Clients turn to TCAM for expert assistance in managing their affordable housing and tax credit assets. TCAM works closely with clients to:
- Improve asset performance
- Maximize asset value
- Enhance control
- Save money
- Develop and implement portfolio plans
- Complete financings, dispositions and workouts
- Develop and implement Year 15 strategies
- Underwrite acquisitions
- Cut through complexity
- Solve problems
TCAM tailors its services to the client and the situation. Services fall into three main categories:
TCAM monitors and reports on operations and trends to make sure performance stays on track. We worry about the details and the day-to-day so that clients can turn their attention to other matters. Our oversight ensures that problems are addressed. Our insights identify opportunities to improve results and increase success.
For investors, lenders, fund sponsors and city and state housing finance agencies, TCAM provides long-term oversight, risk mitigation and reporting services at both the asset and investment levels.
- Example: On behalf of a large bank, TCAM monitors the lease-up and operations of affordable housing investments. The client has a large staff and a wide array of assets under management. But it also has promising new business opportunities. TCAM’s services allow the client to access affordable housing expertise for its portfolio without adding staff or distracting employees from much more pressing – and rewarding – activities.
- Example: TCAM provides asset management, workout and disposition services for a large insurance company that has outsourced asset management of its direct tax credit investment portfolio. In outsourcing the responsibilities to TCAM, the client reduced its administrative expenses and gained access to a broader set of skills to maintain and improve investment performance.
For owners, TCAM provides day-to-day oversight of property managers and property operations. We are part of the owner’s team in developing the plans for the assets and following up on all details so that the plan, and the manager, stay on track. We collect and analyze the operating data so the client has a clear picture of property operations at all times.
- Example: On behalf of a national owner and developer, TCAM is working closely with property management firms managing a large portfolio of properties across the country to improve operations and asset performance. At a fraction of the cost of hiring its own staff for the purpose, the client’s Director of Asset Management has timely, high-quality information on the portfolio and ready access to TCAM’s affordable housing expertise and resources.
For subordinate lenders, TCAM provides loan administration and analytical services so that the lenders can both ensure compliance on the part of borrowers and improve collections on their loans.
- Example: TCAM works with a city agency with a large portfolio of subordinate loans provided to affordable rental housing properties, collecting and analyzing data on the loans, properties and borrowers, risk rating the loans, and determining amounts due to the city from cash flow and residual proceeds.
For guarantors, TCAM monitors and measures risk and identifies ways to improve performance and mitigate risk.
- Example: On behalf of a major financial institution, TCAM shadows the asset management of a large portfolio of affordable housing tax credit properties to minimize the risk of claims on the client’s guarantees. TCAM’s independent collection and analysis of financial data from the properties provides the client with clear information on exposure and identifies opportunities to improve the client’s position.
- Asset Management Process Assessment and Advice
- Strategic Organizational Consulting
Clients tap TCAM’s expertise, experience and flexibility for many engagements that do not fit a standard assignment. TCAM has helped owners restructure their asset management activities, developed asset management processes and tools for state and city agencies and housing authorities, and benchmarked syndicator workloads. TCAM also helps affordable housing organizations develop business plans and implement specialized training for their asset and portfolio management staffs.
- Example: TCAM worked closely with a large public housing authority to develop a full set of asset management policies and procedures, and to select and implement a data management system.
- Example: TCAM assessed the asset and portfolio management operations of a non-profit developer/owner, benchmarking the client’s activities and staffing ratios compared to others in the industry and identifying ways in which the client could better position itself for future growth.
TCAM’s deep understanding of affordable housing helps clients unlock value in existing investments, and understand the value in prospective new investments.
- Due Diligence
- Transfers of General Partnership and Limited Partnership Interests
- Recapitalization Strategies
- Portfolio Restructurings
TCAM helps clients identify and complete transactions at both the portfolio and property level. Transactions include acquisitions, refinancings, dispositions and workouts as well as restructurings, transfers of interests, mergers and other changes that require innovation and expertise. Depending on the needs of the client, TCAM can lead the transaction and identify solutions and sources of capital, and/or provide in-depth, hands-on analytical support.
- Example: TCAM directs the disposition of limited partnership interests on behalf of a large institutional tax credit investor, identifying and valuing interests that are ready for disposition, and negotiating and managing the closing of the transactions to maximize value and limit administrative costs for the client.
- Example: TCAM provides underwriting services for a real estate investment trust acquiring affordable properties to generate cash flow and residual value for its investors. TCAM works closely with the buyer partnerships to evaluate markets, rents, expenses and capital improvement plans, providing the in-depth analytical support to allow the client to make well-considered investment decisions.
- Example: TCAM works with affordable housing developers with properties approaching the end of their 15-year tax credit compliance period. TCAM analyzes the complex array of partnership, financial, operational and tax issues involved in these investments to identify options for the owner in addressing the future needs of the properties and in approaching the many others stakeholders whose cooperation will be needed for the next stage of the cycle. .
- Example: A state housing allocating agency engaged TCAM to analyze the operations and evaluate the property management of a large, troubled HOPE VI property. TCAM’s independence and expertise produced a balanced diagnosis of a complex and contentious situation, helping to reconcile opposing perspectives so that the parties can work together on a resolution of the property’s problems.