year 15 Universe

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  1. Year 15 Universe Units by Funding: FY08 to FY16 16,053 units in 179 transactions

  2. Year 15 and You What does year 15 mean for your project? • Receive Capital Subsidy to Address Capital Needs • Amend FDA to allow for cash flow release • Modify and extend existing debt • Address operational issues • Resize Reserves • Extend Regulatory Term

  3. Year 15 Universe At year 15 Operations Healthy? Could improve Without doubt No Intervention- City may approve limited partner exit Level of rehabilitation required? Minimal Up to $20,000 per DU HPD Repositioning Private Debt More than $20,000 per DU HDC/HPD Resyndication

  4. LIHTC Preservation/Year 15 Strategies • Program Models Standard Repositioning – HPD Senior Lender Tax Benefit Only Funded Private Debt – HPD Subordinate Lender Tax Benefit Only Funded Re-syndication – HDC Tax Exempt Bonds/Tax Credit Equity Tax Benefit Only Funded

  5. LIHTC Preservation/Year 15: Other Tools • Tax Exemptions • Article XI • 420C • Cash flow releases • FDA may be amended to release portion of ongoing cash flow after reserve targets are met. • Rent restructuring possible in certain circumstances to ensure rental income covers expenses and debt service. • Regulatory Agreement • For non-TC units and/or TC units post-extended use period, affordability targets may be adjusted to accommodate higher AMIs for projects that can reduce subsidy, leverage other sources of funds and/or pay down existing debt. • 10% homeless set aside or extension of existing homeless requirements. • Portfolio Consolidation • LIHTC and similar Projects can be combined to enhance operations efficiency and to leverage sources.

  6. Repositioning Preparation PTC Phases Details 6 months 4months 2 months 1 month

  7. Repositioning Preparation What can you do now? • Address Violations, Arrears and LIHTC and HOME Non-Compliance issues on the Project and Sponsor Portfolio. • All HPD violations must be cleared and municipal arrears over $1,000 must be paid before a project can close. All ECB and ERPs must be paid. • Order GPNA (submit 3 proposals to HPD). • Understand M&O Issues. • Develop a Repositioning Strategy. • Collect Existing Loan Documents. • Check Certificates of Occupancy for accuracy and ensure there are no expired TCOs. • Finalize any pending reserve withdrawals. • Request issuance of certificates of completion, if needed.

  8. Repositioning Preparation Integrated Physical Needs Assessments (IPNAs) and Benchmarking • Required for all projects closing in FY18. • Initial and ongoing annual Benchmarking will be required • Qualified Lists of IPNA and Benchmarking providers are available online at: http://www1.nyc.gov/site/hpd/developers/development-programs/integrated-physical-needs-assessment.page

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