1. The Tax Credit Time Machine Fred Copeman CohnReznick LLP Homes Within Reach Conference November 19, 2014

2. We’ve come a long way……

3. Born in the cradle of Tax Reform

4. It was painfully slow at first…

5. It started with public funds… Gross Proceeds$100,000,000 Broker commissions (9,000,000) Offering & Org. costs (2,500,000) Available for investment $88,500,000 Acquisition fees (10,000,000) Acquisition exp/other (2,000,000) Fund working capital (3,500,000) Net Lower Tier Equity $73,000,000

6. And at the lower tier….. First Mortgage 1,900,000(11.5% int) Soft second/CDBG 2,500,000 LP equity 5,000,000 Total proceeds 9,400,000 Developer fee(2,000,000) (27%) Builder profit (500,000) Synd. Cons. Fee (450,000) Net for dev. costs$6,450,000

7. Do it again 14.6 times….. Gross investor equity$100,000,000 Hard debt 27,740,000 Soft second loans 36,500,000 Total capital sources$164,240,000 Fees, expenses, etc (70,070,000) Net development capital $94,170,000 – $94/$164mm = 57%

8. Now for some “under”writing… 225 unit historic building 3.5% construction contingency Vacancy assumption3% (no rent subsidy) Rents inflate at 6%, expenses at 4% Operating expenses per unit$1,600 Repl. Reserve funding per unit$88

9. Finally it was time… To stop raising money from widows and orphans…and start hitting on the:

11. We started with…..

12. And were rescued by…..

13. So….you want to see the track record?

14. Good…..

15. Better…

16. Best…..