Low-Income Housing Tax Credits

HD502 - Low-Income Housing Tax Credit (LIHTC). LIHTC was designed by
Congress to encourage the development of affordable rental housing.
LIHTCs provide tax benefits for investors in projects that generate good
housing for low-income households at affordable rents. NDC’s threeday
course is designed for bankers, public sector lenders and for-profit
and non-profit developers. The course examines the techniques and
procedures involved in using the LIHTC program to develop low-income
rental housing and investigates program intricacies and deals. The
emphasis is on assisting lenders and developers with their understanding
of LIHTC program mechanics. Course participants learn the key issues that
arise in typical LIHTC projects as well as practical solutions.

 

Prerequisite:  None

Economic and Community Development Finance

CD101—Economic and Community Development Finance—New!
This four-day class explores the skills essential for the successful practice of economic and community development

• business credit and real estate finance analysis techniques
• multifamily and single family housing development
• loan packaging procedures
• negotiating and problem solving skills
• deal structuring techniques
• accessing Federal, state and local resources.

Participants gain the broad insight and practical information needed to understand how community development projects are financed and the tools, strategies and techniques used to build strong neighborhoods.

Making CDBG Work for your Economic Development Efforts

ED407—Making CDBG Work for your Economic Development Efforts—New!
NDC’s ED407 course explores the CDBG Program from “a” to “z,” with an emphasis on how to make this important financing tool work for your community’s economic development efforts. Topics include:

• CDBG Float and HUD Section 108
• meeting and documenting national objectives
• eligible activities
• designing CDBG revolving loan funds
• underwriting, compliance and administration requirements
• financial management
• an array of special topics, including: 
  • land banking and land assembly
  • Neighborhood Revitalization Strategy Areas
  • engineering and construction activity
  • development/real estate acquisition for potential multi-use property
  • other program activities based on CDBG eligibility and national objectives

Main Street Finance: Mixed-Use Real Estate

Main Street Finance:  Mixed-Use Real Estate. Neighborhoods are at their best when “Main Street” pulses with the activities that bring a community alive-retail, entertainment, services, public facilities, and common areas.  There are many financial tools available for Main Street redevelopment and if brought together in the right way, for the right uses, they can do the job.  Older Main Streets have special opportunities for adaptive reuse and new construction - with buildings that are ideally suited to retrofitting multiple uses in one structure.  But how do you use single-purpose financing tools to structure financing for a mixed-use facility?  What instruments are available and appropriate? What if their criteria seem to be contradictory?  This online course answers those questions and explores the following topics:

• Challenges of mixed-use development
• Mixed-use opportunities
• Community facilities on Main Street
• Inventory:  What do you have to work with?
• Tax Credit Tools - Historic Rehabilitation Tax Credits, Low-Income Housing Tax Credits and New Markets Tax Credits
• Mixing financing:  the right recipe

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Financing Your Renewable Energy Project

Financing Your Renewable Energy Project. Congress has reacted to the demand for viable financing options for renewable energy projects and put in place major instruments of national energy and environmental policy with the Renewable Energy Tax Credit (RETC), a grant in lieu of the RETC and a guaranteed loan program.  What does all this mean to you?  These programs will be an important community development resource and will have a major impact on the creation of green collar jobs, the transition from traditional energy sources to renewable energy technology and the environment.  Unlocking these programs and accessing the debt and equity necessary to get projects built in these challenging and changing times will be the focus of this online.  Specific topics include:

• Overview of federal programs 
• Energy efficiency, carbon issues, policies and trends
• The players in today’s market - investors, lenders, utilities, integrators
• Long-term benefits of going green

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Neighborhood Stabilization Program Fundamentals

Neighborhood Stabilization Program Fundamentals. HUD established the Neighborhood Stabilization Program (NSP) with the goal of stabilizing communities and neighborhoods that have been devastated by home foreclosures and abandonment.  NDC’s NSP Fundamentals online training builds participants’ ability to effectively use NSP funds to formulate and implement neighborhood stabilization strategies and develop compliance skills and systems that are an essential part of ongoing neighborhood stabilization.  Specific topics include:

• Eligible NSP activities
• Determining project feasibility
• Methods for assisting home buyers
• Acquisition/rehabilitation management
• Approaches for developing rental housing
• Financing options including loans, grants and loan guarantees
• NSP, CDBG and HOME program parameters, regulations and compliance
• Program implementation issues including administrative costs, program income and affordability periods
• Tracking progress and reporting to HUD

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Harnessing the Power of New Markets Tax Credits in Rural Areas

Harnessing the Power of New Markets Tax Credits in Rural Areas. As in urban and suburban areas, New Markets Tax Credits (NMTCs) are a valuable tool in the community development practitioner’s arsenal. But rural projects, which are often smaller than their urban counterparts, pose unique challenges. How do you attract adequate financing in a rural market? How do you combine a number of sources of subsidy, often requisite for getting rural deals done? This 3-hour course takes participants through a general understanding of the program to detailed, step-by-step application of NMTCs in actual deals in rural areas. Attendees leave the virtual classroom with an understanding of the following topics:

• How funds flow through a NMTC deal
• Determining the amount of tax credits available to investors
• Calculating the Qualified Equity Investment
• Determining the Qualified Low-Income Community Investment
• Deal structures in rural markets
• Combining NMTCs with Federal programs for rural areas

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Low-Income Housing Tax Credits

Low-Income Housing Tax Credits. The Federal Low-Income Housing Tax Credit (LIHTC) program remains the stalwart, steady resource for affordable housing development across the country, and while there are other financing sources and mechanisms, no serious affordable housing program operates without LIHTCs.  Using this program, NDC, through the NDC Corporate Equity Fund, has invested nearly $350 million in more than 6,000 units located in 25 states and the Commonwealth of Puerto Rico.  In addition, through our technical assistance services, NDC has helped our clients across the country finance and develop thousands more LIHTC units.  This online session provides a brief description of the LIHTC program and explains how it works. Participants learn the threshold criteria for using the credits and how to calculate credits for a project using real-world cases.  The session also covers recent changes to the LIHTC legislation.

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Housing Development Finance Programs

Housing Development Finance Programs. Housing, and especially affordable housing, is still at the heart of every community development strategy.  The practice has become more and more sophisticated in the past few decades with many stakeholders, different techniques, and new and evolving tools.  This comprehensive overview of affordable housing finance and development is designed for both non-profit and public sector housing development practitioners.  This online course addresses the following topics and more:

• HUD government resources:  CDBG, CD Float, Section 108 and HOME
• Tax-exempt bonds
• Low-Income Housing Tax Credits
• Types of projects that can be done with each program
• Key issues for developers and funders

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

New Markets Tax Credits

New Markets Tax Credits. To many economic development practitioners, the New Markets Tax Credit (NMTC) offers promise as a tool to get deals done but understanding how to use it in an actual project often proves challenging. This course takes participants through a general understanding of the program to detailed, step-by-step application in actual deals.  NDC, as a recipient of one of the largest NMTC allocations, is at the leading edge in developing and applying the best models for this powerful economic development tool.  This online course addresses the following topics:

• Outline of the NMTC program
• How funds flow through an NMTC deal
• Determining the amount of tax credits available to investors
• Calculating the Qualified Equity Investment
• Structuring a Qualified Low-Income Community Investment
• Compliance and recapture issues

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Asset Management for Affordable Housing

Asset Management for Affordable Housing. The asset manager performs a vital role in preserving quality affordable housing developments. Good asset - or risk management -  is critical to all involved parties, from investors to lenders to the low-income families this housing serves. Participants gain an understanding of the goals of asset management, their role in achieving those goals, and the tools needed to manage risk effectively. This online training explores the following topics:

• The Low-Income Housing Tax Credit program and other sources of funding that determine the project’s regulatory requirements
• Roles and responsibilities of all of the partners in the project
• Risk management during pre-development and the due diligence period
• Asset management during construction and lease-up
• Developing an effective asset management plan
• Monitoring operations and analyzing financial reports to assess financial performance
• Monitoring LIHTC and regulatory compliance
• Watchlist management

We suggest checking NDC’s list of scheduled online training sessions for the current offering and look forward to your participation in our upcoming sessions.

NDC Academy 2009

Take a Look Back at the NDC Academy 2009

May 12-14, 2009
Washington, D.C.

NDC Academy 2009 Awards | Agenda | Panelists | Sponsors 

NDC’s biennial Academy brings together community development practitioners from across the country to:

• Get up-to-the minute briefings from legislators, policy makers and program officials on Federal activities that address what they do every day in their community: job creation, community revitalization, affordable housing, economic development
• Let their elected representatives and Federal program administrators hear from the frontlines of community development about what is working and what more is needed
• Hear from each other about successes, challenges and solutions
• Get NDC’s hallmark training in the full range of financing tools and development strategies and how to use them for every type of community development project

We were delighted to welcome over 270 attendees to the NDC Academy 2009 held May 12-14 in Washington, D.C.  Thank you to everyone who attended the Academy as well as the program and policy experts who joined us in panel and classroom discussions and event sponsors who contributed generously to make the NDC Academy 2009 possible.

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NDC Academy 2009 Awards Showcasing Innovative Community Development Projects

The NDC Academy 2009 gave community development practitioners from across the country the opportunity to submit their innovative community development projects for inclusion in our first-ever Project Showcases from the Field and recognition at the NDC Academy 2009 Awards Luncheon.  Finalist projects were displayed at the Capitol Hill Reception sponsored by Senator Charles Schumer and Congresswoman Carolyn Maloney on Tuesday, May 12.  Following visual and spoken presentations, Academy attendees cast their votes, selecting the top three honorees in each of four categories: rural development, job creation, affordable housing development and community development.

Congratulations to the top three finalists in each category:

Rural Development
1st: Plaza Los Robles
Mollala, OR
Submitted by: Hacienda CDC

2nd: Arrington Estates of Henderson
Henderson, TN
Submitted by: USDA Rural Development

3rd: Blakely Commons
Blakely, GA
Submitted by: Blakely Commons Development, LLC / Hammond Development

Job Creation
1st: Work Initiative Program
Columbia, SC
Submitted by: The City of Columbia

2nd: 221 McKibbin Street Industrial Center
Brooklyn, NY
Submitted by: Greenpoint Manufacturing and Design Center

3rd: 74 State Boutique Hotel
Albany, NY
Submitted by: The City of Albany

Affordable Housing Development
1st: Seigle Point Apartment Homes
Charlotte, NC
Submitted by: FHLB, Atlanta

2nd: Ludlow HOPE VI Redevelopment
Philadelphia, PA
Submitted by: The Philadelphia Housing Authority

3rd: R Street Apartments
Washington, D.C.
Submitted by: NHT / Enterprise Preservation Corporation

Community Development
1st: Victoria Courts Revitalization Project
San Antonio, TX
Submitted by: The San Antonio Housing Authority

2nd: The Henry Clay
Louisville, KY
Submitted by: CITY Properties Group

3rd: Court Square Center
Memphis, TN
Submitted by: Court Square Center, LLC

Thank you to everyone who submitted their project for consideration. 

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Program and Policy Experts

 

Thank you to the program and policy experts who joined us in panel and classroom discussions:

Chris Alsop, USDA Rural Development
Ryan Ammann, Branch Banking & Trust Company
Amos Atencio, Siete Del Norte CDC
Adolfo Carrión, Jr., Director of the White House Office of Urban Affairs
Don Cravins, Senate Committee on Small Business and Entrepreneurship
Linda Davenport, Rapoza Associates
Jane DeMarines, National Alliance of Community Economic Development Associations
Cindy Edens, Wright Runstad & Company
Eric Edwards, House Financial Services Subcommittee
Eileen Fitzgerald, NeighborWorks America
Mark D. Foster, Law Office of Mark D. Foster
Anne Gass, ABG Consulting
Stanley Gimont, U.S. Department of HUD
Brenda Grauer, State of Illinois
Chuck Hassebrook, Center for Rural Affairs
Vincent P. Hauser, Architect
Grady Hedgespeth, Small Business Administration
Matt Josephs, CDFI Fund
Bruce Katz, U.S. Department of HUD and The Brookings Institution
Jill Kotvis, Jill Kovtis, P.C.
Gail Laster, House Financial Services Committee, Counsel to Chairman Frank (MA)
Derold McIver, Branch Banking & Trust Company
Cynthia Milliken Taylor, Housing Initiatives of New England
Melissa Mueller, Tax Counsel to Representative Neal (MA)
Jim Napolitano, King County, WA
Bob Rapoza, Rapoza Associates
Earl Richardson, SouthEast Effective Development
Kalima Rose, PolicyLink
Courtney Spangler, Rapoza Associates
Michael Steininger, USDA Rural Development
Jose Villalobos, TELACU
Paul Webster, U.S. Department of HUD
Ira Weinstein, Reznick Group
Warren Wenzloff, Applegate & Thorne-Thomsen, P.C.
Jennifer Westerbeck, US Bancorp CDC 

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Sponsors

We extend a special thank you to our event sponsors:

Platinum Sponsors

Branch Banking & Trust Company
Charlotte, NC 

The Reznick Group
Baltimore, MD

Gold Sponsors

Applegate & Thorne-Thomsen, P.C.
Chicago, IL 

Law Office of Mark D. Foster
Dallas, TX

Vincent P. Hauser, Architect
Austin, TX

Jill Kotvis, P.C.
Dallas, TX

Shallo, Galluscio, Bianchi & Fucito
Hudson, NY

SunTrust Community Capital, LLC
Atlanta, GA

US Bancorp Community Development Corporation
St. Louis, MO

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Program Agenda

		Track I Rural Development	Track II Job Creation	Track III Affordable Housing Development	Track IV  Community Development
Day 1  Tuesday, May 12	8:30-9:30am	Welcome Session - Robert W. Davenport
	9:30am-12pm	Meet the New Administration
	12-1:30pm	Lunch (on your own)
	2-5pm Classroom Sessions	Rural Real Estate and Housing Development	New Markets Tax Credits from “A” to QALICB	Foreclosures and Your Community	Renewable Energy Tax Credits: Going Green Pays Off
	6-7:30pm	Reception on Capitol Hill
Day 2  Wednesday, May 13	8:30-9:30am Project Showcases	Rural Development	Economic Development	Affordable Housing	Community Development
	10am-1pm  Classroom Sessions	Rural Economic Development: Helping Businesses Stay Near the Farm	The Next Level of NMTCs	Housing Development Finance Programs	Main Street Finance: Mixed-Use Real Estate
	1-2:30pm	Awards Luncheon
	3-6pm  Classroom Sessions	Harnessing the Power of NMTCs in Rural Areas	TIFs and Their Not so Famous Cousins: It’s Not Alchemy	LIHTCs: The Workhorse of Affordable Housing Development	Historic Rehabilitation Tax Credits
Day 3  Thursday, May 14	8:30-9:30am  Discussion Panels	The Foreclosure Crisis (Tracks I and III)	NMTCs Roundtable: Everything You’ve Ever Wanted to Know and Now You Can Ask	The Foreclosure Crisis (Tracks I and III)	Putting the Public Back in Public-Private Partnerships: Innovative Approaches to Financing Municipal Buildings
	10am-1pm  Classroom Sessions	No Session Offered	Business Development Finance and Job Creation Programs	Asset Management and Affordable Housing	CDBG Financing Tools: Section 108 and CD Float
	1pm	NDC Academy 2009 Adjourns

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Session Descriptions

Tuesday, May 12                        Wednesday, May 13                      Thursday, May 14

Tuesday, May 12

Meet the New Administration
General Session – 9 am-12 pm

We’ve all heard about change, but what does that really mean for the field of community development?  At 100 days into the new Administration, learn about change from the legislators, policy-makers and agency officials who are making their imprint.  There will be no better time than the Academy’s General Session to understand the changes under way in Washington and their impact on our communities.  Join us for this important update on our changing world and new community development programs and initiatives.
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Rural Real Estate and Housing Development
Track I:  Rural Development – 2-5 pm

In the context of community development, rural housing and real estate development share many characteristics with their urban and suburban counterparts.  But because they take place in a very different environment, they face challenges specific to their rural context.  While the pool of resources available for rural housing includes those that are available to all areas, it also includes Federal programs that were created just for rural areas.  This course investigates both the challenges specific to rural housing and real estate development and the general and specific resources available.  Rural housing resources from the USDA are explored in detail with a review of other programs and their applicability in rural areas including:

• Low-Income Housing Tax Credits
• Historic Rehabilitation Tax Credits
• Private Activity and Mortgage Revenue Bonds
• CDBG programs
• HUD programs:  Section 108, CD Float, HOME funds
• EDA programs
• Federal Home Loan Bank programs

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New Markets Tax Credits from “A” to QALICB
Track II:  Job Creation – 2-5 pm

To many economic development practitioners, the New Markets Tax Credit (NMTC) offers promise as a tool to get deals done but understanding how to use it in an actual project often proves challenging. This Academy course takes participants through a general understanding of the program to detailed, step-by-step application in actual deals.  NDC, as a recipient of one of the largest NMTC allocations, is at the leading edge in developing and applying the best models for this powerful economic development tool.  This course addresses the following topics:

• Outline of the NMTC program
• How funds flow through an NMTC deal
• Determining the amount of tax credits available to investors
• Calculating the Qualified Equity Investment
• Structuring a Qualified Low-Income Community Investment
• Compliance and recapture issues

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Foreclosures and Your Community
Track III:  Affordable Housing – 2-5 pm

Neighborhood disinvestment is nothing new to our business. In fact it was a first cause in the origin of the Community Development movement. But the current tsunami of foreclosures is more sudden and more severe than what we have known and overcome in the past. This course addresses the new challenges that have arisen out of this crisis, and discusses strategies and resources for dealing with them for both owner-occupied and rental housing and for neighborhood commercial property. Participants also learn about local tools and programs, HUD’s Neighborhood Stabilization Program, and new ways to see the problem of disinvestment so that fresh approaches can emerge.

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Renewable Energy Tax Credits:  Going Green Pays Off
Track IV:  Community Development – 2-5 pm

The Renewable Energy Tax Credit (RETC) was created by Congress to be a major instrument of national energy and environmental policy, and it’s proving to be a very effective one.  NDC recognized its potential to be an important community development resource as well.  The challenge was to leave as much investment   in the community as possible while still meeting all the compliance requirements of the tax credit program.  NDC has developed and successfully employed an RETC financing structure that does just that. NDC expects to replicate this unique structure as the program grows, adding a significant community development benefit to the environmental and and energy benefits envisioned by Congress.  Attend this session and learn where we are today and how we got here.  We’ll cover:

• Overview of the Federal tax credit program for renewable energy investments
• How states are promoting renewable energy
• Utilities:  friend or foe?
• The hot topic of the sun and solar energy
• Selecting the right renewable energy
• Structuring debt and equity
• Long-term benefits of going green

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Capitol Hill Reception
General Session – 6-7:30 pm

We invite you to join us for an early evening reception on Capitol Hill.  Network with legislators, policy-makers, program officials and colleagues, enjoy cocktails and hors d’oeuvre and celebrate the work of your colleagues, who are putting local and Federal development programs to work generating investments, jobs, and economic and housing opportunities in communities across the country. Sponsored by Senator Charles Schumer and Congresswoman Carolyn Maloney.

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Wednesday, May 13 

 

Spotlight on Your Community:  Project Showcases from the Field
All Tracks:  8:30-9:30 am

NDC is pleased to pass the microphone to the dedicated and creative community development professionals who work diligently to get projects done in their communities.  These sessions will showcase some of their most challenging projects, and participants will get an opportunity to learn how they took those projects from concept to reality.  In addition to informal presentations, question-and-answer sessions will give participants an opportunity to explore the details of their problem-solving strategies, the constraints and road blocks they overcame and other tricks of their trade.  Projects presented in these four sessions will be honored with the first-ever NDC recognition awards at the luncheon following the day’s morning classroom sessions.  Select the project spotlight session that most interests your from the four track-specific categories:

• Track I:  Rural Development
• Track II:  Economic Development/Job Creation
• Track III:  Affordable Housing
• Track IV:  Community Development

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Rural Economic Development:  Helping Businesses Stay Near the Farm
Track I:  Rural Development – 10 am-1 pm

Small business continues to be the crucial backbone of many rural economies, and although rural businesses face many of the same challenges as their urban and metropolitan counterparts, there are additional circumstances that are specific to rural economies.  If financing programs for these businesses are to be effective, they must be designed and operated to address those circumstances.  Economic development programs from the Department of Agriculture and more specialized programs from the Department of Commerce and the Bureau of Indian Affairs are available to assist rural communities.  This course provides an overview of the special challenges in the rural business environment, and discusses both the general and specific programs available for rural development including SBA and EDA financing tools.  Participants  also review the basic credit principles for small business underwriting
and additional specific requirements of the applicable programs.

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The Next Level of New Markets Tax Credits
Track II:  Job Creation – 10 am-1 pm

If you’ve learned the basics of the New Markets Tax Credit (NMTC) program in our NMTCs from “A” to QALICB course, or if you know what a QLICI, QALICB and QEI are, then this course takes you to the next level of understanding in using the NMTC program.  It presents real projects, real numbers and real problems, and shows you how to structure a real project.  Whether you are already a CDE with an allocation, or hoping to become one, or whether you are planning to seek New Markets Tax Credits for a project, this material will help you get the most out of the program.  The course addresses both the “leveraged model” for real estate projects and using the program for real estate projects and a business lending model.

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Housing Development Finance Programs
Track III:  Affordable Housing – 10 am-1 pm

Housing, and especially affordable housing, is still at the heart of every community development strategy.  The practice has become more and more sophisticated in the past few decades with many stakeholders, different techniques, and new and evolving tools.  This comprehensive overview of affordable housing finance and development is designed for both non-profit and public sector housing development practitioners.  This course addresses the following topics and more:

• HUD government resources:  CDBG, CD Float, Section 108 and HOME
• Tax-exempt bonds
• Low-Income Housing Tax Credits
• Types of projects that can be done with each program
• Key issues for developers and funders

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Main Street Finance:  Mixed-Use Real Estate
Track IV:  Community Development – 10 am-1 pm

Neighborhoods are at their best when “Main Street” pulses with the activities that bring a community alive—retail, entertainment, services, public facilities, and common areas.  There are many financial tools available for Main Street redevelopment and if brought together in the right way, for the right uses, they can do the job.  Older Main Streets have special opportunities for adaptive reuse and new construction — with buildings that are ideally suited to retrofitting multiple uses in one structure.  But how do you use single-purpose financing tools to structure financing for a mixed-use facility?  What instruments are available and appropriate? What if their criteria seem to be contradictory?  This course answers those questions and explores the following topics:

• Challenges of mixed-use development
• Mixed-use opportunities
• Community facilities on Main Street
• Inventory:  What do you have to work with?
• Tax Credit Tools – Historic Rehabilitation Tax Credits, Low-Income Housing Tax Credits and New Markets Tax Credits
• Mixing financing:  the right recipe

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Awards Luncheon

1-2:30 pm

NDC is pleased to honor community development practitioners for their hard work and ingenuity.  Academy attendees will have the opportunity to read about their innovative projects at the Capitol Hill Reception and to ask questions of the deal-doers themselves in the Project Showcases.  Now join us in congratulating them on their efforts at our first-ever Awards Luncheon.

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Harnessing the Power of New Markets Tax Credits in Rural Areas
Track I:  Rural Development – 3-6 pm

As in urban and suburban areas, New Markets Tax Credits (NMTCs) are a valuable tool in the community development practitioner’s arsenal.  But rural projects, which are often smaller than their urban counterparts, pose unique challenges.  How do you attract adequate financing in a rural market?  How do you combine a number of sources of subsidy, often requisite for getting rural deals done?  This Academy course takes participants through a general understanding of the program to detailed, step-by-step application of NMTCs in actual deals in rural areas.  Attendees leave the classroom with an understanding of the following topics:

• How funds flow through a NMTC deal
• Determining the amount of tax credits available to investors
• Calculating the Qualified Equity Investment
• Determining the Qualified Low-Income Community Investment
• Deal structures in rural markets
• Combining NMTCs with Federal programs for rural areas

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TIFs and Their Not So Famous Cousins:  It’s Not Alchemy
Track II:  Job Creation – 3-6 pm

For more than two decades, we have been confronted with the continuing attrition of resources available for local housing and economic redevelopment and community renewal.  The conundrum:  without resources, how can we build our local economy, but without a healthy economy, how do we generate resources?  Many states and localities have found one answer by banking on their future — identifying future revenue streams that would be generated by development and turning to financial markets to capitalize those streams.  This session explores the different kinds of revenue streams that might be associated with specific future development activities and projects and ways in which they can be used to raise capital in the present.  They include Tax Increment Financing (using real estate, sales, hotel and convention, or other targeted taxes); and PILOT revenue as some examples of this approach.  How to identify those sources and turn them into funds to assist redevelopment efforts are the focus of the session.

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Low-Income Housing Tax Credits:

The Workhorse of Affordable Housing Development
Track III:  Affordable Housing – 3-6 pm

The Federal Low-Income Housing Tax Credit (LIHTC) program remains the stalwart, steady resource for affordable housing development across the country, and while there are other financing sources and mechanisms, no serious affordable housing program operates without LIHTCs.  Using this program, NDC, through the NDC Corporate Equity Fund, has invested nearly $350 million in more than 6,000 units located in 25 states and the Commonwealth of Puerto Rico.  In addition, through our technical assistance services, NDC has helped our clients across the country finance and develop thousands more LIHTC units.  This session provides a brief description of the LIHTC program and explains how it works. Participants learn the threshold criteria for using the credits and how to calculate credits for a project using real-world cases.  The session also covers recent changes to the LIHTC legislation.

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Historic Rehabilitation Tax Credits
Track IV:  Community Development – 3-6 pm

The Historic Rehabilitation Tax Credit (RTC) is uniquely valuable in generating equity for older buildings in older neighborhoods, often making the crucial difference between commercial success and failure.  This course covers processes and requirements for using RTCs in general, but will pay special attention on how to use RTCs for non-conventional tenants — non-profit organizations or public sector agencies.  Among the key concepts covered in this course are:

• National Park Service requirements
• Structuring the right leases
• Attracting equity
• Structuring financing
• Qualified leases and non-profit or governmental tenants

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Thursday, May 14 

 

The Foreclosure Crisis (Track I and Track III Combined)
Track I:  Rural Development & Track III:  Affordable Housing – 8:30-9:30 am

The current foreclosure crisis in the U.S. may present the greatest challenge ever faced by those of us committed to community development.  Its causes have been well documented.  Now is the time to pick up the pieces and put strategies and programs in place that will begin the long recovery process faced by neighborhoods, communities and residents.  Attend this panel to learn the techniques that are working and the resources that are available.  Hear from policy, program and other experts on the latest ideas that are coming into play.  Share your own community’s experiences in dealing with the foreclosure crisis and be prepared with questions and concerns that may very well be the spark that leads to better solutions.

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NMTC Roundtable: Everything You’ve Ever Wanted to Know and Now You Can Ask
Track II:  Job Creation – 8:30-9:30 am

Get an up-to-the-minute legislative and administrative report on the NMTC program from the experts and authorities – what’s happening in Congress on NMTC reauthorization, and an administrative overview from the CDFI.  Then bring your questions about any aspect of the program to this roundtable of participants from key NMTC fields:  CDE practice, policy and legislation, program administration; investment, and specialized NMTC accounting.  Sign up for this session if you want to get an answer to your questions about policy issues, investors’ criteria, financial structuring, program rules and regulations, or any other NMTC issue you want to address – or even if you’d just like to get the latest picture of what’s happening in Washington and in the field.

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Putting the Public Back into Public-Private Partnerships:

Innovative Approaches to Financing Municipal Buildings
Track IV: Community Development – 8:30-9:30 am

Some municipalities need to look beyond conventional approaches to financing and building public facilities.  Whether they have reached their debt limits or they want to find new ways to get projects built faster and more efficiently, there are methods and tools available which enable a non-profit organization to develop and own such projects, lease them to the governmental entities and eventually transfer them to governmental ownership.  In the past eight years, NDC has financed and developed such projects valued at more than $1.0 billion.  Learn more about this approach from members of the development team themselves including how this development method differs from conventional ones, financing options and cost and time savings.

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Back to Session Descriptions

 
Business Development Finance and Job Creation Programs
Track II:  Job Creation – 10 am-1 pm

In this course, experienced practitioner and professional novice alike get a solid overview of state-of-the-art economic development finance for small businesses — both the core of basic methods and tools, and newest techniques and applications.  Financing resources for all job-creation projects and activities are included in this session.  Using actual projects, the course addresses the following specific topics and more:

• Fixed asset and permanent working capital financing
• Small business real estate
• Key participants and their roles
• Financing structures, including subordinated financing
• U.S. Small Business Administration financing
• HUD Community Development Block Grants, including Section 108
• Tax increment financing
• Revolving loan funds
• New Markets Tax Credits
• CDBG financing tools

Back to Program Agenda

Back to Session Descriptions

 

Asset Management for Affordable Housing
Track III:  Affordable Housing – 10 am-1 pm

The asset manager performs a vital role in maintaining quality affordable housing developments.  Good asset management is invaluable to all involved parties, from investors to lenders to the low-income families this housing serves.  Participants learn the tools of risk management, including spread sheet analysis and problem solving, that can aid in diagnosing future problems and methods to address them.  Understand how asset management actually starts when a project is in the planning process.  The course shows you how to do that by exploring the following topics and more:

• Asset management responsibilities and goals
• The role of asset management throughout the planning, development and operating phases
• Identifying, assembling and managing the asset management team
• Asset management vs. property management
• Necessary tools, procedures and processes

Back to Program Agenda

Back to Session Descriptions

 

CDBG Financing Tools: Section 108 and CD Float
Track IV:  Community Development – 10 am-1 pm

CDBG is the stalwart mainstay in community and economic development financing.  Since its inception almost 40 years ago, NDC’s finance professionals have been experts in developing or identifying the best ways to use CDBG funds for both long-term and short-term financing.  NDC helped create and continually refine the HUD 108 program and CD Float — powerful leveraging tools for community development:  flexible, accessible for creative structuring, and irreplaceable.  Real economic development projects are used to explore the following topics and more:

• CDBG regulations
• Meeting the National Objective and Public Benefit tests
• Eligible uses for Section 108
• The Section 108 application and approval process
• Underwriting
• Defeasing a Section 108 loan
• Using CD Float as source of low-cost, short-term financing

Back to Program Agenda

Back to Session Descriptions

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Putting the Public Back in Public-Private Partnerships

Putting the Public Back in Public-Private Partnerships. Municipalities are looking beyond conventional approaches to financing and building public facilities. Whether they have reached their debt limits or they want to find new ways to get projects built faster and more efficiently, there are methods and tools available which enable a non-profit organization to develop and own such projects, lease them to the governmental entities and eventually transfer them to governmental ownership. In the past eight years, NDC has financed and developed such projects valued at more than $2.0 billion. Learn more about this approach from members of the development team themselves including how this development method differs from conventional ones, financing options and cost and time savings. This model provides that:

• All facilities are transferred to public ownership at no additional cost to the public
• All excess income, after operating costs and reserves, is used for public purposes
• Public interest in the asset is preserved through a structure that gives the public a decisive role in key decisions affecting the property

We suggest checking NDC’s list of scheduled online training sessions for the current offerings and look forward to your participation in our upcoming sessions.

Financing Your Renewable Energy Project

ED415 - Financing Your Renewable Energy Project.  Congress has reacted to the demand for viable financing options for renewable energy projects and put in place major instruments of national energy and environmental policy with the Renewable Energy Tax Credit (RETC), a grant in lieu of the RETC and a guaranteed loan program.  What does all this mean to you?  These programs will be an important community development resource and will have a major impact on the creation of green collar jobs, the transition from traditional energy sources to renewable energy technology, and the environment.  Unlocking these programs and accessing the debt and equity necessary to get projects built in these challenging and changing times will be the course focus.  Specific topics include:

• Overview and in-depth coverage of federal programs 
• Energy efficiency, carbon issues, policies and trends
• The players in today’s market - investors, lenders, utilities, integrators
• How states are promoting renewable energy and other available incentives  
• Understanding the economics and financial returns for all parties
• Renewable energy technology - Selecting the right energy system for you     
• Structuring and negotiating debt, equity, PPAs and RECs         
• Long-term benefits of going green

Neighborhood Stabilization Program

HD200 - Neighborhood Stabilization Program.  HUD established the Neighborhood Stabilization Program (NSP) with the goal of stabilizing communities and neighborhoods that have been devastated by home foreclosures and abandonment.  NDC’s NSP Fundamentals course builds participants’ ability to effectively use NSP funds to formulate and implement neighborhood stabilization strategies and develop compliance skills and systems that are an essential part of ongoing neighborhood stabilization.  Through case studies, participants learn the skills and problem-solving techniques needed to turn strategies into results.  Specific topics include:

• Eligible NSP activities
• Determining project feasibility
• Methods for assisting home buyers
• Acquisition/rehabilitation management
• Approaches for developing rental housing
• Financing options including loans, grants and loan guarantees
• NSP, CDBG and HOME program parameters, regulations and compliance
• Program implementation issues including administrative costs, program income and affordability periods
• Tracking progress and reporting to HUD

Asset Management for Affordable Housing

HD112 - Asset Management for Affordable Housing.  The asset manager performs a vital role in preserving quality affordable housing developments.  Good asset - or risk management— is critical to all involved parties, from investors to lenders to the low-income families this housing serves.  Participants gain an understanding of the goals of asset management, their role in achieving these goals, and the tools needed to manage risk effectively.  The course explores the following topics and more:

• The LIHTC program and other sources of funding that determine the project’s regulatory requirements
• Roles and responsibilities of all project partners
• Risk management during pre-development and the due diligence period
• Asset management during construction and lease-up
• Developing an effective asset management plan, including inspections and site reviews
• Monitoring operations and analyzing financial reports to assess financial performance
• Monitoring LIHTC and regulatory compliance
• Watchlist management

HUD 108 Loan Guarantee Program

HUD Section 108 Loan Guarantee Program.  The HUD Section 108 Loan Guarantee Program provides communities with the financing necessary to invest in large-scale community revitalization and infrastructure improvement projects.  Section 108 borrowers must pledge their current and future CDBG dollars to secure the Section 108 funds, a step a lot of communities are reluctant to take.  This two-day course is specifically designed to help potential borrowers understand how to best use Section 108 to improve their communities while minimizing the risk to their CDBG dollars.  Funded by HUD and developed by NDC, participants learn the goals of Section 108, how it stimulates and leverages private sector investment and how to evaluate and mitigate the risks of Section 108 lending.  Specific topics include:

• Section 108 program documents
• CDBG regulations
• Effective deal structuring
• Underwriting for various types of economic and community development projects
• The closing process
• Defeasing a Section 108 loan
• Eligibility and use of Section 108 for projects
• Development a portfolio management system
• Using Section 108 to leverage other funding, including New Markets Tax Credits

 

Prerequisite:  None

Business Valuation and Acquisition

ED508 – Business Valuation and Acquisition.  Many of America’s small businesses are owned by a family or other small group of people.  These privately held companies generate significant employment and taxes in their communities.  When privately held companies are sold, smooth transfer and succession of ownership are essential to preserving their productivity.  Public economic development practitioners are key players in the business acquisition or buyout process.  They locate potential buyers by functioning as business brokers and structure acquisition financing.  The first step is determining a company’s value or worth.  However, unlike publicly traded firms whose worth is a function of stock prices, the value of privately held companies is determined by using one or more financial analysis methods.  NDC’s Business Valuation and Acquisition course explores the techniques of valuation, acquisition and buyout of small, privately held companies.  The course teaches the skills involved in evaluating a private valuating and structuring acquisition financing that protect both the purchasers and companies.  Specific topics include:

• Determining a company’s value using asset and income methods
• Weighing the impact of economic conditions on valuation
• The effect of valuation on business acquisition and financing
• Using valuation to establish a purchase price
• Negotiating a purchase price
• Determining debt capacity
• Calculating financing needs
• Financing sources and deal structuring for business acquisition
• Filling financial gaps with public and private sources

Prerequisite:  EDFP Certification

Low-Income Housing Tax Credits

HD425 - Low-Income Housing Tax Credits.  The Low-Income Housing Tax Credit (LIHTC) program was designed by Congress to encourage the development of affordable rental housing.  LIHTCs provide tax benefits for investors in projects that generate decent housing for low-income households at affordable rents.  NDC’s LIHTC course is an advanced to-day session designed for bankers, public sector lenders and for-profit and non-profit developers.  The course examines the techniques and procedures involved in using the LIHTC program to develop low-income rental housing and investigates LIHTC program intricacies and deals.  The emphasis is on assisting lenders and developers with their understanding of LIHTC program mechanics.  Course participants learn the key issues that arise in typical LIHTC projects as well as practical solutions.  Specific topics include:

• Critical deadlines in the LIHTC process
• Securing debt financing
• “Good” and “bad” money
• Bridge loans and appraisal issues
• Using tax-exempt bonds to qualify for LIHTCs
• Syndications
• Key points in partnership agreements
• Calculating exit taxes
• Evaluating offers from equity investors
• Using HOME funds in LIHTC projects

Prerequisite:  HD420

Business Plans and Entrepreneurs:  Separating the Weak from the Strong

ED506 – Business Plans and Entrepreneurs:  Separating the Weak from the Strong.  Economic development practitioners are often called upon to provide assistance for start-up businesses.  While the rewards of successful new companies are great – job creation, stronger local economics, increased market opportunities – considerable risks exist.  More than 75 percent of start-up businesses fail.  This three-day course explores the skills used to evaluate a start-up business’ chances for success.  Participants learn how to evaluate a business plan – the primary tool used to make a credit decision for lending to or investing in a new company.  For start-up businesses with strong potential, students determine the best type of financing and structure appropriate financing packages.  Specific topics include:

Evaluating Start-up Businesses

• Risks and opportunities
• Management characteristics
• Organizational structure

Analyzing Business Plans

• Purpose and components of a business plan
• Analyzing the market
• Testing the entrepreneur
• Analyzing financial capacity

Business Credit Analysis and Beak Even Point Analysis

• Credit analysis process
• Break even point analysis

Projections

• Understanding assumptions
• Sources of information
• Projecting financial statements

Cash Flow Analysis

• Managing cash flow
• The operating cycle’s effect on cash flow

Deal Structuring and Restructuring

• Financing sources for start-up businesses
• Equity and venture capital
• Evaluating financing options

 

Prerequisites:  ED101 and ED201

CDBG Compliance in Operating a Revolving Loan Fund

ED406 – CDBG Compliance in Operating an RLF.  This course is conducted in two consecutive half-day sessions.  HUD’s Community Development Block Grant (CDBG) program is an excellent source of funds for capitalizing local revolving loan funds.  However, use of CDBG funds means complying with numerous requirements of the Housing and Community Development Act.  The course examines the requirements that must be met before a loan is approved for a borrower.  The course also investigates the requirements for monitoring the loan and makes sure that all conditions are met after the loan is made.  Topics include:

• Low and moderate income benefit
• Job tracking
• Underwriting requirements
• Davis-Bacon
• Program income issues
• Project administration
• Micro-loan requirements
• Program reporting

The ED406 course is a free standing component of ED405.  The ED406 course begins at 1:00 p.m., immediately following the ED405 course and concludes at 1:00 p.m. on the second day.  It is priced as a one-day course.

Prerequisite:  NDC recommends individuals take ED405 before ED406 or have experience in managing an RLF

Business Credit Analysis Concepts

ED100 – Business Credit Analysis Concepts.  This one-day course covers the basic techniques of credit analysis.  The class teaches how to determine a borrower’s ability to repay a loan as well as the criteria lenders use to approve a loan.  Participants also expand their ability to make sense of financial statements, understand the balance sheet and profit and loss statement, and determine how much debt a business can handle.  Topics include:

• Overview of the balance sheet and profit and loss statement
• Spreading and analyzing financial statements
• Quality indicators and ratio analysis
• Calculating cash flow and debt capacity

Prerequisite:  None

Business Credit Analysis Concepts

ED100 – Business Credit Analysis Concepts.  This one-day introductory course covers the basic techniques of credit analysis.  The class teaches how to determine a borrower’s ability to repay a loan as well as the criteria lenders use to approve a loan.  Participants also expand their ability to make sense of financial statements, understand the balance sheet and profit and loss statement, and determine how much debt a business can handle.  Topics include:

• Overview of the balance sheet and profit and loss statement
• Spreading and analyzing financial statements
• Quality indicators and ratio analysis
• Calculating cash flow and debt capacity

Prerequisite:  None

NDC Academy 2011

May 23-25, 2011
Washington, D.C.

Agenda | Project Showcase Submission | Accommodations | Tuition | Registration Information | Brochure

Navigating Changing Times
See & Hear for Yourself

Direct talk from elected officials, policymakers, finance program experts, Congressional staff…and NDC’s exceptional training.

With the 111th Congress only a few months old, the timing of the NDC Academy 2011 couldn’t be better. It will present an opportunity to see and hear directly from those who are confronting the policy challenges that profoundly affect the Community Development world. Elected officials, Administration and Congressional staff, advocates and program experts will be on the program and on-site to bring us up to date and, just as important, to hear from those of us who are on the frontlines of community development every day.

Program Agenda

The attire for the NDC Academy 2011 and the Capitol Hill Reception is casual. Participants should bring paper pads, pens, pencils and a calculator for use during the NDC Academy 2011 classroom sessions.

		Track I Creative Financing	Track II Job Creation	Track III Affordable Housing	Track IV  Community Development
Day 1  Mon., May 23	11am-1pm	Lunch with NDC
	1-3:30pm Classroom Sessions	Using Tax-Exempt Bonds to Support Community Revitalization	Business Development Finance and Job Creation Programs	Housing Development Finance Programs	Foundations and Community Development
	3:30-5:30pm Classroom Sessions	Going Green for Community Development	CDBG Financing Tools	Computer Mapping and Modeling	Home-Grown Community Development: Realizing Opportunity Right Next Door
Day 2  Tue., May 24	9am-12pm	Plenary Session: Navigating Changing Times
	12-1:30pm	Keynote Lunch
	2-3:30pm Classroom Sessions	Putting the Public Back in Public-Private Partnerships: Innovative Approaches to Financing Municipal Buildings	NMTCs for Small Business Lending	LIHTCs: Navigating the Times	Rural Community Development
	3:30-5pm  Classroom Sessions	Healthy Food Retail	The Small Business Jobs Act	The Neighborhood Stabilization Program	HUD Sustainable Communities Initiative
	6-7:30pm	Capitol Hill Reception
Day 3  Wed., May 25	8:30-9:30am  Project Showcases	Creative Financing	Job Creation	Affordable Housing	Community Development
	10am-1pm  Classroom Sessions	The Next Level of NMTCs	Revolving Loan Fund Portfolio and Asset Management	Asset Management for Affordable Housing	Main Street Finance: Mixed-Use Real Estate
	1-2:30pm	NDC Academy 2011 Awards Luncheon

Project Showcase Submission

Win an NDC Academy 2011 Award! The NDC Academy 2011 Awards will recognize your outstanding and innovative economic and community development projects. Submit your project online by March 18 and be selected to exhibit on Capitol Hill! Finalists will be chosen by NDC’s finance experts and will be notified of their inclusion in the Project Showcase displays at the Capitol Hill Reception on May 24. Academy registrants will then vote on the winners, who will be formally announced and recognized at the May 25 Awards Luncheon.

Accommodations

The NDC Academy 2011 will be held at:

Renaissance Hotel Dupont Circle     
1143 New Hampshire Avenue, NW
Washington, D.C. 20037
1-888-803-1298
NDC Group Rate: $269

The NDC Academy 2011 group rate will be held until April 22, 2011. After this date, reservations will be taken on a space available basis and higher rates may apply. To receive the reduced rate, make your reservation early and state that you are participating in the NDC Academy 2011.

Participants must make their own hotel reservations and are responsible for their travel expenses, including airfare, hotel accommodations and meals. However, lunch each day and a continental breakfast will be provided on Tuesday and Wednesday mornings, as well as a reception on Tuesday evening.

Tuition

$795, inclusive of NDC Academy 2011 courses, Lunch with NDC, Keynote Lunch, Capitol Hill Reception and NDC Academy 2011 Awards Luncheon. Individuals who register and submit payment before April 22, 2011 may take a 10 percent discount. The discount is not available for payments after this date.

Refunds are made only if NDC cancels the NDC Academy 2011 or a participant withdraws his or her registration ten (10) or more business days prior to the start of the session. A registrant will be assessed a
$100 withdrawal charge if he or she cancels fewer than ten (10) days prior to the start of the Academy.

Registration Information

Register now! Enrollment in the NDC Academy 2011 is limited on a first-come, first-served basis. Registration will be taken until all slots are filled or until the May 13, 2011 deadline.

For final registration, mail your completed registration form with payment to:
National Development Council
Training Division
927 Dudley Road
Edgewood, KY 41017
phone: (859) 578-4850
email: NDC_Academy2011@nationaldevelopmentcouncil.org

Final registration must be made in writing and be accompanied by payment (city, state or Federal vouchers are acceptable). An individual is not confirmed until full payment or a purchase order is received by NDC’s Training Division.

Session Descriptions

Day 1
Monday, May 23, 2011

Lunch with NDC
General Session
11am-1pm
Join the NDC experts you’ve met in the classroom and in your communities for a light lunch and conversation. Connect with our practitioners from across the country before they take to the lectern at the NDC Academy 2011.

Back to Program Agenda

Using Tax-Exempt Bonds to Support Community Revitalization
Track 1: Creative Financing
1-3:30pm
For more than two decades, there has been a continuing attrition of resources available for local housing and economic redevelopment and community renewal. The conundrum: without resources, how can we build our local economy, but without a healthy economy, how do we generate resources? Many states and localities have found a solution to dwindling resources by banking on their futures-identifying future revenue streams that will be generated by development and turning to financial markets to capitalize those streams. This session explores the different kinds of revenue streams that might be associated with specific future development activities and projects and ways in which they can be used to raise capital in the present. They include Tax Increment Financing (using real estate, sales, hotel and convention, or other targeted taxes); and PILOT revenue as some examples of this approach. Learning how to identify those sources and turn them into funds to assist redevelopment efforts is the focus of the session.

Back to Program Agenda

Business Development Finance and Job Creation Programs
Track 2: Job Creation
1-3:30pm
In this course, experienced practitioner and novice professional alike get a solid overview of state-of-the-art economic development finance for small businesses - both the core of basic methods and tools, and the newest techniques and applications. Financing resources for all job creation projects and activities are included in this session. Using actual projects, the course addresses the following specific topics and more:

• Fixed asset and permanent working capital financing
• Small business real estate
• Key participants and their roles
• Financing structures, including subordinated financing
• U.S. Small Business Administration financing
• HUD Community Development Block Grants, including Section 108
• Tax Increment Financing
• Revolving loan funds
• HUD CDBG financing tools

Back to Program Agenda

Housing Development Finance Programs
Track 3: Affordable Housing
1-3:30pm
Housing, and especially affordable housing, is still at the heart of every community development strategy. The practice has become more and more sophisticated in the past few decades with many stakeholders, different techniques, and new and evolving tools. This comprehensive overview of affordable housing finance and development is designed for both non-profit and public sector housing development practitioners. The course addresses the following topics and more:

• HUD resources
• Tax-exempt bonds
• Low-Income Housing Tax Credits
• Types of projects that can be done with each program
• Key issues for developers and funders

Back to Program Agenda

Foundations and Community Development
Track 4: Community Development
1-3:30pm
Foundations have played a critical leadership role in community development since the beginning of the movement in the 1960s. Through the decades since, their financial support and innovative thinking have pushed the frontiers of good policy and effective practice. In recent years, many have adopted strategies beyond grant-making toward a policy of strategic investment to create social value through healthy and sustainable communities. This session explores current thinking and specific examples of how foundations are maximizing the impact of their investments.

Back to Program Agenda

Going Green for Community Development
Track 1: Creative Financing
3:30-5:30pm
Congress has provided a number of Federal subsidies in support of our national energy and environmental policies, including the Production Tax Credit, Investment Tax Credit and the 1603 Grant in Lieu of Tax Credits. A number of states have similar incentives. NDC recognized that these can be used as resources for community development as well as for energy and environmental goals. We have developed creative financing for community development projects that incorporate renewable energy facilities, taking full advantage of all available financing tools. This session covers:

• Financing tools, both Federal and state
• Deal structuring
• Long-term project benefits of renewable energy

Back to Program Agenda

CDBG Finacing Tools
Track 2: Job Creation
3:30-5:30pm
CDBG is the stalwart mainstay in community and economic development financing. Since CDBG’s inception over 40 years ago, NDC’s finance professionals have been experts in identifying and developing the best ways to use CDBG funds for both long-term and short-term financing. NDC helped create and continually refine the HUD Section 108 program and CD Float - powerful leveraging tools for community development: flexible, accessible for creative structuring and irreplaceable. Real economic development projects are used to explore the following topics and more:

• CDBG regulations
• Meeting the “National Objective” and “Public Benefit” tests
• Eligible uses for Section 108
• The Section 108 application and approval process
• Underwriting
• Defeasing a Section 108 loan
• Using CD Float as a source of low-cost, short-term financing

Back to Program Agenda

Computer Mapping and Modeling
Track 3: Affordable Housing
3:30-5:30pm
For any community development initiative that is location-based, mapping brings together in one place geographic data on key relevant variables. But how do you make sense of the multitude of statistics from demographics, income and employment to vacancy rates, home ownership, jobs, school performance scores… and more? Get acquainted with the tools used to put these data to work, efficiently deploying scarce resources where they are needed most.

Back to Program Agenda

Home-Grown Community Development: Realizing Opportunity Right Next Door
Track 4: Community Development
3:30-5:30pm
Colleges, universities and hospitals are playing an increasingly active role in the revitalization of the neighborhoods surrounding their campuses. Long viewed as islands unto themselves, these institutions are transforming entire neighborhoods with their willingness to invest in their home communities. Unlocking the economic potential of these community institutions is the focus of this session. Learn how to capitalize on the location of community institutions, incorporating them as the foundation of a successful locally-based redevelopment strategy.

Back to Program Agenda

Day 2
Tuesday, May 24, 2011

Plenary Session: Navigating Changing Times
General Session
9am-12pm
The NDC Academy 2011 is strategically timed so that we can take stock of the new Congress, only a few short months into its term; so that we can hear what the executive branch is planning for its programs; and so that we can learn how our practice may be affected by shifting rules and regulations. A sampling of what this session will cover:

• The new Congress
• The 2011 Federal budget
• 2011 appropriations
• New CRA regulations
• Program updates: CDFI, CDBG, SBA, NMTC

And as more emerges from Congress and the Administration in the first months of the year, those matters will be added to the Plenary Session so that we can all be ready to work with the best and latest information.

Back to Program Agenda

Keynote Lunch
General Session
12-1:30pm
Sit down with your colleagues for lunch and hear a special keynote address that will inform and inspire you as you head to NDC Academy 2011 classroom sessions over the next two days.

Back to Program Agenda

Putting the Public Back in Public-Private Partnerships: Innovative Approaches to Financing Municipal Buildings
Track 1: Creative Financing
2-3:30pm
Most communities need to look beyond conventional approaches for financing and building public facilities. Whether they have reached their debt limits or they want to get projects built faster and more efficiently, there are methods and tools that enable a non-profit organization to develop and own such projects, lease them to the governmental entities and eventually transfer them to public ownership. Learn more about this approach from members of the development team themselves, including financing options, cost and time savings, and how this development method differs from conventional approaches.

Back to Program Agenda

NMTCs for Small Business Lending
Track 2: Job Creation
2-3:30pm
The New Markets Tax Credit (NMTC) Program has provided substantial investment in low-income areas since its inception in 2000. While most of the transactions have been real estate developments with total project costs over $5 million, NMTCs are also a great resource to support small business development. Learn how NDC’s Grow America Fund has used NMTCs for small business lending, making loans as small as $190,000 to operating businesses and providing small businesses in New Markets-eligible communities the benefits of low interest and deferred principal payments.

Back to Program Agenda

LIHTCs: Navigating the Times
Track 3: Affordable Housing
2-3:30pm
After nearly 25 years, the Federal Low-Income Housing Tax Credit (LIHTC) program remains the major source of financing for affordable housing development across the country. While there are other financing sources and mechanisms, no serious affordable housing program operates without LIHTCs. This session provides a description of the LIHTC program and explains how it works. Participants learn the threshold criteria for using the credits and how to calculate credits for a project using real-world cases. The session also covers recent changes to LIHTC legislation and the current investor environment.

Back to Program Agenda

Rural Community Development
Track 4: Community Development
2-3:30pm
In the context of community development, rural housing, real estate and small business development share many characteristics with their urban and suburban counterparts. But because they take place in a very different environment, they face challenges specific to their rural context. While the pool of resources available for rural development includes many that are available to all areas, it also includes Federal programs that were created just for rural areas. This course investigates both the challenges specific to rural development and the general and targeted resources available. Rural financing resources from the USDA are explored in detail with a review of other programs and their applicability in rural areas including:

• Low-Income Housing and Historic Rehabilitation Tax Credits
• Private Activity and Mortgage Revenue Bonds
• CDBG, EDA and Federal Home Loan Bank programs
• HUD programs: Section 108, CD Float, HOME funds

Back to Program Agenda

Healthy Food Retail
Track 1: Creative Financing
3:30-5pm
The Healthy Food Financing Initiative was created to expand access to nutritious foods, including developing and equipping grocery stores and other small businesses and retailers selling healthy food in communities that currently lack these options. Learn the strategy supporting private sector financing of healthy foods options through the Treasury Department, with a set-aside of New Markets Tax Credits and financial assistance to CDFIs devoted to financing healthy food options; USDA loans, grants and other assistance; and HHS grants.

Back to Program Agenda

The Small Business Jobs Act
Track 2: Job Creation
3:30-5pm
2010 was the year that Congress and the President were finally able to address the effects of the credit crisis and the recession on small business credit. Acknowledging the importance of small business in our national and local economies, they have put in place a variety of measures to provide credit on terms that fit the needs of small businesses and boost their ability to survive, grow and create jobs. NDC was very active in Washington, advocating for those changes, and NDC’s Grow America Fund (GAF), our small business lending program, wasted no time in deploying them in our lending, resulting in the highest loan volume in the program’s history. Hear our GAF and other experts discuss:

• The U.S. Treasury’s $30 billion Small Business Loan Fund
• SBA’s Small Loan Advantage program
• SBA’s Community Advantage program
• Changes in SBA’s 7(a) program in loan size and business size criteria
• Changes in SBA’s 504 program

Back to Program Agenda

The Neighborhood Stabilization Program
Track 3: Affordable Housing
3:30-5pm
The Neighborhood Stabilization Program (NSP) was established to help stabilize communities that have suffered from foreclosures and abandonment through the purchase and redevelopment of foreclosed and abandoned homes and residential properties. It has provided grants to states and local governments on a formula basis (NSP1 and NSP3) and on a competitive basis (NSP2), as well as funds to national and local technical assistance providers through NSP Technical Assistance. This panel will cover the latest in NSP implementation and policy decisions straight from the HUD program officials at the helm and members of NDC’s Technical Assistance consortium who are deploying NSP resources nationwide.

Back to Program Agenda

HUD Sustainable Communities Initiative
Track 4: Community Development
3:30-5pm
The HUD Sustainable Communities Initiative was established to create strong, sustainable communities by connecting housing to jobs, fostering local innovation and helping to build a clean energy economy. By ensuring that housing is located near job centers and affordable, accessible transportation, we will nurture healthier, more inclusive communities - which provide opportunities for people of all ages, incomes, races and ethnicities to live, work and learn together. Join this session for a comprehensive overview of the newest HUD resource and how you can hit the ground running in your community.

Back to Program Agenda

Capitol Hill Reception
General Session
6-7:30pm
We invite you to join us for an evening on Capitol Hill. Network with legislators and Congressional staff, policymakers, program officials and colleagues, enjoy cocktails and hors d’oeuvres and celebrate the work of our community partners, who are putting development finance programs to work generating investments, jobs, and economic and housing opportunities in communities across the country.

And cast your votes for the Project Showcase finalists! The projects you select will be presented in detail on Wednesday morning by the project participants themselves and honored at the NDC Academy 2011 Awards Luncheon.

Back to Program Agenda

Day 3
Wednesday, May 25, 2011 

Project Showcases
All Tracks
8:30-9:30am
NDC community partners throughout the country are among the most dedicated and creative community development professionals in the business. These sessions showcase some of their most challenging and creative projects, and participants will get an opportunity to learn how they took those projects from concept to reality. In addition to informal presentations, question-and-answer sessions will provide an opportunity to explore the details of their problem-solving strategies and the constraints and road blocks they overcame. Projects presented in these four sessions will be honored with NDC recognition awards at the luncheon following the day’s morning classroom sessions. Select the project showcase session that most interests you from the four track-specific categories:

Track I: Creative Financing
Track II: Job Creation
Track III: Affordable Housing
Track IV: Community Development

Back to Program Agenda

The Next Level of NMTCs
Track 1: Creative Financing
10am-1pm
If you already know the basics of the New Markets Tax Credit (NMTC) program (or have just learned them in our NMTCs for Small Business Lending course) or if you know what a QLICI, QALICB and QEI are, this course will take you to the next level of understanding in using the NMTC program. It presents real projects, real numbers and real problems, and shows you how to structure a real transaction. Whether you are already a CDE with an allocation, or hoping to become one, or whether you are planning to seek NMTCs for a project, this material will help you get the most out of the program.

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Revolving Loan Fund Portfolio and Asset Management
Track 2: Job Creation
10am-1pm
This is a session for professionals who are designing, administering and maintaining public loan funds and need an overview of sound management principles. Learn the techniques critical to the overall success of the fund and the long-term ability to “revolve” dollars into investment for other activities.

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Asset Management for Affordable Housing
Track 3: Affordable Housing
10am-1pm
Financing, building and leasing an affordable housing project are just the beginning of responsibility for successful housing and community development. It’s the next fifty years that matter, and the asset manager performs a vital role in maintaining quality affordable housing developments. Good asset management is invaluable to all involved parties, from investors to lenders to the residents this housing serves. Participants learn the tools of risk management, including spread sheet analysis and problem solving, that can aid in diagnosing future problems and methods to address them. Understand how asset management actually starts when a project is in the planning process. The course shows you how to do that by exploring the following topics and more:

• Asset management responsibilities and goals
• The role of asset management throughout the planning, development and operating phases
• Identifying, assembling and managing the asset management team
• Asset management vs. property management
• Tools, procedures and processes

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Main Street Finance: Mixed-Use Real Estate
Track 4: Community Development
10am-1pm
Neighborhoods are at their best when “Main Street” pulses with the activities that bring a community alive-retail, entertainment, services, public facilities and common areas. There are many financial tools available for Main Street redevelopment and if brought together in the right way, for the right uses, they can do the job. Older Main Streets have special opportunities for adaptive reuse and new construction-with buildings that are ideally suited to retrofitting multiple uses in one structure. But how do you use single-purpose financing tools to structure financing for a mixed-use facility? What instruments are available and appropriate? What if their criteria seem to be contradictory? This session answers those questions and explores the following topics:

• Challenges of mixed-use development
• Mixed-use opportunities
• Community facilities on Main Street
• Inventory: What do you have to work with?
• Tax credits
• Mixing financing: the right recipe

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NDC Academy 2011 Awards Luncheon
General Session 
1-2:30pm
NDC is pleased to honor our community development partners for their hard work and ingenuity. Academy attendees will have the opportunity to learn about their innovative projects at the Capitol Hill Reception and to ask questions of the deal-doers themselves in the Project Showcases. Cast your vote for the projects that inspire you the most and congratulate the peer-selected winners at the NDC Academy 2011 Awards Luncheon.

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Tax Increment Financing

ED525 - Tax Increment Financing.  For over two decades, we have been confronted with the continuing attrition of resources for local housing and economic redevelopment and community renewal.  Without resources, how can we build a healthy economy, but without a healthy economy, how do we generate resources?  Many states and localities have found one answer to this conundrum by banking on their future - identifying future revenue streams that would be generated by development and turning to financial markets to monetize those streams.  This two-day course explores the different kinds of revenue streams that might be associated with specific future development activities and projects and ways in which they can be used to raise capital in the present.  They include Tax Increment Financing from real estate, sales, hotel and convention or other targeted taxes.  Identifying these sources and turn them into funds to assist redevelopment efforts is the focus of this session. 

Prerequisite:  None

Revolving Loan Funds and CDBG Compliance

ED405 - Revolving Loan Funds and CDBG Compliance.  Local officials are confronted with increasingly limited sources of financing to meet the needs of expanding businesses and development activities.  In response, many communities have created local revolving loan funds (RLFs).  RLFs complement scarce private and public financing by recycling funds and leveraging private dollars.  HUD’s Community Development Block Grant (CDBG) dollars can be a significant source of funding for RLFs.  However, use of CDBG funds means complying with numerous requirements of the Housing and Community Development Act.  NDC’s RLF course is a three-day session designed to assist community professionals in effectively designing and administering a local public loan portfolio.  The course also examines the requirements that must be met before a loan is approved for a borrower and investigates the requirements for monitoring the loan and making sure that all conditions are met after the loan is made.  Specific topics include:

Revolving Loan Fund Design

• Identifying local needs and RLF goals
• Organizational structure and capitalization
• Quantifying the level of financial risk
• Operating policies and procedures
• Marketing the RLF to borrowers and bankers
• Deal structuring and subordination

Credit and Collateral Analysis

• Using credit analysis to assess company operations and debt capacity
• Cash flow lending
• Personal financial statements

Closing and Documenting Loans

• Pre-closing conference
• Loan documents
• Valuing collateral and guarantees

Servicing and Portfolio Management

• Designing a loan monitoring and servicing system
• Using a loan classification system
• Protecting collateral

Workout Strategies

• Innovative workout strategies
• Lien positions in bankruptcy
• Liquidation and foreclosure

CDBG Compliance

• Low and moderate income benefit
• Job tracking
• Underwriting requirements
• Davis-Bacon
• Program income issues
• Project administration
• Micro-loan requirements
• Program reporting

Prerequisite:  None

Mixed-Use Real Estate Finance

ED512 - Mixed-Use Real Estate Finance.  Neighborhoods are at their best when “ Main Street ” pulses with the activities that bring a community alive—residential, retail, entertainment, services, public facilities and common areas.  Older Main Streets have special opportunities for adaptive reuse—with buildings that are ideally suited to retrofitting multiple uses in one structure.  Cities and towns undergoing redevelopment in their downtowns often view mixed-used development as a way to catalyze Main Street, energizing it with shopping, dining, culture and entertainment.  There are several financial tools available for Main Street redevelopment and if brought together in the right way, for the right uses, they can do the job.  This course explores the following topics:
 
Mixed-Use Development Challenges

• Commercial real estate revitalization
• Community facilities on Main Street
• The community perspective on revitalization
• Inventory:  what do you have to work with?
• Thinking outside the box for adaptive reuse

Mixed Financing:  The Right Recipe

• Real estate financing process
• Estimating project costs
• Projecting the developer’s pro forma
• Determining debt capacity
• Measuring equity attracted
• Quantifying the financing gap
• Closing the gap

Taxes and Real Estate Development

• Cash flow after tax
• Depreciation
• Historic Rehabilitation, Low-Income Housing and New Markets Tax Credits

Financing Tools for Mixed-Use Development

• Debt and equity vehicles
• Programs:  CDBG, CDBG Float Loan, Section 108 and tax-exempt bond financing
• Other Structuring Tools:  tax increment financing, ground leases, tax abatement and payment in lieu of taxes

Prerequisite:  None

New Markets Tax Credits

ED515– New Markets Tax Credits.  This intensive two-day course is designed to take the mystery out of this powerful economic development tool, just renewed by Congress for $7 billion over the next two years.  The course takes you from the basics - what NMTCs are and how they are allocated - through the all-important legal and regulatory parameters, to the financing models that work best and maximize NMTC benefits.  You’ll learn the new NMTC alphabet soup - how to tell a QEI from a QLICI, what a CDE does and what kind of enterprise can be a QALICB.  Case studies and hands-on work take you step-by-step through actual NMTC projects, including commercial real estate, mixed-use development that includes significant amounts of housing, community facilities for non-profits, business financing, and projects that include historic rehabilitation tax credits.  NDC is a recipient of several large NMTC allocations and has developed successful models for applying them to a full range of community development projects.  Participate in this course and begin applying this federal tool to your most pressing economic development needs.  Specific topics include:

New Markets Tax Credits

• Program fundamentals
• Project underwriting
• Investors, lenders, developers and the financing process
• Regulations include the latest updates
• Application requirements
• Finding potential investors
• Recapture of credits

Using NMTCs for Real Estate Development

• Commercial real estate, mixed-use and non-profit facilities projects
• Measuing debt and equity attracted
• Determining the financing gap
• Using NMTCs to close the gap

NMTCs for Business Development Projects

• Measuring repayment ability
• Structuring gap financing using NMTCs

Program Models

• Levered equity model—publc sector, conventional lender, private investor
• Debt service subsidy model
• Historic Rehabilitation Tax Credits and NMTCs

Prerequisite:  None

Housing Development Finance:  Problem Solving and Deal Structuring*

HD430 – Housing Development Finance:  Problem Solving and Deal Structuring.  The fourth and final course in the HDFP certification program, blends the financial analysis techniques learned in the previous courses with the problem solving and negotiating skills that housing development practitioners utilize to close complex projects.  This five-day course challenges participants to analyze and structure financing packages for home ownership and rental housing deals that are complicated by a variety of factors, both financial and non-financial in nature.  Participants become skilled at the methods used to structure financing that most effectively leverages public dollars.  Specific topics include:

Deal Structuring

• Identifying financial and non-financial issues
• Assessing participants
• Problem solving process
• Devising a negotiation strategy
• Mixed-use deals
• Low-Income Housing Tax Credit deals
• Creative gap filling techniques
• Lease-purchase housing projects

Fees and Reserves

• Developer’s compensation
• Investor requirements
• Permanent lender requirements
• Types of reserves
• Credit adjusters

Other Issues

• Appraising LIHTC deals
• Exit strategies for LIHTC deals
• Zoning
• Environmental issues

Prerequisites:  HD410, HD420 and HD422

*Participants in HD430 must bring a laptop computer equipped with Microsoft Excel 2003 or higher.  We can accommodate participants who use Microsoft Excel 2007.

Computer Spreadsheet Analysis for Housing*

HD422 – Computer Spread Sheet Analysis for Housing.  The third course in the HDFP certification program builds the skills using computerized spread sheets.  Participants use financial analysis forms and spread sheets to improve their decision making skills.  Affordable home ownership and rental development case studies, based on actual projects, are analyzed using computer-based models.  Topics include:

Spread Sheet Basics

• Navigating financial analysis forms and spread sheets
• Entering data into computerized spread sheets
• Implications of changing project assumptions

Home Ownership Spread Sheets

• Development budget
• Profit and loss statement
• Cash flow statement
• Home buyer mortgage analysis
• Interpreting data

Rental Housing Development Spread Sheets

• Development budget
• Pro forma income and expense statement
• Sources of funds
• Tax and appreciation benefits

Debt and Equity Investment Vehicles

• Conventional debt
• Alternative mortgage instruments
• HOME
• CDBG
• Other financing programs

Prerequisites:  HD410 and HD420

*Participants in HD422 must bring a laptop computer equipped with Microsoft Excel 2003 or higher.  We can accommodate participants who use Microsoft Excel 2007.

Rental Housing Development Finance

HD420 – Rental Housing Development Finance.  The second course in the HDFP certification program, first course in the RHDFP certification program, examines in detail the financing and developing of rental property.  The course emphasizes the criteria used by lenders and investors to decide if they will put money into a project.  The course also explores methods to attract private funds and the use of public funds to fill financing gaps.  Topics include:

Rental Housing Development Process

• Key actors and their concerns
• Steps in developing rental housing

Preparing Financial Projections

• Pro forma income and expense analysis
• Sources and uses of funds statements

Private Financing

• Permanent lender ratio analysis
• Construction lender analysis
• Construction management

Appraisals

• Three approaches to value

Tax Credits

• Historic Rehabilitation Tax Credits
• Low-Income Housing Tax Credits

Discounted Cash Flow Analysis

• Present value theory
• Internal rate of return

Syndication

• Pricing benefits
• Investor concerns
• Key partnership issues

Deal Structuring

• Altering rates of return
• Debt and equity investment vehicles

Prerequisite:  While not required, NDC recommends completing HD410 before taking HD420

Home Ownership Finance

HD410 – Home Ownership Finance. The first course in the HDFP certification program examines the skills required to succeed in developing single-family housing that is affordable for low and moderate-income families.  The focus is on financing, especially the relationship between the development and the affordability for a home buyer.  Topics include:

Home Ownership Development Overview

• Achieves a public purpose
• Stabilizes neighborhoods
• Promotes economic growth
• Establishes markets

Home Ownership Development Process

• The players
• Non-profits and public sector roles
• Selecting and developing the site

Financing and Deal Structuring

• Construction financing
• Profit and loss statement
• Cash flow statement

Qualifying Home Buyers

• Calculating ratios
• Verifying information
• Evaluating credit reports

Income and Credit Barriers to Home Buyer Qualification

• Down payment and closing costs
• Debt/income ratios
• Credit history
• Monthly payment
• Methods of overcoming barriers
• Lease-purchase

Permanent Mortgage Programs

• Federal programs
• Private programs

Prerequisite: None

Real Estate Finance

ED202 – Real Estate Finance.  The third course in the EDFP certification program presents a detailed look at commercial real estate development.  You will gain insight into the way investors see the real estate market and how to meet their requirements.  Economic development projects are evaluated using the same measuring tools used by lenders, developers and investors.  You will examine the amount and type of incentive financing needed to make a deal happen.  In addition, you will learn about attracting investors for real estate development projects, and the techniques to lower the amount of public subsidy needed.  Topics include:

Real Estate Financing Process

• Calculating project costs
• Projecting the developer’s pro forma
• Determining debt capacity
• Measuring equity attracted
• Quantifying the financing gap
• Closing the gap

Return on Investment

• Cash-on-cash rate of return
• After-tax cash flow rate
• Present value analysis
• Internal rate of return

Appraisals

• The capitalization rate
• Three approaches to value
• Reconciling value

Impact of Taxes on Real Estate Ownership

• Depreciation
• Leverage
• Tax credits
• Taxable gains and losses

Prerequisite:  None

The Art of Deal Structuring

ED300 – The Art of Deal Structuring.  The final course in the EDFP certification program applies the lessons of finance, business credit and real estate learned in previous courses to the demands of putting deals together.  The Art of Deal Structuring provides a process you can use to overcome problems.  The process takes into account economic conditions and financial constraints, and addresses political and social conditions that affect economic development deals.  The course emphasizes casework and classroom problem solving exercises involving complex financial issues.  Topics include:

Problem Solving

• Elements of the problem solving process
• Devising a negotiation strategy
• Creating “win-win” solutions

Deal Structuring

• Valuing tax credits
• Mixed-use developments

Workouts and Buy-outs

• Developing a workout plan
• Business valuation methods
• Structuring a buy-out

Syndication

• Equity attraction
• Allocation of benefits
• Limited partnership model

Prerequisites:  ED101, ED201 and ED202

Business Credit Analysis

ED201 – Business Credit Analysis.  The second course in the EDFP certification program explores advanced techniques to determine if a business is a candidate for financing assistance.  You will look at the underwriting standards and procedures of commercial lenders, and adapt this knowledge to economic development loans.  You will acquire skills to obtain financing that fills the gap between conventional loans and projected cost of a project.  You will analyze the financial statements of various types of real companies – manufacturing, service and retail – and structure fixed asset and permanent working capital financing.  Topics include:

Credit Analysis Process

• Evaluating a company’s strengths and weaknesses
• Refining quality indicator and ratio analysis
• Assessing operating needs
• Measuring a company’s ability to digest growth

Permanent Working Capital Analysis

• Determining a company’s operating cycle
• Measuring PWC needs
• Financing a company’s growth

Cash Flow Analysis

• Analyzing cash flow management
• Determining debt capacity
• Matching sources and uses of funds
• Identifying fast growth syndrome

Projections and Deal Structuring

• Balance sheet and profit and loss statement projections
• Evaluating financing options
• Break even analysis
• Structuring fixed asset and PWC financing
• Restructuring financing packages

 

Prerequisite:  ED101

Economic Development Finance

ED101 – Economic Development Finance.  ED101, the first course in the EDFP certification program, explores the financial skills required for the successful practice of economic development within the context of an overall economic development finance system.  The session provides a conceptual framework for the role of economic development finance in the larger economy and involves participants in analyzing and structuring financing for operating businesses.  Specific topics include:

Economic Development Finance Overview

• Financing gaps in the private capital markets
• Underwriting practices of private sector lenders
• Plugging the gaps with economic development financing incentives
• Implementing financing programs through an economic development system

Business Credit Analysis

• Financial statement spreading and analysis
• Quality indicators and ratio analysis
• Calculating debt service

Fixed Asset Financing

• Measuring repayment ability
• Structuring incentive financing

Real Estate Financing

• Developer’s pro forma income and expense statement
• Measuring return on investment
• Calculating the financing gap

Economic Development Finance Program

• SBA 504 and 7(a)
• HUD CDBG and 108
• New Markets Tax Credits
• Revolving loan funds and interim financing
• Loan packaging procedures

Prerequisite:  None