First Bank Welcome

1 2 Boulevard One Residences

3 Presentation Outline 1) Overview of Volunteers of America - Doug 2) Development – VOA overview/the project came together – Doug 3) Design – challenges, LRDC review - Harsh 4) Finance – sponsor, project u/w, const/perm debt – Amber/Stu 5) Finance –putting all of the financing sources together & closing challenges - Steve 6) Construction & CO challenges - Harsh 7) Close – lease/up/project outcome/lessons learned – Doug 8) Q & A - all 4 VOA Overview

• A national, nonprofit, faith-based org. based in Alexandria • Serve 1.5 million people, 124 years old, & staff of 16,000 • One of the nation’s largest non-profit providers of Affordable Housing with over 400 communities • Advocacy in Colorado, other markets and Nationally (D.C.) • Housing Group Vision: To provide affordable, high quality, service enriched housing to those in need in support of the larger Volunteers of America mission of uplifting those in need.

5 Structure • Network - 36 branches or affiliates that offer a variety of services • National/Parent entity and Affiliates/local branches • Historically - 202 developer and opportunistic LIHTC developer • Current - LIHTC new development and recapitalization • Development staff - concentrated in National Office (Alexandria) with local development presence in Denver, New Orleans, Minneapolis, Dallas, & Sacramento. • New LIHTC - driven by development staff in the field and recapitalization driven by staff in Alexandria.

6 Structure (cont’d) • Housing Development-across the US (46 states) and Puerto Rico • Product Types - Senior, Permanent Supportive Housing, Family, Mixed Income, and Work Force. • Ownership Interests - varies from 100% National to varying splits with Affiliates. Also Joint Ventures with other developers. • Resident Services - offered in 88% of senior housing portfolio and 29% of non-senior housing • Goal - Develop new high quality assets that expand the portfolio and number served in key markets

7 Criteria for Evaluating Opportunities 1. Mission Alignment/Expand Services 2. Leverage of other community assets/good r.e. fundamentals  Access to transportation, grocery stores, & outdoor amenities  Proximity to job centers  Healthcare/Program opportunities 3. Community/Government Support – incl. gap funding 4. Financially Sound, Funding Availability(QAP) & Profitability 5. Quality Sites/Design 6. Affiliate presence/Development staff

8 VOA Underwriting Process 4 Step Process: 1. Development Review Committee – strategic fit, pre- development capital & negotiate PSA 2. Loan Committee I – deal approval, pre-development capital, & submit financing applications 3. Loan Committee II – final deal approval & close 4. National Board Approvals

9 Lowry Air Force Base – the Big Picture!

1 0 1 1 Lowry – History 101 • Francis Lowry – WWI pilot from Colorado shot down in 1917 • Lowry Field – Army Air Corps awarded the City of Denver a new air field in 1937 • Runway for B-29 Bombers – completed in 1941 • Air Force Base – early 1940’s trained WWII pilots • McKinney Home. Assistance Act – 1989 priority on federal land • Base Decommissioned/Closed – in 1994 (7,000 jobs/$295mm) • Redevelopment of the Base – 1997 through 2020 • Finance Center still exits – 2011 (Boulevard One)

1 2 Lowry Boulevard One – the Final Piece

1 3 Lowry Family Housing – Project Concept • Site – mixed use, pocket park, detention area, close to transit • Design – urban, sustainable, parking, Lowry Design Guidelines • Population - 20 units homeless/51 units families/1 Manager unit • Bedrooms - mix of 41 one’s, 22 two’s, & 8 three’s • Income Levels - 30% to 50% AMI • Amenities – Patio, Deck, Business Center, Comm. Room, Storage, Gardens • Financing – 4%/State, Debt, City, State, DHA, FHLB, & Land

1 4 Lowry - Timeline a. April, 2015 - Homeless Consortium Issues RFP b. May, 2015 – VOA/DHA strike a partnership c. July, 2015 – VOA/DHA Selected as Developer/Owner d. 6 months – all due diligence, feasibility, financing applications, 3 VOA internal approvals, neighborhood outreach/rezone start e. Feb, 2016 – Apply for 4%/State LIHTC f. March, 2016 – Rezone completed g. April, 2016 – CHFA awards 4%/State LIHTC h. May, 2017 – Denver & Lowry Design Review Com. Approval

1 5 Lowry – Timeline cont. i. June, 2017 – Financial Close/Break Ground j. July, 2018 – Target Construction Completion (13 months) k. Aug - Nov – Lease Up Period (4 months) l. Nov, 2018 – Construction Completion - C of O (17 months) m. Dec, 2018 – Lease Up Completed (1.5 months) n. June, 2019 – Permanent Loan Closing o. September, 2019 – Grand Opening

1 6 Lowry - Team  Co-Developers – VOA & DHA  Architect - Parikh Stevens Architects  Contractor – Pinkard Construction  Financial Consultant – SB Clark  Management Agent – VOA  Service Provider – VOA  Equity – Enterprise  Lender – First Bank

1 7 Design –

1 8 Site Design Drivers:

•Davis Bacon Wages •Denver Zoning Code •FD Access & Turnaround •Lowry’s Extra Parking Requirements •Coordination with CCLT Architecture Drivers:

•Clubhouse, Drive‐Through, Roof Deck •Exterior Materials –Blond Brick, Natural Wood •Blue Accents •Healthy Living Principles •Symbology Architecture Drivers:

•Clubhouse, Drive‐Through, Roof Deck •Exterior Materials –Blond Brick, Natural Wood •Blue Accents •Healthy Living Principles •Symbology Unit Design Drivers:

•Space Efficiency •PTACs

One Bedroom ‐ 590 sf Unit Design Drivers:

•Space Efficiency •PTACs

Two Bedroom ‐ 870 sf Finance – First Bank

2 5

First Bank and Affordable Housing • Participate in the communities we do business • Fills a tremendous need under current real estate market conditions • Work with excellent providers such as DHA, VOA, Enterprise, and SB Clark • First Bank’s experience and ability are a great match for projects Lowry • Single-close construction – converts from construction to permanent financing within a single loan structure • Work with other partners such as FHLB Topeka for sponsorship of AHP grants

2 7 Loan Process: From RFP to Closing Table • Local decision making is a key for projects like Lowry • First Bank has internal experts to help with loan structure, understanding of tax credit environment, and capital stack analysis • Reverter clause with government entity created a great challenge, requiring creativity and persistence • Sources/Uses of funds and equity schedule were fluid, requiring adaptability • Great sponsors/borrowers make great teams and great loans!

2 8 Why Lowry?

• First Bank has familiarity with site due to commercial and residential lending in Lowry • Fills a gap in a community where greater housing diversity is needed

2 9 Loan Status

• Working with VOA, DHA, & Enterprise to convert Loan to Permanent Terms • Verify affordability requirements • Ensure proper enitilements • Ensure quality of construction • Finalize remaining funding sources

3 0 Finance – SB Clark

3 1 3 2 3 3 Financing Highlights 1. Competitive State of CO LIHTC Award + 4% Non Competitive Federal LIHTC 2. Tax Credit Equity Solicited and Confirmed in the Face of Pending 2017 US Tax Legislation 3. Federal LIHTC Price $1.20 per $1.00 of Credit 4. Winning Investor Promised to Deliver Pricing Regardless of Tax Legislation Outcome 5. PAB Debt Provided by First Bank – Rate Locked Early and Extended as Required

3 4 Financing Highlights cont. 6. State Funded Both CHIF Loan (1%) and Housing Development Grant 7. Denver Department of Economic Development and Opportunity Grant 8. DHA Funds as Cash Flow Loan and Pledged Section 8 Vouchers 9. Federal Home Loan Bank Grant (Initially an Alternate)

3 5 Construction –

3 6 Construction Challenges:

•Value Engineering •Breezeway •PTACs

Value Engineering & Breezeway Construction Challenges:

•Value Engineering •Breezeway •PTACs

PTACs TCO/CO Challenges:

•Utilities in Archer Dr •Century Link •Denver Fire Final Product:

•Efficient •Livable •Durable •Contextual •Sustainable •Safe •Healthy •Community Final Product:

•Efficient •Livable •Durable •Contextual •Sustainable •Safe •Healthy •Community Project Photos & Closing Thoughts

4 2 Lowry – 4th level deck

4 3 Lowry – Outdoor Amenity Area

4 4 Lowry – Community Room

4 5 Lowry – Leasing Lounge

4 6 Lowry - Corridors

4 7 Lowry – 1 bedroom interior

4 8 Lowry – Challenges & Lessons learned 1. Construction Estimate in a rising cost environment/VE 2. Free land comes at a price – Reverter & Site Oversight 3. Many Sources = closing timing issues 4. Complexities of the utility company’s and final inspections 5. Great Location and a strong market filled the building quickly 6. In the end, it all paid off for the lucky residents, serve as a community asset, and will be a great asset for VOA & DHA!

4 9 Closing Thoughts  Financing - Pre-Dev Capital, Funding Sources, & Fluctuations  Choose your Team Carefully  Select Good Sites  Be flexible/contingency  Go Where the Wind is at Your Back  Get the Big Things Right

5 0 Thank You & Questions!

???

5 1