Transcript Slide 1
Capital Fund
U .S. Department of Housing and Urban Development
Office of Public and Indian Housing (PIH)
Washington, D.C.
Presented By:
Kevin Gallagher and Deana McCormick
CFFP Specialists
Office of Capital Improvements
1
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Authorization
QHWRA
and Need
of 1998
Section 9 – Allowed for financing as eligible
use of CFP
Section 30 –Mortgages and Security
Modernization
Backlog
Current backlog estimated at $18 billion
Annual accrual $2 billion
Current appropriation funding $2.4 billion
2
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Program
Overview
Bond
Issuance or Direct Loan
Individual PHAs or Pools
PHA uses a portion of CFP for debt service
Future CFP pledged as collateral
Direct LOCCS Payments
Bond Holder/Bank: Appropriations Risk
and Performance Risk
3
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Program
Uses
Proceeds
considered as CFP funds: all
public housing laws and regulations apply
Should address long-term planning needs
Modernization
New Development
4
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Program
Requirements
Debt
Service - Generally no more than
33% annual Capital Fund
Term – Generally no more than 20 years
Management Assessment of PHA
capability
Fairness Opinion on reasonableness of
financing
PHAS High or Standard Performer
5
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Program
Requirements-Cont.
Work
based on Physical Needs
Assessment
Declaration of Trust on all covered
properties
Approved PHA Plan: including use of CFP
for debt service and use of proceeds
PHA Board Resolution
6
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Proposal Development
Contact OCI for latest CFFP documents
Term Sheet
Scope of work for Management Assessment and
Fairness Opinion
Sample Debt Service Schedule
Sample Annual Statement
CFFP Staff (202)708-0614
Kevin Gallagher x4192
Deana McCormick x4228
Tom Shelton x4799
7
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Proposal
Development
Procurement
All professional services must be procured
according to Procurement Regulations
Pool
Structure
Lead PHA
Partnership with State Housing Finance
Agency
Non-profit
8
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Proposal
Key
Development
Players
Underwriter
Underwriter’s counsel
Bond Counsel
PHA Counsel
Issuer
Trustee
Rating Agency
Financial Advisor (optional)
9
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Proposal Submission
Submission requirements
Cover Letter request to Assistant Secretary
Term Sheet with attachments
Debt Service Schedule and other financial schedules
Loan Documents
Proposal Submission
Three copies sent to Office of Assistant Secretary
One copy sent to PIH Field Office Director
10
CAPITAL FUND FINANCING PROGRAM
(CFFP)
HUD
Approval
HUD
Review
OCI, FO and OGC review
3-6 month review process
Development and demolition approvals
required before approval
Approval
Stumbling Blocks
Declaration of Trust
Annual Plan Submission and Approval
Annual Statement/Five-Year Action Plan – CFP
Annual Statement – Use of Proceeds
11
CAPITAL FUND FINANCING PROGRAM
(CFFP)
Success
40 transactions approved
$2.4 billion in capital provided
Assisted 102 PHAs
Pools in Alabama, Kentucky, Maryland,
California, New Jersey, Illinois
Multiple issuances to Philadelphia,
Washington, D.C.
Challenges
Danbury,
CT
12
Approved Proposals
City
1 Washington (1st Approval)
2 Danbury
SUBTOTAL - 6 MONTHS ENDED 12/00
State
DC
CT
SUBTOTAL - 6 MONTHS ENDED 6/01
Approved
Amount
Date
Approved
$33,000,000
$11,000,000
$44,000,000
November-00
December-00
$0
PHAs
Part.
1
1
2
0
3 Kansas City
4 Chicago
5 Providence
SUBTOTAL - 6 MONTHS ENDED 12/01
MO
IL
RI
$4,000,000
$291,050,000
$5,180,000
$300,230,000
October-01
November-01
November-01
1
1
1
3
6 Philadelphia A
7 Syracuse
SUBTOTAL - 6 MONTHS ENDED 6/02
PA
NY
$150,000,000
$6,495,000
$156,495,000
May-02
May-02
1
1
2
8
9
10
11
12
13
14
St. Michaels
Becker County
Indianapolis
East Providence
West Haven
Philadelphia B
Holyoke
SUBTOTAL - 6 MONTHS ENDED 12/02
MD
MN
IN
RI
CT
PA
MA
$400,000
$800,000
$2,109,829
$2,015,000
$2,510,000
see Philly A
$825,000
$8,659,829
August-02
September-02
September-02
November-02
November-02
November-02
December-02
15
16
17
18
Ft. Wayne
Roanoke
Athens
Alabama PHFC POOL
SUBTOTAL - 6 MONTHS ENDED 6/03
SUBTOTAL APPROVED PRIOR TO OCI
IN
VA
GA
AL
$3,710,000
$3,300,000
$2,700,000
$130,860,000
$140,570,000
$649,954,829
June-03
March-03
June-03
June-03
1
1
1
1
1
See Philly A
1
6
1
1
1
37
40
53
13
Approved Proposals
City
State
Approved
Amount
Date
Approved
PHAs
Part.
1
2
3
4
5
Philadelphia C&D
Wayne County
New Orleans
Puerto Rico
Maryland Pool
SUBTOTAL - P/E 12/03
PA
OH
LA
PR
MD
See Philly A
$1,125,000
$87,000,000
$693,000,000
$90,145,000
$871,270,000
December-03
December-03
December-03
December-03
Nov 03
6
7
8
9
10
Woonsocket
CA Pool
Covington
Knoxville
Sanford
SUBTOTAL - P/E 6/04
RI
CA
KY
TN
FL
$9,665,000
$10,450,000
$3,205,000
$21,700,000
$4,000,000
$49,020,000
January-04
April-04
May-04
June-04
June-04
1
2
1
1
1
6
11
12
13
14
15
16
Dauphin
New Bedford
Paducah
Schuyler
Augusta
NJ Pool
SUBTOTAL - P/E 12/04
PA
MA
KY
NE
GA
NJ
$4,113,250
$15,935,000
$5,970,000
$429,000
$19,900,000
$77,855,000
$124,202,250
July-04
August-04
October-04
October-04
November-04
November-04
1
1
1
1
1
21
26
17
18
19
20
21
22
Tacoma
Portland
New York City
Washington (2nd Approval)
IL Pool
Rahway
WA
OR
NY
DC
IL
NJ
$7,065,000
$5,950,000
$600,000,000
$77,815,000
$25,675,000
$1,417,809
February-05
March-05
April-05
April-05
April-05
April-05
1
1
1
See 1st Approval
5
1
SUBTOTAL - P/E 6/05
TOTAL APPROVED BY OCI
$717,922,809
$1,762,415,059
See Philly A
1
1
1
5
8
9
49
14