24-25 Oct Poll results

Transcription

1 AHIC Fall Meeting Oct 2018 Poll results

2 Table of contents INVESTORS: What percentage of developer fee are you comfortable with being deferred? EVERYONE: The Guidelines increase the minimum recommended capital contribution holdback until stabilization/8609 from 15% to 25%. How often do you see the 25% holdback in the market? INVESTORS: What percentage of market rate units are you comfortable with? DEVELOPERS: What percentage of market rate units do you want in your projects? DEVELOPERS: If you answered >10% to question 5, would you be willing to proceed if only direct and proprietary investors would be interested, and multi-investors might have to pass? EVERYONE: What are you mainly seeing in terms of months of operating reserves? INVESTORS: Are you comfortable with the release of operating reserves during the credit period? DEVELOPERS: What is your preference for operating reserves?

3 Table of contents EVERYONE: What is your preference when the operating reserves are released? EVERYONE: For Guarantors, the Guidelines maintain recommendations for a minimum net worth at the greater of $5MM or 25% of total development costs and minimum net liquid assets at the greater of $1MM or 5% of total development costs. Do you see this: INVESTORS: In a multi-investor fund, how important are overall metrics of the fund to you? (scale of 1 to 5, from not at all to very) INVESTORS: In a multi-investor fund, how important is who the other investors are to you? (scale of 1 to 5, from not at all to very) INVESTORS: In a multi-investor fund, how important are the individual properties in the fund to you? (scale of 1 to 5, from not at all to very) EVERYONE: Are deals getting riskier? EVERYONE: If yes, why? EVERYONE: Is that being reflected in pricing in most cases? EVERYONE: If no, why?

4 INVESTORS: What percentage of developer fee are you comfortable with being deferred? % % % Other 25 %

5 EVERYONE: The Guidelines increase the minimum recommended capital contribution holdback until stabilization/8609 from 15% to 25%. How often do you see the 25% holdback in the market? Less than 50% of the time % 50% of the time 21 % All of the time 3 %

6 INVESTORS: What percentage of market rate units are you comfortable with? % % 40 5 % Or more 2 %

7 DEVELOPERS: What percentage of market rate units do you want in your projects? % % 40 7 % Or more 0 %

8 DEVELOPERS: If you answered >10% to question 5, would you be willing to proceed if only direct and proprietary investors would be interested, and multiinvestors might have to pass? Yes % No 22 %

9 EVERYONE: What are you mainly seeing in terms of months of operating reserves? % 4 11 % 6 70 %

10 INVESTORS: Are you comfortable with the release of operating reserves during the credit period? Yes 10 % No 40 % Sometimes 50 %

11 DEVELOPERS: What is your preference for operating reserves? Hold until the end of the compliance period % Release with conditions during the credit period 29 % Release tied to ODG? 36 %

12 EVERYONE: What is your preference when the operating reserves are released? Distribute according to the cash flow waterfall % Return to the investor 8 % Fund project improvements 22 % Return to the HFA 0 %

13 EVERYONE: For Guarantors, the Guidelines maintain recommendations for a minimum net worth at the greater of $5MM or 25% of total development costs and minimum net liquid assets at the greater of $1MM or 5% of total development costs. Do you see this: Less than half of the time 24 % More than half of the time 65 % All of the time 11 %

14 Rating poll INVESTORS: In a multi-investor fund, how important are overall metrics of the fund to you? (scale of 1 to 5, from not at all to very) Score: % 33% 4% 7% 2%

15 Rating poll INVESTORS: In a multi-investor fund, how important is who the other investors are to you? (scale of 1 to 5, from not at all to very) Score: % 22% 22% 16% 4%

16 Rating poll INVESTORS: In a multi-investor fund, how important are the individual properties in the fund to you? (scale of 1 to 5, from not at all to very) Score: % 18% 18% 2% 4%

17 EVERYONE: Are deals getting riskier? Yes 65 % No 35 %

18 Wordcloud poll EVERYONE: If yes, why? space market more complex odg higher rates multiple odrs over supply overhang rehabs reputational rising lower feesdeveloper complexity relocation leverage risk terms guarantees odr interest rate risk higher leverage month stretched 36 deal construction populations paid investor rents higher debt subsidy reliance high markets underwriting assumptions low reserves pricing market rate new gps lowball opex more equity upfront increases income fewer sources

19 EVERYONE: Is that being reflected in pricing in most cases? Yes 5 % No 95 %

20 Wordcloud poll EVERYONE: If no, why? inconsistency in underwriting someone will always pay competition cra capital driven demand higher deals pricing peak market alternative al gore price discipline price compression lack not more risk credit price floors irrational mission creep lack of supply poor underwriting sources excess demand not riskier geography investor stressed trump fear chasing deals timing of negotiations