CDE Telephone Discussion Guide

NewMarketsTaxCredit(NMTC)ProgramEvaluation CommunityDevelopmentEntities(CDE) CaseStyleTelephoneDiscussion...

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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: ƒ

Permanentjobs

ƒ

Temporary,seasonaljobs

ƒ

Constructionjobs

ƒ

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