1. PRESERVATION CASE STUDY Marketing/transformationRelocation Credit Delivery Investor issues

2. Union Square Apartments Windsor

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

4. ARMORY SQUARE APARTMENTS PROFILE AT TIME OF PURCHASE 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

5. UNION SQUARE - TRANSFORMATION 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 werent available New Tenant Amenities: community room, on-site management, laundry room, and elevator

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

13. CREEKVIEW AT TIME OF PURCHASE Rural Development subsidy for 20 of 36 units Management not local and didnt have a big presence Risk of Conversion to Market Rate Housing

14. CREEK VIEW TRANSFORMATION Preserved affordability Local management and ownership Tenant amenities: laundry, porches, storage, accessibility

15. Creekview Apartments – Vergennes

19. EXISTING TENANT PROFILE Critical to know existing tenant incomes Income mix informs financing options Cost of permanent relocation can be high

20. RELOCATION 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

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

22. RETURN CALCULATION IRRAnnualIRRAnnual 10.74%8.76% CapitalLIHTCLosses @TaxCapitalLIHTCLosses @Tax Year Quarter PaymentsCreditsLosses35%SavingsYear Quarter PaymentsCreditsLosses35%Savings 2009 3/31/2009 0 00 2009 3/31/2009 0 00 6/30/2009 0 00 100 9/30/200910000009/30/2009 Start Construction 12/31/2009 0000 2010 3/31/2010 10,511 (7,446) 2,606 13,117 2010 3/31/2010 6/30/2010 10,511 (7,446) 2,606 13,1176/30/2010 00 9/30/2010 - 10,511 (7,446) 2,606 18,5319/30/2010 00 Complete Construction 12/31/2010 412,776 15,925 (7,446) 2,606 18,531 12/31/2010412,776 00 2011 3/31/2011 103,194 15,925 (7,417) 2,596 18,521 2011 3/31/2011103,19415,925(7,417)2,59618,521 6/30/2011 - 15,925 (7,417) 2,596 18,5216/30/2011 15,925(7,417)2,59618,521 9/30/2011 15,925 (7,417) 2,596 18,5219/30/2011 15,925(7,417)2,59618,521 8609 12/31/2011 15,925 (7,417) 2,596 18,521 12/31/2011 15,925(7,397)2,58918,514 2012 3/31/2012 15,925 (7,397) 2,589 18,514 2012 3/31/2012 15,925(7,397)2,58918,514 6/30/2012 15,925 (7,397) 2,589 18,5146/30/2012 15,925(7,397)2,58918,514 9/30/2012 15,925 (7,397) 2,589 18,5149/30/2012 15,925(7,397)2,58918,514 12/31/2012 15,925 (7,397) 2,589 18,51412/31/2012 15,925(7,397)2,58918,514

23. RELOCATION 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?

24. INVESTOR ISSUES Timing of admission – take care to deliver the best return Bank financial participation is limited if its a bond deal – no construction loan Good historical data with regard to market, income and expenses