Housing GSO: HRA Greensboro Affordable Housing Plan

PRESERVATION FUND CASE STUDIES

JBG Impact Fund / Washington Housing Conservancy Washington, DC Established 2018

The Washington Housing Initiative was launched by the JBG Smith Impact Fund (“Impact Pool”) and the Washington Housing Conservancy (WHC), in partnership with the Federal City Council to promote preservation of affordable workforce housing. The Initiative finances the acquisition and development of mixed-income multifamily properties, investing in projects with tax-exempt junior mortgages and mezzanine loans. The investments focus on preserving affordability in “High -Impact Locations” where land and asset values are currently relatively affordable, but which are expected to have outsized value increases over the next 5-10 years. The Impact Pool seeks investor returns of 7% (after tax) which is comparable to similar after tax returns in traditional market rate investment funds.

Need: Dramatic loss of naturally occurring affordable housing (NOAH) buildings in region with growing affordability challenges. Goal: Maximize affordability for middle-income families in high-impact locations, 51% at 80% AMI or below

WHC and Fund purchase building with NOAH Impact Fund and First Mortgage. WHC and Fund own building for 10 years, building equity while Fund ensures compliance. 2

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Fund investment repaid at year 10 refinance. Project remains affordable through WHC stewardship.

WHC or Fund identifies preservation opportunity that meets the investment guidelines.

Fund Size: $93M (as of September 2019)

Fund Product: Mezzanine debt for NOAH projects in high-impact locations in the region

Public Funds Leverage : No public funds, $13.5M donated from local philanthropic and development community to create non-profit steward

Lender/Bank

JBG Impact Fund

Fund Investment

First Mortgage

Administrator: JBG Smith Impact Manager, a local developer

Washington Housing Conservancy

Washington Housing Conservancy

Washington Housing Conservancy

Refinance at Year 10

Users: The Washington Housing Conservancy, a non- profit created in conjunction with the Fund.

NOAH Building

JBG Impact Fund

NOAH Building

HR&A Advisors, Inc.

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