Non-rated, tax exempt muni bonds with up to 100% leverage for non-profit developers

2. Real Estate
Acquisition and Development/Rehab
Financingfor Non-Profit Corporations
 Non-profit 501(c)(3) corporations can obtain non-recourse debt financing by issuing
unenhanced and non-rated tax-exempt municipal bonds (no LOC or balance sheet pledge).
 Net proceeds of the financing can be used for the acquisition and development of qualified
projects for new construction – or the acquisition and redevelopment of existing projects.
 One loan instrument for acquisition, development, and permanent financing (no separate
take out is necessary)
necessary).
 Current market rate pricing, fully amortized over 30 years, with level debt service payments.
 These bonds are automatically allocated at the state level due to issuance via a government
entity or approved issuer on behalf of a non-profit corporation. No volume cap allocation.
 Typical projects that qualify for municipal bond financing include (but are not limited to):
multi-family housing (affordable, workforce, professional moderate, and low-income);
senior housing (nursing homes, assisted living facilities, CCRC’s); charter schools,
CCRC s);
student housing and dormitories; qualified recycling plants, etc.

3. How does it work?
 Non-profit corporations seeking to develop certain qualified projects
can use municipal bond financing instead of conventional financing.
 The projects must qualify as providing a “municipal benefit” such as housing (affordable,
moderate, workforce, senior, retirement, and l
d t kf i ti t d low i
income multi-family h
lti f il housing), charter
i ) h t
schools, student housing and dormitories, health care, small manufacturing facilities, etc.
 The non-profit must be organized and approved to develop and operate these
types of properties
properties.
 The project must qualify for financing by utilizing the “cash flow from operations”
to service the debt (much like an apartment complex or office building).
 Standard debt underwriting is utilized including the requirement of appraisals
(“as-is” and “future stabilized” values) and a feasibility study / demand analysis.
 Non-recourse debt financing, based upon the project “standing alone” to service the debt.

4. Example
 A non-profit corporation owns or is purchasing a particular property (i.e., land, office building,
school f
facility, multi-family apartments), which
f )
has a lower cost basis for the owner than the current appraisal.
 The municipality has a favorable opinion towards the project, and the project is allowed
to move forward.
 The non-profit corporation would then seek to obtain municipal bond “project” financing and
would complete all third party reports and agreements (feasibility, demand analysis,/market
study, MAI appraisal, GMAX contract with GC, etc.) to support the financing and the project.
 As an equity contribution, the current property owner may agree to carry a portion of the
appraised value as “subordinate debt”, and may also receive cash for a portion of the value.
 This financing would not be an obligation of the municipality, and the debt would be
repaid solely from project revenues.
 30-year fixed, fully amortized with level debt service. 5 year stepped pre-pay.
 Ownership of the project would be retained by the non-profit corporation.
 Can be used for qualified, long term, ground leased properties.

5. The Financing Structure
 The non-profit corporation is the qualifying party for the municipal bond financing.
 Net proceeds may be used for planning, construction, and permanent financing.
 Money committed b th non-profit f pre-development costs (soft costs, entitlements,
M itt d by the fit for d l t t ( ft t titl t
feasibility report, etc.) could be reimbursed upon successful closing of the bond issue.
 A capitalized interest and debt service reserve fund is funded at closing.
 First Mortgage Revenue Bonds, 30-Year Amortization, Level Debt Service.
 Underwritten using stabilized cash flow verified from the MAI appraisal and the Feasibility Study.
 Non-Recourse to the Borrower (recourse is only to the subject project).
 Can fund up to 100% of the planning, acquisition and development costs on qualified projects.
 Construction and Permanent Financing via one structure (no take out loan required).

6. Program Details
 Interest rates are fixed and tied to the market rate at the time of closing.
g
 Fees associated with the financing are relative to the size, type and credit of the project.
 Financing is available at approximately $2 million minimum with no maximum.
 Some fees such as legal counsels, bond issuance, feasibility study, MAI appraisal are not tied to
the amount of financing and thus create a floor for costs. Thus the $2 million minimum.
 In
I general, th ti
l the time required t complete th fi
i d to l t the financing i 90 120 d
i is 90-120 days f
from th
the
receipt of complete submission package.
 Our preferred banking partners would act as Municipal Bond Underwriter and Placement
Agent, and the investors would be institutional, managed funds or accredited retail investors.
g , , g
 Most upfront costs associated with the financing (Appraisal, Phase I Environmental,
Engineering, Survey, Feasibility Study, Etc.) can be reimbursed at closing
 Financing is available in all 50 states

7. Our Services - Redbridge Development Partners
 We act as real estate advisor to the borrower under an exclusive contract.
 We will assist with the preparation of a business plan, development concept,
preparation of proforma financials, coordination of third party documentation, etc.
 We will assist the borrower to explain the process and structure to local municipal authorities.
 We will act as liaison between the borrower and the underwriter to help expedite the funding.
 We can assist with the assembly of the appropriate team: appraiser engineer architect
appraiser, engineer, architect,
contractor and borrower’s counsel.
 We will communicate between all parties to resolve any issues that might arise. We act as the
quarterback for the team until the various counsels and the issuer take over the closing process.
THE BOTTOM LINE
 The client is aided and assisted by experts in this field throughout the entire course
of the transaction.

8. What is Required To Begin The Process?
PROPERTY AND DEVELOPMENT DATA
 A brief narrative of the proposed project
 An expanded Executive Summary of the planned project
 A narrative description and photographs of the property
 Address, directional map, proximity to services, regional demographic information
 Proforma financials including cash flows beyond stabilization
SITE DATA
 Site plan, survey, engineering report, total acreage and acreage to be developed
 Zoning requirements, approvals required
 Off-site improvements
 Copy of latest environmental reports
PROPERTY VALUES
 Current property valuation before improvements (most recent “as is” appraisal)
 Preliminary Development Plans with Estimated Pre-development Costs
DEVELOPMENT / CONSTRUCTION COSTS
 Summary of construction costs with assumed contingencies
BORROWER / DEVELOPER INFORMATION
 Borrower / Developer information including bios and resumes of Board members, directors, personnel
 Legal status and structure of borrower, including name, address, and date of initial operation
 Current financials, articles of incorporation, letter of determination from the IRS
 List of previous development / construction projects and related experience
 Future requests will include Architectural Plans a Marketing and Feasibility Study, GMAX contract and
Plans, Study
resume from the General Contractor, MAI appraisal, etc.

9. Contact Information
Development Partners
 William Beal, Managing Director
Direct- 818-800-1714
Fax- 866-816-1891
Email: william@redbridgedp.com
LinkedIn: www.linkedin.com/in/williambeal