NewMarketsTaxCredit(NMTC)ProgramEvaluation
CommunityDevelopmentEntities(CDE) CaseStyleTelephoneDiscussionGuide 11/25/09 TheCommunityDevelopmentFinancialInstitutions,orCDFI,FundattheTreasuryDepartment isinterestedinunderstandingthebenefitsthattheNewMarketsTaxCreditprogrambringsto communities.Tolearnmore,theFundhascontractedwiththeUrbanInstitute,anonprofit researchorganizationbasedinWashington,DC,toconductanevaluationoftheNewMarkets TaxCreditprogram. OneoftheprojectsthatyourorganizationsupportedwithNewMarketsTaxCredits,alongwith manyotherprojectssupportedbyotherCDEs,wasselectedatrandomforinclusioninour programevaluation.That’sthereasonforthecalltoday.Myprimarygoalistolearnabout yourspecificexperienceswith(NAMEProject). Yourparticipationinthiscallisvoluntarybutit’sverymuchappreciated.Yourexperienceswill contributetoabetterunderstandingofhowtheNewMarketsTaxCreditsprogramisworking. I’dliketoemphasizethatwhatwe’redoingisneitheraregulatoryreviewnoranauditofyour projectbut,rather,asourceofadditionalinformationthatwillassistusinbetterunderstanding theNewMarketsTaxCreditprogram.We’refocusingonhowprojectsarestructuredandwhat theyproduce.So,wehavesomequestionsabout(NAMEproject)’scharacteristics,funding, andoutcomes. Finally,Iwanttoassureyouthatwe’refollowingstrictrulesregardinguseoftheinformation youprovide.TheCDFIFundwillnotknowwhoisparticipatinginthecallswe’remaking.The informationyougiveuswillbecombinedwithinformationwereceivefromallotherswetalk with.Neitheryourname,yourorganization’sname,theproject’sname,noranyother identifyinginformationwillbepassedalongtotheCDFIFundorothers,norwilltheinformation youprovidebecitedorreportedinanywaythatwouldidentifyyou,yourorganization,oryour project. ThanksforcompletingtheinformationsheetIsenttoyouearlier.Itprovidedbackgroundto helpmebemoreefficientinthiscall.Ianticipatethatthecallwilllastapproximatelyonehour. Aswesynthesizeandanalyzetheinformationyoushare,itwouldhelpustorecordthiscall. Again,thisrecordingwouldonlybeusedbyusandnotsharedwithanyoneelse.Wouldthatbe alrightwithyou?Again,Iverymuchappreciateyourcooperation. ThissurveyhasbeenapprovedbytheOfficeofManagementandBudget,asrequiredbythePaperworkReductionActof 1995,underOMBcontrolnumberXXXXXXXX,whichexpiresonXX/XX/XXXX.Thetimetocompletethisinformation collectionandanassociatedtelephoneinterviewisestimatedtobe1.25hours,includingtimetoreviewinstructions, searchexistingdataresources,gatherneededdata,andcompletethesurveyandinterview.Ifyouhaveanycomments concerningtheaccuracyofthetimeestimateorsuggestionsforimprovingthissurvey,pleasewritetoU.S.Departmentof theTreasury,CommunityDevelopmentFinancialInstitutionsFund,XXXXXXXXX,Washington,DCXXXXX.
NMTC Evaluation CDE Discussion Guide
______________________________________________________________________________ A.BACKGROUNDABOUT[NAMEQUALICB]and[NAMEProject] x
Typeoforganization(controllingentityof(NAMEQALICB),ifapplicable—notthe characteristicofaspeciallegalentitysetuptoreceivetheNMTCtaxcredits
x
Namecommonlyusedtoreferto(NAMEproject)
x
Descriptionof(NAMEproject)
x
Descriptionoftheneighborhoodorareainwhich(NAMEproject)islocated
x
Originandhistoryof(NAMEproject)
______________________________________________________________________________ B.PROJECTINTITIATIONANDIMPLEMENTATION x
How(NAMEproject)originallycametotheattentionofthe(NAMECDE)
x
Whatmade(NAMEproject)attractivetotheCDE?
x
Is(NAMEproject)partofanybroadercommunityoreconomicdevelopmenteffort?
x
Statusof(NAMEproject)(e.g.,complete)
x
Descriptionof(NAMEproject)siteatthetimeoftheNMTCinvestment—immediately before(NAMEproject)wasstarted.
______________________________________________________________________________ C. PROJECT FINANCING [Walk through the information previously provided by the CDE in the “CDE Information Sheet” to ensure project financing arrangements are fully understood.]
x
Sourcesandamountoffinancing
x
Sequenceofobtainingpledgesforfinancingfromthevarioussources
x
Taxabatementsordeferrals
x
Investors
x
Financingcomparedtoother(i.e.,bothnonNMTCandNMTC)projectsortransactionsof the(NAMECDE)
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NMTC Evaluation CDE Discussion Guide
x
(NAMECDE’s)expectationswithrespecttoprofitability—comparedwithinvestmentsin similarprojectsnotinvolvingNMTCsorotherformsofpublicsupport
x (NAMECDE’s)expectations/plantocovercostsandmakeaprofitontheproject ______________________________________________________________________________ D.ROLEOFNMTCs x
RoleofNMTCsinthefinancingpackagefor(NAMEproject)
x
Leveraging:MoneyNMTCsbroughtintothedealthathadnotpreviously,orwouldnot otherwisehavebeen,committed
x
Conventionalfinancing(i.e.,financingfromaforprofitentity—suchasabank,afinance company,oranequityinvestor—thatprovidesfundsforitsbusinessespurposeswithout apublicsubsidyandnotbecauseithasaneconomicdevelopmentmission): o Had(NAMEQALICB)appliedforconventionalfinancingfor(NAMEproject)priorto NMTCsbecomingpartof(NAMEproject)?Whyorwhynot?Whathappened?
x
Availability/likelihoodofotherfinancingtoreplacesomeoralloftheNMTCrelated financingifNMTCshadnotbeenavailableatthetime.
x
Whatlikelywouldhavehappenedif(NAMEproject)hadnotreceivedNMTCs.
______________________________________________________________________________ E. PROJECTOUTCOMES x
Goalsfor(NAMEproject)atthetimeofprojectinitiation
x
Generalmarketconditionsintheneighborhoodorareaof(NAMEproject)atthetimeof theinitialNMTCinvestment
x
Levelofdistressoftheneighborhoodorareaof(NAMEproject)today,andreasonsfor change(ifany)
x
Likelyinvestmentfutureoftheneighborhoodorareaof(NAMEproject)sinceitwas completed—comparedtobeforetheprojectwasstarted
x
(NAMECDE’s)proceduresfortrackingofprojectoutcomes o Evaluationoreconomicimpactanalysissincetheprojecthasbeencompleted? o CommunityBenefitAgreementfortheproject?
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NMTC Evaluation CDE Discussion Guide
Financialperformanceof(NAMEproject): x
AnnualgrossrevenueatthetimeNMTCloan/investmentwasmade
x
Annualgrossrevenueforthemostrecentreportingperiod
x
Annualprofitsorlossesformostrecentreportingperiod
x
Amountofoutstandingloansandinvestmentsforthemostrecentreportingperiod
x
[Forsmallbusinesses]:Changeincreditscoreimprovedsinceinitiationofproject?
x
Loanperformance o Delinquencies o Defaults o Workoutarrangements
x x
Is(NAMEQLICB)stillinbusiness,operating?Anyownership changes? Employmentoutcomes—jobscreatedorsavedby(NAMEproject) o Numberoffulltimeequivalent(FTE)jobsatstartof(NAMEproject) o Numberoffulltimeequivalent(FTE)jobsasofthemostreportingperiod o Numberofnewlycreatedjobsinthefollowingcategories:
Permanentjobs
Temporary,seasonaljobs
Constructionjobs
Jobsat(NAMEproject’s)tenants’businessesororganizations
o Jobssaved(i.e.,numberofpreexistingjobsthatwouldhavebeenlostifnotfor (NAMEproject)havingbeenfinancedandcompleted): x
Permanentjobs
x
Temporary,seasonaljobs
x
Constructionjobs
x
Jobsat(NAMEproject’s)tenants’businessesororganizations
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NMTC Evaluation CDE Discussion Guide
o Ofnewlycreatedorsavedpermanentjobs,approximatepercentageinthe: x
Entrylevel/lowwagecategory
x
Midlevel/midwagecategory
x
Management/professionalcategory
x
Other(specify)?
o Ofnewlycreatedorsavedpermanentjobs,approximatepercentagefilledby: x
Residentsof(NAMEproject’s)neighborhood/area
x
Minorities
o Approximateproportionofthosejobsofferhealthbenefits? Otheroutcomesof(NAMEproject) x
[WherethisinformationhasnotbeenprovidedontheCDEInformationSheet]:Totalsquare footageofthespaceactuallybuiltorrehabilitatedbytheproject
x [WherethisinformationhasnotbeenprovidedontheCDEInformationSheet:]Proportion (percentage)ofthespacebuiltorrehabilitatedthatis: o Restaurants,hotels,foodservices,orotherretailspace
o Financial,professional,scientific,management,business,orotherofficespace o Industrial,manufacturing,transportationlogistics,orwarehousingspace o Housing o Health,andhumanandsocialservicefacilities o Educationalandcommunityfacilities
o Facilitiesorspacefortheperformingarts,cultural,entertainment,orother amenities o Other____________________________
x Currentvacancyrate x [If(NAMEproject)hastenants]:Isrentforcommercialspacepaidby(NAMEQALICB’s) tenantsbelowmarketrates? x [If(NAMEproject)involvedhousing]: o Newlyconstructedorrehabilitated 5
NMTC Evaluation CDE Discussion Guide
o Numberofunitsforhomeownership o Percentageofthehomeownershipunitsthatareaffordable(i.e.,homeowners paynomorethan30percentoftheirannualincomeonhousing) o Numberofrentalunits o Percentageoftherentalunitsthatareaffordable(suchaswhererenterspayno morethan30percentoftheirannualincomeonhousing) x
Businessstartupsorexpansionsasaresultoftheproject
x
Greendevelopmentoutcomes:productionofenvironmentallysustainablebuilding(s)
x
Humanand/orsocialservicesoutcomes(e.g.,neworincreasedaccesstohealthcare, trainingcenters,childcarecenters,otherhuman/socialservices)
x
Communityamenitiesand/orfacilitiesoutcomes(newandorincreasedaccess)—e.g., grocerystores,shopping,restaurants,laundryfacilities,gasstations,libraries,parkinglots orgarages,transportation,banking,financialservices/products,elementaryorsecondary schools,tertiaryeducation,parks,openspace,playgrounds,recreationcenters,artsand culturalinstitutions,museums).
x
Communityand/orneighborhoodbeautificationoutcomes;i.e.,directphysical improvementstoproperty
x
Infrastructureoutcomes/improvements(e.g.,streets,roads,sewers)
x
Taxrevenues/othermonetarybenefitsoutcomes(e.g.,increasedtaxestothelocal jurisdiction)
x
Otherprojectoutcomes
______________________________________________________________________________ F.COMMUNITYOUTCOMES Changesintheneighborhoodorareaoftheproject—eitherpositiveornegative—beyond thosediscussedthatmightbelinkedtotheproject,eventhoughtheywerenotformallypart oftheproject x
Neighborhoodemployment
x
Realestatedevelopmentintheimmediateneighborhood
x
Changesinpropertyvaluesintheimmediateneighborhood
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NMTC Evaluation CDE Discussion Guide
x
Businessdevelopmentintheimmediateneighborhood
x
Greendevelopmentintheimmediateneighborhood
x
Humanand/orsocialservicesintheimmediateneighborhood
x
Amenitiesand/orcommunityfacilitiesintheimmediateneighborhood
x
Infrastructureintheimmediateneighborhood
x
Beautificationin,orphysicalupgradingof,theimmediateneighborhood
x
Taxrevenuesorothermonetarybenefitstothecommunity
x
(NAMEproject’s)contribution,ifany,toachangeinthedemographicsoreconomicstatus ofthelargercommunityinwhichitislocated—suchaswithrespecttopovertylevel, medianincome,racial/ethniccomposition,ageandfamilystructuremix,educationlevel, oremploymentrate
x
Otherneighborhoodleveloutcomesof(NAMEproject)notpreviouslydiscussed
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NewMarketsTaxCredit(NMTC)ProgramEvaluation CDEInformationSheet 11/25/09 A.CONTACTINFORMATION CDEContactInformation(pleasecorrectifnecessary) ContactName:
Telephone:
Email:
Title:
Organization:
MailingAddress:
QALICBContactInformation ContactName:
Telephone:
Title:
Email:
Organization:
MailingAddress:
B.PROJECTINFORMATION (pleasecorrectifnecessary)
1.Namecommonlyusedtorefertothisproject:
2.Allocationroundforthisproject:
3.Yearprojectinitiated:
ThissurveyhasbeenapprovedbytheOfficeofManagementandBudget,asrequiredbythePaperworkReductionActof1995,underOMB controlnumberXXXXXXXX,whichexpiresonXX/XX/XXXX.Thetimetocompletethisinformationcollectionandanassociatedtelephone interviewisestimatedtobe1.25hours,includingtimetoreviewinstructions,searchexistingdataresources,gatherneededdata,and completethesurveyandinterview.Ifyouhaveanycommentsconcerningtheaccuracyofthetimeestimateorsuggestionsforimproving thisform,pleasewritetoU.S.DepartmentoftheTreasury,CommunityDevelopmentFinancialInstitutionsFund,XXXXXXXXX,Washington, DCXXXXX.
1
C.PROJECTFINANCING Pleasesendusthesourcesandusesandlatestfinancialstatementsfortheproject. (fyoudonothavetheinformationrequestedbelow,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBas wewillbecontactingthemseparately.) PleasecompletethefollowinginventoryofthesourcesandamountsoffinancingthatcomprisedthisNMTCloan/investment.If theQALICBreceivedotherloansorinvestmentspriortoorsubsequenttothisfinancing,andifthosefundsareconsidered s ubstantiallypartofthesameoveralluseastheNMTCloan/investment,pleaseincludethatfinancingaswell.
Source* 1.
SourceofLoan,Grant,orInvestment NewMarketsTaxCredits
Description (selectallthatapply) Grant
Lineof Credit
Term Loan
Debtlike equity
Equity
Amount ($)
$
2.(ifany)
$
3.(ifany)
$
4.(ifany)
$
5.(ifany)
$
6.(ifany)
$
7.(ifany)
$
8.(ifany)
$
9.(ifany)
$
TOTAL:
$
*Ifthereweremultipleloans,grants,orinvestmentsfromonesource,pleaselistthesourceonlyonce,andsummarizetheamountoffinancing.
D.QALICBREVENUE/BUDGET (fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe contactingthemseparately.)
IfQALICBorparententityisforprofitpleaseanswer: 1.AnnualGrossRevenuefrombusinessoperationsattimeofprojectinitiation:
2.AnnualGrossRevenuefrombusinessoperationsforthemostrecentlycompletedfiscalyear:
IfQALICBorparententityisnonprofitpleaseanswer: 1.Operatingbudgetattimeofprojectinitiation:
2.Operatingbudgetforthemostrecentlycompletedfiscalyear:
E.QALICBEMPLOYMENT (fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe contactingthemseparately.)
1.Numberoffulltimeemployees*—includingowners—attimeofprojectinitiation:
2.Numberoffulltimeemployees*—includingowners—atendofmostrecentfiscalyear:
3.Numberofnewlycreatedjobsthatcanbedirectlyattributedtotheproject: Permanentpositions
Temporary,seasonalpositions
ConstructionJobs
Positionsattenants
2
4.Numberofjobssavedasaresultoftheproject: (preexistingjobsthatwouldhavebeenlostifnotforprojecthavingbeenfinancedandcompleted)
Permanentpositions Temporary,seasonalpositions
ConstructionJobs
Positionsattenants
5.Approximatelywhatpercentageofallnewlycreatedorsavedpermanentjobswerethefollowing: Entrylevel/lowwage: %
Midlevel:
%
Management/professional:
%
Other:
%
6.Approximatelywhatpercentageofnewlycreatedorsavedpermanentjobswerefilledbythefollowing: Residentsoftheprojectneighborhood: %
NotApplicable—projectlocatedinnonresidentialneighborhood Minorities:
%
*Fulltimeemployeeswork35hoursormoreperweek.Donotincludetemporary,seasonal,orconstructionemployeesinyourcalculations. Hoursforparttimeemployeesshouldbecombinedtotheequivalentoffulltimeemployees—i.e.,two17.5hourperweekemployeeswould equalonefulltimeemployee.
F.QALICBREALESTATEDEVELOPMENTOUTCOMES (fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe contactingthemseparately.)
1.Wastherearealestatecomponenttothisproject?
Yes
No
IfYES,pleaseanswerthequestionsbelow. 2.Howmanysquarefeetdidtheprojectbuildorrehabilitate? 3.Approximatelywhatpercentageofthespacebuiltorrehabilitatedis:
Restaurants,hotels,foodservices,orotherretailspace
%
Financial,professional,scientific,management,business,orotherofficespace
%
Industrial,manufacturing,transportationlogistics,orwarehousingspace
%
Housing
%
Health,andhumanandsocialservicefacilities
%
Educationalandcommunityfacilities
%
Facilitiesorspacefortheperformingarts,cultural,entertainment,orother amenities
%
Other(pleasespecify):
%
3