CREA Edge Newsletter - Oct 2021

CREA Edge Newsletter - Oct 2021

EDGE Communications from the

Portfolio Management Frontline

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October 2021

ACQUISITIONS UPDATE WITH BRAD BULLOCK

By: Brad Bullock Managing Director, Originations

health and safety by quickly moving business to work-from-home and limiting travel to essential travel only. Luckily, with nearly 80% of new business being repeat developer relationships, CREA had a competitive advantage over newer entrants into the LIHTC market. Given the turmoil in the real estate space, developers generally did not want to entertain offers with groups with no prior closing experience as they navigated labor shortages, supply chain issues and a noticeable slowdown in governmental agency turn around. Despite the environment, 2020 proved to be a record year for originations with over $1 billion of new product put under letter of intent. We anticipate 2021 to result in similar output.

Starting in January, with the promotion of Charles Anderson to Co-President, I transitioned out of the originations role and into Managing Director for Originations, a role I had once held at PNCBank for eight years. We also promoted two of our most experienced Account Managers, Alison Anderson in Portland and Adam Lavelle in Indianapolis, to work with Northwest and Midwest clients who they both know well. Combined with CREA’s four seasoned and established originators, this has allowed for continued growth.

CREA’s originations group is charged with the identification, evaluation and structuring of low-income housing transactions across the United States. We have six originators with a presence in our Boston, Indianapolis, New York, Portland, San Diego and Sarasota offices. Each originator oversees acquisitions activity in their designated region or with existing clients that are expanding into new markets. Prior to March of 2020, originators traveled extensively in order to meet and connect with developers, as well as attend many of the key industry conferences and events. As with most of the world, this came to an abrupt halt as CREA prioritized employee

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Alison Anderson, SVP

Adam Lavelle, VP

PROPERTY IMPACT STORY: JOHN ARTHUR FLATS

EMPLOYEE SPOTLIGHT: MIKE REGAN

Mike Regan, SVP, took lead of the Dispositions department in January. Previously at Boston Capital for 15 years, having negotiated over 600 disposition transactions, Mike brought a wealth of experience to CREA, including LIHTC asset management knowledge and participation with the Council for Affordable & Rural Housing. Learn more about Mike and Dispositions... continue on page 2

While the Obergefell v. Hodges Supreme Court decision, which granted same-sex couples the right to marry, holds deep meaning for LGBTQ+ Americans across the country, it has a special place in Cincinnati, Ohio. John Arthur and Jim Obergefell, the couple at the heart of the contentious legal dispute, met in the city in the 1990’s...

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P2 ACQUISITIONS UPDATE, CONT. P2-3 EMPLOYEE SPOTLIGHT, CONT. P4-5 CREA FOUNDATION INTRO

P5 TPC REWARDS PROGRAM STORY P6-7 PROPERTY IMPACT STORY P8 NEW HIRES & PRESENCE

P9 AWARDS, DEADLINES & GOOD-TO- KNOW INFO

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ACQUISITIONS Q & A WITH BRAD BULLOCK, CONT.

help accelerate their productivity and knowledge of the industry. It has also benefited CREA by providing better standardization between offices as we continually upgrade our investment committee process. The fourth quarter of 2021 is starting to see more travel as we recently lifted our essential travel only policy. We are slowly engaging in industry

conferences and look forward to what is ahead.

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To also help support our efforts, we created an AVP position in the originations group to develop new hires who model and process business opportunities in support of the Originators for review by our investment committee. This allows us to hire very capable staff who may not have much LIHTC experience and

2022 will be an exciting year with the prospect of the potential affordable housing legislation enhancing the number and types of affordable housing created and a base of experienced and capable developer clients ready to meet the challenge with CREA as their partner.

EMPLOYEE SPOTLIGHT: MIKE REGAN, CONT.

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developer friends made the decision to join CREA pretty easy. Everyone has welcomed me with open arms and the initial remote experience, which included lots of video calls, far exceeded my expectations. I am glad to be meeting people in the Boston office and recently had

property that was transformed into a successful privately-owned mixed income/use property which subsequently inspired the Hope VI program. I had the opportunity to meet the developer and wrote a paper on the benefits of mixed income housing versus traditional public housing for history class. From there, I studied financial economics in college and followed it up with a certificate in real estate finance and coursework in urban affairs and real estate. I’ve spent over 15 years working on LIHTC Dispositions; I’d like to think that I’ve seen it all, but know there will always be a new wrinkle on the next transaction. I’ve also had the opportunity to serve on the Board of Directors for the Council for Affordable and Rural Housing (CARH) and currently serve on the CARH Scholarship Foundation’s board. CARH and other advocacy groups play a central role in the

Welcome to CREA, Mike! You joined us in early 2021. How have the first ten months been going? Changing jobs during a pandemic was not at the top of my agenda, but the excellent feedback that I received from both investor and

the opportunity to visit Indianapolis. I am excited for the future of CREA.

Can you share a little about your background and previous work experience? My dad purchased a small fourplex apartment building when I was a young kid. I did everything there, from landscaping and painting to turning, remodeling and renting units. I attended high school next to Harbor Point Apartments in Boston, one of the country’s first examples of a failing public housing

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affordable housing industry and I’m proud to work with them. I would encourage anyone with a Rural Development financed property to become a CARH member. I’ll happily join you for a beverage at our January meeting in San Diego if you join! Howdid your prior experience doing asset management work for LIHTC properties prepare you and assist in your role with dispositions? I asset managed a large portfolio of older tax loss and LIHTC properties. Interacting with everyone from on-site management, regional managers, developers, non-profits, tenants, accountants and legislators to the underlying investors provided me with a holistic perspective of the LIHTC program. In particular, I was able to gain valuable experience working on properties impacted by Hurricane Katrina and other disasters. What do you find to be the most challenging part of negotiating a disposition? The most challenging part is making sure everyone involved in the process has reviewed all aspects of the disposition. Once everyone involved sees the same pieces to the puzzle and can appreciate each partner’s position, it’s possible for a couple reasonable people to arrive at a fair and mutually agreeable disposition strategy. You’re located in our Boston office, which is moving due to growth! What types of things do you enjoy doing up in the northeast, outside of work?

In the summer, you will find me fishing, swimming, snorkeling or grilling with family and friends. Come winter, I’ll sneak out with my daughters to the 300 foot ski hill in town or up to Vermont. I’m proud to report that our seven year old, Madelyn, is a strong skier and once our fearless four year old, Julia, masters turning and stopping, we will be dodging ski patrol all over the mountain. I hear your family are big hockey fans, and even play - tell us more! I married into a hockey family; thankfully I can skate, but

buff, but give me a tiny venue with friends and I am in.

have never played organized hockey. My wife played in college and still plays and coaches. Just prior to the world shutting down, my wife and I built a DIY synthetic ice rink in our basement to get the girls as much “ice time” as possible.

3. What’s the best Halloween costume you’ve ever had (as a kid or adult!)? Oh, boy... Lots of sports heroes, including: Teddy Bruschi, David Ortiz and Uncle Rico from Napolean Dynamite. These days, my daughters pick my costume to go with their theme. I really enjoyed being Maui from the Disney movie Moana. I carved a giant magical fish hook out of wood and had to be the boisterous demigod of South Pacific for a few days. 4. When you were a kid, what did you want to be when you grew up? (...aside from being a LIHTC dispositions expert, of course!) If I couldn’t have become a LIHTC dispositions expert, a pro skier would have been a good backup option.

RANDOM QUESTIONS & AWESOME ANSWERS:

1. As life has slowly started to return to normal, what was the one thing you were most looking forward to doing when the shut down was lifted? I am most looking forward to being able to travel without quarantine restrictions keeping our kids out of school.

2. Last concert you attended? Toots and the Maytals. I’m no music

Direct Line: 317 808 7376 E-mail: [email protected]

PRIMARY LOGO

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INTRODUCING CREA FOUNDATION, INC.

HORIZONTAL LOGO

backgrounds for future educational success.

Mission Through strategic partnerships, we seek to improve the lives of youth & young adults facing adversity and barriers to success in the communities we serve by creating opportunities to further their learning, development, and education. Vision The vision of CREA Foundation is to provide next step opportunities in education with a focus on college preparation, access, and success for all youth & young adults living within our affordable housing communities. Next Steps CREA Foundation will accomplish its mission by awarding financial scholarships through the CREA Scholars Program to students facing barriers to success who are pursuing post-secondary education and grants to non- profits focused on college prep, access, and success. The foundation will start making scholarship and investments in Indiana starting in Spring 2022. Did you know… “A low-income student is 29% less likely to enroll in postsecondary education directly after high school than a high-income student. Ultimately, only 35% of low- income high school students obtain a postsecondary credential by age 26…With the right support, low-income students and students of color succeed at similar rates to wealthier, majority-race students.” – National College Attainment Network CREA Foundation’s goal is to provide a solution to meet the growing challenge experienced by low-income students in our communities by providing financial scholarships and support for students on their post- secondary education pathway to completion.

ICON

Arvetta Jideonwo, MHA, CFRE Head of Social Impact , CREA, LLC & Executive Director , CREA Foundation, Inc. Arvetta Jideonwo joined CREA in 2021 as the company’s chief philanthropic leader, overseeing the administration strategic investments of CREA Foundation, Inc. through grant and scholarship initiatives, as well as internal philanthropy, volunteerism and community engagement efforts. Her 20 years of executive-level experience within a variety of leadership roles and industries includes serving as Executive Director for Bosma Visionary Opportunities Foundation for eight years. Arvetta holds a Bachelor of Science in Community Health from Indiana State University, a Master’s in Health Administration from Indiana University, and a Non- Profit Executive Leadership Certificate from Harvard University’s John F. Kennedy School of Government. She is actively involved in the community through board service for Visually Impaired Preschool Services, membership in the National Council of 100 Black Women Indianapolis and Jack and Jill of America – Circle City Chapter, as well as Chair for the Cathedral Mother’s Club Teacher grants program for Cathedral High School. About CREA Foundation, Inc. As its philanthropic arm, the purpose of CREA Foundation is to provide financial support in communities where CREA is invested that prepare underserved youth and young adults of diverse racial, ethnic and cultural

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THE PACIFIC COMPANIES’ RESIDENT REWARDS PROGRAMCREATESACURRENCYFORCOMMUNITY

At CREA, we believe that opportunity starts with a safe place to call home. But, that’s not all. We also believe that strong communities are just as important as the brick and mortar of a new development. That’s why we are proud to partner with groups who create and implement inventive ways to foster growth in the populations they serve; the Pacific Companies’ TPC Resident Rewards program is one such innovation that promises to provide actionable improvements to tenants’ lives. Much like earning miles through a credit card, this program is available to all their residents in over 8,000 units across 129 properties in the United States since being first implemented three years ago. However, there’s a twist – ‘points’ aren’t earned through purchases or loyalty, but action. This action-based reward systemallocates points for on- time rent payment, or lease renewals, for example. Additionally, residents can receive points for referrals at any TPC property, avoiding lease violations, and for keeping their new home in excellent condition. TPC Resident Rewards even provides points for completing important lifestyle education seminars. “The resident education component, ‘Surveys & Quizzes’, gets fantastic feedback – 60% of the residents that comment in our ‘Earn/Share’ section comment on them,” said Zack Deboi, Executive at The Pacific Companies. “We provide education on topics

such as, how to: put out a grease fire, watch for pool safety, implement energy efficiencies, shut off their water, or, what not to put down the garbage disposal…..all which directly impact resident safety, environment, property performance and stability. In fact, many residents reach out via email to us to ask when we’re posting a new one.” As for the rewards available to residents for their hard-earned points? Those, too, feature some you might expect and others you might not. Gift cards are a popular option, allowing residents to convert their actions at home into important purchases for a variety of purposes at their own discretion. Essentials like diapers, groceries, or gas can easily be purchased with the cards. However, the rewards don’t stop there. In addition to the gift card option, they host a unique category that allows for redemption of points toward alternative benefits such as a new home purchase, vehicle, daycare or education expenses. You don’t have to take our word for it -- here are testimonials straight from those that TPC Resident Rewards directly benefits:

Especially when my daughter needs diapers or I am low on gas. These cards come in handy. I am so thankful. - Shamika D. Bakersfield Family, Bakersfield, CA I had a month where I had an unexpected medical expense and being on a limited income I didn’t have money for anything else that month. With my points, I got Walmart cards and was able to get groceries for the month. I don’t know what I would have done without those cards. - Hildreth, M. Ridgecrest Senior, Ridgecrest, CA Being a single parent I live month to month and this gives my daughter and I a little something to look forward to. I love taking the quizzes, I usually have my daughter join me so she can learn from them as well. Then she can pick a gift card and I can take her out. Thank you so much for this program. (Especially helpful during this tough time on quarantine, thank you again!) - Corrine K. The Aspens at South Lake Learn more about The Pacific Companies’ Resident Rewards online, here >>>

I love this program. I am a single mother so earning points for paying rent on time and quizzes on apartment living come in handy.

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PROPERTY IMPACT STORY: JOHN ARTHUR FLATS

materials disruptions.” Nelson said. “This property represents not only years of work on behalf of Pennrose and NEST, but decades of advocacy.” The new development will feature 57 one- and two-bedroom units for

Arthur Flats will feature a community center dedicated to another local figure. The Maureen Wood Community Room carries the name of a late Cincinnati businessowner and advocate, and will provide

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Now, developer Pennrose, LLC is honoring the late John Arthur with the first affordable housing complex targeting LGBTQ+ seniors in the city, which will bear his name. John Arthur Flats will offer a range of supportive services and facilities aimed at fostering a community steeped in pride. According to CREA Account Manager Jeff Nelson, the past years of hardships presented a challenge. However, the team was able to push through to make this development a reality. “A development like this is difficult in ordinary times, and getting to this point is even more of an accomplishment given the disruptions this past year from a pandemic, working to keep everyone involved safe, and navigating remote work and

residents with a convenient, safe place to c o n g r e g a t e within their new home. The d eve l o pme n t w o u l d n ’ t

“...This property represents not only years of work on behalf of Pennrose and NEST, but decades of advocacy.” - Jeff Nelson, Account Manager

p r o s p e c t i ve residents, as well as a host of supportive s e r v i c e s sourced from P e n n r o s e

itself and local organizations such as the Council on Aging (COA) of Southwestern Ohio. The Cincinnati nonprofit Caracole, an HIV/AIDS service organization, will also provide onsite care for residents in need.

be possible without the various partnerships between Pennrose and parties both in and out of Cincinnati. One such relationship is with Fifth Third Bank’s Community Development Lending and Investment team, which provided both the investment

Additionally,

John

>

The location of the

John Arthur Flat exterior renderings. The property is currently slated to open in 2022 in the Northside neighborhood of the Cincinnati, Ohio metro area.

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MEET OUR MOST RECENT PORTFOLIO MANAGEMENTS NEW HIRES!

asset management. He earned a BS in Risk Management & Insurance from Missouri State University. You can find Tyler enjoying time outside playing golf or being on the lake.

with 8 years’ fund management experience and 2 years’ public accounting experience. She earned a BS and a Masters degree in Accounting from Bryant University in Rhode Island. She enjoys spending time with her husband and two young daughters, traveling, and going to the beach.

Molly Snyder Asset Manager, Stabilized Portland

Molly Snyder comes to CREA with four years of experience in affordable housing, most recently working as an asset manager for a nonprofit developer in the Washington, DC area. She earned a master’s degree in Community Planning from the University of Maryland, College Park. You can find Molly walking her greyhound and exploring her new home of Portland, Oregon.

Ben May Fund Analyst Indianapolis

Ashley Layman Administrative Assistant, Development Indianapolis

Ben joined CREA as his first role after earning a BA in Economics from DePauw University this past May. Outside of work he spends his time watching whatever sport is in season (especially football or baseball) and going to the lake to hike and swim.

Ashley Layman is a 2019 graduate from IUPUI with a bachelor’s degree in Health Sciences. In 2013 she was Miss Indiana U.S. International and in 2014 Miss Marion County. Outside of work you will find her traveling, reading, and baking.

Tyler Hart Asset Manager, Development Regional (St. Louis)

Kristen Masciana VP, Fund Management Boston

Tyler Hart comes to CREA with 4 years’ of LIHTC experience with more than half of those being in

Find our full team online here.

Kristen Masciana comes to CREA

ASSET MANAGEMENT PRESENCE EXPANDS ACROSS 5 OFFICES

Did you know that CREA now has asset management presence in five of our eight offices, as well as a regional presence in St. Louis, MO? This directly aligns with our efforts to expand our accessibility to talent. We’ve also gotten strategic about placing Asset Managers in time zones and regions where they can be in closer proximity to developers and properties.

Asset Management by Office: Boston = 3 Indianapolis = 8 New York = 1

Portland = 3 San Diego = 1 Remote/St. Louis = 1

We’re also on the move! In need of more space, our Boston and SanDiego officeswill bemoving addresses!

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AWARDS & KUDOS Recent Property Celebrations

Seven 45 Stocking Grand Opening - 9/10/21 Cornerstone Crossing Senior Apartments Grand Opening - 9/13/21 Vincent Village Grand Opening - 9/14/21

Hale Makana O Moiliili Groundbreaking Ceremony - 10/5/21 37 Hillside Avenue Groundbreaking - 10/6/21 Endicott Square Robbon Cutting - 10/13/21

AHF Readers Choice - Rural Winner Congrats to Woda Cooper Companies, Inc. on being named the Rural Winner for the Affordable Housing Finance Readers Choice Awards for Osborn Commons in Sault Sainte Marie, MI. The 65 unit community serves families, as well as the Sault Sainte Marie community in need of downtown living and amenities.

HAPPY RETIREMENT, MARK! When Mark joined CREA over 13 years ago, we were a very different company. He was instrumental in our growth by creating a strong assembly of professionals in Credit and Underwriting. He constantly improved our process, policies and approach to transactions, which made everyone at CREA a little better. We thank Mark for his dedication and contributions, and wish him well in his retirement.

• Engagement letters: Submit by 10/31/21 to your assigned Asset Manager or [email protected]. • 3rd Quarter Reporting: Submit by 10/31/21 to your assigned Asset Manager, as well as a copy to [email protected]. OCT 31 REPORTING DEADLINES

DEC 1 DEC 15

• 2021 Budgets: Submit by 12/1/21 to your assigned Asset Manager.

• For our Limited Partners: 3rd Quarter Reports will be issued by 12/15/21.

GOOD TO KNOW 2021 Tax Season Guidelines have been sent out to all of our GP and accountant contacts.

Asset managers will be reaching out to confirm actual tax credit delivery for those properties with first year credit delivery in 2021.

Any properties that are not operational in 2021, get a jump start on tax season and request an audit waiver now!

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