ANNUAL REPORT 2012 - USF Florida Institute of...

ANNUAL REPORT2012

CRED TAMPA BAY

CERTIFICATE IN COMMUNITY REAL ESTATE DEVELOPMENT AT THE UNIVERSITY OF SOUTH FLORIDA

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The Florida Institute of Government (FIOG) of the College of Arts and Sciences at USF was established by the Legislature in 1981 as part of a consortium of universities that share a statewide mission:

The institute was renamed in honor of John Scott Dailey, its founding executive director. Since its inception, the FIOG at USF has provided training and technical assistance to code enforcement officers, city clerks, elected and appointed local and state governmental officials, volunteers and the general public.

The John Scott Dailey Florida Institute of GovernmentCollege of Arts and SciencesUniversity of South Florida4202 East Fowler Ave, CHE205Tampa, Florida 33620Phone: (813) 974-8423Fax: (813) 974-2819

“to increase the effectiveness and quality of government in Florida through applied research,

training, and technical assistance programs and public service.”

ABOUT THEFLORIDA INSTITUTE OF GOVERNMENT

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Course summary The Certificate in Community Real Estate Development (CRED) Program at USF offers practical training for community developers and others in the industry, providing the tools needed to carry out successful affordable housing and community-based real estate development projects. Through 15 days of classroom training provided by industry experts and faculty, classroom exercises, field trips and group projects, the program provides participants with the tools they need to understand and be successful in the real world of community real estate development.

Participants who successfully complete the course receive a certificate from USF. The three-module Community Real Estate Development program focuses on professionalizing the local community development industry and creating partnerships to develop and sustain viable affordable housing communities in Tampa Bay.

PurPose The goal of the Community Real Estate Development program is to create effective leadership in community development for long term benefits to the community. The CRED program works to expand the supply of skilled real estate analysts who are uniquely qualified to formulate and package catalytic real estate and economic development projects in low income urban neighborhoods, particularly affordable housing for under-served communities. The program’s outcome is to produce a well-trained workforce that can use the skills acquired to have a real world impact in their local community.

Community Benefit The program is geared towards non-profit organizations and other community development corporation professionals. It is also aimed at expanding the capacity of non-profits to stimulate economic development and create new partnerships. This program helps to meet the never-ending need of a community’s low-to-moderate income individuals by providing the tools that foster beneficial community development and affordable housing among Community Development Corporations and other non-profits.

outComes The CRED program also focuses on developing real world projects. Participants from the CRED program identify projects that can have a measurable impact on the community. These projects help to support the goal of the CRED program to build an alliance of community developers.

PROGRAM OVERVIEW

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Tom Zuniga

A TRIBUTE TO THOMAS ZUNIGA

Tom, I know you are up there watching as we prepare to graduate your final class of the “Certificate in Community Real Estate Development (CRED) Program”. I also know that you wanted all of our funders and supporters to rest assured that this “Class of 2012” was by far the most rewarding for you. You persevered through the entire year and gave the best you could give. We all thank you for that.

This class and the previous seven are indebted to you for making sure that the purpose and goals of the program,” to always focus on developing real world projects and that the projects build an alliance of Community Developers,” has maintained its integrity and will continue to thrive well into the future.

Tom, you have been a loyal friend, mentor, and most of all, My Brother. Please know that the CRED Steering Committee is dedicated to making sure that the CRED Program will continue and you will be part of the next class. Farewell My Brother!

Ed Johnsonon behalf the Steering Committee

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instruCtors

CRED TAMPA BAY 2012FACULTY

Tom Zuniga Lead Facilitator DSG Community Management Systems, LLC

Dr. Philippe BeauFacilitatorAmerican Land Planning Management, Inc

L. “Lucky” Guerra Facilitator Sirius Development Group, LLC

Sylvia AlvarezHousing Education Alliance

Michelle BooneCity of Tampa, Housing

Franklin C. Bowman Pinellas County Housing and Community Development

Michael ButlerTampa Housing Authority

Gladstone CooperBereford, LLC

Cheryl EnglishWomen’s Resource Center

Edi ErbHillsborough County Coalition for the Homeless

Trent GreenUSF School of Architecture

Harry HedgesHillsborough Housing Finance Authority

Bob IronsmithCity of Dunedin

Ed JohnsonCity of Tampa CRA, East Tampa

Anthony JonesPinellas Housing Finance Authority

Kathleen McDanielPinellas County Housing and Community Development

Jamie MeloniColdwell Banker South Tampa

William MillerUSF Emeritus Professor

Karen MillerPDC Development

Clinton Paris, PAClinton Paris, PA Attorney at Law

Debra ReyesNeighborhood Lending Partners

Ray TullerVolunteers of America

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Guest sPeakers

Sylvia AlvarezHousing Education Alliance

Michelle BooneCity of Tampa, Housing



CreD Culmination Presentation JuDGes



Ed JohnsonCity of Tampa CRA, East Tampa

Rev. Dr. Samuel KirklandShepherd’s Care CDC Ministries of Tampa Bay, Inc.

Leroy MooreTampa Housing Authority

Larry NewsomeCEO, Urban Development Solutions, Inc.

Shrimatee Ojah-MaharajCity of St. Petersburg

Debra ReyesCEO, Neighborhood Lending Partners

PeoPle you shoulD know in tamPa Bay

“Private Developer Perspective” Harry Hedges, Tampa Housing Partnerships

“CDFI Resources” Debra Reyes, Neighborhood Lending Partners

“Innovative Approaches toAffordable Housing”Roxanne Amoroso, Bank of America

“Legal Issues” Christine Allamanno, Gulfcoast Legal Services, Inc.Clinton Paris, P.A.

“Supportive Housing”Cheryl English, Women’s Resource Center

“Community Design and Land Uses” Trent Green, USF School of Architecture Philippe Beau, American Land Planning Management, IncBob Ironsmith, City of Dunedin

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CRED TAMPA BAY 2012GRADUATES

CharlesArmold

Plant City CDC

Jeanne BedardGraphic Designer

JerryBond

The Bond Organization

Charles is a 5th generation Floridian, a lifelong resident of the Tampa Bay area. He is the deputy executive director for the Plant City CDC.

Jeanne has been in the graphic design field for over 30 years and produced a monthly publication, phenomeNEWS, the first publication of its kind in the country. As production manager, Jeanne created the layouts, designed over 200 covers, edited over 8,000 articles, created and prepared over 4,000 camera-ready ads and published over 75 books/training manuals by self-published authors. In addition, Jeanne is also an event planner and fundraiser.

Jerry has been with The Bond Organization, Architecture & Planning for over 30 years while recently becoming the President at US SA Energy & Aerospace Initiative. He is a graduate of the University of Tennessee, where he received his B.A. in Design and Masters in Urban Planning. Jerry is associated with many alternative-energy and aviation groups.

Charlene M. Cohick

Neighborhood Lending Partners,

Inc.

Charlene has been with Neighborhood Lending Partners for 2 years where she has been responsible for maintaining and administering the $50 million NSP2 Grant as the Compliance Reporting Administrator. She has been an accountant for 12 years prior to joining NLP.

Jeremy D. Correia

Correia Commercial

Jeremy has worked in real estate for about six-years having held jobs as a Mortgage Broker, Commercial Real Estate Appraiser and as a Real Estate Broker. His vision is to create housing and commercial spaces using smart growth development strategies that bring underserved and/or areas needing redevelopment into the

Tamara Felton-Howard, Esq.

Urban Development Solutions, Inc.

Tamara is Vice-President of Administration and General Counsel for Urban Development Solutions, Inc., a 501(c)(3) community redevelopment corporation located in St Petersburg. Tamara is involved in the development of St. Petersburg’s Historic Manhattan Casino and the Historic McCollum Hall in Ft. Myers. Her future development goals are to utilize the knowledge gained in CRED to further expand development opportunities for UDS throughout the state of Florida.

Braulio Grajales, P.E.

High Point Engineering, Inc.

Braulio is the principal civil engineer at High Point Engineering in Tampa and has over 12 years of experience in consulting in the land development industry. He has successfully designed and permitted projects for developers and represented clients and their projects before local and state governmental agencies.

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SeanJones

RaymondJames Tax Credit

Funds, Inc.

DavidHollis

Tampa Housing Authority

David is a native Floridian, born and raised in Sarasota. He is a USF Graduate, served at the rank of Captain as a USAF Combat/Instructor Pilot, and was a Tampa banker for over 18 years. Currently, he is the Grant/Financial Administrator for the Tampa Housing Authority responsible for The Encore Development. He is an appointed member of the HFA Board and is active in numerous civic and community-based organizations and is a certified FEMA Disaster Responder.

Sean is an Associate Director of Acquisitions for Raymond James Tax Credit Funds, Inc., which is a low-income housing tax credit syndicator. He is responsible for providing resources to developers of low-income tax credit housing domiciled within the southeastern U.S.

JamieMeloni

Coldwell Banker Residential Real

Estate

Jamie is a Tampa based Realtor specializing in the sale of foreclosed properties. He has sold over 650 foreclosed properties since 2007 and works with 45 different bank and asset management company clients. In addition, he is a member of the NRBA where he holds the title of Master Broker.

Lorenzo ReedTampa Housing

Authority

Lorenzo is the Development Project Manager for the Tampa Housing Authority’s Encore Development. He is responsible for overseeing the progress of the construction for the development as well as monitoring the financial aspects of the construction. He is a civil engineer by trade.

Jerry G. NealyReverend

Reverend Nealy is the Founder/Coordinator of Brothers-N-Ministry, a prisoner reentry project which is dedicated to developing a 32 acre agricultural site with a sustainable fish farm and produce operation, The Captain’s Seafood Market, Inc. Brothers-N-Ministry is developing MOGG II Project, as well as, a career development and jobs preparation educational facilitate called the Virtual Vocational Technical Academy VVTA.

Priscilla Williams

Urban Development Solutions, Inc.

Priscilla is the VP and Chief Financial Officer for Urban Development Solutions, Inc. She is a graduate of the USF with a B.A. degree in Accounting and has been a Certified Public Accountant since 1989. Priscilla has fifteen years of experience in public utility audit, over three years experience as a Federal Savings Bank Auditor and Audit Supervisor, and 20 years of work experience as a financial accountant in banking, other corporate industries, and with not-for-profit organizations.

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ABOUT THE CULMINATION PROCESS

The duration of the CRED Program ends with the Culmination exercise, an opportunity to use what is taught during the program by utilizing these tools in a real-life scenario using case studies. This process is integral to the success of the program by giving a platform upon which participants’ progress in the course can be measured. Culmination exercises also give our participants experience in pitching a possible development based upon their own creativity and analysis of feasibility and funding.

Teams were selected based on the best concept papers submitted. Three projects were selected that encompassed various aspects of community development. Presentations were reviewed by an informal roundtable of community development practitioners, public program staff, and local private lenders, who offered feedback and recommendations on each project.

Sunshine Harbor Apartments looks to provide the best affordable housing possible for single women and children. The project focuses on potential local partnerships and opportunities for the tenants, including mentorships and job opportunities in industries in Plant City.

The Esperanza Project focuses on creating and providing an affordable, safe environment for residents who have shown the need and desire to change the direction of their lives by a Personal Empowerment Program; these residents would include families that have lost their homes, veterans with special focus on single parent families, and homeless young adults.

The Oasis would provide a residential-commercial space to create a “live-work” community for those at or below 150% area median income. Working in the Midtown District of St. Petersburg, the Oasis project would help expand business development opportunities throughout the area while supporting the people who would start and run these businesses.

These three projects were well-received by the CRED Presentation Judges; further information regarding Sunshine Harbor , Esperanza, and Oasis is detailed on the following pages.

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2012 CRED TAMPA BAY CULMINATIONSUNSHINE HARBOR

ProJeCt overview

Objective • Package the deal financially to provide the best possible housing for the Sunshine Harbor

tenants…single women and children.

About Sunshine Harbor• The present owner is looking for fresh

alternatives to develop existing property.• Certain improvements are necessary.• Possible partnership between Women’s

Resource Center in Brandon, Plant City CDC and Justin Michaels.

• Possible partnerships to be realized as a result of experience with CRED program.

• Many opportunities in mentorships, educational training and job opportunities with major industries in Plant City.

Sunshine Harbor Team Charles Armold Jeanne Bedard

Jerry Bond Charlene Cohick

finanCial analysis anD Pro forma

Item CostAcquisition $150,000Site Improvements $ 5,000Construction $172,500Professional Fees $ 19,000Construction Finance $ 2,500Soft Costs $ 1,000

Reserves 0

Development Cost $350,000

Revenues Year 1 Year 216 units – 2 bedroom, 2 bath $ 96,000 ($500/month) $ 97,920 ($96,000/yr.)Total Income (residential) $96,000/yr.Total Operating Expenses and Reserve $3,525/unit $56,400/yr.

Revenues Year 1 Year 2 Year 3 Year 4 Year 5Gross Residential Rent $ 96,000 $ 97,920 $ 99,878 $101,876 $103,913

Residential Vacancy $ 9,600 $ 4,896 $ 4,994 $ 5,094 $ 5,196Residential Income/Effective Gross Income $ 86,400 $ 93,024 $ 94,884 $ 96,782 $ 98,718Operating Expense $ 51,600 $ 53,148 $ 54,742 $ 56,385 $ 58,076Net Operating Expense $ 30,000 $ 35,076 $ 35,342 $ 35,597 $ 35,842Debt Service $ 14,945 $ 14,945 $ 14,945 $ 14,945 $ 14,945Cash Flow Available for Distribution $ 15,055 $ 20,131 $ 20,397 $ 20,652 20,896

Debt Coverage Ratio Bank Loan 2.01 2.35 2.36 2.38 2.40

Development Budget• 16 Units• Total cost per unit, $21, 875

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aBout the esPeranza ProJeCtThe purpose of the The Esperanza Project is to provide a safe nurturing, affordable place to heal, rebuild and empower lives.

• Residents must qualify and be approved.• Residents must have suffered a financial hardship, i.e. loss of job, home, eviction.• Residents must demonstrate a strong desire to improve their circumstances.• Residents must adhere to lease and contract terms of their Personal Empowerment Program.

Residents will include: • Families with children focusing on those that have lost a home.• Youth aging out of homelessness - over 1,000 per year in Florida.• Veterans-focusing on single parent veterans.

CRED Esperanza Team David Hollis Rev. Jerry G. NealyLorenzo Reed Sean Jones

CRED TAMPA BAY 2012 CULMINATIONTHE ESPERANZA PROJECT

esperanza: a place called hope

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Unit MixTotal Units: 132 UnitsStudio: 24 units @ $565 per monthOne Bedroom: 52 units @ $625 per monthTwo Bedroom (small): 32 units @ $725 per monthTwo Bedroom (large): 24 units @ $780 per month

Cash Flow Analysis Gross Rental Income $1,055,760Less: Vacancy Allowance 7% ($73,903)Equals: Effective Gross Income $981,857Less: Operating Expenses ($392,634)Equals: Net Operating Income $589,223Divided by: Debt Coverage Ratio 1.20Equals: Amount to Pay Debt Service $491,019

NOI minus Debt Service Equals $98,204 Cash Flow (before taxes)

Supportable DebtDebt Service Payment (PMT) ($491,019)Number of Payments (N) 30Interest Rate (I) 5.50%

Supportable Debt (PV) $7,136,345

Project CostProperty Acquisition $4,500,000Rehab Cost ($30K/unit) $3,960,000Soft Cost ($15K/unit) $1,980,000Developer Fee (15%) $1,566,000

Total Project Cost $12,006,000

EquityTotal Project Cost ($12,006,000)Supportable Debt $7,136,345Required Equity ($4,869,655)Tax Credit Equity ($0.95) $3,969,642Gap ($900,013) es

pera

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a plac

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lled

hope

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CRED TAMPA BAY 2012 CULMINATIONOASIS PROJECT

ProJeCt overview

About The OasisDeveloper: South St. Pete Ventures, LLC

Co. Developer: Urban Development Solutions, Inc. 501(c)(3)

Concept: 1-6 unit, 2 story live/work apts. (1,000 sf.); 1-6 unit, 2-story garage apts. (880 sf.)

Location: Midtown District – 22nd. & 3rd Ave., St. Petersburg, FL

Goals • Provide access to affordable housing opportunities for persons and households at or below 150%

of area median income.• Expand business development opportunities on periphery of Midtown district for entrepreneurs.

Target MarketLow impact businesses, including the following;

Site Details• 4th Avenue South• .36 acre site• Commercial travel corridor in proximity to ongoing redevelopment.

• Sculptors• Painters• Performing Artists• Developers• Lawyers• Stockbrokers• Real Estate Agents• Architects• Tailors/Seamstresses

• Barber• Beauty Salons• Event Planners• Fashion Designer• Yogurt Shop• Bicycle Shops• and other individuals who work at home that

could benefit from the use of professional space

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Development Budget Building RCN $1,574,362Land Cost $70,000Total Development Cost $1,644,362

Seeking both equity & debt funding to realize project opportunity

Development Target $145.78/sfAnnual Potential Gross Income $34,379

Pro Forma

Year 1 Year 2 Year 3 Year 4 Year 5Potential Gross Income $146,349 $150,739 $155,261 $159,919 $164,717Vacancy & Collection $17,562 $12,059 $7,763 $6,397 $6,589Effective Gross Income $128,787 $138,680 $147,498 $153,522 $158,128Operating Expenses $44,490 $45,603 $46,743 $47,911 $49,109Net Operating Income $84,296 $93,077 $100,756 $105,611 $109,019-Debt Service Bank $64,843 $64,843 $64,843 $64,843 $64,843Before Tax Cash Flow $19,453 $28,234 $35,912 $40,768 $44,176

Cash Flow Available for Distribution

$19,453 $19,453 $35,912 $40,768 $44,176

CRED Oasis Project TeamTamara Felton-Howard, Esq.Priscilla WilliamsBraulio Grajales, P.E.Andre Satchell

THE OASIScreating a new vision for our communities

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sPeCial thanks• Lucky Guerra who provided support, guidance and always a smile.

• Tampa Housing Authority for providing the classroom space.

CreD steerinG CommitteeWe would like to thank the Steering Committee for their continued commitment and drive to further the CRED Program. The following Committee members are focused on bringing new ideas, information and trends as well as ensuring program curriculum is connected to the knowledge of community development;

our sPonsors

Housing Finance Authority of Pinellas CountyThe HFA has become a leader in the industry, recognized for their innovative financing structures, responsible management, successful programs, and a keen devotion to their mission. They have forged many successful partnerships with other counties and local cities and by utilizing joint resources, these participating jurisdictions and the HFA have created exciting programs and housing opportunities for the citizens of the communities

Housing Finance Authority of Hillsborough CountyThe HFA of Hillsborough County issues tax-exempt bonds to finance both homeownership loans to first time home buyers, and to finance the construction and/or rehabilitation of apartments that are rented to low income persons.

SPECIAL THANKS AND SPONSORS

Housing Finance Authority

Sylvia Alvarez, Housing and Education Alliance

Trent Green, USF School of Architecture

Ed Johnson, East Tampa Development

Debra Reyes, Neighborhood Lending Partners

Ron Rotella, Westshore Business Alliance

Curtis Stokes, Fifth Third Bank

Anthony Jones, The Housing Finance Authority of Pinellas County

Leroy Moore, Tampa Housing Authority

Harry Hedges, Tampa Housing Partnerships

Roxanne Amoroso, Amoroso Consulting

Kelly Pillon, Point West Engineering and CRED Alumni

Lisa Reeves, Realtor/CRED Alumni

Ernest Barefield, Plant City CDC and CRED Alumni

Jack Garrett, Homeless Coalition and CRED Alumni

Tom Shelly, Sales Manager, Sunshine Commercial Brokerage, LLC

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