Case Style Telephone Discussion Guide - QALICB

NewMarketsTaxCredit(NMTC)ProgramEvaluation

QALICB
CaseStyleTelephoneDiscussionGuide
11/25/09

INTRODUCTION
TheCommunityDevelopmentFinancialInstitutions(CDFI)FundoftheU.S.Departmentofthe
TreasuryisinterestedinunderstandingandarticulatingthebenefitsthattheNewMarketsTax
Credit(NMTC)Programmaybringtolowincomecommunities.Towardsthatend,theCDFI
FundhascontractedwiththeUrbanInstitute,anonprofitpolicyresearchorganizationbasedin
Washington,DC,toconductanevaluationoftheNMTCProgram.
Your[firm/organization]receiveda[loan/investment]in200[X]thatwasfinancedinpart
throughafederalprogramcalledtheNewMarketsTaxCreditProgram.Yourproject,along
withmanyotherprojects,wasselectedatrandomforinclusionintheportionofourprogram
evaluationthatinvolvesaseriesofinterviewswithprojectstakeholders,includingyourself,the
CDEthatprovidedthetaxcredits,aprojectinvestor,andanotherprojectstakeholder
knowledgeableabouttheproject,suchasalocalofficialorrepresentativeofacommunity
group.That’sthereasonforthecalltoday.
Yourparticipationinthiscallisvoluntarybutit’sverymuchappreciated.I’dliketoemphasize
thatwhatwe’redoingisneitheraregulatoryreviewnoranauditofyourprojectbut,rather,a
sourceofadditionalinformationthatwillassistusinbetterunderstandingtheNewMarkets
TaxCreditprogram.We’refocusingonhowprojectsarestructuredandwhattheyproduce.
So,wehavesomequestionsaboutyourfirm/organization,(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.
ThankyouforcompletingtheinformationsheetIsenttoyouearlier.Itprovidedbackgroundto
helpmebemoreefficientinthiscall.Ianticipatethatthecallwilllastapproximatelyonehour.
Aswesynthesizeandanalyzetheinformationyoushare,itwouldhelpustorecordthiscall.
Again,thisrecordingwouldonlybeusedbyusandnotsharedwithanyoneelse.Wouldthatbe
alrightwithyou?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
QALICB Discussion Guide

______________________________________________________________________________
A.BACKGROUND
ƒ

Typeoforganizationof[NAMEQALICB](e.g.,nonprofit,forprofit,agovernmententity,or
aquasigovernmentalentity)

ƒ

Principalactivityof[NAMEQALICB];stilloperating?

ƒ

Priorexperienceof[NAMEQALICB]withcommunitydevelopmentfinancing(e.g.,
borrowingfromnontraditionallendersand/orinvestorsliketheSmallBusiness
Administration[SBA],usingUSDAloansforruralareas;borrowingfromnonprofitlenders
orlocalcommunitydevelopmentagenciesthatmayuseCDBGfunds,etc.)

ƒ

Priorexperienceof[NAMEQALICB]inseekingfinancingfrom(NAMECDE)and/orits
ControllingEntity

ƒ

Priorexperienceof[NAMEQALICB]withNMTCs

x

Descriptionofneighborhoodorareainwhich(NAMEProject)islocated

______________________________________________________________________________
B.INITIATIONANDIMPLEMENTATIONOF[NAMEPROJECT]
x

Descriptionof[NAMEProject]

x

Historyof[NAMEProject]
o How(NAMEQALICB)initiallycameintocontactwiththeNMTCprogramand(NAME
CDE)
o Changesin(NAMEProject’s)dealasittookshape
o (NameProject’s)timeframe/schedule

ƒ

Satisfactionwith(NAMECDE)(e.g.,customerservice,ratesandtermsoffinancing,putting
thedealtogether)

ƒ

ExperienceworkingwiththeNMTCprogramrequirementsandreporting

ƒ

Overallobjectivewhen[NAMEQALICB]obtainedtheNMTC[loan/investment]

ƒ

Lengthoftimeneededtoobtaintheneededfinancing

ƒ

Progressmadetodatewithrespectto[NameProject]

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C. [NAME QALICB] FINANCIAL INFORMATION AND [NAME PROJECT] FINANCING [CDE

andQALICBInformationSheetswillbereviewedpriortotheinterview;thefollowingitemswill
becoveredonlyfordatathataremissingfromtheSheetsorforinformationthatisnotclear].
[ForforprofitQALICBs]:
x

Annualgrossrevenueduringthe12monthperiodpriortoNMTCinvestment

x

Annualgrossrevenueforthemostrecentlycompletedcalendarorfiscalyear

x

Annualexpensesforthemostrecentlycompletedcalendarorfiscalyear

[FornonprofitQALICBs]:
x

Operatingbudget

x

Profitabilityofthisproject[foryourfirm]ascomparedwithcomparableprojects

[ForallQALICBs]:
x Totalnetassetsforthemostrecentlycompletedcalendarorfiscalyear
x Totaloutstandingloansforthemostrecentlycompletedcalendarorfiscalyear

x [Forloansonly]:
o Difficultiesinmakingloanpayments
o Changesinloanterms
o Restructuringloanpayments,includingtemporarilyorpermanentlychanging
interestrateorotherworkouts
o Latepayments

D.ROLEOFNMTCFINANCING
x

Accesstoprivatecapitalforeconomicdevelopmentprojectsintheneighborhoodorarea
where[NAMEproject]islocatedatthetimethatNMTCfinancingwasreceived

x

Accesstoprivatecapitalforeconomicdevelopmentprojectsinthesurroundingareaat
thetimethatNMTCfinancingwasreceived

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QALICB Discussion Guide

x

Businesscostsrelatedto(NAMEproject)comparedtothosethatwouldbeincurredby
[businesses/organizations]locatedinlessdistressedneighborhoodsorareas

x

[If(NAMEproject)issitespecificorrelatestolocationofabusiness]:
o Whenwassiteselected?
o Whywasthisparticularsiteselected?
o Site’shistoryofpreviousdevelopment(orlackthereof)
o Othersitesconsideredfor(NAMEproject)

x

Did[NAMEQALICB]applyforconventionalfinancingforthesamepurposeforwhichthe
[NMTCloan/investment]wasused?Whyorwhynot?Whathappened?

x

Availability/likelihoodofotherfinancingtoreplacesomeoralloftheNMTCrelated
financingifNMTCshadnotbeenavailableatthetime.

x

PotentialdifferencesbetweenNMTC[loan/investment]andconventionalfinancing(e.g.,
interestrates,originationorotherfees,allowableloantovalueratioallowed,collateral
requirements,creditstandards,debtservicecoverageratio,loanlossreserverequirement)

x

Whatlikelywouldhavehappenedif(NAMEproject)hadnotreceivedNMTCs?

______________________________________________________________________________
E. EMPLOYMENT, BUSINESS, AND TAX OUTCOMES [CDE and QALICB Information Sheets
will be reviewed prior to the interview; the following items will be covered only for data that are
missing from the Sheets or for information that is not clear].
E-1. EMPLOYMENT OUTCOMES

x

Numberofindividuals—includingtheowners—whoworkedfor[NAMEQALICB]ina
typicalpayperiodatthestartiftheproject—associatedwith[NAMEProject]

x

Numberofindividuals—includingtheowners—whoworkfor[NAMEQALICB]duringa
typicalpayperiodthisyear—associatedwith[NAMEProject]

x

Numberofnewjobs/hiresasaresultofthe[loan/investment]for[NAMEProject]

x

Numberofnewjobs/hiresfilledasaresultofthe[loan/investment]thatstillexist
todayat[NAMEProject]

x

Numberofjobssaved(i.e.,numberofpreexistingjobsthatwouldhavebeenlostifnot
for[NAMEproject]havingbeenfinancedandcompleted)

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x

Ofnewlycreatedorsavedjobs,approximatepercentagefilledby:
o Residentsof(NAMEproject’s)neighborhood/area(orthesurroundingcommunity
targetedfordevelopmentusingNMTCs)
o Minorities
o Lowincome/loweducationlevel/hardtoemploy

x

Ofnewlycreatedorsavedjobs,approximatepercentageinthe:
o Entrylevel/lowwagecategory
o Midlevel/midwagecategory
o Management/professionalcategory
o Other(specify)

x Approximateproportionofnewlycreatedorsavedjobsthatare:
o Eligibleforhealthinsuranceofferedbyyour[firm/organization]?
o Eligibleforsickleave?
o Eligiblefor[orparticipatedin]apensionormatchedsavingsplan?
x

Didanyofthenewlycreatedorretainedjobsofferotheropportunitiessuchastraining,
advancementpotential,orownershipshares?

x

In(NAMEProject),arethereanytenants—eitherforprofitbusinessesornonprofit
entities?
(Ifyes):
o Numberofpersonswhoworkedforthetenants(includingtheowners)duringa
typicalpayperiodatthestartof(NAMEproject)
o Numberofpersons(includingtheowners)whoworkforthetenantsduringa
typicalpayperiodduringthecurrentyear
o Numberofnewpersonshiredbytenantsasaresultof(NAMEProject]
o Numberofjobssavedattenantbusinesses/organizations(i.e.,numberofpre
existingjobsthatwouldhavebeenlostifnotfor(NAMEproject)havingbeen
financedandcompleted)

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o Ofnewlycreatedorsavedjobs,approximatepercentageinthe:
x

Entrylevel/lowwagecategory

x

Midlevel/midwagecategory

x

Management/professionalcategory

x

Other(specify)

o Ofnewlycreatedorsavedjobs,approximatepercentagefilledby:
x

Residentsof(NAMEproject’s)neighborhood/areaorthesurrounding
communitytargetedfordevelopmentusingNMTCs)

x

Minorities

x

Lowincome/loweducationlevel/hardtoemploy

o Approximateproportionofthosejobsofferinghealthbenefits,sickleave,other
benefits
o Didanyofthenewlycreatedorretainedjobsatyourtenantsofferother
opportunitiessuchastraining,advancementpotential,orownershipshares?
E2.BUSINESSANDTAXOUTCOMES
x

Smallbusinessesstartups

x

Increasedtaxespaidtothecityorcountywhere(NAMEproject)islocated


F.REALESTATE,BEAUTIFICATION,ANDGREENBUILDINGOUTCOMES
x

Totalsquarefootageofthespacebuiltorrehabilitatedby[NAMEProject].Proportion
(percentage)ofthespacethatis:
o Restaurants,hotels,foodservices,orotherretailspace



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



o Facilitiesorspacefortheperformingarts,cultural,entertainment,orother
amenities
o Other____________________________



x

Vacancyrate:business;residential

x

[If(NAMEproject)hastenants]:Isrentforcommercialspacepaidby(NAMEQALICB’s)
tenantsbelowmarketrates?

x

[Ifhousingwasconstructed]:
o Newlyconstructedorrehabilitated?
o Numberofforsalehousingunits;percentthatareaffordable(i.e.,
homeownerspaynomorethan30percentoftheirannualincomeonhousing)
o Numberofrentalhousingunits;percentagethatareaffordable(i.e.,renters
paynomorethan30percentoftheirannualincomeonhousing)

x

Exteriorimprovementsmadetothedevelopedproperty

x

Infrastructureimprovements(e.g.,streets,roads,sewers)

x

Greendevelopmentoutcomes:productionofenvironmentallysustainablebuilding(s)


G.ACCESSTOAMENITIESANDCOMMUNITYSERVICESOUTCOMES
x

Did[NAMEProject]directlyprovideorimproveaccesstoamenitiesorcommunity
facilitiesfortheneighborhoodsurroundingwhereitislocated(e.g.,grocerystores,
shopping,restaurants,,libraries,parkinglotsorgarages,transportation,banking,financial
services/products,schools,,parks,,recreationcenters,artsandculturalinstitutions,
museums,etc.)?

x

Did(NAMEProject)directlyprovide,improveaccessto,orimprovethequalityofany
humanorsocialservicestotheneighborhoodsurroundingwhereitislocated(e.g.,
healthcare,employmentandtraining,childcare,etc.)?

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H.COMMUNITYLEVELOUTCOMES[e.g.,changesintheneighborhoodorareaoftheproject—
eitherpositiveornegative—beyondthosediscussedabovethatmightbelinkedtotheproject,
eventhoughtheywerenotformallypartoftheproject]
x

Neighborhood/areaemploymentoutcomes

x

Realestatedevelopmentintheimmediateneighborhood/area

x

Changesinpropertyvaluesintheimmediateneighborhood/area

x

Businessdevelopmentintheimmediateneighborhood/area

x

Greendevelopmentintheimmediateneighborhood/area

x

Humanand/orsocialservicesintheimmediateneighborhood/area

x

Amenitiesand/orcommunityfacilitiesintheimmediateneighborhood/area

x

Infrastructureintheimmediateneighborhood/area

x

Beautificationin,orphysicalupgradingof,theimmediateneighborhood/area

x

Taxrevenuesorothermonetaryoutcomes/benefitstothecommunity

x

(NAMEProject’s)contribution,ifany,toachangeinthedemographicsoreconomic
statusofthelargercommunityinwhichitislocated—suchaswithrespecttopoverty
level,medianincome,racial/ethniccomposition,ageandfamilystructuremix,education
level,oremploymentrate

x

Otherneighborhoodleveloutcomesof(NAMEProject)

x

Mainbenefitstothecommunityfrom(NAMEProject)

x

“Leakage”ofbenefitsof(MAMEProject)fromtheintended/targeted
beneficiaries/community

x

Adverseeffectsof(NAMEProject)onsurroundingarea(e.g.,businesseswereclosed,
residentsweredisplaced,etc.)?

x

Unintendedconsequences—goodorbad

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I.STIMULATIONORENHANCEMENTOFLOCAL/INSTITUTIONALCAPACITYOUTCOMES 
x

Levelofactivityof(NAMElocalgovernment)andcommunityorganizationsinattracting
investmenttothiscommunity?
o Changessince(NAMEProject)wasinitiated

x

Capacityof(NAMElocalgovernment)to:
o Attractinvestment
o Coordinatelocaleconomicdevelopmentinitiatives/projects

x

Capacityoflocalcommunityorganizationsto:
o Attractinvestment
o Coordinatelocaleconomicdevelopmentinitiatives/projects

x

Capacityof(NAMECDE)to
o Attractinvestment
o Coordinatelocaleconomicdevelopmentinitiatives/projects

x

RoleofNMTCswithrespecttoenhancing(NAMEcommunity’s)capacitytobringordirect
capitaltoareassimilartothatinwhich(NAMEProject)islocated





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NewMarketsTaxCredit(NMTC)ProgramEvaluation
QALICBInformationSheet
11/25/09

A.CONTACTINFORMATION
QALICBContactInformation
ContactName:



Telephone:



Title:



Email:



Organization:







MailingAddress:









B.PROJECTINFORMATION



1.Namecommonlyusedtorefertothisproject:
2.Yearprojectinitiated:
3.Forthemostrecentlycompletedcalendaryearor
fiscalyear,whatwasthetotalamountofyour
organization’soutstandingloans?Pleaseincludethe
principalandinterestowedonallloansincluding
mortgages,motorvehicle,equipment,capitalleases,
linesofcredit,andcreditcards.





$     
Fortheperiodfrom     to     





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

1

C.PROJECTFINANCING
[SectionCwillberemovedifthisinformationhasbeenprovidedbytheCDE]
Pleasesendusthesourcesandusesandlatestfinancialstatementsfortheproject.
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,andsummarizetheamountof
financing.

D.QALICBREVENUE/BUDGET
[SectionDwillberemovedifthisinformationhasbeenprovidedbytheCDE]
IfQALICBorparententityisforprofitpleaseanswer:

1.AnnualGrossRevenuefrombusinessoperationsattimeofprojectinitiation:
2.AnnualGrossRevenuefrombusinessoperationsforthemostrecentlycompleted
fiscalyear:




IfQALICBorparententityisnonprofitpleaseanswer:
1.Operatingbudgetattimeofprojectinitiation:





2.Operatingbudgetforthemostrecentlycompletedfiscalyear:







E.QALICBEMPLOYMENT
(Estimatesareok.Indicateifresponsesarefromprogramrecordsorareestimates.Ifyoudonothavethisinformation,please
leavetheresponseblank.)








1.Numberoffulltimeemployees*—includingowners—attimeofproject
initiation:



2.Numberoffulltimeemployees*—includingowners—atendofmost
recentfiscalyear:



3.Numberofnewlycreatedjobsthatcanbedirectlyattributedtothe
project:
(Includetemporaryconstructionjobs,jobsattenantbusinesses,etc.)



Source

ProgramRecords Estimates

2











4.Numberofjobssavedasaresultoftheproject:



Source

ProgramRecords Estimates








(preexistingjobsthatwouldhavebeenlostifnotforprojecthavingbeenfinanced
andcompleted)

5.Approximatelywhatpercentageofallnewlycreatedorsavedjobswere
thefollowing:

Entrylevel/lowwage:





Midlevel:

     %



Management/professional:

     %



Other:

     %

















     %

6.Approximatelywhatpercentageofnewlycreatedorsavedjobswerefilled
bythefollowing:

Residentsoftheprojectneighborhood:


Residentsofthelargercommunity—(cityorcounty,as

appropriate):

Minorities:


     %





     %





     %





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




F.QALICBREALESTATEDEVELOPMENTOUTCOMES

1.Wastherearealestatecomponenttothisproject?

Yes



No

IfYES,pleaseanswerthequestionsbelow.




(Estimatesareok.Indicateifresponsesarefromprogramrecordsorestimates.
Ifyoudonothavethisinformation,pleaseleavetheresponseblank.)







2.Howmanysquarefeetdidtheprojectbuildorrehabilitate?



3.Approximatelywhatpercentageofthespacebuiltorrehabilitatedis:





Manufacturing:

     %



Office:

     %



Retail:

     %



Housing:

     %



Community/SocialServicefacilities:

     %



Other(pleasespecify):     

     %

Source

ProgramRecords Estimates







3