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Preservation Case study

Marketing/transformation Relocation Credit Delivery Investor issues. Preservation Case study. Union Square Apartments Windsor. Armory Square to Union Square, Windsor Year rehabbed: 2009 Creek View Housing, Vergennes Year rehabbed: 2004. Marketing/transformation.

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Preservation Case study

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  1. Marketing/transformation Relocation Credit Delivery Investor issues Preservation Case study

  2. Union Square Apartments Windsor

  3. Armory Square to Union Square, Windsor Year rehabbed: 2009 Creek View Housing, Vergennes Year rehabbed: 2004 Marketing/transformation

  4. Downtown historic building in poor condition 74 Units Mod Rehab Section 8 with expired Tax Credits (2004) 50 of the 74 units occupied Local reputation as housing of last resort ARMORY SQUARE APARTMENTS PROFILE AT TIME OF PURCHASE

  5. Reduce number of units from 74 to 58 Reducing PB section from 74 to 25 Change unit mix Three bedroom units size increased Two bedroom units size increased One bedrooms weren’t available New Tenant Amenities: community room, on-site management, laundry room, and elevator UNION SQUARE - Transformation

  6. Management and marketing to re-brand the building New name New tenant profile – part of marketing UNION SQUARE - Transformation

  7. Rural Development subsidy for 20 of 36 units Management not local and didn’t have a big presence Risk of Conversion to Market Rate Housing Creekview attime of purchase

  8. Preserved affordability Local management and ownership Tenant amenities: laundry, porches, storage, accessibility Creek view transformation

  9. Creekview Apartments – Vergennes

  10. Critical to know existing tenant incomes Income mix informs financing options Cost of permanent relocation can be high Existing tenant profile

  11. Occupied rehab Contractor selection is key Temporary moves require a lot of owner coordination Involvement of management is critical Benefit of occupied rehab is quicker credit delivery relocation

  12. Claim the credit back to January 1st or acquisition date Construction completed before end of year Improves return – investor must be admitted to partnership Credit delivery

  13. Return calculation

  14. Vacate building and substantial rehab: Critical to have a plan and a budget Decision about when to begin leaving vacancies unfilled Who will be returning? relocation

  15. Timing of admission – take care to deliver the best return Bank financial participation is limited if it’s a bond deal – no construction loan Good historical data with regard to market, income and expenses Investor issues

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