Case-Style Telephone Discussion Guide - CDEs

NewMarketsTaxCredit(NMTC)ProgramEvaluation

CommunityDevelopmentEntities(CDE)
CaseStyleTelephoneDiscussionGuide
11/25/09

TheCommunityDevelopmentFinancialInstitutions,orCDFI,FundattheTreasuryDepartment
isinterestedinunderstandingthebenefitsthattheNewMarketsTaxCreditprogrambringsto
communities.Tolearnmore,theFundhascontractedwiththeUrbanInstitute,anonprofit
researchorganizationbasedinWashington,DC,toconductanevaluationoftheNewMarkets
TaxCreditprogram.
OneoftheprojectsthatyourorganizationsupportedwithNewMarketsTaxCredits,alongwith
manyotherprojectssupportedbyotherCDEs,wasselectedatrandomforinclusioninour
programevaluation.That’sthereasonforthecalltoday.Myprimarygoalistolearnabout
yourspecificexperienceswith(NAMEProject).
Yourparticipationinthiscallisvoluntarybutit’sverymuchappreciated.Yourexperienceswill
contributetoabetterunderstandingofhowtheNewMarketsTaxCreditsprogramisworking.
I’dliketoemphasizethatwhatwe’redoingisneitheraregulatoryreviewnoranauditofyour
projectbut,rather,asourceofadditionalinformationthatwillassistusinbetterunderstanding
theNewMarketsTaxCreditprogram.We’refocusingonhowprojectsarestructuredandwhat
theyproduce.So,wehavesomequestionsabout(NAMEproject)’scharacteristics,funding,
andoutcomes.
Finally,Iwanttoassureyouthatwe’refollowingstrictrulesregardinguseoftheinformation
youprovide.TheCDFIFundwillnotknowwhoisparticipatinginthecallswe’remaking.The
informationyougiveuswillbecombinedwithinformationwereceivefromallotherswetalk
with.Neitheryourname,yourorganization’sname,theproject’sname,noranyother
identifyinginformationwillbepassedalongtotheCDFIFundorothers,norwilltheinformation
youprovidebecitedorreportedinanywaythatwouldidentifyyou,yourorganization,oryour
project.
ThanksforcompletingtheinformationsheetIsenttoyouearlier.Itprovidedbackgroundto
helpmebemoreefficientinthiscall.Ianticipatethatthecallwilllastapproximatelyonehour.
Aswesynthesizeandanalyzetheinformationyoushare,itwouldhelpustorecordthiscall.
Again,thisrecordingwouldonlybeusedbyusandnotsharedwithanyoneelse.Wouldthatbe
alrightwithyou?Again,Iverymuchappreciateyourcooperation.
ThissurveyhasbeenapprovedbytheOfficeofManagementandBudget,asrequiredbythePaperworkReductionActof
1995,underOMBcontrolnumberXXXXXXXX,whichexpiresonXX/XX/XXXX.Thetimetocompletethisinformation
collectionandanassociatedtelephoneinterviewisestimatedtobe1.25hours,includingtimetoreviewinstructions,
searchexistingdataresources,gatherneededdata,andcompletethesurveyandinterview.Ifyouhaveanycomments
concerningtheaccuracyofthetimeestimateorsuggestionsforimprovingthissurvey,pleasewritetoU.S.Departmentof
theTreasury,CommunityDevelopmentFinancialInstitutionsFund,XXXXXXXXX,Washington,DCXXXXX.

NMTC Evaluation
CDE Discussion Guide

______________________________________________________________________________
A.BACKGROUNDABOUT[NAMEQUALICB]and[NAMEProject]
x

Typeoforganization(controllingentityof(NAMEQALICB),ifapplicable—notthe
characteristicofaspeciallegalentitysetuptoreceivetheNMTCtaxcredits

x

Namecommonlyusedtoreferto(NAMEproject)

x

Descriptionof(NAMEproject)

x

Descriptionoftheneighborhoodorareainwhich(NAMEproject)islocated

x

Originandhistoryof(NAMEproject)

______________________________________________________________________________
B.PROJECTINTITIATIONANDIMPLEMENTATION
x

How(NAMEproject)originallycametotheattentionofthe(NAMECDE)

x

Whatmade(NAMEproject)attractivetotheCDE?

x

Is(NAMEproject)partofanybroadercommunityoreconomicdevelopmenteffort?

x

Statusof(NAMEproject)(e.g.,complete)

x

Descriptionof(NAMEproject)siteatthetimeoftheNMTCinvestment—immediately
before(NAMEproject)wasstarted.

______________________________________________________________________________
C. PROJECT FINANCING [Walk through the information previously provided by the CDE in the
“CDE Information Sheet” to ensure project financing arrangements are fully understood.]

x

Sourcesandamountoffinancing

x

Sequenceofobtainingpledgesforfinancingfromthevarioussources

x

Taxabatementsordeferrals

x

Investors

x

Financingcomparedtoother(i.e.,bothnonNMTCandNMTC)projectsortransactionsof
the(NAMECDE)

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CDE Discussion Guide

x

(NAMECDE’s)expectationswithrespecttoprofitability—comparedwithinvestmentsin
similarprojectsnotinvolvingNMTCsorotherformsofpublicsupport

x (NAMECDE’s)expectations/plantocovercostsandmakeaprofitontheproject
______________________________________________________________________________
D.ROLEOFNMTCs
x

RoleofNMTCsinthefinancingpackagefor(NAMEproject)

x

Leveraging:MoneyNMTCsbroughtintothedealthathadnotpreviously,orwouldnot
otherwisehavebeen,committed

x

Conventionalfinancing(i.e.,financingfromaforprofitentity—suchasabank,afinance
company,oranequityinvestor—thatprovidesfundsforitsbusinessespurposeswithout
apublicsubsidyandnotbecauseithasaneconomicdevelopmentmission):
o Had(NAMEQALICB)appliedforconventionalfinancingfor(NAMEproject)priorto
NMTCsbecomingpartof(NAMEproject)?Whyorwhynot?Whathappened?

x

Availability/likelihoodofotherfinancingtoreplacesomeoralloftheNMTCrelated
financingifNMTCshadnotbeenavailableatthetime.

x

Whatlikelywouldhavehappenedif(NAMEproject)hadnotreceivedNMTCs.

______________________________________________________________________________
E. PROJECTOUTCOMES
x

Goalsfor(NAMEproject)atthetimeofprojectinitiation

x

Generalmarketconditionsintheneighborhoodorareaof(NAMEproject)atthetimeof
theinitialNMTCinvestment

x

Levelofdistressoftheneighborhoodorareaof(NAMEproject)today,andreasonsfor
change(ifany)

x

Likelyinvestmentfutureoftheneighborhoodorareaof(NAMEproject)sinceitwas
completed—comparedtobeforetheprojectwasstarted

x

(NAMECDE’s)proceduresfortrackingofprojectoutcomes
o Evaluationoreconomicimpactanalysissincetheprojecthasbeencompleted?
o CommunityBenefitAgreementfortheproject?

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NMTC Evaluation
CDE Discussion Guide

Financialperformanceof(NAMEproject):
x

AnnualgrossrevenueatthetimeNMTCloan/investmentwasmade

x

Annualgrossrevenueforthemostrecentreportingperiod

x

Annualprofitsorlossesformostrecentreportingperiod

x

Amountofoutstandingloansandinvestmentsforthemostrecentreportingperiod

x

[Forsmallbusinesses]:Changeincreditscoreimprovedsinceinitiationofproject?

x

Loanperformance
o Delinquencies
o Defaults
o Workoutarrangements

x
x

Is(NAMEQLICB)stillinbusiness,operating?Anyownership changes?
Employmentoutcomes—jobscreatedorsavedby(NAMEproject)
o Numberoffulltimeequivalent(FTE)jobsatstartof(NAMEproject)
o Numberoffulltimeequivalent(FTE)jobsasofthemostreportingperiod
o Numberofnewlycreatedjobsinthefollowingcategories:
ƒ

Permanentjobs

ƒ

Temporary,seasonaljobs

ƒ

Constructionjobs

ƒ

Jobsat(NAMEproject’s)tenants’businessesororganizations

o Jobssaved(i.e.,numberofpreexistingjobsthatwouldhavebeenlostifnotfor
(NAMEproject)havingbeenfinancedandcompleted):
x

Permanentjobs

x

Temporary,seasonaljobs

x

Constructionjobs

x

Jobsat(NAMEproject’s)tenants’businessesororganizations


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NMTC Evaluation
CDE Discussion Guide

o Ofnewlycreatedorsavedpermanentjobs,approximatepercentageinthe:
x

Entrylevel/lowwagecategory

x

Midlevel/midwagecategory

x

Management/professionalcategory

x

Other(specify)?

o Ofnewlycreatedorsavedpermanentjobs,approximatepercentagefilledby:
x

Residentsof(NAMEproject’s)neighborhood/area

x

Minorities

o Approximateproportionofthosejobsofferhealthbenefits?
Otheroutcomesof(NAMEproject)
x

[WherethisinformationhasnotbeenprovidedontheCDEInformationSheet]:Totalsquare
footageofthespaceactuallybuiltorrehabilitatedbytheproject


x [WherethisinformationhasnotbeenprovidedontheCDEInformationSheet:]Proportion
(percentage)ofthespacebuiltorrehabilitatedthatis:
o Restaurants,hotels,foodservices,orotherretailspace



o Financial,professional,scientific,management,business,orotherofficespace
o Industrial,manufacturing,transportationlogistics,orwarehousingspace
o Housing
o Health,andhumanandsocialservicefacilities 
o Educationalandcommunityfacilities



o Facilitiesorspacefortheperformingarts,cultural,entertainment,orother
amenities
o Other____________________________



x Currentvacancyrate
x [If(NAMEproject)hastenants]:Isrentforcommercialspacepaidby(NAMEQALICB’s)
tenantsbelowmarketrates?
x [If(NAMEproject)involvedhousing]:
o Newlyconstructedorrehabilitated
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NMTC Evaluation
CDE Discussion Guide

o Numberofunitsforhomeownership
o Percentageofthehomeownershipunitsthatareaffordable(i.e.,homeowners
paynomorethan30percentoftheirannualincomeonhousing)
o Numberofrentalunits
o Percentageoftherentalunitsthatareaffordable(suchaswhererenterspayno
morethan30percentoftheirannualincomeonhousing)
x

Businessstartupsorexpansionsasaresultoftheproject

x

Greendevelopmentoutcomes:productionofenvironmentallysustainablebuilding(s)

x

Humanand/orsocialservicesoutcomes(e.g.,neworincreasedaccesstohealthcare,
trainingcenters,childcarecenters,otherhuman/socialservices)

x

Communityamenitiesand/orfacilitiesoutcomes(newandorincreasedaccess)—e.g.,
grocerystores,shopping,restaurants,laundryfacilities,gasstations,libraries,parkinglots
orgarages,transportation,banking,financialservices/products,elementaryorsecondary
schools,tertiaryeducation,parks,openspace,playgrounds,recreationcenters,artsand
culturalinstitutions,museums).

x

Communityand/orneighborhoodbeautificationoutcomes;i.e.,directphysical
improvementstoproperty

x

Infrastructureoutcomes/improvements(e.g.,streets,roads,sewers)

x

Taxrevenues/othermonetarybenefitsoutcomes(e.g.,increasedtaxestothelocal
jurisdiction)

x

Otherprojectoutcomes

______________________________________________________________________________
F.COMMUNITYOUTCOMES 
Changesintheneighborhoodorareaoftheproject—eitherpositiveornegative—beyond
thosediscussedthatmightbelinkedtotheproject,eventhoughtheywerenotformallypart
oftheproject
x

Neighborhoodemployment

x

Realestatedevelopmentintheimmediateneighborhood

x

Changesinpropertyvaluesintheimmediateneighborhood

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NMTC Evaluation
CDE Discussion Guide

x

Businessdevelopmentintheimmediateneighborhood

x

Greendevelopmentintheimmediateneighborhood

x

Humanand/orsocialservicesintheimmediateneighborhood

x

Amenitiesand/orcommunityfacilitiesintheimmediateneighborhood

x

Infrastructureintheimmediateneighborhood

x

Beautificationin,orphysicalupgradingof,theimmediateneighborhood

x

Taxrevenuesorothermonetarybenefitstothecommunity

x

(NAMEproject’s)contribution,ifany,toachangeinthedemographicsoreconomicstatus
ofthelargercommunityinwhichitislocated—suchaswithrespecttopovertylevel,
medianincome,racial/ethniccomposition,ageandfamilystructuremix,educationlevel,
oremploymentrate

x

Otherneighborhoodleveloutcomesof(NAMEproject)notpreviouslydiscussed

7



NewMarketsTaxCredit(NMTC)ProgramEvaluation
CDEInformationSheet
11/25/09

A.CONTACTINFORMATION
CDEContactInformation(pleasecorrectifnecessary)

ContactName:

Telephone:



Email:



Title:



Organization:



MailingAddress:




     





QALICBContactInformation
ContactName:



Telephone:



Title:



Email:



Organization:







MailingAddress:










B.PROJECTINFORMATION
(pleasecorrectifnecessary)


1.Namecommonlyusedtorefertothisproject:



2.Allocationroundforthisproject:



3.Yearprojectinitiated:





ThissurveyhasbeenapprovedbytheOfficeofManagementandBudget,asrequiredbythePaperworkReductionActof1995,underOMB
controlnumberXXXXXXXX,whichexpiresonXX/XX/XXXX.Thetimetocompletethisinformationcollectionandanassociatedtelephone
interviewisestimatedtobe1.25hours,includingtimetoreviewinstructions,searchexistingdataresources,gatherneededdata,and
completethesurveyandinterview.Ifyouhaveanycommentsconcerningtheaccuracyofthetimeestimateorsuggestionsforimproving
thisform,pleasewritetoU.S.DepartmentoftheTreasury,CommunityDevelopmentFinancialInstitutionsFund,XXXXXXXXX,Washington,
DCXXXXX.

1

C.PROJECTFINANCING
Pleasesendusthesourcesandusesandlatestfinancialstatementsfortheproject.
(fyoudonothavetheinformationrequestedbelow,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBas
wewillbecontactingthemseparately.)
PleasecompletethefollowinginventoryofthesourcesandamountsoffinancingthatcomprisedthisNMTCloan/investment.If
theQALICBreceivedotherloansorinvestmentspriortoorsubsequenttothisfinancing,andifthosefundsareconsidered
s ubstantiallypartofthesameoveralluseastheNMTCloan/investment,pleaseincludethatfinancingaswell.

Source*
1.

SourceofLoan,Grant,orInvestment
NewMarketsTaxCredits

Description
(selectallthatapply)
Grant

Lineof
Credit

Term
Loan

Debtlike
equity

Equity

Amount
($)











$    

2.(ifany)     











$    

3.(ifany)     











$    

4.(ifany)     











$    

5.(ifany)     











$    

6.(ifany)     











$    

7.(ifany)     











$    

8.(ifany)     











$    

9.(ifany)     











$    

TOTAL:

$    


*Ifthereweremultipleloans,grants,orinvestmentsfromonesource,pleaselistthesourceonlyonce,andsummarizetheamountoffinancing.

D.QALICBREVENUE/BUDGET
(fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe
contactingthemseparately.)

IfQALICBorparententityisforprofitpleaseanswer:
1.AnnualGrossRevenuefrombusinessoperationsattimeofprojectinitiation:



2.AnnualGrossRevenuefrombusinessoperationsforthemostrecentlycompletedfiscalyear:









IfQALICBorparententityisnonprofitpleaseanswer:
1.Operatingbudgetattimeofprojectinitiation:



2.Operatingbudgetforthemostrecentlycompletedfiscalyear:









E.QALICBEMPLOYMENT
(fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe
contactingthemseparately.)

1.Numberoffulltimeemployees*—includingowners—attimeofprojectinitiation:



2.Numberoffulltimeemployees*—includingowners—atendofmostrecentfiscalyear:



3.Numberofnewlycreatedjobsthatcanbedirectlyattributedtotheproject:


Permanentpositions






Temporary,seasonalpositions





ConstructionJobs





Positionsattenants



2

4.Numberofjobssavedasaresultoftheproject:
(preexistingjobsthatwouldhavebeenlostifnotforprojecthavingbeenfinancedandcompleted)




Permanentpositions
Temporary,seasonalpositions






ConstructionJobs





Positionsattenants



5.Approximatelywhatpercentageofallnewlycreatedorsavedpermanentjobswerethefollowing:

Entrylevel/lowwage:
     %


Midlevel:

     %



Management/professional:

     %



Other:

     %







6.Approximatelywhatpercentageofnewlycreatedorsavedpermanentjobswerefilledbythefollowing:

Residentsoftheprojectneighborhood:
     % 



NotApplicable—projectlocatedinnonresidentialneighborhood
Minorities:



 

     %




*Fulltimeemployeeswork35hoursormoreperweek.Donotincludetemporary,seasonal,orconstructionemployeesinyourcalculations.
Hoursforparttimeemployeesshouldbecombinedtotheequivalentoffulltimeemployees—i.e.,two17.5hourperweekemployeeswould
equalonefulltimeemployee.

F.QALICBREALESTATEDEVELOPMENTOUTCOMES
(fyoudonothavethisinformation,pleaseleavetheresponseblank.ItisnotnecessarytocontacttheQALICBaswewillbe
contactingthemseparately.)

1.Wastherearealestatecomponenttothisproject?

Yes



No



IfYES,pleaseanswerthequestionsbelow.
2.Howmanysquarefeetdidtheprojectbuildorrehabilitate?
3.Approximatelywhatpercentageofthespacebuiltorrehabilitatedis:







Restaurants,hotels,foodservices,orotherretailspace

     %



Financial,professional,scientific,management,business,orotherofficespace

     %



Industrial,manufacturing,transportationlogistics,orwarehousingspace

     %



Housing

     %



Health,andhumanandsocialservicefacilities

     %



Educationalandcommunityfacilities

     %



Facilitiesorspacefortheperformingarts,cultural,entertainment,orother
amenities

     %



Other(pleasespecify):     

     %

3