Presentation Transcript

1. REAL ESTATE DEVELOPMENT BY CDCs: A SEMINAR FOR CDC EXECUTIVES AND SENIOR MANAGERS

   Session 4 The remaining stages Internal leadership and cooperation for successful RE development May 4, 2012
2. Transition to Construction Construction loan closing First project financial closing Ready(?) …. Set…. Go (close): How long? Mass Docs www.mhp.net/rental_development/massdocs.php
3. Construction StageDevelopment Team Re-shuffled Development Consultant Attorney Architect and engineering sub consultants Clerk of the Works LSP Geotechnical engineer Lead/asbestos testing consultants Relocation consultant Historic Consultant Appraiser Market analyst Marketing consultant/broker Property Manager General Contractor
4. Managing Construction Funding Accounting and finance records for development period First Construction Requisition Planning advances and fund draws (cheapest in first!) Requisition and payment process: Communication between Real Estate and Finance staff
5. Construction Oversight and Monitoring Roles of Architect, Clerk of the Works, project manager/developer Job meetings and job meeting minutes Overruns, change orders…bye-bye developer fee?
6. Completion: Are we finished yet? Certificate of Occupancy, punchlist, retainage Hand offs to Property Management As-built drawings Warranties Operating manuals Required maintenance staff instruction/training De-leading certificates, air quality monitoring reports etc.
7. Marketing and occupant selection Processes for affordable housing outreach, marketing , application taking, lottery, leasing Retail and commercial Timing and coordination with construction schedule.
8. Permanent closing The low-fanfare closing closing benchmarks/milestones Final payment of CDC fee and OH Hand-off to asset management Preparation of “deal book,” or project “bible”
9. ASSET MANAGEMENT Definition “A systematic plan for and ongoing oversight of one or more housing projects in furtherance of the projects’ goals and the organization’s mission” Introduction to Asset Management Community Development Law Center and Housing Development Center, Portland OR
10. Asset Management/ Property Management comparison
11. Asset Management/ Property Management comparison
12. Asset Management Who does it for the CDC? Where does it live? How is it paid for?
13. The Last Stage ???? The Circle of (Project) Life From Grave to Cradle  or better yet The Project’s Encore Career  Re-development and Refinancing When and Why
14. CDC Leadership in the RE Development Process Project Selection/Feasibility Analysis Decision to seek new project; Project evaluation: alignment with mission, strategy, community needs; Being the lifeguard on duty: overseeing the opportunity evaluation; Decisions flowing from feasibility analysis Pre-development Property acquisition negotiation; Casting the leads in the development team; Community Process;Financing: lender/investor requirements bearing on program or CDC financial return; Contractor selection: track record on local, women, minority hiring and sub-contracting Construction Period Disposition of major change orders; marketing; enforcement and waivers of tenant eligibility requirements (minimum income, credit scores etc.); hand-off to asset management Asset Management Locating it within organizational structure; reviewing and updating project goals; resolution of financial, physical social distress events. Re-development Defining re-development goals; Identification/selection of re-development project manager
15. Breaking down organizational silos between real estate development & Finance Community Organizing Resident Services Asset Management Economic Development Homeowner Services
16. SEMINAR EVALUATION Evaluation form Discussion: What else should MKI do on this topic, for this audience, in this format?