MAKING THE COMPLEX SIMPLE AND PRACTICALwww.dpfg.com

INCREASING REVENUES

REDUCINGCOSTS

MITIGATINGRISKS

INCREASINGPROFITABILITY

“We provide ideas and analysis that produce efficient and cost-effective financing solutions that strike a fair

balance between the ultimate consumer, local and state agency policies, and the land developer/builder while

maintaining the highest degree of professional ethics and integrity to the work at hand.” John Foreman - President & CEO

Our Company At A Glance

Company Background:Since 1991, DPFG consultants have consistently provided the real estate industry with both innova ve solu ons and detailed analysis that have created value to the industry. Today, our mission is to con nue to lead the way in real estate consul ng, and to do it be er than anyone else. DPFG is fulfi lling this vision by crea ng new fi nancing solu ons for developers, builders, lenders, investors, and others involved in real estate by expanding our service lines to adapt to an ever-changing industry.

DPFG, Inc. Senior Management Team:

John Foreman - President & CEOCarter Froelich - Managing PrincipalChris Aus n - Managing PrincipalChris Lightburne - Managing PrincipalLucy Gallo - Managing PrincipalMaik Aagaard - Managing PrincipalPeter Piller - Managing PrincipalRick Rosenberg - Managing PrincipalChris Cole - PrincipalJohn Daugirda - Principal

Industry: Real Estate

Number of Employees: 60

Corporate Headquarters:

DPFG, Inc.27127 Calle Arroyo, Suite 1910San Juan Capistrano, CA 92675

Offi ce Loca ons: 10

Management Team:DPFG, Inc.’s leaders bring a wealth of knowledge, experience and a proven track record of success. The management team is helping transform the real estate industry by providing unparalleled industry analysis and fi nancing solu ons that will lead us into the future.

Services:Land Secured Public Financing School DistrictReimbursements and Credits Fiscal ImpactService Districts Municipal District ServicesDevelopment Impact Fee Redevelopment DistrictAff ordable Housing Financing Other Public FinancingCompliance En tlement AnalysisCash Flow Feasibility Analysis Disclosure ServicesEngineering Services Project Management ServicesCapital Markets Group Property Tax AppealsCDD Management

Consul ng Milestones:Completed over 2,100 Land Secured Public Financings with over $11 billion in bonds.

Look Back Diagnos c fi ndings reached over $131 million.

Completed over 4,000 Property Tax Appeals na onwide.

Restructured over 100 Land Secured Public Financing Districts.

Capital Markets Group has completed transac ons of over $1billion in capital project sourcing, for new and exis ng projects.

Completed over 100 Redevelopment projects.

Nego ated over 200 School Mi ga on Agreements.

Completed over 600 Project Cash Flows, Valua on and Feasibility Analysis.

Completed over 225 Fiscal Impact Analysis Reviews and Reports.

Completed over 100 Development Impact Fee Reviews andReports.

Completed over 50 Public Facili es Financing Reports.

Completed over 1,500 Disclosure Analysis Reviews and Reports.

LAND SECURED PUBLIC FINANCING DISTRICTS

The use of land secured fi nancing’s has been instrumental in solving problema c circumstances created by the passage of property tax referendums that created a void in fi nancing regional and sub regional infrastructure burdens. Today, land developers are expected to pay for schools, roads, fi re sta ons, and parks as a condi on of development. With li le assistance from state and federal agencies, the fi nancing of infrastructure in new development areas is relying more and more on the use of land secured fi nancing’s. DPFG consultants have been directly or indirectly involved in over 2,100 land secured public fi nancing’s totaling over $11.0 billion dollars.

Community Facili es District BondsStatewide Community Infrastructure Program (SCIP)Special Improvement Districts

Assessment District Bonds

SCHOOL DISTRICT

Land developers and builders are becoming more and more involved in public school construc on ma ers that impact their development projects. Adequate school housing of project students is essen al to insuring a successful residen al development project. The area of school construc on is rapidly changing in many states throughout the U.S., especially in terms of school construc on costs, the ming for opening new schools, and the methods of funding new school construc on. Some states have already imposed school fees for new school construc on and many other states are in the process of establishing new school fees. States that do not currently impose school fees o en use alterna ve methods of obliga ng new development to cooperate or contribute funding for new school construc on costs.

School Mi ga on AgreementsSchool Funding Alterna vesSite Acquisi on Analysis

School District Nego a ons

REIMBURSEMENT & CREDIT

Land developers and builders o en have many diff erent types of reimbursements that are owed to them. Reimbursements owed to a developer or builder can range from a roadway reimbursement due to over sizing to a state funding credit or reimbursement rela ve to school construc on. DPFG consultants can help developers and builders in tracking, repor ng, collec ng, or earning reimbursement receivables or credits so that the value is realized and maximized. DPFG has established a proprietary web based system, known as the Reimbursement Tracking System or (“RTS”) that clients can access via the internet.

Reimbursement and Credit StructuringReimbursement and Credit ProcessingReimbursement and Credit Monitoring

Look-back AuditsCapitalizing Receivables

FISCAL IMPACT

Local governments use fi scal impact analysis and reports more and more as a means of compelling new development to mi gate any nega ve fi scal impact such project may have on the municipality. There are many diff erent reasons why local governments use this analysis ranging from a planning issue to a fi nancial issue. DPFG consultants pride themselves in obtaining a solid founda on of underlying facts to assist the developer in securing a fair outcome in this process. If the project is faced with imposing a nega ve fi scal impact on the municipality, there are a mul tude of fi nancing alterna ves that can be used to absorb this cost.

Fiscal Impact ReportsVerifi ca on of Fiscal Impact Assump onsNego ate Findings

Financing Nega ve Impacts

SERVICE DISTRICTS

A more recent wave of new development impacts since the passage of property tax referendums in several states in the U.S. has been local governments off -loading of municipal services and public facili es maintenance to new development. State budgetary pressure and limited local government funding has put local government on the off ensive to seek alterna ve sources of revenue in order to balance their budgets. DPFG consultants, apply their experience to ensure that any local government eff orts to require new development to pay for municipal services and public facili es maintenance is properly jus fi ed based on the par cular facts and circumstances.

Police and Fire Taxing DistrictsMaintenance DistrictsLandscape and Ligh ng Districts

Land Parcel Taxes

MUNICIPAL DISTRICT SERVICES

Several states allow for the establishment of the municipal districts.These districts o en have greater limited special purpose func ons than tradi onal governmental agencies; however, they operate in a very similar manner as a tradi onal governmental agency in terms of establishing an oversight board, establishing an opera ng budget with direct and indirect labor costs, and establishing a capital facili es budget rela ve to the construc on and/or acquisi on of public improvements. These districts help developers mi gate and resolve development impediments, as well as provide greater control over the level of services and public improvements within their development projects.

Community Development DistrictsGeneral Improvement DistrictsMunicipal U lity Districts

Community Services DistrictsMunicipal Management Districts

REAL ESTATE CONSULTING SERVICES

E X C E L L E N C E I N R E A L E S T A T E C O N S U L T I N G

DEVELOPMENT IMPACT FEE

Local government relies on development impact fees to equitably distribute the cost of regional public improvements that serve new development areas. The amount and type of development impact fees that are charged to new development are infl uenced by many factors, such as, economics, poli cs, and technical benefi t analysis. Many diff erent cost alloca on methods can be deployed in performing technical benefi t analysis to yield signifi cantly diff erent development fee impact amounts. DPFG has the requisite experience to establish or evaluate the appropriateness of development impact fees being imposed by local government.

Development Fee StudiesEvalua on of Fee MethodologyLi ga on Support

REDEVELOPMENT DISTRICT

Many states in the U.S. have authorizing statues that provide for the establishment of redevelopment project areas to assist local government with the ability to redirect funds generated by development toward rebuilding or construc ng be er land uses. Redevelopment’s unique aspects of development and market risk, infrastructure burdens and project subsidies provide both land developers and local government a playing fi eld that can foster a win-win situa on. Today, redevelopment district fi nancing’s represent one of the largest areas of real estate public/private partnerships. O en mes, redevelopment projects can become poli cal so it’s important to cra a fi nancing plan that is acceptable to the developer, municipality, and community.

Redevelopment ProposalsTax Alloca on Bonds or NotesPass-Through Agreements

Redevelopment Cash Flow Projec ons

AFFORDABLE HOUSING FINANCING

One of the most challenging areas in the real estate development process is providing a suffi cient level of aff ordable housing to consumers of low and moderate incomes. Achieving an equitable balance in aff ordable housing requires mutual coopera on among public and private sector par cipants. The aff ordability gap can be signifi cant in many housing markets across the U.S. and this makes the goal of providing aff ordable housing even more diffi cult to achieve. DPFG consultants understand that the future requires the applica on of crea ve ideas and solu ons because no single legisla ve tool exists to solve this dilemma.

Housing Revenue BondsInclusionary Housing RequirementsFinancing Set Aside Funds

Tax Credits

OTHER PUBLIC FINANCING

State and local governments have numerous fi nancing tools that can be used to solve many diff erent kinds of funding-related problems. For example, Mello-Roos fi nancing in California, if structured properly, can serve as an effi cient line of credit for an agency to fi nance public improvements within its fi ve-year capital facility plan. Industrial Development Bonds can serve a cri cal role in a rac ng or retaining company reloca ons and jobs. Local general obliga on bonds can help close the funding gap on new school construc on or other necessary public improvements. These are just a few examples of how DPFG consultants can help.

Cer fi cates of Par cipa on G.O. Bonds Infrastructure Financing Districts

Industrial Development Bonds

COMPLIANCE

Proper planning and implementa on of fi nancing transac ons should ul mately lead to proper administra on of the transac on so that any ongoing compliance ma ers are easily processed. Many mes local governments and developers are le to deal with complicated fi nancing programs or agreements with li le or no assistance from the par cipants originally involved in structuring the fi nancing’s. Some mes, these complicated agreements are not very clear or are silent on certain fi nancial related ma ers, in which case a quest for the intent is necessary. Addi onally, many agreements have ongoing obliga ons that require the developer’s compliance. DPFG consultants have the exper se and experience in this area.

Compliance AnalysisProperty Tax ReviewsAppraisal Reviews

Dispute Resolu on

ENTITLEMENT ANALYSIS

Several states allow for the establishment of the municipal districts.These districts o en have greater limited special purpose func ons than tradi onal governmental agencies; however, they operate in a very similar manner as a tradi onal governmental agency in terms of establishing an oversight board, establishing an opera ng budget with direct and indirect labor costs, and establishing a capital facili es budget rela ve to the construc on and/or acquisi on of public improvements. These districts help developers mi gate and resolve development impediments, as well as provide greater control over the level of services and public improvements within their development projects.

Development Agreement Analysis Impacts of Condi ons and Exac ons EIR Alterna ves

Public Facili es Financing Plan

Tourism Improvement DistrictsTax Increment Areas

w w w . d p f g . c o m

CASH FLOW FEASIBILITY ANALYSIS

The importance of properly evalua ng the cash fl ow of a real estate transac on in today’s real estate environment has never been more cri cal. Given the vola lity and uncertainty in prices, costs and fi nancing, the wise developer is evalua ng project cash fl ow projec ons on a regular basis. Realis c project inputs will undoubtedly provide realis c project cash fl ow results and DPFG consultants are uniquely posi oned to provide this service. Addi onally, the ming recogni on of revenues and costs in cash fl ow analysis needs to be properly verifi ed to obtain accurate valua on results.

Acquisi on and Disposi on AnalysisProject FinancingRestructuring Analysis

Por olio Analysis

DISCLOSURE SERVICES

The increased use of special districts, municipal districts, and other property taxes throughout the United States has created an even greater need for the benefi ciaries. These property tax burdens can be tricky and complex rela ve to the economic costs that obligates the benefi ciaries. O en mes, we review disclosures that over simplify the economic cost to the benefi ciary and fail to properly disclose an accurate picture of the economic obliga ons that apply to such benefi ciary. As the cost of providing services and public improvement for new development increases so does the cost to the benefi ciaries or end users, and this by defi ni on increases the impor-tance of providing accurate disclosure. Improper disclosure can lead to costly li ga on for the par es involved. DPFG Disclosure Services, Inc. consultants have extensive experience in this area.

Special District/Municipal District DisclosureCon nuing DisclosureProperty Tax Data

Li ga on Support

ENGINEERING SERVICES

An experienced engineer will navigate the obstacles and steer around road blocks in order to keep a development project schedule. Some mes crea ve alterna ves need to be provided to steer around such obstacles, and other mes the engineer must compel the public agency to fully comply with the specifi c terms of relevant agreements. DPFG consultants and engineers are uniquely posi oned to provide mely and comprehensive results for our clients.

Bid PackagesBid ManagementConstruc on Monitoring

Scaled Graphics and Mapping

CAPITAL MARKETS

The availability of capital expands or contracts based on the strength or weakness of the real estate industry. Debt or equity programs and rela onships that worked for land developer or builder projects yesterday may no longer be viable op ons today. The land developer or builder objec ves in obtaining debt and equity are undoubtedly diff erent when developing in good versus bad real estate market cycles. Staying current on all the capital market funding opportuni es that are available and determining the best fi nancing programs is a challenging feat for any land developer or builder. DPFG consultants advise their clients on the wide range of capital structures.

Debt and Equity AdvisoryDebt and Equity PlacementWorkouts and Restructuring

PROPERTY TAX APPEALS

The real estate development business is subject to up and down cycles just like any other business. When the cycle turns down and values become depressed, a proac ve property owner will seek to appeal and reduce their assessed value for property tax purposes which in turn will reduce their property tax expense. Aside from the appeal process itself, a key aspect in any successful appeal is to accurately support the value of the property. Property tax rates based on ad valorem taxes and o en mes addi onal special taxing districts can be signifi cant and a successful appeal can result in signifi cant property tax savings. The consultants at DPFG are uniquely posi oned to perform property tax appeals due to their integrated experience in real estate valua on and special taxing district fi nancings.

Ad Valorem AppealsSpecial Taxing District AppealsAppeal Processing

Valua on

CDD MANAGEMENT SERVICES

DPFG provides a full range of CDD Management and CDD Special Assessment Services to meet the needs of both developer and resident controlled District Boards. For the long term well-being and pres ge of your community, our CDD Management Team has the exper se, intelligence, fi nancial acumen and crea vity to work with the District Board to preserve and enhance CDD infrastructure, refi ne and plan CDD opera ng budgets, manage funds and implement board decisions and policies.

CDD ManagementCDD Records Administra onManage Government Fund

Special Assessment ServicesBond Issuance Services

E X C E L L E N C E I N R E A L E S T A T E C O N S U L T I N G

Refund Collec on

w w w . d p f g . c o m

REPRESENTATIVE CLIENTS

DPFG maintains a strategic set of offi ces across the country focused on providing specialized solu ons that are customized to meet our client’s individual needs. DPFG’s senior management team is hands on and ac vely involved in each client engagement. We are selec ve about the engagements we undertake so that we can maintain a high level of senior management experience on each assignment.

Archstone Smith Focus Property GroupPulteArnaiz Development CompanyFritz Duda CompanyRanchwood HomesAthena GroupReyen and BardisBank of AmericaGranite Bay DevelopmentRichland Communi esBarra AmericanGriffi n Communi esSan Elijo Ranch, Inc.Beazer HomesH.G. Fenton CompanySCM HomesBluestone Communi esHighpointe Communi esShapel IndustriesBrehm CompaniesIns tu onal Housing PartnersShea HomesBrookfi eld HomesIntegral Communi es

Sheffi eld HomesBrookfi eld Land CompanyJMC HomesBRE Proper esK. HovnanianStandard Pacifi cBuie Communi esKB HomeStarwoodBuzz Oates Group of Compa-niesLaing HomesStratham HomesLakemont HomesCapital Pacifi c HomesLake Las Vegas ResortSunBelt HoldingsCapstone AdvisorsSunCal CompaniesCastle & CookeLennarLewis Communi esTaylor WoodrowCentex HomesLNR

Toll BrothersCentury Pacifi c HomesMa hews CompaniesCon nental HomesWarmington HomesCresleigh HomesWarmington LandDesert Troon CompaniesNewland Communi esOtay Ranch CompanyDiversifi ed Pacifi cOlympia GroupWilliam Lyon HomesDMB AssociatesPacifi c Bay HomesDR HortonPacifi c Century HomesPardee Construc onWoodbridge DevelopmentPardee Homes of NevadaWoodside HomesFieldstone Communi es

DPFG’s primary service areas are Arizona, California, Colorado, Idaho, Nevada, Texas, North Carolina, South Carolina and Florida however, DPFG’s services are also available to assist the real estate communi es in Georgia, Hawaii, Maryland, Mississippi, New Mexico, New York,

Oregon, Tennessee, Utah, Virginia and the State of Washington.

Offi ce Loca onService Area

Orange County, CA Offi ce27127 Calle Arroyo, Suite 1910San Juan Capistrano, CA 92675p: (949) 388-9269f: (949) 388-9272

Sacramento, CA Offi ce4380 Auburn Blvd.Sacramento, CA 95841p: (916) 480-0305f: (916) 480-0499

Phoenix, AZ Offi ce3302 East Indian School RoadPhoenix, AZ 85018p: (602) 381-3226f: (602) 381-1203

Boise, ID Offi ce950 West Bannock, 11th FloorBoise, ID 83702p: (208) 319-3576f: (208) 439-7339

Las Vegas, NV Offi ce2850 W. Horizon Ridge, Ste 200Henderson, NV 89052p: (702) 478-9277f: (702) 629-5497

Denver, CO Offi ce1615 California Street, Suite 411Denver, CO 80202p: (303) 534-5709

Aus n, TX Offi ce609 Castle Ridge Suite 310Aus n, TX 78746p: (512) 732-0295f: (512) 732-0297

Dallas, TX Offi ce8117 Preston Road, Suite 300Dallas, TX 75225p: (512) 732-0295f: (512) 732-0297

Charleston, SC Offi ce4000 S. Faber Place Dr., Ste 300North Charleston, SC 29405p: (843) 277-0021f: (919) 869-2508

Research Triangle, NC Offi ce1340 Environ Way, Suite 328Chapel Hill, NC 27517p: (919) 321-0232f: (919) 869-2508

Orlando, FL Offi ce1060 Maitland Center, Suite 340Maitland, FL 32751p: (321) 263-0132f: (321) 263-0136

Tampa, FL Offi ce15310 Amberly Drive, Suite 175Tampa, FL 33647p: (813) 374-9104f: (813) 374-9106

OFFICE LOCATIONS