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
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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
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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
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CAPITAL FUND FINANCING PROGRAM
(CFFP)
 Proposal
 Key
Development
Players
 Underwriter
 Underwriter’s counsel






Bond Counsel
PHA Counsel
Issuer
Trustee
Rating Agency
Financial Advisor (optional)
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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
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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
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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
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