Rebuilding Communities After

1

• Rebuilding Communities After
• Hurricane Katrina With
• New Markets Tax Credits
• James D. Howard, Jr.
• TransCapital , LLC

2

• Working through the Damage
• 450,000 People Displaced
• 5.5 Billion in Damage to Infrastructure
• 56 of Schools in Affected Areas Remain Closed
• 30 Smaller Labor Force in New Orleans
• 39 Increase in Rent in New Orleans
• 661,057 Housing Units Damaged
• Sources MS Chamber of Commerce, 2005 Louisiana
  Hurricane Impact Atlas, FEMA 548 2006, Brookings
  Institute

3

• TransCapital's Involvement in the NMTC Program
• TransCapital has been extensively involved in the
  NMTC Program
• since its inception
• Successfully supported NMTC applicants which have
  received in excess of 2 billion in allocations
  of New Markets Tax Credits.
• Structured, marketed and closed NMTC funds with
  committed debt and/or equity in excess of
  400,000,000 of QEIs.
• Closed QEIs utilizing leveraged and non-leveraged
  structures including tax-exempt bond financing.
• First NMTC Go Zone transaction closed in January
  of 2007.

4

• NMTC Go Zone Transactions
• Completed and Pending
• Enta Business Loan to Start-up Louisiana
  Technology Company in Baton Rouge, Lousiana
• Mixed-Use Workforce Housing Project in Biloxi,
  Mississippi
• Revitalization of a Severally Damaged Historic
  Building in Hattiesburg, Mississippi
• Mixed-Use Workforce Housing Project in Jackson,
  Mississippi

5

• Enta One of the First NMTC GO ZONE Transactions
  Completed
• 13,325,000 QEI
• Enta is a start-up technology company that
  provides low-cost ticketing services to sports
  and entertainment venues nationally
• Enta chose to locate in Louisiana due to the Go
  Zone credits ultimately selecting the Louisiana
  Technology Park located in a low-income community
  in Baton Rouge
• The Company expects to provide approximately 40
  direct jobs in one of the poorest areas of Baton
  Rouge
• Favorable NMTC financing allows the Company to
  direct its cash toward expansion, instead of to
  providing returns for equity investors

• Mississippi

6

• Mixed-Use 250 Unit Workforce Housing Development
• 66,000,000 mixed-use workforce housing project
  targeting Biloxi and Gulf Coast residents
• The project will address Biloxis residential
  housing shortage while providing competitive
  retail and commercial space
• Multiple CDEs are providing allocation to the
  project
• Challenges include inflated land costs,
  escalation of construction costs, insurance
  premiums, and access to skilled labor

7

• Revitalization of Katrina Damaged Historic
  Building
• Severally damaged building remaining vacant and
  in need of repair
• Combined effort with University of Southern
  Mississippi and local lenders to utilize as
  university classrooms and offices
• Approximately 12,000,000 in rehabilitation costs
• Challenges include conversion to functional use
  while maintaining historic attributes, rising
  cost of construction, and ability cash flow at
  market rates

8

• Mixed-Use For-Sale Housing in Jackson
• 32,000,000 mixed-use for-sale housing
  development in Jackson, Mississippi
• Combined effort with Jackson State University and
  multiple CDEs
• 106 for-sale units sold offered up to 25 below
  market value, subsidized by NMTCs
• 25,000 SF retail with 78 for rent student housing
  apartments
• Innovative below market rate for-sale units
  offered to university staff and targeted priority
  groups

9

• Succeeding in the Go Zone
• Patience
• Innovative capital structure to maximize subsidy
  and local community impact
• Persistence to work with local lenders,
  municipalities, developers, and agencies often
  with disparate views
• More patience and persistence

10

• James D. Howard, Jr.
• jhoward_at_transcapitaltaxcredits.com
• 2930 East Camelback Road, Suite 215
• Phoenix, AZ 85016
• Phone [phone]
• Fax [phone]