1. Florida Community
Loan Fund, Inc.
And
Metropolitan Ministries
Florida Housing Coalition
Annual Conference
September 2013

2.  FCLF is a statewide federally certified Community Development
Financial Institution (CDFI).
 Founded in 1994 to provide a statewide source of flexible financing
for non-profits working in community development.
 Since it began lending in 1996, FCLF:
 has closed 173 loans throughout Florida totaling over $51 million for
projects totaling over $250 million.
 has financed 93 facilities totaling 1.2 million square feet
 projects have created or retained 5,608 jobs
 projects have reached over 22,500 recipients of social services
 has committed $112 million of its $151 million NMTC allocation in 12
NMTC projects in Florida and the Southeastern U.S. totaling over $358
million.
About FCLF
Florida Housing Coalition – September 2013

3. Community Development Fund
Commercial loans to non-profit or mission-focused for-profit organizations
 The Transition House. Purchasing and Green standard
rehabbing of homes and multi-unit buildings in Central
Florida, used for supportive housing primarily to veterans
 DuPuis Pointe, Miami. 27 affordable homes built
using Green and hurricane-proof standards
 Northwest Jacksonville CDC. LEED-certified
10,600-sf commercial building new LEED-certified
construction project.
Florida Housing Coalition – September 2013

4. Florida Preservation Fund
Commercial real estate loans for preservation of multi-family affordable housing
 Timber Ridge of Immokalee. 34 rental units
of farmworker housing and a community
center.
 Royal Poinciana, West Palm Beach. 144 unit
apartment complex, acquired and renovated.
 Oasis of Hope, Miami. 32-unit
apartments under renovation.
Florida Housing Coalition – September 2013

5. Florida Community New Markets Fund
Funding for community facilities, Green projects, and economic development
 Metropolitan Ministries, Tampa. Human services
campus of 93,000 sf, providing 52 apartments for at-risk
individuals and family, child care, on-site public school,
counseling. Total project $18.9 million. Funders include
JPMorgan Chase, Whitney/Hancock Bank.
 SolarSink, LLC, Tallahassee. Manufacturing
innovative solar “sausages” heatsink energy, 1.0mw solar
field and 70 jobs; total project $16.6 million. Funders include
U.S. Bancorp CDC, Hunter & Harp Holdings.
 KIPP School, Jacksonville. Charter school built
from former greyhound racetrack for 170 students; total
project $26.2 million. Funders U.S. Bancorp CDC, National
Equity Fund.
Florida Housing Coalition – September 2013

6. FCLF New Markets Tax Credits Projects
Florida Housing Coalition – September 2013
FCNMF’s NMTC Focus is on Community Facilities, Green Projects, High-Impact
Economic Development Projects
FCNMF will not use NMTC for Museums, Hotels, Fast Food Restaurants
FCNMF NMTC projects total 12 projects, $358 million project cost, receiving
$112 million in FCLF tax credit allocation
 ASPIRA North Charter School expansion –
North Miami
 PACE Elder Care Center – Richmond, VA
 UM Life Science Research Center – Miami
(LEED certified)
 KIPP Jacksonville Charter School –
Jacksonville (adaptive re-use)
 Solar Sink solar cell manufacturing facility and
solar field – Tallahassee (Green)
 BTH Quitman Torrefied wood manufacturing
facility – Quitman, MS (Green)
 Lake Point Restoration water treatment
facility – Lake Okeechobee (Green)
 ASPIRA Mid-Town Charter School purchase
and expansion – Miami
 New Camillus House Campus – Miami
(LEED certified)
 Metropolitan Ministries Miracle Place –
Tampa (LEED certified)
 Green Biofuels bio-diesel manufacturing
facility – Miami (Green)
 Hometown Markets – Hitchcock’s Grocery
Store – Old Town

12. Uplift U ®
Unique on-site
residential program
personalized for each client
to lead them to self-
sufficiency

13. PromiseLand Day Care
Partnership School
Outside of School Care
On-site GED Program
Teen Program

14. Partnership
School

15. Employment Lab

16. 17,000+ homeless men, women, and
children in Hillsborough County (Highest
in Florida)
• Only 1,500 emergency and
transitional beds to support them
15 Families coming daily to MM looking
For Shelter
Existing Dining Facility at Capacity
Why Expand?

17. Fragmented and
Antiquated Daycare
Near Capacity
Why Expand?

18. “Where hope grows,
miracles blossom.”
Elna Rae

19. NMTC Program Summary
Florida Housing Coalition – September 2013
 US Department of the Treasury CDFI
Program
 Purpose is to spur investments into
businesses and real estate projects in
low-income communities
Pictured: ASPIRA Eugenio Maria de
Hostos School, Miami NMTC investors receive tax credits
against their Federal income tax return in exchange for
making equity investments in specialized financial institutions
called Community Development Entities (CDEs)
 Major federal economic development program - larger than
CDBG
 Construction or major renovation of real estate projects
located in qualified low-income census tracts

20. NMTC Program Demand
Florida Housing Coalition – September 2013
 $36.5 billion through 749 awards
since inception
 Competitive: Banks, developers,
government, CDFIs
 2012: 282 applications requesting
$21.9 billion
 Awarded 85 allocations totaling
$3.5 billion (20 non-profit CDFIs)
 FCLF: $151 million cumulative in tax credit allocations
 New proposed program funding: 2013 & 2014: $8.5 billion combined
 In Florida, over $530 million in projects done through NMTC
Pictured: U of Miami Life Science Research Park

21. Key NMTC Program Components
 Tax credits only-not a grant
 Not loan capital-must raise upper tier debt & tax credit
equity
 Equity investor receives all of return through tax credits
 The investment in the CDE cannot be redeemed
before the end of the 7-year period
 Severe penalties for program & IRS violations – tax
credit recapture 39% of investment
 Borrower & Allocatee indemnifications
Florida Housing Coalition – September 2013

22.  $6 million minimum project size.
 Project must be located in a qualified distressed, low-
income census tract:
30% poverty, 60% median income, or 1.5x national
unemployment
 Project must provide clear and substantial benefits to low-
income populations.
 Project should generate notable construction and
permanent jobs.
 Works best for near-bankable projects (e.g. strong
borrower and project that can pencil out with the extra
support of NMTC).
NMTC – Guidelines & Structures
Florida Housing Coalition – September 2013

23. LIHTC vs. NMTC
Florida Housing Coalition – September 2013
LIHTC…
 Offers tax credits
 Provides front-end subsidy for
projects
 Has significant restrictions on use
 Distributed through state housing
agencies
 Each project competes for tax
credits
 Has very long compliance periods
– longer than the benefit of the
credits
NMTC…
 Offers tax credits
 Provides shallow subsidy; additional
subsidies may be needed
 Provides equity that accrues at the
back end of the project
 Seldom used for housing, but many
economic development uses
 CDEs compete for tax credit
allocations nationally and distribute
as they decide
 Compliance period and benefits are
over a 7-year period

24. Typical LIHTC Diagram
Florida Housing Coalition – September 2013

25. Camillus House New Markets Diagram
Florida Housing Coalition – September 2013

26. NMTC Projects in Florida have included:
 Shopping Centers
 Manufacturing Facilities
 Hotels
 Museums
 Office Complexes
 Restaurants
 Auto Retail
 Boat Manufacturing
 Affordable Home Ownership by Habitat for Humanity
There are other types; these are examples.
NMTC – Eligible Project Types
Florida Housing Coalition – September 2013

27. NMTC Projects that FCLF finds desirable:
 Community facilities
• Community health centers or health care related projects serving low income clients
• Charter schools serving exclusively low-income students
 Green-driven projects
• Solar
• Renewable energy
 High impact economic development projects
• Job creation (substantially from within the community)
• Part of community redevelopment master plan
• LEED-certified
• Bringing new services to a low-income community
 a grocery store in a neighborhood that hasn't seen one in 20 years
 a new or renovated building in a high distress CT that brings new business, services and jobs to the neighborhood.
 Some of the projects that are qualified but FCLF will not do:
• museums;
• hotels;
• fast food restaurants
NMTC – FCLF Project Types
Florida Housing Coalition – September 2013

28. NMTC – Who is Involved
Florida Housing Coalition – September 2013
Above: KIPP School Jacksonville
Below: Metropolitan Ministries MiraclePlace
groundbreaking, Tampa
 Borrower (QALICB)
Significant benefits.
 Lower debt service coverage
 Higher LTVS
 Potential for equity
 Allocatees (one or more Community
Development Entities, or CDEs )
Benefits:
 High Mission Impact
 Fee income
 Investors (typically a bank)
Benefits:
 > 39% federal tax credit
 > $10MM. $2.7MM investment yields $3.9MM

29. NMTC – Who is Involved, continued
 Upper Tier Lenders (borrower affiliates,
banks, Community Development Financial
Institutions, foundations, public entities)
Benefits:
 most interest income flows to upper tier lenders
 stronger LTV ratios
 strong borrower repayment incentive
 Attorneys (NMTC specialist, RE attorneys)
 Accountant (Reznick or Novogradac
accounting firms)
 NMTC Consultant
Florida Housing Coalition – September 2013
Pictured: Camillus House, Miami

30. Miracle Place, before expansion
Florida Housing Coalition – September 2013
Pictured: MiraclePlace site, pre-construction

31. Housing Units Current Proposed Variance
Emergency 10 20 +10 100%
Transitional 34 79 +45 132%
Total 44 99 +55 125%
10
20
34
79
44
99
0
20
40
60
80
100
120
Current Proposed
Housing Units
Emergency
Transitional
Total
MiraclePlace Proposed
Expansion, Housing

32. 98
211
26 48
218
467
342
726
0
100
200
300
400
500
600
700
800
Current Proposed
Annual Residents
Families
Single Women
Children
Total
Current Proposed Variance
Families 98 211 +113 115%
Single Women 26 48 +22 85%
Children 218 467 +249 114%
Total Annual Residents 342 726 +384 112%
MiraclePlace Proposed Expansion,
Annual Residents

33. View from Northeast (along N. Florida Avenue)

34. View from Northwest (E. Frances Avenue)

35. View from Southwest across campus
and Reflection Garden

37. Before
NMTC
Closing
After
NMTC
Closing
Sources Available from
Cash, Pledges, Grants, and Financing
$ 10,000,000 $10,000,000
New Net Equity from NMTC $ 3,600,000
Development Budget $ 13,214,992 $13,214,000
Funding Surplus / (Deficit) ($ 3,214,000) $ 386,000
Financial Impact of NMTC

38. Other Impacts of NMTC
 Reduced construction interest costs due to significant
project funding from cash rather than debt
 Capital campaign focus shifted to future phases rather
than focusing on completion of initial phase, building
substantial momentum and community support
 Broader exposure for our project
 New partners in FCLF, Chase, Hancock Bank, and
Enhanced Capital

39. Advantages of the NMTC Structure
Florida Housing Coalition – September 2013
 Effective rates are typically below market for commercial loans
of this type.
 As a result of longer amortization or interest-only payments and
typically lower rates, monthly payments are lower than for similar
size conventional loans.
 The “B” loan is often treated as up-front substitute for a portion of
equity required by lenders, resulting in higher LTVs.
 The equity conversion of the “B” loan means that most up-front
equity becomes true equity at end of 7-year term.

40. The Good, The Bad, and The Ugly
 Extremely valuable funding vehicle
 Enormous time investment required to perform
necessary due diligence, document production, and
evaluation of documents
 Very, very, complex process that requires multiple
expert consultants to close transaction
 Possible to handle in-house, but not recommended!

41. Challenges using the NMTC Structure
Florida Housing Coalition – September 2013
 Whether longer amortization or interest-only payments, there is a balloon
payment requirement at the end of 7 years; underwriting is for ability to
refinance at that time.
 Some inflexibility (e.g. project location restrictions, no prepayments, term is
always 7 years, certain purposes not allowed, etc).
 Program is very complicated and closings are time consuming; and there is a
notable learning curve for first-time capital providers and borrowers.
 High legal and accounting fees.
 Project must be ready to go.
 Generally, a new single purpose borrowing entity is required in order to
reduce the significant reporting requirements during loan term.
 In addition to loan guaranty, a Borrower or guarantor also provides
indemnification for tax credit recapture events caused by borrower’s actions.

42. Is Closing Using NMTC Worth It?

43. Phase II – Next Steps
 K-5 Elementary School
 Youth Enrichment Center for After-School Programs
 Gymnasium and Assembly Hall to Enhance School
and After School Programs

44. Florida Community Loan Fund
Metropolitan Ministries
Contact Information
Nelson Black, Director of Lending
813.223.7400 Tampa
Cindy Ross, Community Development Loan Officer
813.223.7422 Tampa
Jim Walker, Community Development Loan Officer
954.315.1746 Ft. Lauderdale
Valerie Williams, Community Development Loan Officer
904.790.2785 Jacksonville
Susan Holtrey, Loan Portfolio Manager
407.246.0846 Orlando
MAIN OFFICE: 501 NORTH MAGNOLIA AVENUE, SUITE 100
ORLANDO, FLORIDA 32801-1364
PHONE 407.246.0846
www.fclf.org
Florida Housing Coalition – September 2013
Brian Evjen, VP, Strategic Planning and Analysis
813.209.1227 Tampa
Tim Marks, President and
Chief Operating Officer
813.209.1250 Tampa
Madelyn Cloninger, Director of Advancement
813.209.1235 Tampa
2301 NORTH TAMPA STREET
TAMPA, FLORIDA 33602
PHONE 813.209.1200
www.metromin.org