1. Building a Better Quality of Life Sir Charles Apartments Yankton, SD 1

2. Building a Better Quality of Life Sir Charles Apartments Built in 19 th century; National Registry 1982 – rehabbed under Section 8 Substantial Rehabilitation Program; 34 – 1BR units Located in Yankton, SD (population 14,000) downtown close to services Local ownership - 40 individuals from the community Lewis and Clark Behavioral Health Services had clients residing in the property Age of building, lack of financial resources and owners interest, building began deteriorating rapidly 2

3. Building a Better Quality of Life Sir Charles Apartments Financial Feasibility – $455,823 owed on original mortgage - debt service delinquent, 13.3% interest rate, maturity 2013 Annual debt service - $160,700, only afford $105,000 Concern that prepayment of first mortgage would risk Section 8 housing assistance (40 yr. contract) $455,823 prepaid with conventional financing would cost the development over $270,000 Building appraised at $1,450,000 – not sufficient financing or cash flow to finance the acquisition 3

4. Building a Better Quality of Life Sir Charles Apartments Financial Feasibility – Lewis & Clark nonprofit organization Original owners wanted out, charitable contribution South Dakota Housing Development Authority (SDHDA) Preservation loan to guaranty cash flow Drawn down monthly to assist with paying first mortgage debt ($7,156/month for 43 months) Approximately $327,900 loan to be capitalized at maturity of first mortgage (August 2013) Re-amortized over 6.5 years at 3.6% 4

5. Building a Better Quality of Life Sir Charles Apartments Other Financing – SDHDA HOME Funds - $788,240, 0% interest, irregular amortization, repayment begins 2020, when Preservation loan has been repaid, repaid within 10 years Housing Tax Credit equity - $ 2,288,103 – utilized Tax Credit Exchange program Local Lender - $ 393,157, 7.75% and 15 yr. amortization, subordinated lien position, repayment began year 1 5

6. Building a Better Quality of Life Sir Charles Apartments Total Development – Existing mtg. $ 455,823Acquisition$ 530,823 HOME Funds $ 788,240Rehabilitation$2,436,275 HTC (exchange)$2,288,103Professional fees$ 88,000 Local Lender $ 393,157Financing costs$ 273,000 Developer fee$ 319,225 Reserves$ 95,000 Other soft costs$ 183,000 Total Financing $3,925,323 Total Costs$3,925,323 6

7. Building a Better Quality of Life Sir Charles Apartments 2009 Operations 2011 Budget Gross Rents$322,506$331,872 Vacancy$ (17,557)$ (23,231) (7%) Other Income$ 13,751$ 12,000 Operating Exp.$108,908$110,040 Maintenance$ 6,364$ 36,489 Taxes and Insurance$ 28,797$ 29,987 Net Operating Income$147,551$120,225 Debt Service$160,704$102,866 Reserve Accounts$ 65,592$ 95,000 Distributions Payable$349,478$ 0 Debt Coverage Ratio1.15 to 1.25 7

8. Building a Better Quality of Life Sir Charles Apartments Major Rehabilitation - Installing fire sprinkler system Updating for building codes including replacing all outlets, switches and lighting fixtures Replace windows, repair brick and stone (tuck pointing and clear sealant), replace existing boilers, and hot water heaters Complete renovation of all tenant units and common areas Reinstated historical features that were lost in the rehabilitation of 1982 8

9. Building a Better Quality of Life Sir Charles Apartments Long Term Viability – Retained Section 8 housing assistance –elderly or disabled tenants 40% AMI or lower income Proper budgeting of income and expenses Reserve accounts funded for future needs (replacement reserves) Tenant services – case management, life skills, one meal per day, close proximity to services All debt repaid in 20 years 9

10. Building a Better Quality of Life Sir Charles Apartments Partnerships - Original owners forgoing equity in the property Local nonprofit wanting to retain affordable housing in their community Local lender willing to take a second lien position for their conventional loan SDHDA providing additional funds to create a feasible financing option 10

11. Slide 11 Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA

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13. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 13

14. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 14

15. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 15

16. Gordon H. Mansfield Veterans Community Soldier On) Pittsfield, MA Slide 16

17. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 17 Reaching Underserved Populations and Promoting Long Term Affordability: Understanding the Customer Veterans transitioning out of homelessness Need for community space Need for accessibility Need for services Making sure design and scope fit customers needs

18. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 18 Reaching Underserved Populations and Promoting Long Term Affordability: Serving the needs of the underserved Permanent, supportive housing Intensive network of supportive services Access to a broad community partnership Case manager available

19. Gordon H. Mansfield Veterans Community (Soldier On) Pittsfield, MA Slide 19 Reaching Underserved Populations and Promoting Long Term Affordability: Designing for the population Full-service, individual units Village and main street concepts to promote community LEED-certifiable building design 26% of units are accessible to people with physical disabilities 51% of units are adaptable and visitable to people with physical disabilities

20. It takes the right ingredients… Slide 20

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22. Vermonts HOME Program Building Sustainable CHDO Capacity

23. Perpetual affordability No Displacement Build capacity; serve regions with high unemployment and low per capita income Partnership with conservation community State Trust Fund; CLT Model; Q.A.P. and Consolidated Plan Priorities State Housing Policy Environment Slide 23

24. outreach financial support and incentives training targeted technical assistance monitoring and evaluation troubleshooting and workouts, as necessary Components of VTs CHDO capacity program: Slide 24

25. VHCB, through its operating support grants and ongoing organizational monitoring, plays an important role in building and maintaining the capacity of individual nonprofits... [VHCBs] collaborative mentoring approach and flexible underwriting augmented with training and careful organizational monitoring has strengthened and hardened the nonprofit industry in Vermont appropriately. ICF Report 2004: Slide 25

26. CHDO projects in Vermont Slide 26 Vermont CHDOs have developed nearly 3,000 units of affordable housing (nearly 1,000 HOME units) in 70 towns ranging from Vermonts largest city, Burlington, to very small towns, like Groton (population 966).

27. Groton Community Housing (before) Slide 27 In this small town, a major revitalization project, rehab and new construction, transformed the village center (before/during)..

28. Groton Community Housing (after) Slide 28 After: The general store, with apartments above and 3 business incubator spaces. 19 apartments; $204,200 HOME award.

29. 1)Raising money locally; 2)Identify properties that are losing money or experiencing high vacancies; 3)Establishing organizational goals and objectives for: organizational planning staff/board relations personnel finance contract compliance technical operating systems project development property and asset management tenant relations community relations Examples of CHDO Operating grant requirements: Slide 29

30. Adaptive Re-use: Daly Shoe Building Slide 30 The Windham Housing Trust created 29 apartments in the Daly Shoe Building, a former warehouse. The energy efficient retrofit uses solar panels for domestic hot water.

31. Waterfront Housing, Burlington Slide 31 2005 Home Depot Award of Excellence for Affordable Housing Built Responsibly LEEDS certified: high efficiency building envelope; locally cut and milled flooring; state-of-the-art storm water runoff treatment system; advanced heating and cooling systems; direct line of sight to daylight for more than 90% of occupied space.

32. CHDO staff work one-on-one with VHCB staff on financial, personnel, development & administration; VHCB pays for consultants to work with CHDOs on specific issues; VHCB has sponsored 37 workshops developed in response to an annual survey of CHDOs VT provides a robust technical assistance program Slide 32

33. The Willard Mill (a former industrial building) was converted to housing. Energy retrofit with interior foam insulation and aluminum clad windows. Energy performance will allow affordability at oil prices up to $6 a gallon. Slide 33

34. Bellows Falls Family Housing Slide 34 Energy use was cut in half after windows were replaced, solar panels for domestic hot water were installed, siding was removed and exterior rigid foam insulation added. The property will be able to maintain affordability at oil prices in the $5/gallon range.

35. 34 affordable apartments and commercial space developed by the Champlain Housing Trust after a fire. Park Place, Burlington Slide 35

36. 16 apartments developed by the Central Vermont Community Land Trust. On the ground floor is a branch of the local library; out back is a ballfield used by the Little League. Green Mountain Seminary Apts, Waterbury Slide 36

37. Infill Development: Passumpsic View Apartments (before) Slide 37 A huge void was left in the center of St. Johnsburys downtown when the prominent Daniels Block burned to the ground in January 2000. This picture shows the town band preparing to play at the groundbreaking celebration for Passumpsic View Apartments as a neighboring structure, damaged in the fire, looms in the background.

38. Infill Development: Passumpsic View Apartments (after) Slide 38 The newly constructed 4-story building includes 25 senior apartments with rental assistance and 2 commercial spaces along with a large community room.

39. Howard Block in Bellows Falls (pop. 3,165) After a fire, the brick apartment building was renovated with CDBG funds, VHCB grants and HOME funds to create 13 affordable apartments and 4 commercial spaces. Slide 39

40. rade grounds. Also on the site are rental apartments and housing for persons living with AIDS. Officers Row, Dalton Drive, Essex and Colchester Slide 40 Affordable duplexes with conserved parade grounds. Rental apartments and housing for persons living with HIV/AIDS are also on the site.

41. Cottage Street, Rutland (before) Slide 41 This building was demolished during a neighborhood revitalization project. Rehab and new construction created 27 apartments in 7 buildings, using $375,000 in HOME funding.

42. Cottage Street, Rutland (after) Slide 42 These two multi- family apartment buildings, designed to fit the style of the neighborhood, replaced the demolished buildings.

43. Tuttle Block, Rutland 13 affordable downtown apartments, 2 commercial spaces, and office space for the Housing Trust of Rutland County. Slide 43

44. Conant Square Apartments, Brandon Slide 44 4 HOME units in a 19-unit senior housing development - Housing Trust of Rutland County