Tax Exempt Bond Financing
The Related Group Related Urban (RUDG) Related Affordable (RAP)
Jorge Perez is Chairman / CEO Industry leader in condominium, market rate and affordable housing development Currently Developing over 3,000 units throughout Florida Independently Focused on Restructuring Legacy Projects and Existing Assets Partners with Urban Development Group and Related Affordable TRG Management / Fortune Contruction
Partnership between The Related Group and The Urban Development Group (RUDG) The Urban Development Group is Headed by Albert Milo Primary focus New Construction, Preservation and Substantial Rehabilitation Active in Competitive RFP’s/RFA’s including 9% Tax Credits
New York based Affiliate of The Related Companies (Stephen Ross) Division headed my Matt Finkle that focuses on Preservation and Rehabilitation Partner with Related Group in most Florida opportunities
Provide Gap Financing – CDBG/HOME/Other Work closely with Economic Development Restructure Existing Soft Debt Ease of Execution Work with Florida Housing in establishing development requirements Flexibility in Fee Structure
GSE Enhanced Private Placement Bonds Collateralized Bonds The markets are constantly changing. The execution that works today may not be optimal tomorrow.
Advantages ◦ Competitive interest rates ◦ Non-recourse ◦ Higher LTV and lower DSCR Disadvantages ◦ High transaction costs ◦ More parties involved in transaction ◦ More restrictions on subordinate financing ◦ Letter of credit during construction ◦ Limited ability to lock rate
Advantages ◦ Reduced Issuance Costs ◦ Easier Execution ◦ Funded on draw-down basis which reduces negative arbitrage ◦ Typically no credit enhancement or rating required Disadvantages ◦ Tie up capacity with lender for extended term ◦ Limited number of lenders for private placement ◦ Lower LTV and higher DSCR requirements
Advantages ◦ 1 Can yield higher loan proceeds ◦ 2 Flexible structures with favorable terms ◦ 3 Enhancement during construction by providing cash collateral for bonds Disadvantages ◦ 1 Negative arbitrage during construction ◦ 2 High issuance costs ◦ 3 Limited ability to lock rate ◦ More parties involved in transaction
Tax Exempt Mortgage Backed Securities
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