THIS IS A CONFIDENTIAL & PROPRIETARY DOCUMENT

NPIC-EDC TAX CREDIT INVESTMENT FUND (TCIF)

PRIVATE PLACEMENT AGENT:

(TBD – a Major Investment Bank)

THIS TERM SHEET IS NOT AN OFFERING
TERM SHEET IS FOR DISCUSSION PURPOSES ONLY

TCIF Amount:

US $100,000,000.00
Minimum Investment: $5,000,000.00, per qualified investor

Qualified Investors:

California based Institutional Investors with taxable profits are the presumed qualified investors in TCIF

TCIF Manager:

NPIC EDC, Inc.

Ninoos Y. Benjamin, Chief Investment & Administrative Officer

Paul Pastore, Chief Underwriter & Transaction Structuring

Melva Benoit, Director of Investors Relationship

Gerardo C. Lopez, Director of Asset Management & Compliance

Carlin Letona, Director of Property Management

Sargis Khaziràn, Treasurer

 

Investment Type:

TCIF will invest, as limited partner in the following tax-credit type opportunities:

(i) Low Income Housing Tax Credits (LIHTC)
• 9% LIHTC
• 4% LIHTC (augmented by tax-exempt housing revenue bonds)

(ii) Historic Preservation Tax Credits (HPTC) Incl., Façade Easements

(iii) New Market Tax Credits (NMTC)

• Qualified Commercial Properties
• Qualified Mixed-Use, and Mixed-Income Properties

TCIF Manager may invest in projects and transactions sponsored by affiliated entities

Investment Term:

Minimum term for each investment will be as follows:

LIHTC: Ten (10) years, plus* HRTC: One (1) year
NMTC: Seven (7) years

(*) The term of each investment, as noted above, are plus additional five (5) years at end of each tax-credit period in order to account for redemption period

Return Type:

Investors returns will be from and in the form of:

(i) Annual Tax Credits; and

(ii) Annual Credits for Depreciation & Amortizations

Investors in TCIF may utilize and apply the above noted tax-credits and deductions against annual taxable profits

Targeted Return:

Targeted internal rate of return (IRR) from the investments will be at a minimum twelve percent per annum (12%, p.a.)

Manager’s Fee:

Pass-though of direct costs and expenses, plus
(i) Origination fee: 0.25% per investment
(ii) Annual Asset Management Fee: 1.75% of invested funds
(iii) Incentive Fee: 20% of return in excess of 12% IRR, per project (iv) Exit Management Fee: 0.25% per investment

Bridge Loan:

TCIF will provide secured bridge loans, at market terms and conditions, for acquisition and predevelopment costs to projects that are eligible for allocation and receipt of LIHTC

The bridge loans will be repaid (supplanted) from LIHTC proceeds

TCIF Counsel:

Transactions Counsel: TBD
Tax Counsel: TBD

TCIF Auditor:

TBD