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Development Finance Associates

By Victoria Hayes,2014-09-04 18:39
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Development Finance Associates

    BACKGROUND AND QUALIFICATIONS

    DEVELOPMENT FINANCE ASSOCIATES, INC.

    Real Estate Development and Related Services

    42690 Woodward Avenue Suite 325

    Bloomfield Hills, MI 48304-5070

    Phone: (248) 858-9741 Fax: (248) 858-9786

    E-mail: oderry@derryhousing.com

DEVELOPMENT FINANCE ASSOCIATES, INC. GENERAL BACKGROUND AND PRINCIPALS

    DEVELOPMENT FINANCE ASSOCIATES, INC.

    Development Finance Associates, Inc. (DFA) has acted as co-developer for, or provided real estate de-velopment consulting services to, both not-for-profit firms and for-profit corporations since 1991. Consult-ing services include co-developing, conducting financial feasibility studies, preparing grant requests, pro-viding assistance in land and building acquisition, assembling the development team (i.e., accountant, attorney, architect, engineer, environmental firm, general contractor, surveyor, title company, etc.), locat-ing financing sources, processing loan packaging and low income housing tax credit allocation requests, negotiating terms and conditions with funding sources, closing, providing construction administration and project management, and various related services.

    In addition to the above, a key service that DFA provides to its not-for-profit clients is technical training

    for staff so that the not-for-profit can move on to complete other projects on its own or expand its real es-tate development capabilities.

    DFA is, or has been, involved in the production of over 1,100 units of affordable housing using over $100 million in financing. Funding sources include low income housing and historic tax credit equity, HOME and CDBG funds, and funding from both for-profit and not-for-profit institutions. Several of these devel-opments include social services and/or rent subsidies provided by or through a local non-profit provider.

    PRINCIPALS

OWEN DERRY is president of DFA and a licensed Michigan real estate broker. Prior to establishing DFA,

    Mr. Derry worked for the Detroit Economic Growth Corporation (DEGC) and the City of Detroit Downtown Development Authority (DDA) for five years. His real estate development and financing responsibilities centered around commercial and business development in the Central Business District, and included work on projects such as One Detroit Center, 150 W. Jefferson, refinancings of the Millender Center, sale of Trappers Alley, and loans to small businesses. These transactions ranged in size from $10,000 to $230 million and involved the use of Community Development Block Grant funds, Urban Development Action Grants, tax increment financing, taxable and tax-exempt bonds, and conventional loans.

    Before joining the DEGC and DDA, Mr. Derry worked at Michigan National Bank as a commercial loan officer.

    Mr. Derry earned a Masters of Arts in Economics from the University of Detroit and a Bachelors of Busi-ness Administration degree from the University of Michigan in Ann Arbor. He has presented at, attended, and participated in numerous seminars and conferences concerning the real estate development process.

JANICE DERRY is Vice President of DFA and a licensed Michigan attorney. At the Detroit law firm of Lew-

    is & Munday, she administered and participated in public financing projects and municipal bond offerings, and negotiated and drafted contracts and documents for real estate and loan transactions funded with public and private funds. As an independent attorney, Ms. Derry assisted in contract negotiations for de-velopment services and in the preparation of loan packages, had responsibility for Resolution Trust Cor-poration foreclosure cases, and practiced corporate/real estate law and corporate litigation.

    As an Assistant Vice President and Corporate Trust Officer for National City Bank Michigan/Illinois for five years, she managed municipal and corporate client relationships with a portfolio of over $500 million. She participated in municipal and corporate bond financings, and managed construction project disburse-ments and investments for schools, hospitals, and manufacturing facilities. She was responsible for the management of municipal bond pooled financings for over one hundred Michigan school districts. In ad-dition, she has over 15 years of management experience with major regional banks in retail and opera-tional areas.

    Ms. Derry earned a Juris Doctorate degree (cum laude) from the University of Detroit, a Masters of Busi-

    ness Administration from Michigan State University’s Advanced Management Program, and a Bachelor’s

    of Science degree from Wayne State University.

    DEVELOPMENT FINANCE ASSOCIATES, INC. OUTLINE OF SERVICES PROVIDED TRAINING Train 501(c)(3) non-profit staff in various aspects of the real estate de-

    velopment process such as preparing financial projections, loan pack-

    ages, and low income housing tax credit allocation requests; how to

    select development team members (e.g., architect, attorney, environ-

    mental firm, general contractor, etc.); negotiating contracts with the

    development team members and funders; and providing construction

    administration and overall project management.

    FEASIBILITY ANALYSIS Determine the financial feasibility of the transaction; the possible fi-

    nancing and ownership structure of the development; the potential

    sources of funds; the likelihood of obtaining these funds; and the abili-

    ty of the investor/borrower to meet the required terms and conditions

    on an on-going basis.

    GRANT AND RFP APPLICATIONS Assist in the preparation of predevelopment grant applications and

    Requests for Proposal.

    REAL ESTATE ACQUISITION Assist in the negotiation of the purchase of the land and building. With

    the aid of legal counsel, structure the terms and conditions, timing,

    contingencies (escape clauses), rights, duties, and responsibilities of

    each party.

    ASSEMBLE PROFESSIONAL TEAM In consultation with the client and other necessary personnel, review

    and engage appropriate development team members, such as attor-

    neys, accountants, engineers, appraisers, environmental consultants,

    and construction manager or general contractor. DEVELOP BUDGET, PRO-FORMA, In conjunction with the owner, architect, and/or general contractor,

    AND formulate costs for the project, including all acquisition costs, profes-PROJECT SCHEDULE

    sional fees, construction costs, soft costs, contingencies, and re-

    serves; and develop a project schedule through construction and

    lease-up.

    FINANCING Locate sources of financing, including traditional and non-traditional

    sources of debt, equity, and grants. This process includes the prepa-

    ration of an extensive request package which details the request for

    funds, revenue and expense projections, sources and uses of funds,

    and background on the owner, contractor, property management

    company, and other development team members; and negotiations

    with each funding source.

    CONSTRUCTION Throughout the construction period, coordinate periodic meetings with

    the owner, architect, contractor, and property management company; ADMINISTRATION/DRAW PROCESS

    monitor draws and the project budget; review draw requests submitted

    by the contractor and sub-contractors; prepare master draws on a

    monthly basis; ensure that appropriate inspections by the architect

    and government agencies are completed and approvals are obtained

    on a timely basis; and prepare suitable reports for use and review by

    the owner and funding sources.

    COMPLIANCE Review status of the project periodically to ensure that all terms and

    conditions have been and will continue to be met, especially for com-

    pliance with public programs such as City of Detroit Executive Order

    #22 and Davis-Bacon wage requirements.

    DEVELOPMENT FINANCE ASSOCIATES, INC. OUTLINE OF SERVICES PROVIDED FINAL REPORTING Prepare final report showing all sources of funds, uses, comparison to

    original budget, and other pertinent figures that can be used for in-

    come tax, real estate and personal property tax, and budgeting pur-

    poses.

DEVELOPMENT FINANCE ASSOCIATES, INC. HOUSING DEVELOPMENTS

    AFFORDABLE HOUSING DEVELOPMENTS

    185 units $2.0 mil Moderate rehab with HUD LIHPRA funds and Affordable Housing Pro-70 W. Alexandrine gram funding through National City Bank Michigan/Illinois (Completed)

    188 units $14.0 mil Acquisition and moderate rehab with MSHDA Section 236 debt assump-Benton Harbor I and II tion with rent subsidy programs, MSHDA HOME funds, and low income (Completed) housing tax credit equity through the National Affordable Housing Trust 50 units $9.5 mil Bank loan, HOME funds, LIHTC equity/Michigan Capital Fund for Housing Brewer Park Homes

    (Under construction)

    50 units $9.5 mil Bank loan, HOME funds, LIHTC equity/Michigan Capital Fund for Housing Brightmoor Homes

    (Under construction)

    24 units $1.6 mil Acquisition and full gut rehab with First of America, Michigan Housing Trust Coronado Apartments Fund, City of Detroit, Detroit LISC, Hudson-Webber Foundation, Neigh-(Completed) borhood Builders Alliance - MSHDA, National Equity Fund 73 units $9.3 mil Land acquisition and new construction with private bank loan, City of De-Del Ray Senior Housing troit HOME funds, City of Detroit CDBG funds, Empowerment Zone funds, (Completed) AHP grant, LIHTC equity 46 units $3.1 mil Acquisition and full gut rehab with Comerica Bank, City of Detroit HOME Mt. Vernon Apartments funds, National Equity Fund LIHTC equity (Completed)

    50 units $9.5 mil Bank loan, HOME funds, LIHTC equity/Michigan Capital Fund for Housing Nortown Homes

    (Under construction)

    80 units $7.1 mil Land acquisition and new construction with City of Detroit HOME funds, Pablo Davis Senior Housing LIHTC equity through the Michigan Capital Fund for Housing (Completed)

    44 units $3.3 mil Acquisition and moderate rehab with Ann Arbor Credit Initiative, City of Parkhurst Apartments Ann Arbor HOME funds, MSHDA, National Equity Fund LIHTC Equity (Completed)

    50 units $9.5 mil Bank loan, HOME funds, LIHTC equity/Michigan Capital Fund for Housing Pinigree Park Homes

    (Under construction)

    20 units $2.1 mil Acquisition and full gut rehab with Detroit HOME, low income housing and Savannah Apartments historic tax credit equity through the Michigan Capital Fund for Housing (Completed)

    56 units $7.8 mil Acquisition and full gut rehab with private bank loan, City of Detroit HOME Springwells Partners funds, LIHTC and HTC equity, HUD Shelter + Care rent subsidy for sup-(Completed) portive housing 60 units $6.1 mil Full gut rehab with City of Detroit HOME funds, low income housing tax St. Paul/Kingston Arms credit equity through the Michigan Capital Fund for Housing Apartments