Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital, LLC

www.newmarketstaxcredits.com

Rebuilding Communities AfterHurricane Katrina With

New Markets Tax Credits

James D. Howard, Jr.TransCapital , LLC

http://www.iped.com/



Working through the Damage

• 450,000 People Displaced• $5.5 Billion in Damage to Infrastructure• 56% of Schools in Affected Areas Remain Closed• 30% Smaller Labor Force in New Orleans• 39% Increase in Rent in New Orleans• 661,057 Housing Units DamagedSources: MS Chamber of Commerce, 2005 Louisiana Hurricane Impact Atlas, FEMA 548 2006, Brookings Institute



TransCapital's Involvement in the NMTC Program

TransCapital has been extensively involved in the NMTC Program since its inception:• Successfully supported NMTC applicants which have received in excess of

$2 billion in allocations of New Markets Tax Credits. • Structured, marketed and closed NMTC funds with committed debt and/or

equity in excess of $400,000,000 of QEIs. • Closed QEIs utilizing leveraged and non-leveraged structures including

tax-exempt bond financing. • First NMTC Go Zone transaction closed in January of 2007.




NMTC Go Zone TransactionsCompleted and Pending

• Enta: Business Loan to Start-up Louisiana Technology Company in Baton Rouge, Lousiana

• Mixed-Use Workforce Housing Project in Biloxi, Mississippi• Revitalization of a Severally Damaged Historic Building in Hattiesburg,

Mississippi• Mixed-Use Workforce Housing Project in Jackson, Mississippi




•Mississippi

Enta: One of the First NMTC GO ZONE Transactions Completed

• $13,325,000 QEI• Enta is a start-up technology company that provides low-cost ticketing services to

sports and entertainment venues nationally• Enta chose to locate in Louisiana due to the Go Zone credits ultimately selecting the

Louisiana Technology Park located in a low-income community in Baton Rouge• The Company expects to provide approximately 40 direct jobs in one of the poorest

areas of Baton Rouge• Favorable NMTC financing allows the Company to direct its cash toward expansion,

instead of to providing returns for equity investors



Mixed-Use 250 Unit Workforce Housing Development

• $66,000,000 mixed-use workforce housing project targeting Biloxi and Gulf Coast residents

• The project will address Biloxi’s residential housing shortage while providing competitive retail and commercial space

• Multiple CDEs are providing allocation to the project• Challenges include inflated land costs, escalation of construction costs, insurance

premiums, and access to skilled labor



Revitalization of Katrina Damaged Historic Building

• Severally damaged building remaining vacant and in need of repair• Combined effort with University of Southern Mississippi and local lenders to utilize as university

classrooms and offices• Approximately $12,000,000 in rehabilitation costs• Challenges include conversion to functional use while maintaining historic attributes, rising cost

of construction, and ability cash flow at market rates



Mixed-Use For-Sale Housing in Jackson

• $32,000,000 mixed-use for-sale housing development in Jackson, Mississippi

• Combined effort with Jackson State University and multiple CDEs• 106 for-sale units sold offered up to 25% below market value, subsidized

by NMTCs• 25,000 SF retail with 78 for rent student housing apartments• Innovative below market rate for-sale units offered to university staff and

targeted priority groups



Succeeding in the Go Zone

• Patience• Innovative capital structure to maximize subsidy and local community

impact• Persistence to work with local lenders, municipalities, developers, and

agencies often with disparate views• More patience and persistence



James D. Howard, [email protected]

2930 East Camelback Road, Suite #215Phoenix, AZ 85016

Phone: (602) 468-9400Fax: (602) 468-2775



Documents

Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital, LLC