ACDC Tax Credit Investor Prospectus

Low income housing tax credit opportunities 2010

Asian Community Development Corporation 22 years of community building

1987-2010

contact

Timothy Doherty real estate project manager 617.482.2380 x 202 tim.doherty@asiancdc.org Asian community development corporation 38 oak street boston, ma 02111 www.asiancdc.org

contents 3 7 9

Introduction

LIHTC Investment Opportunities Our Projects

9 13 19 21

6 Fort Street Parcel 24 Oak Terrace Metropolitan

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Our Team

29

Community Development Programs

Mission statement The Asian Community Development Corporation, a communitybased organization, is committed to high standards of performance and integrity in serving the Asian American community of Greater Boston, with an emphasis on preserving and revitalizing Boston’s Chinatown.

ACDC develops physical community assets, including affordable housing for rental and ownership; promotes economic development; fosters leadership development; builds capacity within the community and advocates on behalf of the community.

Asian Community Development Corporation | Tax Credit Investment Opportunities

Introduction

Introduction Asian Community Development Corporation (ACDC) offers direct tax credit investment opportunities for investors interested in creating quality affordable rental housing while earning a secure return in the form of a dollar-for-dollar reduction in federal and state taxes.

ACDC is a nonprofit developer that specializes in affordable housing development, having built over $100 million of real estate in the Downtown and Greater Boston area over the last 21 years. We have experience taking complex, mixed-use development proposals through multi-agency, multiple stakeholder public approval processes. Amongst a multitude of other public subsidies, ACDC has successfully secured tax credit allocations and maintained program compliance for previously awarded projects.

About Asian Community Development Corporation In 1987, Asian American activists and leaders, with the support of public officials, founded Asian Community Development Corporation to respond to the affordable housing needs of the Boston Chinatown community and to lead the burgeoning efforts to revitalize the surrounding neighborhood. Most recently, ACDC completed The Metropolitan, an innovative 251-unit high-rise in Boston’s Chinatown that was praised by the City of Boston as a model for mixed-income, mixed-use developments. ACDC additionally offers complementary services that assist low and moderate income families to secure quality affordable housing and make home ownership a reality (refer to page 29-31 for more details.

Today, ACDC is expanding its programs to meet the dynamic needs of the growing Asian American community in Greater Boston while maintaining a focus on preserving and fostering the vibrant live, work, and play elements of Boston’s Chinatown. Asian Americans represent the fastest growing minority group in the Boston metropolitan region with a 70% increase in the 1990s as compared to a 6% increase in the general population. Much of this growth is occurring in suburban cities and towns, especially in the last fifteen years. In 2008, ACDC expanded and diversified its real estate portfolio to include a pipeline of projects in these suburban smart-growth nodes to better reach these now established satellite communities. Meanwhile, ACDC continues to build on its successful track record of developing large-scale, mixed-income, signature projects in Chinatown to directly meet the extraordinarily high demand for affordable housing in this desirable downtown Boston core neighborhood.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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Introduction

Experience in Affordable Housing Development Asian Community Development Corporation has the capacity and experience to complete complex real estate developments, demonstrated by a strong track record of building mixed-income affordable housing in Chinatown - both one of the poorest neighborhoods in Boston and one of the hottest real estate markets in the nation. In 1995, ACDC completed Oak Terrace, an 88-unit rental development notable for being one of the earlier projects in the country to utilize Low Income Housing Tax Credits (LIHTC), now a standard for securing private equity for affordable housing development. At that time, Oak Terrace was the first new construction project to come online in twenty years in Chinatown and one of the largest residential projects in the City’s pipeline.

ACDC has pioneered innovative partnerships and collaborations with for-profit and public entities to realize sophisticated, large-scale developments. The Metropolitan, a 251-unit, mixed-use, mixedincome project completed in 2005, was a joint venture between ACDC and the respected for-profit developer Edward A. Fish Associates. ACDC contributed to this partnership the valuable local knowledge of developing affordable housing in Chinatown and garnered the engagement and strong support of the various community and political stakeholders to successfully maneuver through the numerous approvals and subsidy application processes, including securing a LIHTC allocation. The Metropolitan is still the tallest affordable housing project built by a community development corporation in the country and hailed as a “model of innovative financing and creative design” by MassHousing.

Groundbreaking of Oak Terrace in 1994

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Asian Community Development Corporation | Tax Credit Investment Opportunities

The Low Income Housing Tax Credit (LIHTC) program offers affordable housing developers with an indirect federal subsidy to finance the construction and/or rehabilitation of affordable rental housing. The program was established under the Tax Reform Act of 1986 and is designed to present incentives for the investment of private equity into the development of affordable housing.

The program gives investors a dollar-for-dollar reduction in their federal tax liability in an amount proportional to their capital investment towards an affordable rental development. Tax credit investments also allow developers to restrict rents at rates accessible to low-income tenants.

In 2006, Ernst and Young LLP published Understanding the Dynamics III: Housing Tax Credit Investment Performance, a report on the performance of low-income housing tax credit properties and investments.

“Key findings from the report: • Investment returns have been stable and provide, on average, benefits that are 2 percent higher than originally projected.

• Loans to housing credit properties continue to operate with a foreclosure rate below that of other real estate assets. As illustrated in the following chart, the average annual foreclosure rate on loans to properties receiving LIHTCs averaged 0.02 percent in 2004.

• From 2000 to 2004, median physical occupancy

States authorize allocations of LIHTCs to levels in LIHTC properties ranged from 96 to 97 percent.” developers who monetize their credits by finding investors willing to contribute cash towards a project. In exchange, the investor sees a return in the form of a ten-year stream of tax credits. The investor enters as a limited partner in an operating partnership with the developer, who becomes the general partner and owner of the affordable housing property. The operating limited partnership uses cash from the limited partner to finance a portion of the property construction or rehabilitation. Investors generally remain in the partnership for the duration of the 15-year compliance period during which the project must continue to satisfy LIHTC requirements and maintain affordable rental rates.

The Metropolitan, architectural detail Asian Community Development Corporation | Tax Credit Investment Opportunities

5

Introduction

About Low income housing tax credits

Introduction

Boston metropolitan area

2 mi 5 km

Asian Community Development Corporation serves Boston’s Chinatown and the Greater Boston communities in which Asian/Asian-Americans reside.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Asian Community Development Corporation is currently offering diverse Low Income Housing Tax Credit investment opportunities in the following three projects. These highlighted projects are not inclusive of all our pipeline activity, and additional investment opportunities exist.

Project 6 Fort Street Ready and Straightforward

Parcel 24 Signature and Large-scale

Oak Terrace Proven success and Security

Total LIHTC Units

Annual Tax Credits Available FEDERAL LIHTC

$765,000

State LIHTC

$554,000

FEDERAL LIHTC

$1.242M

State LIHTC

$1M

FEDERAL LIHTC

$901,200 received 1995-2005

34

69

60

Status Allocation awarded January 2010

Application submitted Allocation expected

LIHTC compliance period ends 12/2009

6 Fort Street offers investors a ready opportunity to participate in the rehabilitation of a vacant commercial building into much needed affordable housing. Located only 7.5 miles from downtown Boston, this project launches Asian Community Development Corporation’s suburban initiative with 34 affordable rental units in Quincy, Massachusetts. 6 Fort Street will be one of Quincy’s first projects in recent memory to use tax credits for family housing.

Parcel 24 offers investors an opportunity to participate in a signature downtown Boston project that is one of the largest residential developments in Massachusetts. Parcel 24 will be a 325-unit transitoriented, LEED silver certifiable project in Chinatown that is located prominently at the terminus of the Rose Kennedy Greenway. Parcel 24 will be a gateway into the City of Boston and includes 69 affordable rental units and both affordable and market-rate homeownership opportunities to meet the relatively high and steady demands of the downtown Boston core market.

Oak Terrace offers investors a proven investment opportunity in a completed project that is professionally managed with a steady net operating income. The project is approaching the end of its 15-year LIHTC compliance period in December of 2009 and new LIHTC investment opportunities is expected. Asian Community Development Corporation has successfully maintained the 60 LIHTC units for tax credit purposes and is committed to maintaining the long-term affordability of Oak Terrace.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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LIHTC Investment Opportunities: Three Diverse Projects

LIHTC Investment Opportunities

Asian Community Development Corporation | Tax Credit Investment Opportunities

6 Fort Street: A Sustainable Approach to Housing for Quincy’s Working Families

6 fort street

quincy, ma The Asian Community Development Corporation is pleased to present its vision for 34 newlyconstructed family rental residences at 6 Fort Street in Quincy, MA. The project represents the adaptive re-use of an under-utilized commercial building in a transit-oriented, Downtown Quincy Center location. The program responds to the new Quincy Center Zoning District’s Design Guidelines, while remaining sensitive to the surrounding, smaller-scale commercial and residential neighborhood.

Ultimately, the project will create some of the first family-focused, tax credit-financed affordable housing to be developed in Quincy in recent memory.

6 Fort Street is a unique opportunity to introduce much needed affordable housing units in an excellent location within City of Quincy, one of Greater Boston’s high-demand, high-cost inner core communities.

In short, the project enjoys an excellent location, situated in a convenient, environmentally responsible, and walk able area. Regionally, the site is approximately 7.5 miles south of downtown Boston on the southern edge of Quincy Center. Directly adjacent to a major supermarket (Star Market), a smaller local grocery (The Fruit Basket) and a pharmacy (Rite Aide); 6 Fort Street sits within 0.25 miles of the LincolnHancock elementary school in one direction and downtown Quincy, the traditional commercial and retail heart of the community, in another. In addition it is within 0.50 miles of major service providers and employers including the Quincy Medical Center, Quincy City Hall, and Stop & Shop’s corporate headquarters. Moreover, the subject is within 0.5 miles of the Quincy Center MBTA Red Line train station and within a few blocks of five MBTA bus lines.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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6 Fort Street: A Sustainable Approach to Housing for Quincy’s Working Families

The proposed project represents a green approach to affordable housing through the restoration of a vacant and disinvested building in a smart-growth location. The project promotes the Commonwealth’s Sustainable Development Principles, responds to the community’s vision for Quincy Center as expressed in the recently adopted (2007) Quincy Center Zoning District (QCZD) Ordinance, minimize environmental impacts, and maintain long-term affordability for 6 Fort’s future residents.

anticipated program TYPE OF SPACE

QUANTITY

GROSS SQ. FT.

Residential

34 Units

42,000 +/-

Community Space

1,000 +/-

Total Building

43,000 +/-

Parking

64 Spaces

UNIT TYPE

# OF UNITS

% OF UNITS

One bedroom

8

23%

Two bedroom

22

65%

Three bedroom

4

12%

Total Units

34

100%

Affordability 26 Units (80% of total)

60% AMI level

8 Units (20% of total)

30% AMI level (rent-assisted)

34 Total LIHTC Units

100% Units Affordable

Project Status and Financing project schedule

Begin construction

September 1, 2010

Construction Complete

July 2011

Awarded annual tax credit allocations*

amount

Low Income Housing Tax Credits

$765,000

State Low Income Housing Tax Credits

$554,000

* Awarded in January 2010

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Approx. amount

State Funds State HOME Affordable Housing Trust (AHT) CBH

$550,000 $1 M $498,500

Local Funds (City of Quincy)

$350,000

Other: The Life Initiative & CEDAC(acquisition and pre-development loan)

$2.9 M

total development cost

$11 M +/-

STRONG Demand for affordable housing in Quincy, MA 6 Fort Street lease rates will enjoy a significant market advanatage. In particular, Bonz and Company, Inc. estimates that 6 Fort’s monthly rents will be between 40%-57% lower than their market rate potential, which would be $1,175, $1,400, and $1,825 for the subject’s one-, two-, and three-bedroom units, respectively. By contrast, 6 Fort Street’s 26 unsubsidized 60% AMI one-, two-, and three-bedroom units will rent monthly for $835, $1,000, and $1,160.* The City of Quincy has a limited supply of affordable housing (particularly family housing) relative to demand. The Quincy Housing Authority (“QHA”) is a public agency that provides subsidizedhousing to low-and moderate-income individuals and families. The Authority currently owns and manages over 1,600 units, all of which are fully occupied. The QHA also maintains a limited wait list, which is currently comprised of 1,810 families and 1,147 elderly households (although reportedly over 7,000 households have recently applied for QHA’s public housing). Moreover, the QHA reports that the vast majority of the families on the wait list are seeking two and three-bedroom units, such as those offered at Fort Street (26 of Fort Street’s 34 units - or 76% - will be two- and three-bedrooms). * The market demand for 6 Fort’s affordable Units is robust. In particular, Bonz and Company, Inc estimates the demand market for 6 Fort Street’s units conists of almost 24,000 income-qualified households.

Of these households, approximately 10,290 are renter households, yielding a capture rate of less than 1% for the 34 tax credit units. A more focused demand analysis, based on demand generated from households facing rental hardship, from households living in substandard housing, and from households moving, indicates there are 2,919 income-qualified households that would be attracted to the subject’s 34 new units. This indicates a required capture rate of 1.2%. Of these, 1,478 would be specifically qualified for the 30% units and 1,441 would be income qualified for the non-rent assisted 60% units.* 6 Fort Street provides a superior product in a market of older rental housing stock. Approximately 80% of Quincy’s rental housing stock was constructed prior to 1980. The proposed unit plans and renovation scope will be physically superior and favorably competitive to the majority of the area’s existing rental units.

1

6 Fort Street Market Study, completed by Bonz and Company, Inc, June 22, 2009.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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6 Fort Street: A Sustainable Approach to Housing for Quincy’s Working Families

additional funding sources committed

6 Fort Street: A Sustainable Approach to Housing for Quincy’s Working Families

quincy center zoning district

6 Fort Street

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Asian Community Development Corporation | Tax Credit Investment Opportunities

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parcel 24 Parcel 24, LLC, a joint venture of Asian Community Development Corporation (ACDC) and New Boston Fund, Inc. (New Boston), was designated by the Massachusetts Turnpike Authority (MTA) to develop Parcel 24. The proposed project will provide much needed mixed-income housing while restoring the vibrancy of the neighborhood that existed on Hudson Street more than forty years ago. In the 1950s and 1960s, homes and businesses on the east side of Hudson Street were cleared to make way for a highway ramp. The removal of the ramp as part of the Big Dig project allows this block to be reknit into the urban fabric as a smart growth, transit-oriented development.

The Parcel 24 Plan has affordable rental and homeownership units, market-rate homeownership units, open space, commercial and community space, and underground parking, incorporated into a neighborhood-sensitive, sustainable design. This program responds to the Community Vision developed by Hudson Street for Chinatown (HSC), a coalition of community organizations and current and former residents. The MTA’s Request for Proposals incorporated the Boston Redevelopment Authority’s Development Guidelines, which referenced HSC’s Community Vision.

View north up Hudson Street toward Kneeland Street.

Parcel 24: A Signature Project for the Commonwealth

boston, ma

anticipated program TYPE OF SPACE

QUANTITY

GROSS SQ. FT.

Residential

325 units

366,550 gsf

Commercial/retail

5,500 gsf

Community Use

6,050 gsf

Parking

175 spaces

Total building

456,200 gsf

Central open space

10,000 gsf

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Asian Community Development Corporation | Tax Credit Investment Opportunities

type of space

# units

bedrooms

affordability

27% one-bedroom Market rate condominium

Approx. 157-190

62% one-bedroom

Market Rate

31% one-bedroom Affordable Condominium

Approx. 66-99

48% one-bedroom

Average 80% AMI

21% one-bedroom

LIHTC Affordable Rental

Total

Approx 69

325

35% one-bedroom

8 units at 30% AMI

44% one-bedroom

45 units at 60% AMI

21% one-bedroom

17 units with Section 8*

170 rental + 255 condominium

* Tenants in Section 8-supported units pay only 30% of their income and Section 8 covers the balance.

Parcel 24 LLC: strong development partnership ACDC, New Boston and their respective staffs and consultants have successfully completed thousands of units of high-rise and affordable housing in the Greater Boston area and beyond. ACDC and New Boston both have recent experience successfully taking complex, mixed-use development proposals through multi-agency, multiple stakeholder public approval processes. New Boston recently completed One Brigham Circle, an award-winning mixed-use commercial development in partnership with Mission Hill Neighborhood Housing Services, and has partnered with Lena Park CDC to develop Olmsted Green, one of the largest developments in the City of Boston in over 60 years. Tax credits were utilized on Olmsted Green. New Boston’s Urban Strategy America (“USA”) Fund will bring the equity capital necessary to expeditiously bring the project to construction and will offer its development expertise to complete construction on time and to the highest standards.

Goody Clancy, the project architect, has designed award-winning affordable, mixed-use and mixedincome urban housing developments since 1955, including the prototypical Tent City, which won a UN World Habitat Award, and Harbor Point. Goody Clancy designs incorporate green/sustainable practices and 65% of their staff of 115 architects, planners, and urban designers are LEED accredited.

Community benefits • Hudson Street restored to a vibrant residential community near centers of employment and public transportation; • 325 rental and homeownership opportunities, with the exceptional goal of 50% of all units affordable; • Terraced open space provides access between Hudson and Albany Street and enhances Chinatown’s civic space; • Ground-floor commercial and community space activates Kneeland Street commercial corridor and open space; • Sustained affordability promoted through a green design that emphasizes energy efficiency and durability • Economic development in the form of ~700 annual FTE construction-period jobs and ~27 permanent on-site jobs; • Long-term community investment maintained through ownership and management of affordable rental units by ACDC. Asian Community Development Corporation | Tax Credit Investment Opportunities

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Parcel 24: A Signature Project for the Commonwealth

11% one-bedroom

Parcel 24: A Signature Project for the Commonwealth

Quality Product in Prime Downtown Boston Location With some of the highest housing costs in the country, affordable housing is a primary concern for Boston’s residents. This problem is even more acute in Chinatown, where institutional uses and luxury housing developments compete for land in a dense and land scarce neighborhood. Chinatown’s desirable downtown location at the end of the Rose Kennedy Greenway is attractive to those seeking the conveniences and amenities of the City of Boston but it is also an important gateway for many new, low- and moderate-income immigrants who are linguistically isolated. Parcel 24’s diverse residential opportunities are uniquely positioned near cultural and employment opportunities to meet both market demands and community needs.

Poised to Move Ahead: Site Control, Permitting, and Zoning Secured Parcel 24 is poised to move ahead expediently with an experienced development team. We have full site control. Parcel 24 LLC was designated to develop the property in March 2006. A Development Agreement was signed in November 2007 and Parcel 24 LLC will take ownership of the approximately 1.5 acre parcel upon execution of the ground lease just prior to construction start. The affordable rental component will be transferred to the new tax credit partnership once construction completion allows the master condominium agreements to be executed.

The Boston Redevelopment Authority (BRA) Board has approved the project under Article 80 large project review and the Zoning Commission approved the Planned Development Area zoning for Parcel 24 in November, 2008. We have completed schematic design and our development team is adept at coordinating the public and private financing resources that will bring the community vision for Parcel 24 to completion. The site is currently vacant and graded. The site is served by all major utilities and ready for redevelopment.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Demonstrated Need and Demand for Affordable Housing in Chinatown Parcel 24 is a rare opportunity for affordable housing in a mixed-income development in Boston’s downtown core. Similar affordable projects of new construction in the area have been oversubscribed by a ratio of at least 4:1 with limited marketing times.

LIHTC Rental Units The most basic measures of need indicate an undeniable shortage of affordable housing in Chinatown.

Waitlists for surrounding affordable rental developments extend for multiple years. The purchase to rent spread is 30.5, making renting the only viable option for many. A recent market study supports the development of affordable rental housing at Parcel 24. Asian Community Development Corporation and the development team members have solid track records of successful affirmative marketing and outreach. Nearly seventy percent of Chinatown’s population is Asian with a median household income of $14,289. The 69 affordable rental units will be owned and managed by ACDC, and will be affordable to households with incomes up to 60% of area median income (AMI). This arrangement not only ensures a maintained community presence in the development, but also the commitment to at least a thirty-year term of affordability. The compliance period for LIHTC investors is 15 years. home ownership opportunities The rate of homeownership is less than 10% in Chinatown, considerably lower than the City of Boston’s rate of 28%. The affordable condominiums currently target households with an average income of 80% area median income and will double the affordable homeownership stock in Chinatown. A survey of surrounding market rate condominiums would show a price approximately more than three times that of an affordable unit - making these units a worthwhile investment compared to units outside the core neighborhoods. The Metropolitan, a comparable mixed-income project a few blocks from Parcel 24, had approximately 3,000 participants pick up applications during the lottery for 115 affordable units. Market rate condominiums in Boston’s downtown core have remained relatively strong in the past year and demand for this product type is projected to increase in early 2011, prior to the delivery of units at Parcel 24. Generally new construction is selling better than rehab and Parcel 24 is poised to move forward as one of the very few developments providing this type of product.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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Parcel 24: A Signature Project for the Commonwealth

The inherent value in Parcel 24’s core downtown Boston location is supported by the fact that pricing has remained relatively steady and has performed distinctly from the outer Boston neighborhoods. The prime location, nearby commercial activity, easy access to employment hubs and recreational facilities, splendid views of the Boston skyline and Rose Kennedy Greenway, and access to public transportation are all amenities that make the condominiums an attractive investment to market rate buyers. New Boston’s USA Fund is encouraged by the outlook for the Boston marketplace upon the project’s completion and is committed to providing the necessary predevelopment equity to bring the project to construction.

Parcel 24: A Signature Project for the Commonwealth

project status and financing The Parcel 24 LLC completed the permitting process for the project in November 2008. The schematic design has also been completed. The development team is currently assembling public subsidies and submitted an application in the the Fall 2008 round of State rental subsidies. LIHTC allocations are expected.

The City has already committed $1.75M to the rental component in addition to $2.5M to the affordable homeownership component. total development cost

$125 M +/-

expected annual tax credit allocations*

amount

Low Income Housing Tax Credits

$1.242 M

State Low Income Housing Tax Credits

$1 M

*Application filed in October 2008

additional funding sources (Italics denote funds secured to date)

Approx. amount

State Funds AHT loaned at AFR or less State HOME HIF/HSF FCF/CBH TOD (committed $50,000) Massachusetts Technology Collaborative (committed)

$2,000,000 $2,000,000 $620,000 $1,275,000 $2,050,000 $50,000

Local Funds City HOME BRA Inclusionary Housing NHT Housing Creation ($632,748 committed)

$2,000,000 $1,840,000 $1,900,000

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Asian Community Development Corporation | Tax Credit Investment Opportunities

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oak terrace

Oak Terrace: Providing Quality Affordable Housing for Over a Decade

boston, ma - Completed 1995 lihtc compliance period 1995-2009

overview Asian Community Development Corporation (ACDC) won the right to develop Oak Terrace on land owned by the City of Boston in 1987 and completed development in 1995, skillfully maneuvering and thus surviving the deep recession of the late 1980’s and early 1990’s. Oak Terrace is one of the earlier developments in the country to utilize the now standard Low Income Tax Credit (LIHTC) program and was then the first new construction project in Chinatown in over two decades. Today, Oak Terrace is home to over 300 residents, the majority of whom have low to moderate incomes, and provides community space and ground-floor retail space along the now revitalized Washington Street corridor.

program Of the total 88 units, approximately 1/3 are low-income, 1/3 moderate-income, and 1/3 market rate: TYPE OF Unit

affordable units

market rate units

unit SQ. FT.

1 Bedroom

6

8

600

2 Bedroom

21

11

820

3 Bedroom

25

8

1150

4 Bedroom

8

1

1350

Total

60

28

affordable units by subsidy

quantity

Project-based Assistance Section 8

25

Section 8 (MBHP)

1

Section 8 (BHA)

3

Section 8 (Warren Housing Authority)

1

50% AMI

14

60% AMI

16

ACDC holds the Master Lease to the 4 commercial spaces totaling 2,775 square feet, including the Community Room, on the ground floor. A secure central courtyard is 6,000 square feet.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Oak Terrace is owned by Oak Terrace Limited Partnership with Oak Terrace Corporation, a subsidiary wholly controlled by Asian Community Development Corporation, as the managing general partner with a 1% ownership. Other partners are limited partners owning a 99% ownership. Oak Terrace is professionally managed and is approaching the end of its 15 year LIHTC compliance period, having successfully complied with all regulations and operating procedures of the various funding sources thus far.

new LIHTC investment OPPORTUNITIES IN STABILIZED PROJECT Limited partners received tax credits beginning in 1995 in the annual allocated amount of $907,200 for a ten-year period. The credits were calculated at 8.30% of certain expenditures incurred in connection with building construction. A minimum of 60 low-income apartment units (68% of the total) have successfully been maintained for purposes of the tax credit.

A new round of LIHTC investment opportunities may exist following the end of 2009, which marks the end of the initial 15-year LIHTC compliance period for the original investors. ACDC is committed to maintaining the affordability of Oak Terrace. Oak Terrace offers new investors the opportunity to participate in a successful project with demonstrated returns and a stabilized income.

financial overview type

source

Rental subsidy

HUD Section 8 Housing Assistance

Equity

LIHTC

Loan

Mass Housing, Permanent First Mortgage

Grants/subsidies

Neighborhood Housing Trust FHLB Federal Home Loan Affordable Housing Program AFL-CIO Housing Investment Trust Boston Redevelopment Authority

total development cost

$13,360,443 ($151,823/unit)

People waiting to apply for housing in Oak Terrace when the building first opened - the line stretched around the block.

Asian Community Development Corporation | Tax Credit Investment Opportunities

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Oak Terrace: Providing Quality Affordable Housing for Over a Decade

ownership structure

The metropolitan

The Metropolitan: A Model for Mixed-Income Development

boston, ma - Completed 2005

overview The Metropolitan leveraged the experience of Asian Community Over 3000 applicants entered the Development Corporation (ACDC) in developing Oak Terrace lottery for the affordable units at to take on new challenges: the 5% owner-occupancy rate in the Metropolitan in late 2003. All Chinatown and the increasingly expensive cost of housing in the affordable rental units have Boston’s downtown core. The result is a mixed use 23-story high been occupied since March, 2004. rise containing 251 rental and homeownership units, 115 (or 46%) of which are affordable to low and moderate income families.

ACDC successfully incorporated an extraordinary number of affordable units by capturing and capitalizing on the intrinsic value of the site’s desirable location in downtown Boston, access to a plethora of public transportation options, and existing diversity and density that allowed the market-rate condominiums to subsidize the affordable housing component.

Asian Community Development Corporation (ACDC) partnered with for-profit developer Edward A. Fish Associates (EAFA) to complete development of The Metropolitan in 2005. The $89 million high-rise project includes 251 rental and homeownership units, 115 of which are affordable to low and moderate income families. The 133 rental units have rents ranging from $365 for the formerly homeless to luxury units renting at $2,600 per month and the 138 for-sale condominiums sold at prices affordable to families earning 80% of area median income (AMI) to prices in excess of $1 million for the penthouse units, the first in the neighborhood. Additionally, The Metropolitan includes community space for community-based social service groups; street-level retail and commercial space; and two-levels of underground parking with 283 spaces. The 23-story Metropolitan remains the tallest affordable housing project in the country sponsored by a community development corporation. At 46% affordable and with over 40,000 square feet of community space for public use and agencies, The Metropolitan certainly reached new heights of community development.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

TYPE OF space

quantity

gross sq. ft.

Residential

251

305,007

Rentals

133

151,275

Condominiums

138

153,732

Community Use

32,214

Commercial

7,600

Parking

238

Total

74,974 419,795

The residential component consists of the following: type of space

# units

bedrooms

affordability

18 one-bedroom Market rate condominium

84

58 two-bedroom

Market

8 three-bedroom 8 one-bedroom Affordable Condominium

34

20 two-bedroom 6 three-bedroom

26.5% at 80% AMI 47% at 100% AMI 26.5% at 120% AMI

11 one-bedroom Market Rate Rental

52

30 two-bedroom

Market

11 three-bedroom 6 one-bedroom Affordable Rental

81

30 two-bedroom

Up to 60% AMI

10 three-bedroom 35 studios Total

251

138 condos + 133 rentals

115 (46%)

LIHTC The limited partner Sun America Affordable Housing Partners received an annual tax credit amount of $999,945 for a ten-year period. The credits were calculated at 8.23% of certain expenditures incurred in connection with building construction. A total of $7,748,799 of tax credit equity was contributed to the project.

“The Metropolitan utilizes the well-respected model of mixed-income development coupled with the emerging emphasis for mixed-use development to create a dynamic new project that serves myriad populations successfully within a sound financial structure. The Metropolitan is the future.� - MassHousing

Asian Community Development Corporation | Tax Credit Investment Opportunities

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The Metropolitan: A Model for Mixed-Income Development

program

The Metropolitan: A Model for Mixed-Income Development

For Sale Condos (10th through 23rd Floors) Individual units (affordable and market-rate) are owned by individual owners.

Rental Units (2nd through 9th Floors) Owned by Rental LLC: Sun Yi LLC + EA fish associates Rental LLC is the borrower with respect to MassHousing and other debt on the rentals.

Affordable Rentals (scattered throughout) Owned by Community LLC: Sun Yi LLC (.01% interest, ACDC controlled) EA Fish Associates (.01%) Tax Credit Investor (99.98%) market Rentals (scattered throughout) Owned by Metro LLC, whose members are EA Fish Associates (100% interest)

Garage Condo (Underground) Owned by EA Fish Associates

commercial condo (1st floor) ACDC office space

BRA office space

EA Fish Associates owns remainder of commercial space

financial overview Sources

amount

LIHTC (Federal) (3 rounds)

$7,750,000

State Funds Affordable Housing Trust (AHT) State HOME

$2,000,000 $750,000

Local Funds City HOME/CDBG City Demolition Contribution Linkage and Housing BRA Loan BRA Acquisition

$1,500,000 $300,000 $1,810,000 $750,000 $920,000

Total Sales

$55,320,000

Total Perm Loan

$15,250,000

Total Other Sources

$3,020,000

total development cost

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$89,270,000

Asian Community Development Corporation | Tax Credit Investment Opportunities

The Metropolitan: A Model for Mixed-Income Development Asian Community Development Corporation | Tax Credit Investment Opportunities

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our team

Our Team: Committed Staff of Real Estate Professionals

Select staff Jeremy Liu - executive director Jeremy has managed a wide range of initiatives including community organizing, neighborhood planning, over $120 MM of housing and commercial real estate development, technology development projects, youth and leadership development, and cultural heritage preservation. Over the past 13 years he has worked for and with communities of color, seniors, and youth, to creatively confront issues of social and environmental equity, affordable housing, and community empowerment.

Jeremy has developed a number of innovative community development efforts, including technology for limited English proficiency individuals, community development finance, participatory planning for community control of development, and non-profit/for-profit partnerships for affordable housing development. He serves as a member of the Board of Directors for the Citizens’ Housing and Planning Association and the Massachusetts Affordable Housing Alliance; he is a Trustee of The Boston Foundation for Architecture and the New England Foundation for the Arts.

Janelle ChaN - real estate project manager Janelle is a community advocate with experience in participatory urban planning, resource development, and real estate development and finance. At ACDC, Janelle primarily manages the development of the Parcel 24 project and ACDC’s asset portfolio which includes Oak Terrace and The Metropolitan. Prior to joining ACDC, Janelle managed grants and events and assisted in major donor cultivation at Asian Neighborhood Design, a San Francisco non-profit that provides architectural and planning services in affordable housing and community facilities. For the past decade, she has worked with and for the Asian/ Asian American community and broader coalitions of color that serve immigrant workers, including the International Institute of the East Bay and the American Federation of State, County and Municipal Employees. Janelle has a Master in City Planning with a specialization in Housing, Community, and Economic Development from MIT and a bachelor degree in Public Policy and Ethnic Studies from the University of California, Berkeley.

Timothy Doherty - real estate project manager Tim brings experience in city planning, real estate finance and development, and commercial real estate valuation and market analysis. Prior to working with ACDC, Tim was an associate at Bonz and Company, Inc, a Boston-based commercial real estate consulting firm. At Bonz, Tim provided comprehensive real estate advisory, consulting, and valuation services to a wide range of clients, including developers, planners, financial institutions, and public agencies. Over the course of his three years at Bonz, Tim appraised a wide range of investment properties and development sites, including vacant land, downtown and suburban office, market rate and mixed income housing, mixed use properties, retail centers, and industrial facilities with an aggregate value in excess of $300,000,000. Tim received his Master in City Planning from the University of Pennsylvania. He received his Bachelor of Arts in Economics/Accounting from the College of the Holy Cross, Worcester, MA.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Michael Tow - president A CERTIFIED FINANCIAL PLANNER practitioner, Michael is president and founder of New Boston Financial.

He has an extensive background in personal finance. For over 13 years, he has been managing investments and personal finances for individuals, small businesses, and organizations. Prior to New Boston Financial, Michael was an account vice president at UBS and managed a brokerage branch of H&R Block Financial Advisors.

Michael was appointed as a member of the Massachusetts Workforce Investment Board, a board that advises the Governor of Massachusetts on Workforce Development Issues. He is on the Board of the Friends of the Needham Elderly. He was a member of Dougies Marathon Team, marathon runners supporting the Doug Flutie Foundation for Autism. Michael has given seminars focusing on financial literacy to senior groups, the Boston Adult Self Sufficiency program (BASS), the Massachusetts Boston Housing Partnership (MBHP) and many others.

Peter Madsen - chair, real estate development committee Peter is the Managing Director of Edo Essex Properties, a real estate development firm investing in residential projects for sale or lease on well-situated sites. Previously, Peter was founder and Managing Director of Pembroke Real Estate, a Boston-based real estate investment and management firm wholly owned

by Fidelity Investments. Pembroke acquires, designs, develops, and manages high-profile properties worldwide, including office buildings, high-end residential complexes, and mixed-use developments.

Prior to establishing Pembroke, Peter served for more than 20 years as President of the Gunwyn Company, a real estate development and management firm affiliated with the renowned Graham Gund Architects in Cambridge, Mass.

Peter is affiliated with a number of professional organizations. He is also active in community, arts, and alumni organizations. He has served as a Director and former Vice President of The Trustees of Reservations; an Overseer of the Boston Lyric Opera and Overseer of the New England Conservatory of Music; a Trustee and former Chair of the Society for the Preservation of a New England Antiquities; Treasurer of the Career Collaborative; and President of the Frog Pond Foundation. He was a member for four terms of the Harvard Graduate School of Design Alumni Council, twice serving as its Treasurer, remains active in the Real Estate Academic Initiative at Harvard, and is a Director of the Harvard Alumni Association. He has served on building committees for numerous civic, church, and school projects, and for the Essex Shipbuilding Museum, which he helped found in 1976. Also, Peter co-authored A Traveler’s Guide to India, which was published by Scribner’s in 1973.

Yasuna Murakami - VP of fundraising & investor committee Yasuna is a managing partner and portfolio manager of MC2 Capital Management. This is a private equity hedge fund based in Cambridge, MA, which specializes in small to medium market capitalization equity investments. In addition, he is a co-founder and board member of MyCyMoney, a secure and safe management system based on the internet that is aimed toward younger people learning how to accrue, manage, spend and invest their money wisely and prudently. He received an A.B. from Brown University, where he majored in political science with a concentration in science, finance, and economics. He was Asian Community Development Corporation | Tax Credit Investment Opportunities

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Our Team: Experienced Board Leadership

select members of the board of directors

Our Team: Seasoned Investor Committee and Consultant

also a member of the Brown University Program of Liberal Medical Education (P.L.M.E.), granting him acceptance to the Brown University School of Medicine as an undergraduate. Yasuna has a dual graduate JD/MBA from Suffolk University.

Terry Kwan - investor committee Terry is an educator by training and experience - teaching, supervising, and training teachers in public and private institutions. With an interest in curricular and facilities design, Terry has worked on public school building projects in Massachusetts for more than thirty years professionally, as an elected School Committee member, and currently as an appointed board member of the Massachusetts School Building Authority. She is co-author and contributor of several books and articles for teachers and school administrators. Terry has also been engaged in residential real estate sales in the Greater Boston area for more than twenty years. Terry serves as a community representative to Institutional Biosafety Committees for the Harvard Medical School and the Dana Farber Cancer Institute, and served as a non-science member of the NIH Recombinant DNA Advisory Committee for a four-year term. She holds a BA from Binghamton University and a MSEd from Hofstra University.

Kenneth Minklei - investor committee Ken is responsible for the portfolio management and manager evaluation for SCS’s hedge fund program.

Prior to joining SCS, Ken was a Managing Director and hedge fund specialist at Cambridge Associates where he constructed and managed custom fund of hedge funds portfolios for leading endowments and foundations. He also led the Strategic Financial Advisory Group, which advised clients on large equity and debt capital market transactions and specialized portfolio hedging and risk management projects. Ken was also a Vice President at J.P. Morgan where his responsibilities included managing the interest rate options portfolio and the emerging markets sovereign debt options portfolio. Ken earned his undergraduate degree in Economics at the State University of New York at Binghamton.

consultant Peter Munkenbeck - project consultant Mr. Munkenbeck serves as the development consultant for both Parcel 24 and 6 Fort Street. He previously consulted for ACDC on the completed Oak Terrace and Metropolitan projects. As an experienced consultant to neighborhood non-profit organizations, he works to assist them in the financing and development of affordable housing. He has also been engaged to provide assistance to cities, churches, service providers and national intermediaries to develop housing and commercial space, plan for neighborhoods and build stronger community development programs.

Since 1997, he has been actively involved in development and/or financing of 19 multifamily properties containing more than 2500 apartments on behalf of 11 CDC’s in Boston. He is involved in all elements of planning and implementing these projects including financial structuring, analysis of physical needs, structure of the entities, arranging for debt and equity, obtaining public approvals, coordinating the closing and overseeing the improvements. Prior to 1997, he was employed for 16 years at The Community Builders, where he was responsible, as Deputy Director, for real estate development, administration and finance. TCB is a regional non-profit developer and manager of affordable housing with 400 employees, 15,000 units developed and 6,000 units under management.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Syam Buradagunta Blue Sky Collaborative

officers President Michael Tow New Boston Financial

Prabal Chakrabarti Federal Reserve Bank of Boston

VP Fundraising Yasuna Murakami MC2 Capital Management, LLC VP Operations Harvey Leong Harvey Leong, LLC VP Strategy Paul W Lee Goodwin Proctor LLP Treasurer Jeffrey Wong Shanghai Printing Clerk Michael S. Greco K&L Gates Immediate Past President Caroline Chang U.S. Dept. for Health & Human Services (retired)

Nick Chau Tai Tung Realty Chong Chow Accenture Gim Fong SweetHeart Plastics Co. (retired) Soni Gupta Affordable Housing Consultant Cuong Hoang Mott Philanthropic Terry Kwan Educator Janet Lin Former Special Assistant to Massachusetts Governor Deval Patrick Zena Lum WGBH Peter Madsen Edo Essex Properties, LLC Kenneth Minklei SCS Financial Services Leverett Wing Lee Wing Management

Asian Community Development Corporation | Tax Credit Investment Opportunities

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Our Team: Full Board of Directors

board of directors

Portfolio of Community Development Programs

Our Programs: Building Capacity within our Community The following programs allow Asian Community Development Corporation to sustain their success in affordable housing development and preservation. Our ongoing planning and community organizing work creates a supportive environment for our development projects, especially during the critical planning and permitting stages. Our financial, social, and leadership-building services are accessible to low- and moderate-income residents of our affordable housing units can access. By increasing the selfsufficiency our residents, our programs complement our affordable housing development efforts and improve and stabilize the neighborhoods in which our projects are in.

HOMEBUYER AND FINANCIAL LITERACY EDUCATION To prepare potential homeowners in the local community, ACDC continues to provide homebuyers with assistance and education through the Comprehensive Home Ownership Program (CHOP) in Cantonese, Mandarin, and English. ACDC’s workshops, bi-lingual information mailings, and one-on-one counseling have helped families in the process of purchasing their first home. CHOP has served over 450 clients since its inception. CHOP will serve an estimated additional 360 households in the next two years, and recent graduates have indicated in exit surveys their desire to live in Chinatown.

To ensure that our constituents are well-prepared to take full advantage of the affordable housing opportunities we create, we invite financial professionals as guest speakers in workshops to offer perspectives and educate students about the many products and services available to first-time homebuyers and affordable housing applicants. Many of our CHOP clients earn very low incomes, and although they may qualify for affordable housing and some available home-buying resources, it is often the case that a client’s assets and earnings are not sufficient for the purchase of a house right away.

For these clients, home ownership is a long-term goal, and the CHOP education equips them with the knowledge and financial literacy tools to plan for their path to home ownership.

Chinatown has the lowest home ownership rate amongst all Boston neighborhoods and yet is one of the most desirable locations in the Boston metropolitan area to live. The demand for affordable rental options is undeniable and the demand for affordable homeownership remains relatively high given market rate homeownership in the local area is more than twice the cost of affordable units. ACDC works to both increase the supply of affordable housing as well as the number of qualified applicants by providing assistance to those who are hindered by financial illiteracy, language barriers, and limited access to community resources.

YOUTH LEADERSHIP DEVELOPMENT Asian Voices of Organized Youth for Community Empowerment (A-VOYCE) is ACDC’s dynamic youth development program that uses the power of dialogue and storytelling to advocate for positive change in the community. Increasing the supply of affordable housing and broadcasting the needs of the

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Asian Community Development Corporation | Tax Credit Investment Opportunities

The A-VOYCE Radio Project and the A-VOYCE Chinatown Walking Tours highlight the current issues faced by the communities in which we serve, especially the need for affordable housing. The A-VOYCE Radio Show is a weekly, live public affairs and music radio show written and run entirely by the youth and have included original pieces on Asian American history, local and national political events, and topics in Asian and Asian American popular culture. The youth-led Chinatown Walking Tours give visitors new historical, cultural, and personal interpretations of the neighborhood and spotlights significant developments in the neighborhood, including our past affordable housing projects.

Significant projects like Parcel 24 can make significant contribution to their surrounding community.

HD-OD is premised on the idea that physical place and the people who live there are inextricably interrelated and must be planned for together. HD-OD is a planning tool that allows families, individuals and small businesses to adapt to all the changes that take place in a neighborhood undergoing heavy development, whether physical, economic or social. In the case of Parcel 24, HD-OD and its physical Community Change Center gives community stakeholders proper notification and access to tools to prepare for the affordable and market rate housing opportunities and job opportunities that will be made available.

COMMUNITY ORGANIZING AND PLANNING Community outreach and organizing is an integral part of our development process for real estate and affordable housing projects, especially during the critical planning and permitting phases. For example, our Parcel 24 program responds to the Community Vision document developed by the Hudson Street for Chinatown, a coalition of community organizations and residents in which ACDC was a founding member. This Community Vision was referenced in the Boston Redevelopment Authority’s Design Guidelines that was subsequently included in the Request for Proposal issued the site. ACDC and its development partner successfully responded to this RFP and gained development rights directly because of its extensive organizing work.

ACDC continues to be an active force in Chinatown as a leader in participatory planning efforts. As one of the leading agencies in the Chinatown Gateway Community Coalition, we helped to implement the community planning process and produced a visioning report for Chinatown. ACDC currently provides planning and development expertise to the Coalition in an initiative to develop and implement the 2010 Chinatown Master Plan (CMP).

INCREASING ACCESS TO SERVICES Non-English speaking individuals, particularly new immigrants, face tremendous barriers that limit their ability to access day-to-day needs. Communicating with sales personnel, reporting crime, and seeking medical attention or legal assistance all become dangerously difficult tasks when language barriers Asian Community Development Corporation | Tax Credit Investment Opportunities

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Portfolio of Community Programs

community are mainstays in this effort. The program serves youth ages 13-19 from the Greater Boston area, with an emphasis on low-income youth in local affordable housing developments.

Portfolio of Community Programs

interfere. Communication barriers also compromise immigrant status in society, contributing to social isolation and community disenfranchisement. Although there have been attempts by the government and social service organizations to provide more multilingual services, the demand still far outstrips the capacity to deliver such services. As a result, non-English speakers are often unable to access essential services to improve their quality of life and hasten their participation in mainstream society.

In practice, Speakeasy is not a new concept as many multilingual individuals are already serving as informal interpreters for their family members and friends, but often with uneven results and compromising privacy. Speakeasy leverages the wide-spread use of cell phones and connects nonEnglish speakers to guides promptly, reducing the undue burdens placed on callers’ families and friends.

Speakeasy provides individuals access to critical social services and resources that may provide them with the resources and means to improving their lives.

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Asian Community Development Corporation | Tax Credit Investment Opportunities

Asian Community Development Corporation | Tax Credit Investment Opportunities

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