1. RBC Capital Markets Tax Credit Equity Group Strictly Private and Confidential August 20-22, 2014 Prepared for New Mexico Housing Summit

2. 1 Successful Approaches to Public Private Partnerships Luna Lodge & The Sundowner  Problem Identification  Project Description  Public Benefit  Project Participants  Development Financing

3. Section 1: Problem Identification

4. 33 Problem Identification  Vacant motels lending to blighted conditions  Need to jumpstart Near Heights Metropolitan and East Gateway Sector Redevelopment Plan Areas  Lack of quality affordable housing options in the area  Desire to preserve the historic integrity of Route 66 Redevelopment Plan Objectives: Eliminate blight and prevent further deterioration of property values in the area  Revitalization of vacant motel properties Stimulate public and nonprofit/private investment in the area  Private equity and federal resources leveraged through local investment Increase the number of jobs in the area and increase the patronage of local businesses  Construction job creation and attraction of new residents to support local businesses Empower residents while furthering economic self-sufficiency and sustainability  New affordable and supportive housing options

5. Section 2: Project Descriptions

6. 55 Luna Lodge & The Sundowner Luna Lodge  Adaptive reuse of 1950s 28-room motel listed on the National Register  Redeveloped into 30-unit (14 units in original motel building + 16 new construction units on an adjacent parcel) residential community  Community space, including a demonstration kitchen for the residents seeking to acquire skills in the food industry  10 units set-aside for persons with Special Needs  Utilized Low Income Housing and Historic Tax Credits as a component of financing The Sundowner  Adaptive reuse of 1950s 110-room motel  Redeveloped into 71-unit mixed-income residential community  Includes a community room, computer room, tot lot, limited access gate, courtyard, covered patio/picnic area, laundry facilities, community garden  18 units set-aside for persons with Special Needs  Utilized Low Income Housing Tax Credits as a component of financing

7. 66 Luna Lodge BEFORE Vacant & Dilapidated Blighting Influence

8. 77 Luna Lodge AFTER

9. 88 The Sundowner BEFORE Vacant & Dilapidated Blighting Influence

10. 99 The Sundowner AFTER

11. Section 3: Public Benefit

12. 11 Public Benefits Luna Lodge & The Sundowner  Elimination of Blighting Influences  Furtherance of Redevelopment Plan objectives  Reactivation of long vacant properties  Much needed investment in an undercapitalized area  Increased public safety  Increased supply of affordable housing  101 new affordable residential dwelling units (10% - 50% market advantage)  28 units for special needs households (on-site supportive services)  Introduction of street frontage activating uses  Historic preservation  Architecture consistent with Route 66 historic past  Spotlights the potential for motels to serve as an asset in the community  Winner of several historic preservation awards  Leverage of non-local resources  Local resources served to secure private equity, federal subsidy, and state loan/grant funding

13. Section 4: Participants

14. 13 Luna Lodge & The Sundowner Public  US Department of Housing & Urban Development  New Mexico Mortgage and Finance Authority  City of Albuquerque  Metropolitan Redevelopment Agency Private  NewLife Homes, Inc.  RBC Capital Market  Garrett Smith Ltd.  Local General & Sub Contractors  JL Gray Company

15. Section 5: Project Financing

16. 15 Project Financing Luna Lodge (TDC ~ $4.8MM)  Tax Credit Equity - $3,151,529 (66% of total)  NM MFA First Mortgage - $138,000  City of Albuquerque - $1,241,523  NMED - $50,000  FHLB AHP - $210,000  Deferred Developer Fee - $31,796 The Sundowner (TDC ~ $9.3 MM)  Tax Credit Equity - $5,428,296 (58% of total)  NM MFA First Mortgage - $500,000  Primero Grant & Loan - $274,844  City of Albuquerque - $2,112,908  HUD CoC & NMED - $431,952  FHLB AHP - $500,000  Deferred Developer Fee - $20,174 Non-local leveraged funding $3.55 Million Non-local leveraged funding $7.14 Million