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Greening Nonprofit Affordable Housing Projects
Cindy Ross, Loan/Portfolio OfficerNelson Black, Director of Lending
September 22, 2009 2:00 – 3:15pm2009 Florida Housing Coalition Conference – Orlando
About the Loan Fund
Our Green Initiative
Results and Timeline
Lessons Learned
The Future of Green (from a lender’s perspective)
Greening Nonprofit Affordable Housing Projects
About the Loan Fund
Our Vision: Every community in Florida is productive and sustainable.
Our Mission: The Florida Community Loan Fund harnesses the power of financial capital and human creativity to transform lives and communities.
About the Loan Fund
Our Guiding Principles:1. We will maintain, preserve and grow a culture
that affirms that community benefit is the focal point of our work;
2. We will integrate green or environmentally sustainable approaches into all of our work; and
3. We will serve the needs of both urban and rural communities.
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 FCLF began lending in 1996, we have closed 143 loans totaling $37million for projects totaling $212million.
About the Loan Fund
From our Community Development Loan Pool, FCLF makes commercial loans primarily to non-profits. All loans must have a community development or social service purpose and serve low-income clients or communities.
Beginning in 2009, FCLF has elected to make loans to mission-based projects developed by for-profits on a selected basis.
About the Loan Fund
FCLF was the first Florida-based allocatee of New Markets Tax Credits.
3 projects received $15million in funding.
With initial funding from Florida Housing Finance Corporation, FCLF has begun assembling the new $25million Florida Preservation Fund for acquisition funding to preserve multi-family affordable units Orange, Pasco and Palm Beach counties.
About the Loan Fund
Community Development Loan Pool Terms:Maximum Loan size: $1millionFixed rates 5.50% to 6.875%Origination fees as low as 1%Application fee $250Terms of up to 10 yearsAmortizations up to 30 yearsLoan-to-value (LTV) at 85% to 95%No legal fees on typical transactions
About the Loan Fund
FCLF’s Green Initiatives
FCLF’s Green Initiatives
The Florida Green Communities™ InitiativeEstablished with support from The Home Depot FoundationA partnership with Enterprise and Florida Green Builders CoalitionTo encourage and assist nonprofit developers to renovate GreenGrants available from FCLF and EnterpriseSubsidized rates from FCLF and Enterprise for Green projectsTA available through FGBC
FCLF’s Green Initiatives
The Green Building Loan PoolEstablished with support from The Home Depot Foundation and other investorsTo encourage and assist nonprofit developers to renovate and build green:
Affordable HousingSupportive HousingCommunity Facilities
Grants and subsidized rates available from FCLF
Results and Timeline
Bonita Springs Area Housing Development Corporation: Renaissance at Rosemary Park - 39 units – awarded grant and subsidized loan rates – 12 units complete to-date – project currently stalled due to market conditions.Casa San Juan Bosco: originally 125 units – awarded grant and subsidized loan rates – project re-cast as 98-units due to loss of funding – estimated to move into construction by end of 2009.Dupuis Pointe: 27 units – awarded grants and subsidized loan rate – land has developed infrastructure complete and in place – has not yet moved to construction.
Florida Green Communities™ Initiative
Closed Loans
Transition House: 4 units – awarded subsidized loan rate with grant to be awarded on completion – in construction
FCLF Green Loan Pool
Commitments:
Bonita Springs Area Housing Development Corporation: Red Hibiscus - 26 units – approved subsidized loan rate and award commitment – project currently stalled due to market conditions and loan has not closed.
FCLF Green Loan Pool
Commitments:
Neighborhood Renaissance Westgate In-Fill project: 18 units – approved subsidized loan rate and award commitment – project still in development and loan has not yet closed.
FCLF Green Loan Pool
Commitments:Okeechobee Non-Profit Housing: 6 units – approved subsidized loan rate and award commitment – project currently stalled due to market conditions and loan has not closed.Community Housing and Resources, Inc.: 14 units - approved subsidized loan rate and award commitment – Borrower negotiated full commitment from co-lender and withdrew request from FCLF.
FCLF Green Loan Pool
Coalition for the Hungry & Homeless of Brevard: 10 units of supportive housing – completed using SIP construction process with estimated R-40 rating
UM Life Science Research Park: LEED Certified Commercial building – construction to begin Fall ’09 – 118,000sf
FCLF Other Green Projects
FCLF’s Green Loan Pool 2.0
Loan Amount:Up to $1 million
Loan Term:Up to 7 yearsAmortization as appropriate for request
Reduced Interest Rate:4.50% fixed rate on first $250,000 borrowedFCLF’s standard rates less 0.25% for amounts over $250,000
FCLF’s Green Loan Pool 2.0
Reduced Origination Fee:Waived for first $250,0001.00% on amounts over $250,000
Application Fee:$250.00
Eligible Borrowers:Mission-based non-profit organizations only
Timeline:Applications accepted until Green Loan Pool is fully deployed
FCLF’s Green Loan Pool 2.0
Eligible Uses: Renovation of Existing BuildingsNew Construction
Eligible Purposes:Affordable HousingSupportive HousingCommunity Facilities
Projects must meet green certification requirementsProjects must serve low-income clients or neighborhoods in Florida
FCLF’s Green Loan Pool 2.0
Green Certification Requirements:
For Housing:FGBC Green Home standard, orLEED for Homes standard, orEnterprise Green Communities ™ ™ Criteria
For Facilities:FGBC Commercial Building StandardLEED Commercial Standard for New Construction or Existing Buildings
FCLF’s Green Loan Pool 2.0
Special FCLF Incentives for Housing: $2,000 per housing unit for eligible uses; up to $10,000 maximum per project.Funding made in the form of a loan advance with no principal or interest payment required until maturity.When the project is Green-certified, the special advance loan will be forgiven.Limited to specific eligible hard and soft costs.
FCLF’s Green Loan Pool 2.0
FGBC Green Home Standardwww.floridagreenbuilding.org
LEED for Homes standardwww.usgbc.org/Leed/Homes
Enterprise Green Communities™ Criteria:
www.greencommunitiesonline.org
Lessons Learned
Nonprofits continue to be interested in GreenIn the current environment Green Projects (as well as other non-Green projects) are stalled
It is nearly impossible to sufficiently incentivize Green in the current environmentSubsidies of any kind are difficult to find
Lessons Learned
Projects’ economics are not working; cheaper to buy a used home than new home
FCLF‘s Green Pool is an incentive, but other resources need to be there.
For FCLF, with a short track record of successful projects to point to, it is more difficult to bring in new resources.
Lessons Learned
Green certifications are important in the long-term, but obsessing about them in the short-term simply increases costs and slows project.
There are many shades of Green.
Lessons Learned
The Future
What is FCLF going to be doing in the future regarding Green?
FCLF’s Green Pool has been tweaked
FCLF will likely re-look at this Pool again in January 2010
FCLF’s Green Pool can be re-deployed when each loan is repaid
The Future
What is FCLF going to be doing in the future regarding Green?
With new Green projects and commitments, FCLF can work to attract additional investments
FCLF organizationally remains committed to growing and expanding its resources to help nonprofits build green
The Future
Contacting the Loan Fund
www.fclf.org
Ignacio Esteban 407-246-0846 Orlando Main Office Executive Director
Nelson W. Black 904-215-0459 Jacksonville OfficeDirector of Lending
Cindy Ross 813-985-9553 Tampa OfficeLoan/Portfolio Officer
Joy Beaton 941-360-1445 Sarasota OfficeDirector of Government Relations
