Bending the Cost Curve – Strategies & Considerations
New Construction Average TDC
Year
Average
New
York
California
Alabama
2012
$188,000
$242,000 $333,000
$159,000
2013
$183,600
$246,000 $381,000
$164,000
2014
$192,600
$279,000 $383,000
$172,000
• Hard to compare
• 2012 – 2014 increase
–
–
–
–
Nationally 4.9%
CA 15%
NY 15.3%
Al 8.1%
• RJTCF Recent Portfolio
properties closed since 2012
– 231 properties
• 157 New and 74 Rehab
– 35 states + DC
– $3.1BN in TDC
– 17,049 units
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Bending the Cost Curve – Strategies & Considerations
 Promote Cost-Effectiveness through Consolidation, Coordination, and Simplification

Coordinate and consolidate monitoring and due diligence activities


Market studies, appraisals, ESAs, pre construction and construction monitoring
Participation structure

Typical in large loans

Equity has different risk profile / recourse
 Remove Barriers to Reducing Construction Costs and Delays

Implement smart parking

Review unit size and amenity requirements
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Bending the Cost Curve – Strategies & Considerations
 Facilitate a More Efficient Deal Assembly and Development Timeline

Adopt efficient deadlines for deal assembly and project development

Specified closing dates
 Improve and Align Incentives

Provide flexibility in housing credit allocation amounts i.e. lower allocations
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Bending the Cost Curve – Strategies & Considerations
 Improve the Flexibility of Existing Sources of Financing and Create New Financial Products to Better
Meet Needs


Reserves

Substitute guarantees for a portion of reserves

Explore opportunities for corporate-level or pooled reserves
Provide greater flexibility in 4% LIHTC investments
 Support the Development and Dissemination of Information and Best Practices

What is the appropriate way to measure cost?

Per unit, square foot, per bedroom

How about
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Raymond James Tax Credit Funds
Contact Information
James Horvick
VP, Director of Originations
Office: (727) 567-1964
Mobile: (813) 503-6002
[email protected]
____________
rjtcf.com
raymondjames.com
____________
Raymond James Tax Credit Funds, Inc.
880 Carillon Parkway I St. Petersburg, FL 33716
Toll Free: 800-438-8088 I Fax: 727-567-8455
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