Mortgage Partnership Finance Program: Fill & Download for Free

Hi There. My short personal story is I worked for a boutique (a.k.a. 3 people in the office including myself) real estate developer for about 7.5 years specializing in low-income housing for seniors (large multifamily projects, typically 100+ units, total development cost between $10MM - $40MM per project). We worked on new construction projects and tenant-in-place renovations. Two years ago I went off on my own because I love development and wanted to call my own shots. I was at a point in my life where I felt that I could take some risk without suffering major losses (28 and single). I also made sure to keep my overhead as low as possible. At this point personal expenses = business expenses. So! My journey began as a development consultant.In order to be a developer, you absolutely have to have a source of capital. Whether it's debt financing or equity, you've gotta have some money to contribute to a potential project. Even if you leverage up your development deal, you will most likely have to contribute at least 5% of the total development cost.There are many approaches to development and it helps to have a specialty that is related to the industry in some way (attorney, accountant, "finance guy" like myself, contractor, real estate agent). I will go through the basic phases of real estate development to illustrate the process of development. This applies to new construction and renovation projects. I'm essentially copying and pasting this from my company brochure, but please do not take this as a solicitation. Please forgive the crappy formatting as well.Phase I - Concept stage· Establish client needs and project goals· Initial site assessment· Perform financial feasibility and zoning analysis· Prepare the preliminary development budget· Development team selection – includes architect, project attorney, surveyor· Community acceptance – liaison with local community leaders, community board, local stakeholders and elected officials· Review the preliminary architectural drawings as part of the community review processPhase II - Pre-development· Review of various financing programs that are best suited to achieve the project’s mission and goals· Development of financing alternatives and preliminary budgets including:o sources and uses of financingo development budgeto operating budgeto mortgage analysiso cash flow projections· Procure third party services and negotiate contracts and fees· Prepare and submit financing applications· Negotiate investment terms with equity partners, syndicators and investors· Secure financing commitments from funding agencies, lenders and investors· Manage the development of architectural drawings· Supervise the bid process and selection of the general contractor· Manage due diligence and third party reviews· Assist the legal team with preparation and review of partnership and financing documents· Supervise the filings of Dept. of Buildings applications and building permitsPrepare the project for the initial closingPhase III - Construction· Set up a requisition and funding tracking system· Prepare monthly requisitions and submit to lender for processing and funding· Represent project owner and developer at construction progress meeting· Prepare and submit funding requests to tax credit syndicator for capital contributions based on negotiated benchmarks· Supervise the rent-up of new construction projects and any vacant units of renovation projects· Assist project owners with hiring of permanent building staff· Manage final inspections and sign-offs from the Department of Buildings, Fire Department and City Agencies· Prepare project for final (permanent) closingPhase IV - Operations· For tax credit projects, supervise the submission of the 8609 Financial Update and receipt of final capital contributions from tax credit syndicator· Review and negotiate maintenance, vendor, and service contracts· Prepare financial assessments of building operations· Review rent roll· Review operating policies and proceduresTo answer question #2 about securing funding, you need to have relationships with bankers or private equity firms or private investors. They need to believe that you're going to get the job done well and on time. Development takes a reaaaaaally long time from start to finish. On a new multifamily building in New York, for example, let's say 100 units, you can be in concept stage for 3-6 months, pre-development for 6-12 months and construction is typically at least 18 months, after which you have to lease-up (if rental) or sell out (if condo), which can take an additional 6 months. So at the shortest, you're looking at about 3 years, at the longest......well, let's not go there. There are many things that can go wrong along the way that can ruin your budget, schedule and emotional well-being.When you're beginning, it's critical to surround yourself with experts who know what they are doing, are well-respected and who like you. Having a strong contractor and architect will save you many headaches and will help you in obtaining financing because the credibility of the development team is enhanced by the other professionals' strengths. Selecting the team is not easy and is based on relationships and referrals from your close contacts. I definitely don't recommend going to the yellow pages (if anyone still uses them) and picking a contractor or architect out of a hat.Being on my own for almost two years has been an absolute roller coaster ride. It has been harrowing and rewarding at the same time. There are always problems. People never do what they're supposed to. It's your job as a developer to manage them and make sure things get done on time, or at least as close to the deadlines as possible. Checklists are critical. Whiteboarding helps in keep track of active and potential projects.Feel free to give me a shout if you want to know more about development. This has just scratched the surface of this complex and wonderful field.Cheers and best of luck!

Thanks for the A2A.Question: What's the difference between getting a loan at the Federal Home loan Bank of New York and the Federal Home loan Bank of Des Moines?Short Answer: Not mychLonger Answer: Odd you should ask! These are not “people banks”. They are banks making loans to member banks only! And just by luck you’ve asked someone who has reason to know.What are the Federal Home Loan Banks (FHLBs)?The Federal Home Loan Bank system was created by the US Congress in 1935 to create liquidity for banks making home loans by taking these loans as collateral for loans to the banks. This was intended to prevent the type of lockups to bank liquidity that happened in the 1930s. Federal Home Loan Bank ActThe “haircut” model has been remarkably successful, and the banks have largely avoided losses even in the 2008 crash.What Types of Lending do FHLBs Do?The FHLBs do a variety of types of loans to member banks. They also buy residential mortgage loans from members under the Mortgage Partnership Finance (MPF) programHere are Web links showing the advance types provided by FHLBNY and FHLBDMAdvances - FHLB Des MoinesFHLB New York Credit Products: Give Your Institution the Strategic Flexibility to Maintain a Competitive Edge

This is what I learned. We do not have this in Georgia so this is the result of my search, my experience is nil.The HERO Program is an energy efficient financing program in the United States. The name HERO stands for Home Energy Renovation Opportunity. The HERO Program is a Property Assessed Clean Energy (PACE) Program, which provides financing for energy-efficient, water-efficient and renewable energy products to home and business owners in approved communities within California and Missouri.The financing provided by the HERO Program is repaid through annual property tax payments, which are collected by the County and in some cases may be passed on to a new property owner if the property is sold.Renovate America developed the HERO Program in 2010 through a partnership with the Western Riverside Council of Governments (WRCOG), a public agency representing 18 communities within Riverside County. Western Riverside County became the first region to offer the HERO Program to its constituents. The HERO Program is now accessible to over 85% of Californians. As of July 2014, the HERO program has created 2,400 new jobs in the construction sector and has $250 million in funded projects on 12,500 homes in California.Homeowners who meet the minimum criteria are eligible for financing through the HERO Program. Once a homeowner or commercial property owner is eligible for HERO Program financing, HERO finances 100% of the cost to purchase and install eligible energy saving products. The repayment of the financing is included in the property tax bills. Property tax payments that are made through an impound escrow account will be adjusted on the monthly payment by the lender. Similar to a mortgage, the interest paid on the principal balance may have tax benefits Should a property be sold before the financing is repaid, in some cases the remaining payments can be passed onto the new property owner.PACE stands for Property Assessed Clean Energy. It refers to a type of financing that allows Property Owners to borrow money to install energy efficiency improvements on their property via special assessments on their property taxes lasting up to 20 years depending on the useful life of the product Approvals are based on the homeowners having at least 10% equity in their home, being current with property taxes and mortgage payments, not having recently filed for bankruptcy, and other requirements. If the property is sold or transferred, in many cases the property tax assessments remain tied to the property. However, this process depends on the transfer restrictions established by the buyer’s lender. In order for a PACE Program to become available in a City or County, PACE legislation must be in place on the State or Federal level.