Transcript 5610 Colorado Avenue Cooperative, Inc.

MI Casa, Inc.
Affordable Housing
Development Consulting
Fernando Lemos
Executive Director
Tenant Purchase Project

TOPA law and Ownership Structure.
Ownership: what does each resident own?
OWNERSHIP
RENTAL
COOPERATIVE
CONDOMINIUM
Who owns the building?
Private individual or
corporation.
The Cooperative
Association
The Condominium
Association
What does each resident
own?
No ownership.
A share of the cooperative.
This share can be sold or
inherited according to the
House Rules.
Their individual apartment
and it can be sold or
inherited.
Does ownership increase
in value?
No ownership.
Limited-equity Co-op, up to
10% of the value of the
share each year.
Market coop dependent on
the market.
Dependent on the market.
Tenant Purchase Project
Phases:
Meet the tenants and their building.
1.


Tenant Profile
Building Evaluation
Feasibility Analysis.
Create a Development Plan
2.
3.







Timeline
Financial Pro forma
Tenant Trainings
Acquire the property
Hire an Architect for Construction
Hire a contractor.
Start and Finish Construction
Tenant Purchase Project
Tenant Profile.

Age Groups
Persons 5061, 13%
Persons
62+, 4%
INTRODUCTION
Persons
<18, 13%
Persons 1829, 27%
Persons 4049, 16%
Persons 3039, 27%
This tenant profile summarizes the “Tenant Survey Forms” submitted by the
current residents of 5610 Colorado Ave, NW. By evaluating the demographic
and financial data, the profile incorporates information about the relationship
between household and unit size, the financial capacity of the tenant households.
The tenant profile helps to determine the feasibility of a project when analyzed
along with an operating budget and a building evaluation.
Section I – Households interviewed
The building is presently composed of 36 units, of which 29 are occupied. The
Association is composed of 29 households, and 19 (or 65%) of them submitted
information for this survey. This survey presents a profile of the socio-economic
characteristics of the residents of 5610 Colorado Ave, NW, including household
income, household size, rent expenditures, affordable rent, source of income,
and tenure which may be used to draw conclusions for the tenant association as
a whole.
Section II – Demographic Data
The average length of stay for residents of 5610 Colorado Ave. is 7.6 years. Of
the 19 households interviewed, 9 have lived in the building between 1 and 4
Professional
years, while 10 have lived there for 5 years or more. This shows a relative
5%
stability in the resident community.
Administrative The average household size for the 5610 Colorado Ave. tenants is 3, which is
5%
compatible with the unit size in 14 out of the 19 surveyed apartments(*). The
following chart shows in more detail, household sizes.
Occupations
Retired
5%
Services
47%
Skilled Trades
38%
The racial and ethnic composition of the tenants is divided between persons of
African-American descent and more recent immigrants from Eastern Africa and
Latin America. Of the surveyed households, 63% are Latin American immigrants,
primarily from El Salvador and Mexico; 26% of households are African American
and 11% African immigrants, primarily from Ethiopia.
Tenant Purchase Project

Building Evaluation.
PROJECT DESCRIPTION
The subject is a single building located at 5610
Colorado Ave. N.W., in Washington, D.C.
The building was built in approximately
1938. The building houses 36 units
(efficiencies and one-bedroom units) with
an approximate total area of 32,000.
square feet.
The building appears to
consist of self-supporting masonry bearing
walls and ceiling surfaces of plaster on
wood partitions. All apartments have a mix
of laminated and hardwood flooring,
kitchens have vinyl flooring, and bathroom
floors are ceramic tile. Landing floors and
stairs are concrete. Heat in the building is
generated by a central gas fired boiler with
a heat exchange unit in each unit. Air
conditioning is supplied through individual
window units in each apartment.
The building has one main entrance that provides
access to an ample lobby where mailboxes
are located.
The unit mix and approximate sizes are as follows:
Unit* Size** No. of Type (sq. ft.) Units
(9) Efficiencies 570 Sq.Ft. (approx.)
(27) One-Bedroom 650 Sq.Ft. (approx.)
Tenant Purchase Project
Feasibility Analysis

Financial Feasibility Summary
I. Income
Annual Income from Current rents
$131,976
Less: Vacancy Loss (2.5%)
$3,299
Additional Income
$0
Net Collections
$128,677
Operating Expenses
$88,399
Net Operating Income (NOI)
$40,278
II. Mortgage Supportable
Net Operating Income (NOI)
$40,278
Debt Service Ratio
1.1
Interest
8%
Term
Available for Mortgage Payment
Supportable Mortgage (30 yr @6%)
Construction
Soft Costs
Total Development Costs
(TDC)
Mortgage Supportable
$610,270
Total Development Costs
$965,659
(Gap)/Surplus
30 y.
$36,616
$610,270
$847,500
$0
$118,159
$965,659
($355,390)
NOI needed to support TDC
$77,253
Total Annual income needed
$165,652
Monthly per unit increase needed
III. Development Costs
Acquisition
IV. (Gap)/Surplus
about 128%
$187
Tenant Purchase Project

Benchmark #
15.00
Development Plan - Timeline.
Task/Benchmark (in bold)
Area
Planned Begin
Planned Due
6/1/2007
2/13/2008
Development
Development Plan Approved
15.10
Development
Work on Development Plan
15.30
Training/Mtg
Development Plan presented and approved
Development
DHCD Loan Application
16.10
Development
Obtain Appraisal
6/15/2007
16.20
Development
Complete Environmental Phase I
16.30
Development
16.40
16.00
6/1/2007
6/11/2007
2/13/2008
2/13/2008
6/15/2007
8/21/2007
Actual
Actual
a
a
8/14/2007
a
a
6/15/2007
8/14/2007
a
a
Complete environmental Phase II
6/15/2007
8/14/2007
a
a
Development
DHCD Loan Application Submitted
8/21/2007
8/21/2007
a
a
Development
Settlement: Association Acquires Property
a
a
17.10
Development
Bridge Loan Applications Submitted
9/1/2007
9/1/2007
a
a
17.20
Development
Work with attorney on settlement
9/1/2007
11/29/2007
a
a
17.30
Development
Obtain insurance
9/15/2007
10/10/2007
a
a
17.40
Development
Sign agreement with Management Company
9/16/2007
10/1/2007
a
a
17.50
Development
Termite Inspection
9/24/2007
10/1/2007
a
a
17.55
Development
Amhof failed commitment. We Got an extension
10/12/2007
10/12/2007
a
a
17.56
Development
Corporate seal
11/26/2007
11/28/2007
a
a
17.57
Development
Certificate of good standing
11/28/2007
11/28/2007
a
a
17.60
Development
Receive final commitment letter(s)
11/28/2007
11/28/2007
a
a
17.70
Development
Coop Acquires Property
11/30/2007
11/30/2007
a
a
Management
Oakes Management Transition
Management
Oakes get infromation from former management company
a
a
17.00
18.00
18.10
9/1/2007
11/30/2007
11/30/2007
11/30/2007
1/29/2008
12/10/2007
Tenant Purchase Project

Development Plan – Financial Pro-forma.
DEBT
Primary Debt Service Financing: year 1-10
Type of Funds
Requested Source of Funds
(Name of Lender)
Debt Cover
Annual
Interest
Am
Loan Amount
Construct. Loan (Ppal
only for 15 yrs)
DHCD
Average
$ 31,023.81
0.000%
15
$ 3,196,811
Acquisition loan
DHCD
$
$ 95,935.13
1.000%
40
$ 3,150,000
1.10
Total Debt Service
Financing
$126,958.94
Full Pa
2047
$ 6,346,811
Primary Debt Service Financing: year 16+
Requested Source
of Funds
(Name of
Lender)
Debt Coverage
Ratio
Construction Loan (amortizing in 40 yrs)
DHCD
$
1.10
$ 92,879.49
Acquisition loan
DHCD
$
1.10
$ 95,935.13
Type of Funds
Total Debt Service Financing
Annual
$188,814.63
Original Principal Acquisition Loan
$ 3,150,000.00
Principal Acquisition Loan on 1/1/2010
$ 2,987,850.00
Interest
Am
Loan Amount
Full Pa
1.000%
35
$ 2,731,454
2057
1.000%
40
$ 3,150,000
2047
$ 5,881,454
Tenant Purchase Project

Development Plan – Tenant Trainings.
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Board Development roles
We own the building!
Select a management company
Select an Architect
Managing training for coops
President: roles and responsibilities
Presidente: funciones y responsabilidades
Managing the
Association
2. Preside membership
meetings
3. Sign documents
4. Approve circulars and
correspondence
1.
Administrar la
Asociacion
2. Presidir las reuniones
generales
3. Firmar documentos
4. Aprobar circulares yc
orrespondencia
1.
Tenant
Purchase
Project
Development Plan
Architect
Contractor
Construction