ACDC Tax Credit Investor Prospectus

Low income housing tax credit opportunities2010

Asian CommunityDevelopment Corporation

22 years of community building 1987-2010

contact

timothy dohertyreaL estate project manager617.482.2380 x [email protected]

asian community deveLopment corporation38 oak street boston, ma 02111www.asiancdc.org

Introduction

LIHTC Investment Opportunities

Our Projects

9 6 Fort Street

13 Parcel 24

19 Oak Terrace

21 Metropolitan

Our Team

Community Development Programs

contents

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25

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Asian Community Development Corporation | Tax Credit Investment Opportunities

mission statement

The Asian Community Development Corporation, a community-

based 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.


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Asian Community Development Corporation | Tax Credit Investment Opportunities 3

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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.


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Asian Community Development Corporation | Tax Credit Investment Opportunities4

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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, mixed-

income 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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about Low income housing tax credits

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.

States authorize allocations of LIHTCs to

developers who monetize their credits by finding

investors willing to contribute cash towards a

project. In exchange, the investor sees a return

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

levels in LIHTC properties ranged from 96 to 97

percent.”

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

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

boston metropoLitan area

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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 Total LIHTC Units Annual Tax Credits Available Status

6 Fort Street

Ready and Straightforward34

FEDERAL LIHTC $765,000Allocation awarded January 2010

STATE LIHTC $554,000

Parcel 24

Signature and Large-scale69

FEDERAL LIHTC $1.242MApplication submitted Allocation expected

STATE LIHTC $1M

Oak Terrace

Proven success and Security60 FEDERAL LIHTC $901,200 received

1995-2005LIHTC 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 transit-

oriented, 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.

Lihtc investment opportunities

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quincy, ma

The Asian Community Development Corporation is pleased to present its vision for 34 newly-

constructed 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

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 Lincoln-

Hancock 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.

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type of space quantity gross sq. ft.

Residential 34 Units 42,000 +/-

Community Space 1,000 +/-

unit type # of units % of units

One bedroom 8 23%

Two bedroom 22 65%

Three bedroom 4 12%

Total Units 34 100%

Total Building 43,000 +/-

Parking 64 Spaces

anticipated program

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

affordabiLity

project status and financing

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

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.

project scheduLe

Begin construction September 1, 2010

Construction Complete July 2011

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additionaL funding sources committed 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 +/-

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.

strong demand for affordabLe housing in quincy, ma

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


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6 fort street

quincy center zoning district

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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.

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anticipated program


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

boston, ma


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

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.

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type of space # units bedrooms affordabiLity

Market rate condominium Approx. 157-190

27% one-bedroom

Market Rate62% one-bedroom

11% one-bedroom

Affordable Condominium Approx. 66-99

31% one-bedroom

Average 80% AMI48% one-bedroom

21% one-bedroom

LIHTC Affordable Rental Approx 69

35% one-bedroom 8 units at 30% AMI

45 units at 60% AMI

17 units with Section 8*

44% one-bedroom

21% one-bedroom

Total 325 170 rental + 255 condominium

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 mixed-

income 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.


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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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demonstrated need and demand for affordabLe housing in chinatownParcel 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 unitsThe 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.

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.

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.

home ownership opportunities


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additionaL funding sources (Italics denote funds secured to date) approx. amount

State Funds AHT loaned at AFR or less

State HOMEHIF/HSFFCF/CBHTOD (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 HousingNHT Housing Creation ($632,748 committed)

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

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



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oak terrace

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

boston, ma - compLeted 1995Lihtc compLiance period 1995-2009

overview

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.

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

program

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

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

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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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.

new Lihtc investment opportunities in stabiLized project

type source

Rental subsidy HUD Section 8 Housing Assistance

Equity LIHTC

Loan Mass Housing, Permanent First Mortgage

Grants/subsidies Neighborhood Housing TrustFHLB Federal Home Loan Affordable Housing ProgramAFL-CIO Housing Investment TrustBoston Redevelopment Authority

financiaL overview

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.

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.

ownership structure


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boston, ma - compLeted 2005

The Metropolitan leveraged the experience of Asian Community

Development Corporation (ACDC) in developing Oak Terrace

to take on new challenges: the 5% owner-occupancy rate in

Chinatown and the increasingly expensive cost of housing in

Boston’s downtown core. The result is a mixed use 23-story high

rise containing 251 rental and homeownership units, 115 (or 46%)

of which are affordable to low and moderate income families.

overview

Over 3000 applicants entered the

lottery for the affordable units at

the Metropolitan in late 2003. All

the affordable rental units have

been occupied since March, 2004.

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.

the metropoLitan

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Residential 251 305,007

Rentals 133 151,275

Condominiums 138 153,732

Community Use 32,214

Commercial 7,600

Parking 238 74,974

Total 419,795

type of space # units bedrooms affordabiLity

Market rate condominium 84

18 one-bedroom

Market58 two-bedroom

8 three-bedroom

Affordable Condominium 34

8 one-bedroom26.5% at 80% AMI 47% at 100% AMI 26.5% at 120% AMI

20 two-bedroom

6 three-bedroom

Market Rate Rental 52

11 one-bedroom

Market30 two-bedroom

11 three-bedroom

Affordable Rental 81

6 one-bedroom

Up to 60% AMI30 two-bedroom

10 three-bedroom

35 studios

Total 251 138 condos + 133 rentals 115 (46%)

program

The residential component consists of the following:

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.

Lihtc

“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


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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)

commerciaL condo (1st fLoor)

ACDC office space

BRAoffice space

EA Fish Associates owns remainder of commercial space

garage condo (underground)Owned by EA Fish Associates

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 ContributionLinkage and HousingBRA LoanBRA 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

financiaL overview

totaL deveLopment cost $89,270,000


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our team

jeremy Liu - executive directorJeremy 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 managerJanelle 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 managerTim 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.

seLect staff


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seLect members of the board of directors

michaeL tow - presidentA 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 committeePeter 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 committeeYasuna 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


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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 committeeTerry 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 committeeKen 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.

peter munkenbeck - project consuLtantMr. 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.

consuLtant


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board of directors

Syam BuradaguntaBlue Sky Collaborative

Prabal ChakrabartiFederal Reserve Bank of Boston

Nick ChauTai Tung Realty

Chong ChowAccenture

Gim FongSweetHeart Plastics Co. (retired)

Soni GuptaAffordable Housing Consultant

Cuong HoangMott Philanthropic

Terry KwanEducator

Janet LinFormer Special Assistant to Massachusetts Governor Deval Patrick

Zena LumWGBH

Peter MadsenEdo Essex Properties, LLC

Kenneth MinkleiSCS Financial Services

Leverett WingLee Wing Management

officers

PresidentMichael TowNew Boston Financial

VP FundraisingYasuna MurakamiMC2 Capital Management, LLC

VP OperationsHarvey LeongHarvey Leong, LLC

VP StrategyPaul W LeeGoodwin Proctor LLP

TreasurerJeffrey WongShanghai Printing

ClerkMichael S. GrecoK&L Gates

Immediate Past PresidentCaroline ChangU.S. Dept. for Health & Human Services (retired)


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 self-

sufficiency 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 educationTo 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 deveLopmentAsian 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

our programs:buiLding capacity within our community

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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.

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 pLanningCommunity 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 servicesNon-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

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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 non-

English 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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ACDC Tax Credit Investor Prospectus

Documents

Transcript of ACDC Tax Credit Investor Prospectus