REAL ESTATE DEVELOPMENT BY CDCs: A SEMINAR FOR CDC EXECUTIVES AND SENIOR MANAGERS

northcarolinasweekΔιαχείριση

10 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

73 εμφανίσεις

REAL ESTATE DEVELOPMENT BY CDCs:


A SEMINAR FOR CDC EXECUTIVES

AND SENIOR MANAGERS

Session 4

The remaining stages

Internal leadership and cooperation for
successful RE development


May 4, 2012


Transition to Construction

Construction loan closing


First project
financial closing



Ready
(?)

….


Set….


Go
(close):


How

long?




Mass Docs


www.mhp.net/rental_development/
massdocs
.php


Construction Stage

Development Team Re
-
shuffled




Development Consultant




Attorney



Architect and engineering sub consultants




Clerk of the Works



LSP



Geotechnical engineer



Lead/asbestos testing consultants



Relocation consultant




Historic Consultant




Appraiser



Market analyst




Marketing consultant/broker




Property Manager




General Contractor


Managing Construction Funding

Accounting and finance records for development
period


First Construction Requisition


Planning advances and fund draws (cheapest in first!)


Requisition and payment process:


Communication between Real Estate and Finance staff




Construction Oversight and Monitoring

Roles of Architect, Clerk of the Works, project
manager/developer


Job meetings and job meeting minutes


Overruns, change orders…bye
-
bye developer
fee?


Completion: Are we finished yet?

Certificate of Occupancy,
punchlist
,
retainage


Hand offs to Property Management

As
-
built drawings

Warranties

Operating manuals

Required maintenance staff instruction/training

De
-
leading certificates, air quality monitoring
reports etc.


Marketing and occupant selection

Processes for affordable housing


outreach, marketing , application taking, lottery, leasing


Retail and commercial


Timing and coordination with construction
schedule.

Permanent closing

The low
-
fanfare closing


closing benchmarks/milestones


Final payment of CDC fee and OH


Hand
-
off to asset management


Preparation of “deal book,” or project “bible”



ASSET MANAGEMENT

Definition

“A systematic plan for and ongoing oversight of
one or more housing projects in furtherance
of the projects’ goals and the organization’s
mission”




Introduction to Asset Management





Community Development Law Center and Housing Development Center,

Portland OR

Asset Management/ Property Management comparison

Property Manager

Asset Manager

Time frame

day
-
to
-
day;

month to month

Long term

annual; multi
-
year

Revenues

Maximizes
collections

(hastens
turnover; enforces
rent payment
lease
provisions; negotiates rental
subsidy
levels)

Monitors budget and
trends: rent rolls, vacancy
loss, receivables; subsidy
mix and levels

Expenses

Shops for and obtains best
quality lowest prices for
services, materials and
goods

Monitors trends against
industry,
portfolio and
chronological benchmarks

Maintenance and Repair

Maintains
property in
clean
, safe and sound
condition

Develops and/or oversees
implementation
of capital
repair/capital
improvement
program, policies for
funding and investing
reserves.

Asset Management/ Property Management comparison

Property Manager

Asset Manager

Tenant relations

Maintains
positive
tenant
relations;
provides
resident
services staff or
closely coordinates
with Owner's RS
staff

Develops plans and policies for
implementing Owner's
goals about
project
tenants;
Develops policies
about
collections, evictions
,
workouts

Lender/investor
relations

Makes mortgage
payments
;

Prepares
some
reports


May
interface with
lender/investor
portfolio management staff;

Overall reporting;

negotiates modifications
of deal
terms; responds to formal
findings
of
financial
partner reviewers

Financial management

Maintains
books; liaison with auditor
on field work

P
repares financial reports
to CEO
/
Board
and
Board
Committees;
Liaison with audit manager
.

Liaison between CDC’s CFO and
灯牴p潬oo

乥眠
灲潪散琠
摥v敬潰浥et

偲o癩v敳e
i湰nt t漠o
摥v敬潰浥et
t敡e

偲o癩v敳ei湰nt
t漠摥v敬潰浥et
t敡活e
卨潵S搠T慣alitat攠獭潯t栠桡湤
-
潦f
fr潭oc潮tr慣a潲 t漠⁐ 潰敲ty

䵡湡g敭敮t

It's the Property
Manager
with

not vs.
the Asset Manager

Asset Management

Who does it for the CDC?



Where does it live?



How is it paid for?

The Last Stage ????

The Circle of (Project) Life


From Grave to Cradle



or better yet


The Project’s Encore Career



Re
-
development and Refinancing


When and Why





CDC Leadership in the RE Development Process

Project Selection/Feasibility Analysis


Decision to seek new project
;
Project evaluation: alignment with mission, strategy, community
needs
;
Being the lifeguard on duty: overseeing the opportunity evaluation;
Decisions flowing from
feasibility analysis

Pre
-
development


Property acquisition negotiation;
Casting the leads in the development team
;
Community Process;

Financing: lender/investor requirements bearing on program or CDC financial return;
Contractor
selection: track record on local, women, minority hiring and sub
-
contracting

Construction Period


Disposition of major change orders
;
marketing
;
enforcement and waivers of tenant eligibility
requirements (minimum income, credit scores etc.);
hand
-
off to asset management

Asset Management

Locating it within organizational structure;
reviewing and updating project goals;
resolution of financial,
physical social distress events.

Re
-
development


Defining re
-
development goals
;
Identification/selection of re
-
development project manager

Breaking down organizational silos
between real estate development &

Finance

Community Organizing

Resident Services

Asset Management

Economic Development

Homeowner Services

SEMINAR EVALUATION

Evaluation form


Discussion: What else should MKI do on this
topic, for this audience, in this format?