The use of land secured financing's has been instrumental in solving problematic circumstances created by the passage of property tax referendums that created a void in financing regional and sub regional infrastructure burdens. Today, land developers are expected to pay for schools, roads, fire stations, and parks as a condition of development. With little assistance from state and federal agencies, the financing of infrastructure in new development areas is relying more and more on the use of land secured financing's. DPFG consultants have been directly or indirectly involved in over 2,100 land secured public financing's totaling over $11.0 billion dollars.
Review legal documents for financial consistency
Review preliminary and final official statements
Review preliminary and final official statements
Review bondholder compliance provisions
Determine district boundaries
Evaluate bond phasing options
Prepare engineer's report
Evaluate appraisal and market study
Review property tax statements for accuracy
Prepare administration manuals
Conduct educational workshops
Prepare CFD policies
Determine eligible facilities and fees
Assist in DRE and disclosure notices
Resolve Public/Private differences
School Mitigation Agreements
Site Acquisition Analysis
School Funding Alternatives
School District Negotiations
Land developers and builders are becoming more and more involved in public school construction matters that impact their development projects. Adequate school housing of project students is essential to insuring a successful residential development project. The area of school construction is rapidly changing in many states throughout the U.S., especially in terms of school construction costs, the timing for opening new schools, and the methods of funding new school construction. Some states have already imposed school fees for new school construction and many other states are in the process of establishing new school fees. States that do not currently impose school fees often use alternative methods of obligating new development to cooperate or contribute funding for new school construction costs. DPFG consultants have extensive knowledge in this area.
Identify appropriate phasing of school construction
Negotiate "Iron-Clad Mitigation" agreements
Determine appropriate mitigation costs per unit
Evaluate alternatives for financing school fees
Calculate state reimbursement credits under school agreements
Calculate local G.O bond credits
Evaluate school district's financial position
Determine the reasonable costs of schools
Evaluate surplus school site alternatives
Assist in securing state funding
Restructure existing school agreements
Forecast school site and facility requirements
Review or assist in preparing appraisals for school sites
Reimbursement and Credit Structuring
Reimbursement and Credit Processing
Reimbursement and Credit Monitoring
Look-Back Audits
Capitalizing Receivables
Land developers and builders often have many different 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 relative to school construction. Inevitably, these reimbursements fall through the developer or builders organizational cracks. DPFG consultants can help developers and builders in tracking, reporting, collecting, 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.
Identify opportunities for lump sum payment of reimbursements
Identify private sector purchase of reimbursement rights
Prepare monitoring spread sheet of key dates
Determine methods of avoiding reimbursements
Prepare reimbursement or credit proposals
Determine reimbursement repayments risk factors
Assist in accelerating the value of credits
Identify company wide reimbursement and credit agreements
Identify credit offsets or borrowing between funds
Identify credit offsets or borrowing between funds
Fiscal Impact Reports
Verification of Fiscal Impact Assumptions
Negotiate Findings
Financing Negative Impacts
Local governments use fiscal impact analysis and reports more and more as a means of compelling new development to mitigate any negative fiscal impact such project may have on the municipality. There are many different reasons why local governments use this analysis ranging from a planning issue to a financial issue. DPFG consultants pride themselves in obtaining a solid foundation of underlying facts to assist the developer in securing a fair outcome in this process. If the project is faced with imposing a negative fiscal impact on the municipality, there are a multitude of financing alternatives that can be used to absorb this cost.
Compare other agency fiscal impact reports to subject
Develop in-lieu alternatives to agency's fiscal impact approach
Identify key variables or assumptions for agency discussion
Review the agency's historical fiscal impact reports
Prepare financial "what-if" analysis
Meet with agency to discuss findings
Critic other fiscal impact reports
Represent developer groups on fiscal impact disputes
Perform detailed research on major report assumptions
Monitor any ongoing monetary issues of fiscal impact analysis
Police and Fire Taxing Districts
Landscape and Lighting
Maintenance Districts
Parcel Taxes
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 facilities maintenance to new development. State budgetary pressure and limited local government funding has put local government on the offensive to seek alternative sources of revenue in order to balance their budgets. DPFG consultants, apply their experience to ensure that any local government efforts to require new development to pay for municipal services and public facilities maintenance is properly justified based on the particular facts and circumstances.
Evaluate if annexing into an existing district is advantageous
Represent developer consortium or BIA in disputes
Assist in documenting maintenance or services obligations
Identify opportunities to reduce maintenance costs
Determine which statue is most appropriate to use
Determine phasing alternatives given funding constraints
Prepare special tax or assessment formulas for property tax levies
Determine availability of other funding sources unrelated to district
Perform surveys of other agencies maintenance or services rates
Determine if services off-loading is justifiable
Identify other benefiting participants
Community Development Districts
General Improvement Districts
Municipal Utility Districts
Community Services District
Municipal Management Districts
Several states in the U.S. allow for the establishment of the municipal districts which are unique and different from traditional government agencies. These municipal districts often have greater limited special purpose functions than traditional governmental agencies; however, they operate in a very similar manner as a traditional governmental agency in terms of establishing an oversight board, establishing an operating budget with direct and indirect labor costs, and establishing a capital facilities budget relative to the construction and/or acquisition of public improvements. These new municipal districts help developers mitigate and resolve development impediments they might not otherwise overcome, as well as provide greater control over the level of services and public improvements within their development projects.
Monitor and file all district reporting requirements to the applicable governmental agencies
Perform district management, treasurer, accounting and clerk functions on behalf of the municipal district
Solicit and negotiate bids for maintenance relates services of the district
Provide comparatives of other districts and their tax rates and fee charges
Levy assessments necessary to pay bond debt service requirements
Prepare fee charges and development fee studies for district
Prepare multi-year operating budget projections
Prepare bid packages for public improvement contracts
Act as a liaison between the developer and the traditional governmental agency relative to any impediments involved in forming the district
Assist in completing the legal requirements necessary to form the municipal district
Utilize MUNIS governmental accounting software to account for all district transactions
Meet regularly with the board and provide recommendations
Model bond issuance alternatives to determine best alternative
Monitor and comply with all bond issuance reporting requirements
Provide accounting information for outside independent audit and audit report
Identify Municipal district opportunities and the pros and cons of such districts
Establish the districts operating budget
Development Fee Studies
Evaluation of Fee Methodology
Litigation Support
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 influenced by many factors, such as, economics, politics, and, of course, technical benefit analysis. Many different cost allocation methods can be deployed in performing technical benefit analysis to yield significantly different development fee impact amounts. DPFG consultants have the requisite experience to establish or evaluate the appropriateness of development impact fees being imposed by local government.
Determine adequacy of area of benefit
Determine appropriate fee credits or reimbursements
Develop impact fee leveraging alternatives
Develop alternatives to establishing development impact fees
Prepare impact fee cash flow revenue/expenditure model
Critique development impact fee studies prepared by others
Survey applicable development fees of other agencies
Determine impact fee offset and borrowing strategies
Prepare development impact fee reports
Prepare development impact fee tracking models
Redevelopment Proposals
Tax Allocation Bonds or Notes
Pass-Through Agreements
Redevelopment Cash Flow Projections
Tourism Improvement Districts
Tax Increment Areas
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 constructing better 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 field that can foster a win-win situation. Today, redevelopment district financing's represent one of the largest areas of real estate public/private partnerships. Oftentimes, redevelopment projects can become political so it's important to craft a financing plan that is acceptable to the developer, municipality, and community.
Identify Or Evaluate Redevelopment Opportunities
Develop Redevelopment Financing Structures
Calculate Sources Of Redevelopment Revenues
Evaluate Affected Agency Agreements
Determine Redevelopment Compliance Measures
Develop Bond Leveraging Opportunities
Assist In Preparing Memorandum Of Understandings
Project Agency Revenues And Expenses
Prepare Redevelopment Proposals
Assist In Negotiating Redevelopment Transactions
Prepare Reuse Analysis Or Reports
Restructure Existing Redevelopment Transactions
Evaluate Existing, Prior, And Senior Subordinate Pledges
Assist In Selling Agency Notes In Secondary Market
Identify Pass-through Agreement Opportunities
Prepare Redevelopment Plans
Housing Revenue Bonds
Inclusionary Housing Requirements
Financing Set Aside Funds
Tax Credits
Perhaps one of the most challenging areas in the real estate development process is providing a sufficient level of affordable housing stock to consumers of low and moderate incomes. Achieving an equitable balance in affordable housing requires mutual cooperation among public and private sector participants. The affordability gap can be significant in many housing markets across the U.S. and this makes the goal of providing affordable housing even more difficult to achieve. DPFG consultants understand that the future requires the application of creative ideas and solutions because no single legislative tool exists to solve this dilemma.
Calculate Inclusionary Housing Requirements
Determine Other Agencies Inclusionary Housing Requirements
Structure Methods Of Financing Affordable Housing
Develop Public/private Partnership Arrangements
Evaluate Redevelopment Funding Options
Evaluate Alternative Housing Construction Strategies
Structure Multi-family Bond Issues
Review Local, State And Federal Programs
Summarize Current Affordable Housing Approaches
Determine Most Successful Affordable Housing Model
Identify Cost Gap Funding Alternatives
Assist In Valuing Affordable Housing Alternatives
Identify Project Subsidy Options To Neutralize Valuation
Certificates of Participation
G.O. Bonds
Infrastructure Financing Districts
Industrial Development Bonds
State and local governments have numerous financing tools that can be used to solve many different kinds of funding-related problems. For example, Mello-Roos financing in California, if structured properly, can serve as an efficient line of credit for an agency to finance public improvements within its five-year capital facility plan. Industrial Development Bonds can serve a critical role in attracting or retaining company relocations and jobs. Local general obligation bonds can help close the funding gap on new school construction or other necessary public improvements. These are just a few examples of how DPFG consultants can help.
Calculate Bond-supported Revenue Streams
Identify Industrial Development Bond Opportunities
Determine Maximum Bond Amounts
Prepare Industrial Development Bond Applications
Develop Bond Credit Criteria For Bondholder Security
Prepare Financing Proposals
Interrelate Multiple Financings To Solve Funding Gaps
Identify Infrastructure Financing District Opportunities
Develop Bridge Financing Alternatives
Assist In Compiling Information For Local G.o. Bond Campaign
Prepare Cash Flow Analysis Of Revenues And Costs
Calculate Certificates Of Participation Lease Payments
Evaluate Federal Or State Funding Possibilities
Prepare Financing Proposals To Appropriate Public Agencies
Compliance Analysis
Property Tax Reviews
Appraisal Reviews
Dispute Resolution
Proper planning and implementation of financing transactions should ultimately lead to proper administration of the transaction so that any ongoing compliance matters are easily processed. Many times local governments and developers are left to deal with complicated financing programs or agreements with little or no assistance from the participants originally involved in structuring the financing's. Sometimes, these complicated agreements are not very clear or are silent on certain financial related matters, in which case a quest for the intent is necessary. Additionally, many agreements have ongoing obligations that require the developer's compliance. DPFG consultants have the expertise and experience in this area.
Analyze bondholder covenant compliance provisions
Evaluate property tax statements for accuracy
Review annual tax levies from land-secured financing's
Review other agreements for compliance
Process property tax refund claims
Review merchant builder purchase agreements
Evaluate school fee studies of school districts
Prepare DRE submittals
Review RDA pass-through agreement payments
Evaluate value conclusion of appraisal
Review state funding applications for new school construction
Provide recommendations when disputes arise to avoid litigation
Prepare public financing information for financial statements
Process utility refunds
Development Agreement Analysis
Impacts of Conditions and Exactions
EIR Alternatives
Public Facilities Financing Plan
When approval to develop a project is received, local government imposes conditions under which the project can proceed. These conditions can have a significant financial impact on the developer, and can sometimes over burden the project feasibility. It is important that alternative methods of satisfying the conditions be evaluated. An important result of the entitlement process is approval of a project with well-balanced conditions so that it will ultimately succeed from both a public and private perspective. DPFG consultants can determine the costs and benefits of this process and provide meaningful recommendations for cost effective solutions.
Determine Equity And Fairness In Conditions
Assist In Preparing Specific Plan
Develop Cost Reduction Strategies
Prepare Public Facilities Financing Plan
Determine Financial Impacts Of Alternative Conditions
Evaluate Traffic Studies
Calculate Financial Impact Of Eir Alternatives
Quantify Financial Net Benefits In Development Agreements
Recommend Project Conditions Language
Evaluate Annexation Opportunities
Participate In Entitlement Negotiations
Calculate Financial Impact Of Map Conditions
Assist In Litigation Support
Recommend Public Financing Language In Development Agreements
Acquisition and Disposition Analysis
Project Financing
Restructuring Analysis
Portfolio Analysis
The importance of properly evaluating the cash flow of a real estate transaction in today's real estate environment has never been more critical. Given the volatility and uncertainty in prices, costs and financing, the wise developer is evaluating project cash flow projections on a regular basis. Realistic project inputs will undoubtedly provide realistic project cash flow results and DPFG consultants are uniquely positioned to provide this service. Additionally, the timing recognition of revenues and costs in cash flow analysis needs to be properly verified to obtain accurate valuation results.
Develop iterative "What-if" analysis
Perform loan staff function for client
Provide recommendation to improve cash flow
Review market studies
Review appraisals
Development cost review
Evaluate third party pro forma
Due Diligence
Plan Check Processing
Risk Management
Budget Management
A real estate development project will often stumble if it is not properly staffed with an experienced project manager. A project manager must take on the daunting task of solving a multitude of project issues to position the project for development. In a sense, the project manager is like a quarterback in football whereby he or she has to coordinate and process project issues at the same time with many different types of industry specialists. Comprehensive project management is essential in today's business environment and building a team with DPFG's technical resources from across its diverse practice areas in real estate will improve the overall success of your project. DPFG consultants are there every step of the way to ensure your project is on time, within budget, and a superior project.
Expediting of plan check review process, building permits and fee payments
Negotiate mitigation, development, and fee deferment agreements
Process loan draws
Represent the client's project in public meetings
Negotiate cost sharing agreements and MOU's with developers
Create and maintain the development schedules and provide weekly status reports
Prepare, submit, process and expedite project submittal packages
Obtain land-use approvals from local, state, and federal agencies
Investigate legal, environmental, physical and political aspects of project
Determine cost of agency fees, R.O.W., and improvements necessary for project development
Meet with client design team consultants to provide direction, quality control, and streamline the project design and plan check approval process
Create and maintain budgets, monthly cash flows, project proformas, and development schedules
Submit and track utility reimbursement packages
Provide recommendations to reduce cost of capital
Recommend the optimal capital structure
Prepare restructuring plan with existing capital participants
Assist in identifying and accessing appropriate capital sources
Review cost of capital and timing requirements for each component in the capital stack
Ad Valorem Appeals
Special Taxing District Appeals
Appeal Processing
Valuation
Refund Collection
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 proactive 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 oftentimes additional special taxing districts can be significant and a successful appeal can result in significant property tax savings. The consultants at DPFG are uniquely positioned to perform property tax appeals due to their integrated experience in real estate valuation and special taxing district financing's.
Recommend capital partners and investors covering the entire risk spectrum
Provide capital solutions for securing interim financing to reposition or stabilize a property, moving up the leverage curve on new projects, or releasing "trapped equity" on an existing asset or portfolio
Evaluate capital sources and cost of capital of equity financing, mezzanine loans, pre-sale investments, sale leaseback transactions, and a variety of other structured finance transactions
Identify The Owner's Opinion Of Value(s) And/or Target Value(s) For Tax Year In Question
Prepare And File Documentation To The Appraisal District And/or Local Taxing Agency
Assist In An Advisory Role In Any Property Tax Valuation Litigation On Behalf Of The Property Owner(s)
Gather Information From Property Owner(s) In Order To Prepare The Most Effective Petition For Tax Year In Question
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 prestige of your community, our CDD Management Team has the expertise, intelligence, financial acumen and creativity to work with the District Board to preserve and enhance CDD infrastructure, refine and plan CDD operating budgets, manage funds and implement board decisions and policies.
DPFG’s approach is based on a solid reputation for financial stewardship, open communication between CDD Board members and the members of our team, and our ability to strive to get the most benefit from each component of your budget and programs.
CDD Management – Manage the CDD pursuant to Chapter 190 and related provisions of Florida Statutes; advise the CDD Board on substantive, procedural and regulatory issues relating to District matters; CDD budget development and implementation; administer contracts regarding community infrastructure and amenities; oversee management team, District field manager and other staff
CDD Records Administration – Prepare legal notices, agendas and meeting packets; prepare official minutes; manage, organize, and archive official records; file appropriate records and reports with government agencies; process records requests and other communications
Manage Government Fund Accounting System – Prepare financial statements; implement government investment policy; prepare government mandated financial reports; coordinate with auditors on annual independent audits; perform all other government required financial functions pertaining to District administration
CDD Special Assessment Services – Provide professional CDD assessment management and related CDD financial advisory services; levy and collect CDD special assessments; services include preparing an annual CDD assessment roll and coordinating with county taxing authorities for the collections
CDD Bond Issuance Services – Work with the CDD underwriter and CDD financing team regarding CDD bond issuances; prepare assessment methodology reports; analyze and recommend assessment structures; restructure CDD assessments; benefit analysis; testify at CDD bond validation and CDD assessment hearings; provide ongoing advice to the Board regarding bond financing matters
CDD Field Operations – Responsible for the daily operations of the CDD to preserve and enhance infrastructure and asset protection; direct field contract projects; coordinate with CDD Manager and Project Manager on contract administration; and administer field staff and related functions
For Information regarding Field Services, please visit our website at www.dpfgfieldservices.com
For Information regarding Disclosure Services, please visit our website at www.dpfgdisclosure.com
