The Mills at High Falls: A Case Study in Bond

Financing

(Clifton Hall)

Biographical Information

R. Scott Schmid is Vice President with the Community Development Banking group at JPMorgan Chase Bank, N.A., where he is responsible for providing capital to support the development of residential and commercial real estate projects that create affordable housing, employment opportunities and economic growth in low- and moderate income communities. He has held various positions related to real estate finance and community development at JPMorgan Chase and its predecessors since 1985. Scott’s community development finance experience extends to many structures and programs, including low-income housing tax credits, historic tax credits, tax-exempt and taxable bond finance, HOPE VI, Section 236 decoupling, Section 202 refinance, and various sources of government subsidy and credit enhancement. Scott is a director of Rochester Housing Development Fund Corporation and United Way Services Corporation, and he is a member of the United Way of Greater Rochester’s Community Investment Cabinet, the Central Region Mortgage Committee of Community Preservation Corporation, and the Rochester Community Development Collaborative. Scott is a graduate of St. John Fisher College and resides in Webster, New York with his wife and three daughters. Mr. Leonard Gruenfeld is an Assistant Vice President / Senior Underwriter with the New York State Housing Finance Agency. In his role, he underwrites affordable and mixed income housing developments throughout the state for bond financing, low income housing tax credits and other subsidy funds. Prior to his current position, Mr. Gruenfeld developed both affordable and supportive housing. This included locating sites, gaining local support and gathering financing from both conventional and government sources. Before this, Mr. Gruenfeld worked as a project manager for a well established not-for-profit agency in their affordable housing development unit. Mr. Gruenfeld has a bachelor’s degree in economics from Pace University and a master’s degree in real estate development from Columbia University. Tony Lyons has served as a Vice-President and Regional Manager for the Northeast Region of the National Equity Fund (NEF) since May, 2002, overseeing NEF’s acquisition and asset management activities in nine states. NEF provides equity financing to builders and developers of affordable housing. He graduated from Southern Connecticut State University and received a Master’s of Urban and Regional Planning from the University of Oregon. He has been with NEF since June of 1997. Previous to NEF, he was a Senior Project Manager with The Community Builders in Philadelphia from 1990 to 1997, and a Rehabilitation Specialist at the U.S. Department of Housing and Urban Development in Washington D.C. from 1986 to 1990. Carolyn Vitale has over 30 years experience as a community/economic development specialist, bringing extensive expertise in project development/implementation. She has worked in the public, private and not-for-profit sectors. She is currently Vice President and Chief Operating Officer of the Urban League of Rochester Economic Development Corporation (ULREDC) in Rochester, NY. Prior to working at ULREDC, Ms. Vitale held a number of positions including: Senior Staff Assistant to the Deputy County

Executive for Monroe County; Director of Planning for Bergmann & Associates; Assistant Director for City of Rochester’s Bureau of Neighborhood Development. Ms. Vitale is a member of the Fannie Mae Western and Central New York Advisory Council, Fannie Mae’s Northeastern Advisory Board and Key Bank’s New Markets Tax Credit Board. Carolyn lives in Rochester, New York. She holds a master’s degree in Urban Studies.

The Mills at High Falls Rochester, NY

Brown’s Race /High Falls Historic District

High Falls (Genesee River)

Neighborhood Aerial Map

Downtown Aerial Map

Project Overview

• Newly constructed three story building

• Located in entertainment district on edge of CBD

• Adjacent to Kodak world headquarters

• 67 one and two bedroom apartments

• Mixed income units at 50%, 60% & 90% of AMI

• 3,200 sf of community and commercial space

• Parking for 83 cars (38 underground)

Development Partners

• Urban League of Rochester

• Edgemere Development, Inc.

• LeCesse Construction

• Barkstrom & LaCroix Architects

• National Equity Fund

• New York State Housing Finance Agency

• State of New York Mortgage Agency

• City of Rochester

• Kodak

• JPMorgan Chase Bank

Development Partners

• Urban League of Rochester

• Edgemere Development, Inc.

• LeCesse Construction

• Barkstrom & LaCroix Architects

• National Equity Fund

• New York State Housing Finance Agency

• State of New York Mortgage Agency

• City of Rochester

• Kodak

• JPMorgan Chase Bank

Funders

• NEF – Federal LIHTC $3,437,000 ($0.97)

• NEF – State LIHTC 3,654,000 ($0.62)

• NYS HFA – Bond Issue 8,600,000

• NYS HFA – Subsidy Loan 2,670,000

• City of Rochester – HOME Loan 2,450,000

• Kodak/Urban League – Land Note 850,000

Unit Mix & Rents

• Unit Type 1 BR (40) 2 BR (27)

• Sq. Ft. 800 1000

• 50% AMI $ 525 (7) $ 642 (4)

• 60% AMI $ 621 (13) $ 743 (9)

• 90% AMI $ 903 (20) $1,090 (14)

• Market (est) $1,000 $1,215

Qualified Income Limits

2008 Rochester 4 person MFI - $63,500

1 Bedroom 2 Bedroom

(2 persons) (3 persons)

50% $25,650 $28,850

60% $30,780 $34,620

90% $46,181 $51,918

Project Timeline

• December 20, 2007 – Closing

• January 2, 2008 - Construction Commenced

• March 31, 2009 – Targeted Completion

• December 31, 2009 – Targeted Full Occupancy