Fclf Programs and Projects - CF Forum

Florida Community Loan Fund, Inc.

Carlton Fields CF ForumJune 20, 2013

FCLF is a statewide federally certified Community Development Financial Institution (CDFI).

Founded in 1994 to provide a statewide source of flexible financing for non-profits working in community development.

Since it began lending in 1996:• FCLF has closed 175 loans throughout Florida totaling over $52

million for projects totaling over $215 million.

• FCLF has committed $112 million of its $151 million NMTC allocation in 12 NMTC projects in Florida and the Southeastern U.S. totaling over $250 million.

About FCLF

Carlton Fields CF Forum – June 20, 2013

FCLF currently has three major programs:

Community Development Fund (CDF)

Florida Preservation Fund (FPF)

New Markets Tax Credit Allocations (NMTC)

From our Community Development Fund, FCLF makes

commercial loans primarily to non-profits.

All loans must have a community development or social

service purpose and serve low-income clients or

communities.

Beginning in FY 2009-10, FCLF elected to make loans to

mission-based projects developed by for-profits on a

selected basis.

Community Development Fund


Community Development Fund Terms: Maximum Loan size: $1.6 million

Fixed rates 4.75% to 6.5%(lower rates available for projects built to a certified green standard)

Origination fees typically 0.5%

Application fee $300

Terms of up to 10 years(limited availability of terms up to 20 years)

Amortizations up to 30 years

Loan-to-value (LTV) varies, but typically in the 85% range

No or minimal legal fees on typical transactions

CDF – Rates & Terms


The Transition House, Osceola County FL• Supportive Housing Provider, veterans and others• 11 loans totaling $1.9 million• Acquisition and renovation of homes and facilities

CDF – Recent Projects


DuPuis Pointe, Neighborhood Housing Services of South Florida• $1 million construction financing• 27 Green affordable single-family homes

Northwest Jacksonville CDC – Jacksonville• $796,000 construction/perm loan for 10,000sf LEED-certified multi-

use building • Total project - $2.6 million

CDF – Recent Projects The Transition House. Purchasing and

rehabbing homes and multi-unit buildings in Central Florida, primarily for Veteran housing

DuPuis Pointe, Miami. Affordable homes built using green and hurricane-proof standards

Northwest Jacksonville CDC. LEED-certified commercial building new construction project.


Florida Preservation Fund (FPF) provides financing to preserve affordable multi-family rental housing

Created with $4.8 million in funding from FHFC with a 3-county pilot area

Expanded to 26-county area with additional funding from JPMorgan Chase

Loans are provided to developers for acquisition and/or rehab to multi-family rental properties receiving project-based assistance

The Florida Preservation Fund - FPF


Preference will be given to the following borrower / sponsor types, presented in order of preference:

FPF – Eligible Borrowers


Community-based 501(c)(3) and 501(c)(4) non-profits.

Partnerships, Limited Liability Corporations, and other entities where the controlling interest is a 501(c)(3) or 501(c)(4) partner.

Housing Authorities.

For-profit developers engaged in affordable multi-family housing.

FPF Eligible properties must be located in one of the 26 eligible counties and

Meet 1 of 2 affordability criteria:

51% of units set aside for income of 50% or less of AMI;

100% of units set aside for income of 80% of less of AMI.

FPF – Eligible Properties


And meet 1 of the following:

Receiving project-based rental assistance and at risk of losing affordability restrictions;

Abandoned or foreclosed existing multi-family rental property;

Deteriorating property with affordability restrictions;

Occupied property that is at risk of losing affordability restrictions; or

Eligible and approved for funding as multi-family project under NSP guidelines.

Finance the acquisition of eligible properties by eligible

borrowers.

Rehabilitation of eligible properties required to attain stabilized

occupancy or to retain project-based rental assistance.

Short-term working capital to bridge timing differences between

payments for completed work.

Demolition and replacement of abandoned or severely decayed

properties that have qualified for NSP funds.

Refinancing of interim loans secured by eligible properties.

FPF – Eligible Loan Purposes


Maximum loan size $6 million

Acquisition, construction, bridge, mini-perm and term loans

Terms of 3 to 20 years

Fixed rates of 4.50% to 5.50%

Origination fee of 1.00%

1.25x DSC based on stabilized NOI

$2,500 application fee (discounted application and origination fees for non-profit borrowers)

Loans must be secured by project property with a 1st real estate mortgage

Loan-to-value for loans to for-profit borrowers 75% of the “as stabilized” appraised value.

Loan-to-value for loans to 501(c)(3) or 501(c)(4) borrowers 80% of the “as stabilized” appraised value.

FPF – Rates & Terms


Timber Ridge of Immokalee $368,000 refinance and rehab loan 34 rental units of farmworker housing and a community center

FPF Projects


Harvest Fire Worship Center, Oasis of Hope $250,000 acquisition and rehab to bring up to market conditions 32-unit apartment complex in Miami Re-finance of discounted payoff to FNMA of foreclosed property

West Palm Beach Housing Authority, Royal Poinciana $3.3 million acquisition and rehab including kitchens, flooring, painting Apartment complex with 144 units built in 1994

In closing: Workforce Housing Ventures, Stonehenge Apartments $355,000 refinance and rehab including roofs and parking 16-unit apartment building in San Antonio, Pasco County Refinance included negotiated re-structure of public financing

FCLF FPF Projects Timber Ridge of Immokalee. 34

rental units of farmworker housing and a community center.

Royal Poinciana, West Palm Beach. 144 unit apartment complex, acquired and renovated.

Oasis of Hope, Miami. 32-unit apartments under renovation.


Guidelines / Metrics $6 million minimum project size.

Project must be located in a qualified distressed, low-income census tract.

Project must provide clear and substantial benefits to low-income populations.

Project should generate notable construction and permanent jobs.

Works best for near-bankable projects (e.g. strong borrower and project that can pencil out with the extra support of NMTC).

NMTC – Guidelines & Structures


Advantages Effective rates are typically below market for commercial loans of this type. As a result of longer amortization or interest-only payments and typically lower

rates, monthly payments are lower than for similar size conventional loans. The “B” loan is often treated as up-front substitute for a portion of equity

required by lenders, resulting in higher LTVs. The equity conversion of the “B” loan means that most up-front equity becomes

true equity at end of 7-year term.

NMTC Projects that FCLF finds desirable:

Community facilities

• Community health centers or health care related projects serving low income clients

• Charter schools serving exclusively low-income students

Green-driven projects

• Solar

• Renewable energy

High impact economic development projects

• Job creation (substantially from within the community)

• Part of community redevelopment master plan

• LEED-certified

• Bringing new services to a low-income community a grocery store in a neighborhood that hasn't seen one in 20 years

a new or renovated building in a high distress CT that brings new business, services and jobs to the neighborhood.

Some of things we most certainly won't do:

• museums;

• hotels;

• fast food restaurants

NMTC – FCLF Drivers / Metrics


FCLF NMTC Projects Camillus House, Miami. Community facility

providing comprehensive services to 3,000 homeless and at-risk clients each year; total project $37.4 million. Funder Northern Trust Company and affiliates.

SolarSink, LLC, Tallahassee. Manufacturing solar “sausages” heatsink energy; total project $16.6 million. Funders include U.S. Bancorp CDC, Hunter & Harp Holdings.

KIPP School, Jacksonville. Charter school built on former greyhound racetrack; total project $26.2 million. Funder U.S. Bancorp CDC.


NMTC – Advantages & Challenges


Challenges Whether longer amortization or interest-only payments, there is a balloon payment

requirement at the end of 7 years; underwriting is for ability to refinance at that time. Some inflexibility (e.g. project location restrictions, no prepayments, term is always 7

years, certain purposes not allowed, etc). Program is very complicated and closings are time consuming; and there is a notable

learning curve for first-time capital providers and borrowers. High legal and accounting fees. Project must be ready to go. Generally, a new single purpose borrowing entity is required in order to reduce the

significant reporting requirements during loan term. In addition to loan guaranty, a Borrower or guarantor also provides indemnification for

tax credit recapture events caused by borrower’s actions.

Advantages Effective rates are typically below market for commercial loans of this type. As a result of longer amortization or interest-only payments and typically lower

rates, monthly payments are lower than for similar size conventional loans. The “B” loan is often treated as up-front substitute for a portion of equity

required by lenders, resulting in higher LTVs. The equity conversion of the “B” loan means that most up-front equity becomes

true equity at end of 7-year term.

12 projects, total $320 million, receiving $112 million in FCLF tax credit allocation

ASPIRA North Charter School expansion – North Miami, FL

PACE Elder Care Center – Richmond, VA

UM Life Science Research Center – Miami, FL (LEED certified)

KIPP Jacksonville Charter School – Jacksonville, FL (adaptive re-use)

Solar Sink solar cell manufacturing facility and solar field – Tallahassee, FL (Green)

BTH Quitman Torrefied wood manufacturing facility – Quitman, MS (Green)

Lake Point Restoration water treatment facility – Lake Okeechobee (Green)

ASPIRA Mid-Town Charter School purchase and expansion – Miami, FL

New Camillus House Campus – Miami, FL (LEED certified)

Metropolitan Ministries Miracle Place – Tampa, FL (LEED certified)

IN CLOSING: Green Biofuels bio-diesel manufacturing facility – Miami (Green)

IN CLOSING: Haug Hometown – Hitchcock’s Grocery Store – Old Town

FCLF NMTC Projects


ASPIRA North New Markets Diagram


Moving forward…

Continued opportunities in multi- and single-family housing, in conjunction with 2013 legislative funding for housing

Continued focus on NMTC Program with recent allocation award of $40 million

Expansion of staff to support lending, focus, and mission

Where is FCLF headed?


Thank you for your interest in Florida Community Loan Fund.

Florida Community Loan FundLending Team Contact InformationNelson Black 813.223.7400 TampaDirector of Lending

Cindy Ross 813.223.7422 TampaCommunity Development Loan Officer

Jim Walker 561.414.3933 Ft. LauderdaleCommunity Development Loan Officer

Valerie Williams tbd JacksonvilleCommunity Development Loan Officer

Susan Holtrey 407.246.0846 OrlandoPortfolio Administrator

MAIN OFFICE: 501 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32801-1364PHONE 407.246.0846

www.fclf.org


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Fclf Programs and Projects - CF Forum