THC 2007

Texas Housing Conference 2007 Under Construction: Affordable Housing Partnerships July 30 - August 1, 2007 Hosted by

Cover photo provided by SGI Ventures, Inc. Cover Photo taken by Sally Gaskin

Increasing the supply and quality of affordable housing for Texans with limited incomes

July 28, 2007 Dear Conference Participants:

Officers: President

G. Granger MacDonald MacDonald & Associates Past President

Diana McIver

DMA Development Company, LLC President-Elect

Tom Scott

Coach Realty Services Vice President

Mike Sugrue Solutions Plus

Vice President

Toni Jackson Coats|Rose Treasurer

Mike Clark

Alpha-Barnes Real Estate Services Secretary

Nicole Flores

PNC MultiFamily Capital

Directors: Don Bethel

The Bethel Group

Steve Carriker TACDC

JOT Couch

Texas Inter-Faith

Dennis Hoover

Hamilton Valley Management, Inc.

Tim Kemper

Reznick Group, PC

Linda McMahon JPMorganChase

Welcome to the Texas Housing Conference 2007. On behalf of the TAAHP Board of Directors, I want to thank you for joining us for the next three days as we look at ways to expand and improve, affordable housing throughout the State of Texas, including rebuilding our Gulf Coast areas.

This has been an eventful year for all affordable housing providers.

For the first time in recent history a consortium of those involved in the Affordable Housing industry joined together to pass a very proactive housing bill in this year’s legislative session. I wish to applaud all of the parties and stakeholders in Affordable Housing who crafted this legislation.

Special thanks are due to Senator Eduardo “Eddie” Lucio and his Chief of Staff, Paul Cowen, Representative Jose Menendez and his staff, led by Don Jones, TAAHP’s own legislative committee, and our Executive Director, Jim Brown. Without their efforts the bill would not have passed.

This year has also brought a renewed spirit of communication among all segments of the Affordable Housing Community. I am especially proud of the renewed communications between TAAHP and the advocate community. I must also acknowledge the TDHCA Board and Staff for the wonderful working relationship that has evolved to address the concerns and needs of the Housing Community. This growing relationship enables us to better provide and promote safe, affordable housing in the State of Texas.

Whether you are here as a Sponsor, Exhibitor, Speaker, or Participant, we welcome your ideas and your input, not just in the next few days, but throughout the year, on ways that we can achieve our mutual mission of increasing the supply and quality of affordable housing in Texas.

Sincerely,

Ike Monty

Investment Builders, Inc.

Brent Stewart

Trammell Crow Residential

Ron Williams

Southeast Texas Housing Finance Corporation

G. Granger MacDonald TAAHP Board President

Sandi Williams

S. Williams Housing & Community Development Consulting

TAAHP: 814 San Jacinto Blvd., Ste. 408, Austin, Texas, 78701-2404 Phone: 512-476-9901 J Fax: 512-476-9903 J E-mail: jdale@taahp.org J Web Site: www.taahp.org

We couldn’t have done it without you.

IT TAKES TEAMWORK TO REACH NEW HEIGHTS. We’re committed to building communities with growing economic opportunities. And we’re fortunate to work with organizations and developers that represent the pride of their neighborhoods and strive to strengthen them. That’s why we support The TAAHP Texas Housing Conference 2007.

Because communities are built on team spirit. And that’s what Community Development Banking is all about.

Visit us at www.bankofamerica.com/community/.

Bank of America, N.A. Member FDIC. ©2007 Bank of America Corporation. ~ Equal Housing Lender CDB-10-AD

A Note from the Executive Director Dear 2007 Texas Housing Conferees: Welcome to the Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships. As the TAAHP Conference Committee, lead

by Chair Edwina Carrington and members Diana McIver, Ike Monte, Sally Gaskin, Toni Jackson and Mike Sugrue, embarked upon a mission to design the program around an appropriate theme, we seemed to keep coming back to the partnership topic. TAAHP membership from its inception has formed various partnerships as the spirit of “increasing the supply and quality of affordable housing for Texans with limited incomes” and special needs continues to permeate through our mission.

During my initial interview with the TAAHP search committee, I suggested that TAAHP should become more inclusive. During my second month on board, Past President Diana McIver and I hosted a box luncheon attended by the majority of affordable housing advocates in the Austin area. The task: to form a viable legislative consensus among “housers” and to work in partnership for those Texans who are dependent on our organizations to provide an adequate supply of quality affordable housing in the State. It was through the combined efforts of the partnership that we supported two very dedicated, committed and savvy elected officials as they moved the “omnibus” affordable housing bill through the process and to the Governor’s desk for signature. Affordable housing’s good friends, Senator Eduardo “Eddie” Lucio, Jr. and Representative Jose Menendez, were also successful in passing other housing measures through both chambers and on to the Governor’s office for final approval.

As we designed the Texas Housing Conference 2007 program, you told us the important issues facing you were: operating expenses, green and energy efficient design, fair housing and other compliance issues, the IRS 8823 audits and inspection procedures, developing affordable housing in the rural areas, work outs for problem projects, other tax credit opportunities in the affordable housing market, the 80th Regular Session of the Texas Legislature, and the new bills and their effect on your bottom line. We have selected fourteen panels consisting of experts ranging from policy makers, regulators, and administrators to those who are responsible for taking a community concept through financing, design, construction, and management into ownership.

While many of us formed a new partnership during the past legislative session, there is an existing group of partnerships vital to the Texas Housing Conference 2007: our sponsors and exhibitors. But for their generous support along with your interest in the conference, this year’s event would not have surpassed the 2006 conference’s all time record. In order to accommodate the 45 exhibitors, we have pushed the exhibit area as far into the hallways as permitted by the hotel. The hotel rooms sold out 90 days in advance, another record, and lodging accommodations are through neighboring hotels. This year TAAHP has added a new service in the exhibit area; an internet café. So grab a cup of joe and log on through a couple of hard wired work stations or through your wireless laptops anywhere within the conference area.

As you enjoy the conference we encourage you to visit and network with our sponsors and exhibitors potentially developing new partnerships. We hope you enjoy the Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships. TAAHP’s conference staff is available to assist you with your conference needs. Be safe and have a good time.

Jim T. Brown Executive Director, TAAHP Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Page 5

General Conference Information Registration / Information

Admission / Sessions

The Registration / Information desk is located on the Lake Level near the San Jacinto Ballroom Foyer. TAAHP staff and volunteers will be available to register attendees and answer questions.

Your name tag allows you admit- There are numerous lenders, investors, tance to all conference sessions, property management firms, governreceptions, breaks, and meals. ment agencies, etc. exhibiting at the conference. Please take some time to visit the Exhibit Hall in the Four SeaYou must wear your name tag at all times. sons Ballroom B -D (Lake Level).

Registration / Information Desk Hours:

If you lose your name tag, please All breaks, receptions, and breakrequest a replacement at the in- fast will be held in the Exhibit formation desk. Anyone without Hall. a name tag will not be admitted to any event until they show proof of registration and receive a new name tag.

TAAHP would like to extend our thanks to our The Opening Session and the Legsponsors and exhibitors islative Roundtable Brunch will be for their contribution to held in the Four Seasons Ballroom the Texas Housing ConA, and the breakout sessions will ference 2007: Under be held in the San Jacinto BallConstruction: Affordable rooms East and West and in the Waterloo.

Housing Partnerships.

Monday, July 30, 11:45am - 6pm Tuesday, July 31, 7:30am - 5pm Wednesday, August 1, 7:30am - Noon Exhibit Hall Hours:

Monday, July 30, 5 - 6:30pm Tuesday, July 31, 7:30am - 6:30pm Messages

To leave a message for TAAHP, or any attendee, during the conference, please call the Four Seasons at 512-478-4500. The hotel operator will ensure that the message is delivered.

Exhibit Hall

Hotel Map

Page 6

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Opening Reception, Exhibit Hall, Four Seasons Ballroom

Conference Reception, Exhibit Hall, Four Seasons Ballroom

San Jacinto Ballroom East

9:30am - 12:30pm

QAP - The Good, the Bad, & the Ugly,

8:15 - 9:25am

Legislative Round Table Brunch, Four Seasons Ballroom A

San Jacinto Ballroom

Coffee & Doughnuts, Exhibit Hall, Four Seasons Ballroom

7:30 - 8:15am

Waterloo

The Road Less Traveled: Finding Success in Rural Markets

Advanced Work Out Panel

San Jacinto Ballroom West

The Money Tree - Out on a Limb or Firmly Rooted?

Four Seasons Ballroom A

San Jacinto Ballroom East

Those Other Tax Credit Opportunities - Fact or Fiction?

Show Me the Money! - Valuation of GP Interests

Refreshment Break, Exhibit Hall, Four Seasons Ballroom

Waterloo

IRS 8823 Audit Guide

San Jacinto Ballroom West

Hot Topics - What’s Happening in the Debt Market?

Conference Luncheon, Four Seasons Ballroom At’s So Fair About Fair Housing?

Waterloo Little Colony

What’s So Fair About Fair Housing?

It’s Not Easy Being Green - Or is it?

San Jacinto Ballroom East

Partnerships - Love Story or War of the Roses?

San Jacinto Ballroom West

Controlling Operating Expenses - Our Biggest Challenge

Refreshment Break, Exhibit Hall, Four Seasons Ballroom

Opening Session, Four Seasons Ballroom A

Continental Breakfast, Exhibit Hall, Four Seasons Ballroom

Wednesday, August 1

5 - 6:30pm

3:15 - 4:45pm

2:45 - 3:15pm

1:30 - 2:45pm

Noon - 1:30pm

10:30am - Noon

10:10 - 10:30am

8:30 - 10:10am

7:30 - 8:30am

Tuesday, July 31

5 - 6:30pm

Monday, July 30

Day / Time

Program-at-a-glance

Community Lending

We make building affordable housing more affordable.

WaMu is proud to sponsor the Texas Housing Conference 2007. Together we can develop the blueprints for affordable solutions. The WaMu Community Lending program simplifies everything with competitive loan terms, one set of paperwork and approvals, and specialized lenders to help get your project up and running.

So before you break ground, contact us at CommunityLending@wamu.net.

Philip Grossman Regional Community Lending Manager (212) 326-6063 philip.grossman@wamu.net

Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. FDIC Insured. Š2007 Washington Mutual, Inc.

Thank you ! to

All of our 2007 Sponsors Platinum:

Gold: Silver:

Bronze:

Conference:

Special thanks to Alpha-Barnes Real Estate Services for sending the most attendees, 16!

JPMorgan Chase furnishes TAAHP Offices: In June 2006 when TAAHP moved into its downtown offices, the furniture inventory consisted of one desk, a small four chair conference table, an assortment of writing tables, no two chairs that matched, a minifridge, and a one cup coffee maker. The 2007 budget included a small amount of funds to acquire a few pieces of office furniture over the next several budget years. TAAHP’s Board Member Linda McMahon, Sr. Vice President, JPMorgan Chase suggested that she might have a solution to TAAHP furniture needs. Two weeks later, TAAHP received a call from JPMorgan Chase inviting staff to the Bank’s surplus inventory storage facility. The results: a conference room completely furnished with table and chairs for 12, three offices furnished with executive desks, credenzas, lateral filling cabinets, a receptionist desk, guest chairs for 4 offices and the reception area, bookcases, and a fireproof filing cabinet, all a gift to TAAHP. TAAHP thanks JPMorgan Chase for this gift and special recognition goes to Linda McMahon and David Saling at TAAHP’s new board room JPMorgan Chase.

EVERY 80 MINUTES, ANOTHER LOW-INCOME FAMILY MOVES INTO A BETTER PLACE TO LIVE, WITH THE HELP OF ENTERPRISE.

www.enterprisecommunity.com www.enterprisecommunity.org

For 25 years, Enterprise has focused on a single, ambitious goal: To make sure that all low-income people in America have the opportunity to live in a decent, affordable home and to move up and out of poverty. We’ve unified our resources to leverage our combined strength and accelerate progress toward that goal. Our products and services work together to create powerful solutions for our partners, and ultimately revitalize communities. We are proud to make affordable housing happen in Texas—investing and financing $173 million to help community organizations create more than 3,800 homes for low-income Texans.

Partner Solutions, Dallas Lorenzo Littles 214.651.7789 x112

Page 10

Partner Solutions, San Antonio Monica Gonzalez 210.225.6969

Tax Credit Syndication Toby Washington 410.772.2659

Multifamily Mortgage Finance Jeff Redmond 927.387.7430

Structured Finance John Ducey 410.772.6129

Loan Fund Dianna Lewis 512.458.3200

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Affordable housing in Texas has been in a recovery mode since the disastrous hurricane season of 2005

by Diana McIver

TAAHP members and TDHCA staff have worked diligently since September 2005 to repair and rebuild the many lost housing units. Last year’s Conference – “The Winds of Change” – profiled these rebuilding efforts – not just the physical rebuilding of apartments and homes, but the emotional and financial rebuilding of people’s lives. This year’s conference theme “Under Construction: Housing Partnerships” takes that “rebuilding” one step further. The lessons learned from responding to major disasters have demonstrated the enormous value of partnerships – whether it be with state, local and federal governments; private businesses; charitable organizations; or simply with each other.

Cover photo from the Texas Housing Conference 2006 - The Winds of Change, taken by Bill Wenson, Wenson & Associates

This year, TAAHP asked its members to submit photos of affordable housing developments in construction, with the intent of selecting a photo appropriate for the cover of the Conference program. The response to our request was phenomenal – so much so that we have included as many of the photos as we possibly could.

No photo put the year Diana McIver, DMA Development Co., LLC quite into perspecTAAHP Past President tive, however, than the one we chose for the cover – a tax credit development for seniors overlooking downtown Austin and the State’s Capitol. Not only does this photo bring home the critical link between affordable housing and the State Legislature on the heels of a successful legislative agenda for TAAHP members, but with its development team and its financing structure, this affordable senior community – Cityview at the Park – is a true public/private partnership.

Cover Property: Cityview at the Park, aka Parker Lane Seniors General Partner: Strategic Housing Finance Corporation Developer: SGI Ventures, Inc. Debt & Equity: Boston Capital Property Management: Alpha-Barnes Real Estate Services General Contractor: White Oak Builders

Cover photo taken by Sally Gaskin, SGI Ventures, Inc.

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Page 11

The Boulevard, a project of Tekoa Blvd. Partners, Ltd. in partnership with UCP Texas. Photo by Scot Vanosdal

Our youngest partners, Zach (l) and Josh (r) breaking moms in Sa

Partne

NuRock’s partnership with TDHCA and Boston Capital Partners bu will include an award winning Breakout Facility wit The partnership of National Equity Fund and Covenant Community Capital is making this 193 unit Kingwood Senior Village in Kingwood, Texas possible.

Waterside Court is a public / private joint venture with the Harris County Housing Authority (HCHA) and Hettig/Kahn Development offering the possibility of home ownership.

Moisture conditioning the soil for the future Evergreen at Rockwall Senior Community in Rockwall, Texas in partnership with Churchill Residential, Inc.

ground on Seton Home’s transitional housing for teen an Antonio.

erships

uild the Residences at Sunset Point in Fort Worth, Texas, which th after school and summer programs for children.

Aerial shot of 250 unit Piedmont Apartments in Baytown, Texas, a project by the partnership of Dwayne Henson Investments, Inc., Resolution Real Estate Services, L.L.C., and Jim Mitchell, L.L.C. (HFI Piedmont Development, L.L.C.).

The partnership of Corinth, Texas and NuRock Development Group has completed the 224 unit Tower Ridge Apartments which are now in lease up.

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Copyright® 2006 CREDIT SUISSE GROUP and/or its affiliates. All rights reserved.

Affordable Housing Debt • Agency • Bridge • Credit Enhancement • Fixed Rate • Floating Rate • Healthcare • HUD • Mezzanine • Senior Housing • Tax Credit Equity Syndication

The Texas Housing Conference 2007 Exhibit Booth Layout - Four Seasons Hotel, Lake Level

Exhibitors & Exhibit Hall Layout WNC

Red Stone

24

25

26

15

20

Texas I-F

33

30

32

31

Wachovia

7

Citigroup

37

Four Seasons Ballroom Foyer Chase

Capital One

38

8

Enterprise

Citi Community

Red Capital

19

29

Alliant

21

34

Federal Prop Tax Loan Advocates Home Bank

Nat’l Equity

Orion

18

28

Bank of America

22

35

US Bank

Apollo

Boston Capital

17

27

Stearns Bank

23

Capstone

16

Exhibit Hall

39

Galloway

Business Ins.

Washington Mutual

Small

O’Connor

Foster

Exhibitor

9

CenterPoint

42

Silver Bronze

10

Four Seasons Ballroom A

Lancaster

40 RG Miller

Gold

11

Locke Liddell

E&A

San Jacinto Ballroom Foyer

Platinum

Wells Fargo

Penco

41

Reznick

12

San Jacinto Ballroom East

Bedford

33 25 23 30 43 17 16 31 27 4 40 21 7 2 44 32 34 37 14 36 6 41

AmeriNat’l

36

44 43

14

Raymond James

ICI Const.

Registration

13

San Jacinto Ballroom West

45

Greystone Novogradac

Internet Cafe

6 5

4

3

2

PNC

Centerline

MMA

Coats Rose

Exhibitor Booth Numbers Alliant Asset Management, LLC (Bronze) 38 Law Office of Mark D. Foster AmeriNational Community Services, Inc. 11 Locke Liddell & Sapp LLP (Silver) Apollo Equity Partners (Bronze) 3 MMA Financial (Platinum) Bank of America (Silver) 22 National Equity Fund (Bronze) Bedford Capital Group 15 Novogradac & Co. LLP (Bronze) Boston Capital (Bronze) 10 O’Connor & Assoc. (Bronze) Business Insurance Group (Bronze) 18 Orion Real Estate Services (Bronze) Capital One (Silver) 45 Penco Construction Co., Inc. Capstone Real Estate Services 5 PNC MultiFamily Capital (Platinum) Centerline Capital Group (Platinum) 35 Property Tax Advocates, Inc. CenterPoint Energy 39 R.G. Miller Engineers, Inc. Citi Community Capital (Silver) 24 Raymond James Tax Credit Funds (Bronze) CitiGroup (Platinum) 19 Red Capital Group, Inc. (Gold) Coats Rose (Silver) 26 Red Stone Partners E&A Services / Fair Housing Solutions, LLC 42 Reznick Group, PC (Platinum) Enterprise Community Investment, Inc. (Bronze) 28 Stearns Bank N.A. (Bronze) Federal Home Loan Bank of Dallas 20 Texas Inter-Faith (Gold) Galloway Insurance 29 US Bank (Silver) Greystone (Bronze) 8 Wachovia Bank (Silver) ICI Construction, Inc. 9 Washington Mutual (Silver) JPMorgan Chase (Platinum) 12 Wells Fargo (Bronze) Lancaster Pollard Mortgage Co. 13 WNC & Assoc., Inc. (Bronze)

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Page 15

Conference Program Sunday, July 29, 2007

Ninth Annual Charity Golf Tournament & 19th Hole Reception, Falconhead Golf Course 1pm: Buffet Lunch, Sponsored by: Solutions Plus!

2pm: Shotgun Start Monday, July 30. 2007

Noon - 4pm Exhibitor Move In,

Four Seasons Ballroom

10am - 6pm Registration / Information Desk Open Hallway to San Jacinto Ballroom

5 - 6:30pm Opening Reception, Exhibit Hall, Four Seasons Ballroom Sponsored by:

Tuesday, July 31, 2007

7:30 - 8:30am Continental Breakfast, Exhibit Hall, Four Seasons Ballroom Sponsored by:

8:30 - 10:10am Opening Session, Four Seasons Ballroom A Sponsored by:

The Opening Session sets the theme for the Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships with opening remarks of recognized members of the affordable housing partnerships in Texas and the US. Introduction by: Jim T. Brown, Executive Director, TAAHP Welcome Remarks by: G. Granger MacDonald, President, TAAHP Opening Comments by: Mike Gerber, Executive Director, TDHCA Michael Gerber, the Executive Director of the Texas Department of Housing and Community Affairs, began his employment on May 17, 2006. Gerber previously served in Governor Rick Perry’s Office of Budget, Planning, and Policy for two years and 16 years in Washington D.C. working for various agencies including the US Department of Housing and Urban Development. He also served as Legislative Assistant in the office of Senator Kay Bailey Hutchison and in the same capacity for Senator Phil Gramm. He received his undergraduate degree from George Washington University and an MBA from Marymount University.

Page 16

Additional Comments by: Kent Conine, President, Conine Residential Group Mr. Gerber will be followed by Mr. Kent Conine, Past President of the National Association of Home Builders, and President, Conine Residential Group. Texas Governor Rick Perry re-appointed Conine to a six-year term as a board member of Texas Department of Housing and Community Affairs where Conine serves as the Vice Chairman of the Board. He also sits on the Board of the National Council of State Housing Boards where he served as President in 2006. Conine is a licensed real estate broker in Texas and has a degree in Finance from Texas Tech University. Conine and his wife, Meg, have three children. He will address issues facing the affordable housing industry on the state and national levels.

Keynote Address by: David Berson, Vice President, Fannie Mae Prior to joining Fannie Mae, Dr. Berson was Senior Economist at the U.S. League of Savings Institutions, Chief Financial Economist at Wharton Econometrics, Visiting Scholar at the Federal Reserve Bank of Kansas City, and Assistant Professor of Economics at Claremont McKenna College and Claremont Graduate School. He has also been an instructor in the Business School at the University of Michigan and in the Economics Department at Villanova University. His government experience has included Staff Economist on the Council of Economic Advisers, as well as positions in the Office of Tax Analysis at the Treasury Department and in the Office of the Special Trade Representative.

Dr. Berson is a past-President of the National Association for Business Economics (NABE), was a long-time member of NABE’s Board of Directors, and has been on the Board of Governors of the National Economists Club. He is a member of the advisory boards for the economics departments at the University of Michigan and the University of Maryland, Baltimore County, as well as on the advisory council for the Business School at Howard University. He is also on the Board of Directors of Crossway Community, a transitional housing project for homeless single-parent families in Montgomery County, Maryland. He recently finished a six year term as the Vice Chair of the town council for Columbia, Maryland, and is currently the Chair of the Adequate Public Facilities Committee for Howard County, Maryland. Dr. Berson is a frequent speaker on national and state economic outlooks, housing and mortgage market conditions, and economic and housing policy to the media and to business and housing groups.

He has both a Ph.D. in Economics and an M.P.P. degree in Public Policy from the University of Michigan, and a BA in History and Economics from Williams College.

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Conference Program 10:10 - 10:30am Refreshment Break, Exhibit Hall, Four Seasons Ballroom Sponsored by:

What’s So Fair About Fair Housing?

Little Colony

With increasing opposition and the possibility of triggering Fair Housing violations, NIMBY and Fair Housing don’t 10:30am - Noon always seem fair. This group will discuss how developers, Break Out Sessions tenants, and neighborhoods can work together to overcome Controlling Operating Expenses - Our Biggest Challenge opposition to create the most fair housing.

Moderator: San Jacinto Ballroom West In today’s operating environment of stagnant income lim- Toni Jackson, Attorney, Coats Rose its, escalating utility allowances and increasing expenses, it Panelists: is becoming more and more difficult to bring an affordable Bob Voelker, Shareholder, Munsch Hardt Kopf & Harr, P.C. housing property to stabilization and then to maintain that Betsy Julien, President, Inclusive Communities profitability through the life of the asset. In this roundtable Shad Bogany, Owner / Realtor, ERA Bogany Properties discussion group, managers, underwriters and representa- Mark English, President, E&A Services tives of the various expense sectors (insurance, utilities, taxes, etc.) will discuss these issues and present comments Noon - 1:30pm and suggestions aimed at helping control or improve the Conference Luncheon, Four Seasons Ballroom A operating environment on affordable properties through- Sponsored by: out the state.

Moderator: 1:30 - 2:45pm Mike Clark, Principal, Alpha-Barnes Real Estate Services Break Out Sessions Panelists: Jeff Turner, Managing Director, Higginbotham & Assoc.

Hot Topics - What’s Happening in the Debt Market?

Kirk Tate, CEO, Orion Real Estate Services

Partnerships - Love Story or War of the Roses?

San Jacinto Ballroom East

Partnerships, in business as in personal life, require work and communication. This diverse and knowledgeable group will offer insight into what can make various relationships work, what can strain those relationships, and what can be done if a split is necessary to keep reputations intact.

Moderator: Ike Monty, President, Investment Builders, Inc. Panelists: Don Sampley, Assistant Director, City of Houston Ann Lott, President/CEO, Dallas Housing Authority John Shackelford, Managing Partner, Shackelford, Melton & McKinley, LLP Diana Helms-Morreale, Consultant, DH Financial Services It’s Not Easy Being Green - Or is it?

Waterloo

Being Green is a lot easier that it used to be! Join these recognized experts and learn about building green, including planning, design, up-front cash and / or tax incentives, building ratings, and long-term operating cost reductions.

Moderators: Sally Gaskin, President, SGI Ventures, Inc. Sandi Williams, Proprietor, S. Williams Housing & Community Development Consulting

Panelists:

Katie Jensen, Conservation Program Specialist, Austin Energy Green Building Lee Peterson, Senior Manager, Reznick Group Geoff Jennings, President, Transcon Steel of Texas, Inc. John Wright, President, John F. Wright, Inc.

San Jacinto Ballroom West

Hear about today’s most favored loan and credit enhancement options for financing affordable housing developments. Construction and Permanent Debt products and programs will be discussed along with an update from HUD on what may be on the horizon.

Moderator: Linda McMahon, Senior Vice President, JPMorgan Chase Panelists: Brian Gallagher, Senior Vice President-Debt, CDT Bob Courtney, Executive Vice President, PNC MultiFamily Capital Michael Backman, Multifamily Hub Director, U.S. Dept. of HUD Valerie Williams, Senior Vice President, Bank of America Jay Helfrich, Senior Vice President, Alliant Mortgage

Those Other Tax Credit Opportunities - Fact or Fiction?

San Jacinto Ballroom East

Hear from the professionals on how to increase your equity investment utilizing New Market Tax Credits (NMTC) and Energy Tax Credits. Fiction: Other tax credits cannot be used in the development of affordable housing. Fact: NMTC and Renewable Energy Tax Credits have been used in the development of affordable rental housing, single family developments and HOPE VI redevelopment. Let us guide you through the maze of the many types of qualified investments to make your development successful.

Moderator: Ron Williams, Executive Director, Southeast Texas Housing Finance Corp.

Panelists: Mark Foster, Attorney, Law Office of Mark D. Foster Lee Peterson, Senior Manager, Reznick Group Michael Swearingen, Senior Vice President, JPMorgan Chase Paul Weissman, Senior Vice President, Column Financial/Credit Suisse

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Page 17

Conference Program 1:30 - 2:45pm Break Out Sessions cont.

and pricing in 2007?” and “Where do you see the greatest opportunity for developers?” Time and crowd control allowing, a question and answer period at the end of the session will provide a forum for open dialogue on all these IRS 8823 Audit Guide topics. Please join us!

Waterloo Are you Clueless or The Graduate when it comes to these Moderator: issues? The audit guide was released by the IRS this January Nicole Flores, Senior Vice President, PNC MultiFamily Capital and TDHCA will be implementing it effective September Panelists: 1, 2007. Come learn how changes in compliance moni- Tim McCann, Vice President, Wachovia Securities toring as a result of the audit guide may affect you and the Dale Cook, VP Tax Credit Originations, Red Capital Markets, Inc. management of your properties.

Tom Gouris, Director of Real Estate Analysis, TDHCA Marie Keutmann, Managing Director of Acquisitions, MMA Financial Moderator: Dennis Hoover, President, Hamilton Valley Management, Inc. Advanced Work Out Panel Panelists: Cari Garcia, Compliance Director, Capstone Real Estate Services Patricia Murphy, Manager, TDHCA George Littlejohn, Partner, Novogradac & Co. LLP

2:45 - 3:15pm Refreshment Break, Exhibit Hall, Four Seasons Ballroom Sponsored by:

San Jacinto Ballroom East

This group has seen it all and been through it all. While restructuring a troubled property is very complex, it is not impossible. Come dig into these complexities and learn the necessities and the nuances of restructuring from this very experienced group. Learn what you can expect from the owner, lender, or syndicator, what will they expect from you, and how to save some of your hide in the process.

Moderator: Jerry Wright, Managing Director, Citigroup Global Markets Inc. Panelists: Show Me the Money! - Valuation of GP Interests Cynthia Bast, Partner, Locke Liddell & Sapp LLP Brooke Boston, Deputy Executive Director of Programs, TDHCA San Jacinto Ballroom West Be Determined How much are your GP interests worth? How do you de- TKoorbin Heiss, Senior Vice President, Centerline Capital Group termine this value? And why? This interesting, entertaining, and knowledgeable group will answer these questions and any others you might have regarding General Partner The Road Less Traveled: Finding Success in Rural Markets Interests.

Waterloo Once again the Texas Legislature has mandated signifiModerator: increases in the allocations for housing tax credits Tim Kemper, CPA, Managing Principal - Atlanta, Reznick Group, PC cant in rural communities. But small projects in remote comPanelists: munities are difficult at best. Construction, marketing, Steve Ford, Director, Resolution Inc. management – all present challenges! Come learn from Armand Tiberio, Director, Marcus Millichap the experts on how rural developments can be successful developments and why investors and lenders are “paving The Money Tree - Out on a Limb or Firmly Rooted? the way to rural!”

Four Seasons Ballroom A Moderator: Join a group of distinguished (or at least extremely knowl- Diana McIver, President, DMA Development Company, LLC edgeable) professionals representing major tax credit Panelists: syndicators from across the country who will speak to Mark Mayfield, CEO, Texas Housing Foundation current pricing trends for both 9% and 4% tax credit Corine Sheridan, Vice President, Boston Capital developments. You’ll get an update on the leading critical Jeff Butcher, Vice President, WNC & Assoc., Inc. economic factors impacting the price of credits in today’s Ginger McGuire, Senior Vice President, Lancaster Pollard Mortgage Co. market as well as insights on both national and regional trends in pricing and investor demand. We will also touch on industry trends affecting the ultimate investors in tax 5 - 6:30pm credits, from regional CRA investors to corporate and Conference Reception, Exhibit Hall, Four Seasons Ballroom agency/institutional buyers in the tax credit investment Sponsored by: world. Each panelist will also be asked the question, “What concerns you the most about tax credit investment 3:15 - 4:45pm Break Out Sessions

Page 18

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

Conference Program Wednesday, August 1, 2007

7:30 - 8:15am Coffee & Doughnuts, Exhibit Hall, Four Seasons Ballroom Sponsored by:

8:15 - 9:25am QAP - The Good, the Bad, & the Ugly San Jacinto Ballroom

Join us for this interactive panel that will explore the most recent QAP and what may be coming for 2008. We’ll discuss what may be changed, what should be changed, and what won’t be changed for reasons such as legislation or IRS rules. Come share in the exchange, and make your voice heard, with TDHCA and affordable housing experts from development, lending, syndication, and others.

Moderator: Mike Sugrue, President, Solutions Plus!

Panelists: Robbye Meyer, Director of Multifamily Finance, TDHCA Granger MacDonald, President, MacDonald & Assoc.

Toni Jackson, Attorney, Coats Rose Tom Scott, CEO, Coach Realty Services 9:30am - 12:30pm

Panelists: State Senator Eddie Lucio Jr., District 27 Senator Eddie Lucio Jr., a native of Brownsville, was elected to the Texas Senate in November 1990. Now in his sixth term in the Senate, Senator Lucio first served two terms in the Texas House of Representatives. He began his public service in 1971 when he became Cameron County Treasurer, the youngest ever elected to that post in the state. Later, he served as a Cameron County Commissioner.

In the Texas Senate, Senator Lucio is a member of the powerful Senate Finance Committee and serves as Chairman of the International Relations and Trade Committee. He also sits on the Committees on Business and Commerce, State Affairs and Subcommittee on Emerging Technologies & Economic Development.

He is President and CEO of Rio Shelters, Inc., a marketing/advertising agency he has operated since 1985.

Senator Lucio and his wife Herminia (Minnie) have two children, Lynda Anne (husband Carlos Cisneros) and Eddie III (wife Jaime), and three grandchildren, Carlitos, Alejandro and Anna Lynda.

State Representative Jose Menéndez, District 124

While enjoying your annual last meal at the 2007 Texas Housing Conference, you will hear a lively discussion from a very qualified panel on affordable housing in Texas. Our Legislative Round Table panel consists of two of Texas’ leading housing legislators, the leader of the National Association of Builders’ policy team, the General Counsel of the Texas Department of Housing and Community Affairs, a housing tax credit attorney and former Chief Clerk for the Urban Affairs Committee, Legislative Director for the Texas Association of Realtors, and an affordable housing developer. The panelists will discuss the successes and shortfalls of the past Texas Legislative Session, issues and resolutions developing on the federal level, and the reality of economic feasibility in the development of affordable housing in the State of Texas.

A native of San Antonio, Rep. Menéndez graduated from Central Catholic High School in 1987 and went on to receive degrees in Business Administration and Latin American Studies from Southern Methodist University (SMU) in Dallas. Rep. Menéndez currently serves as the Vice President for emerging real estate markets for Stewart Title Company.

In November 2000, Rep. Menéndez was elected to the Texas House of Representatives to serve District 124. In 2007 he was appointed Chair of the first Housing subcommittee. Rep. Menéndez works diligently on public education, housing, and economic development issues, and the state’s operating budget.

Rep. Menéndez has been married to Cehlia NewmanMenéndez since September of 1995. In his spare time, Rep. Menéndez enjoys spending time with his three young children, Dominic Michael, Victoria Elise, and Austin Alexander.

Carmel McGuire, Director of Affordable Housing, NAHB Kevin Hamby, General Counsel, TDHCA Eric Opiela, Attorney, Opiela Booth PLLC Daniel Gonzalez, Director of Legislative Affairs, Texas Assoc. of Realtors Granger MacDonald, President, MacDonald & Associates

Moderator: Jim Brown, Executive Director, TAAHP

12:30pm Conference Adjourns

Legislative Round Table Brunch Four Seasons Ballroom A-B

Legislative Accomplishments in the 80th Session: a good beginning The Texas affordable housing industry is enjoying one of the most successful legislative sessions in recent history. However, the constantly changing market, rules and economy leave the housing agenda open.

Texas Housing Conference 2007 - Under Construction: Affordable Housing Partnerships

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Alone we were strong. Together we’re stronger.

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Together with advice and backup at every stage. Put the added strength of Citi to work for you.

For further information please visit our website: www.citigroupcib.com To contact us directly: Jerry Wright, Managing Director, Tel + 713-825-2060, Email jerry.l.wright@citi.com Š 2007 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

A Look Back Pictures from THC 2006: The Winds of Change

Asleep at the wheel, or was that a rock group?

Chariot Race: Let the tall tales begin

TAAHP President Diana McIver presents gift to Keynote Speaker Elizabeth Ames Jones

Winds of Change or just wind?

The Lege and the Lunch

Refreshment break in the exhibit hall

It’s QAP time again!

Networking on the rocks

Networking : what the Texas Housing Conference is all about

THC 2007 Chair Edwina Carrington working as usual

Full house at the opening session

TAAHP Board of Directors Officers: President: G. Granger MacDonald, MacDonald & Associates Past President: Diana McIver, DMA Development Co., LLC President-Elect: Tom Scott, Coach Realty Services

Directors:

Don Bethel, Bethel Realty Co. Steve Carriker, TACDC JOT Couch, Texas Inter-Faith

Vice President: Antoinette M. “Toni” Jackson , Coats|Rose Vice President: Mike Sugrue, Solutions Plus, Inc. Treasurer: Mike Clark, Alpha-Barnes Real Estate Services Secretary: Nicole Flores, PNC MultiFamily Capital

Dennis Hoover, Hamilton Valley Mgmt., Inc. Tim Kemper, Reznick Group, PC Linda McMahon, JP Morgan Chase Ike Monty, Investment Builders, Inc.

Brent Stewart, Trammell Crow Residential Ron Williams, Southeast Texas Housing Finance Corp.

Sandi Williams, S. Williams Hsg. & Community Dev. Corp.

TAAHP Employees & Contact Information

Jim T. Brown, Executive Director, jbrown@taahp.org June Dale, Director of Membership / Conference Coordinator, jdale@taahp.org 814 San Jacinto, Ste. 408 Austin, Texas, 78701-2404 Phone: 512-476-9901 J Fax: 512-476-9903 J Web site www.taahp.org

Special thanks to Edwina Carrington, THC 2007 Conference Chair, and all the members of the Conference Committee for helping to make this year’s conference another record breaker!

The Foundation for Building Relationships — Vision. Integrity. Dependability. Flexibility.

Robert Johnston Senior Vice President, Acquisitions 3400 Waterview Parkway, Suite 220 Richardson, TX 75080 Phone: (972) 238-7645 Ext. 10 Fax: (972) 437-871 Cell Phone: (972) 342-6621

Lee Stevens Vice President, Acquisitions 3400 Waterview Parkway, Suite 220 Richardson, TX 75080 Phone: (972) 238-7645 Ext. 12 Fax: (972) 437-1871 Cell Phone: (972) 679-1624

Supportive Services, LLC

Reinventing Resident Retention Reputation

Texas Inter-Faith has been providing Supportive Services since 1966 and has become one of the State's leading providers of Supportive Services programs to owners of low and moderate income communities.

Years of experience have allowed us to reinvent a way for owners to retain their residents longer by providing innovative programs that appeal to the people served. We now provide services to 78 sites located in 40 cities and 30 counties throughout Texas.

Relationships

Texas Inter-Faith works with some of the leading developers, owners and management companies within the housing industry. The majority of our clients have been with us for over 5 years and we are experiencing an annual average growth of 22 % in our number of clients. Industry research has shown that properties providing Supportive Services outperforms those without and may even provide a 2:1 return to owners on the money spent for the programs. By strengthening relationships, we work together to develop programs that benefit residents which help to then entice them to remain on the properties longer.

Results

According to third-party managers, 1 out of 4 of their residents sign at least 1 additional year's lease as a direct result of their experience in the Supportive Services program and some have even seen as much as an almost 40% increase in their leasing closing ratio when they are able to use the Supportive Services program as a selling attribute.

Come By Booth #20

Let Texas Inter-Faith Supportive Services Show You What We Can Do For You! For More Information Please Contact Cynthia Boutineau cboutineau@ti-f.org or Katie Danley kdanley@ti-f.org

www.TI-F.org