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00 <br /> ""W"a w, <br /> IMP. IMBO <br /> w Afforda6Ce Housing Committee <br /> 16 Great Neck RoadJVorth <br /> Mashyee, M-A 0264.9 <br /> on location and scale. The biggest factor is getting the tax credit to work. You have to be <br /> ambitious and aggressive but up front and transparent. RFP's have aggressive timelines so <br /> everything is met but it can take a while. Key drivers for success in the 9% tax credit funding <br /> round is already having zoning approvals. Knowing that the pre application deadline for the <br /> winter round is in October or November, they review the calendar and see how long it will take <br /> to get through and have the project permitted. You will be more likely to get invited into a full <br /> round with zoning in place. <br /> Chair Sparkes noted with multiple funding rounds, and it being so competitive, you are <br /> competing with many projects across the state. It was referred to as a cue, and you want to <br /> have your project in the cue, and sometimes it takes a cycle or two before it's your turn. <br /> Mr. Tobin unpacked LIHTC from the equity investor who is purchasing credits, but they are <br /> buying equity into the project, not just a tax deduction. <br /> Mr. Fellows answered the limited partner as 99% owner, and the general partner as the lead <br /> developer at 1%. It's a structure that satisfies the tax requirements. There are certain tests, you <br /> have to have enough material ownership in a project before you are eligible. <br /> Mr. Tobin asked how an LIHTC investor actually has equity if they are not sharing in rental? <br /> Mr. Fellows stated in some level they do, he alluded to some esoteric factors to calculate yields <br /> and sometimes take paper losses on properties of value. They are an owner and have a say in <br /> any disposition of the property, leading up to year 15, when the project is coming out of <br /> compliance and can be sold or recapitalized. Both parties are trying to carve out as much <br /> control and many rights at that disposition stage, there are exits, like transactions where the <br /> limited partner gets bought out to be removed from the partnership and allows the general <br /> partner to do something different. <br /> Mr. Tobin stated with the 9% LIHTC being more competitive, it is also more than twice as <br /> valuable in an economic sense. Taking a higher percentage of costs, it's a much more scarce <br /> resource. <br /> Ms. Geoffrion asked if they ever use bonds. Mr. Fellows answered they utilize bond generated <br /> financing through state financing agencies, they don't issue a bond specifically for a project. <br /> POAH recently issued its first couple bonds to generate funds that can be used for <br /> predevelopment, it doesn't go directly into projects. <br /> PUBLIC COMMENT <br /> 12 <br />