Texas Housing Conference 2006:The Winds of Change

July 26 - 27, 2006

Hosted by The Texas Affiliation of Affordable Housing ProvidersCover photo taken by bill Wenson, president, Wenson & assoC., inC.

Officers:

PresidentDiana McIverDMA Development Co., LLC

Past PresidentJerry WrightCapmark Securities, Inc.

President-ElectG. Granger MacDonaldMacDonald & Associates

Vice PresidentTom ScottCoach Realty Services

Vice PresidentMike SugrueSolutions Plus, Inc.

TreasurerTim KemperReznick Group

Directors:

Don BethelBethel Realty Co.

Mike ClarkAlpha-Barnes Real Estate Services

JOT CouchTexas Inter-Faith Housing Corporation

Sally GaskinSGI Ventures, Inc

Dennis HooverRural Rental Housing Association of Texas

Antoinette M. “Toni” Jackson Coats|Rose

Mike Lankford Lankford Interests, LLC

Linda McMahonJP Morgan CHASE & Co.

Ike MontyInvestment Builders, Inc.

Ron WilliamsSoutheast Texas HousingFinance Corporation

Sandi WilliamsAlamo Area Mutual Housing Association

Increasing the supply and quality of affordable housing for Texans with limited incomes

TAAHP: 814 San Jacinto Blvd., Suite 408, Austin, TX, 78701Phone: 512-476-9901 t Fax: 512-476-9903 t E-mail: ashaw@taahp.org t Web Site: www.taahp.org

July 26, 2006

Dear Conference Participants:

Welcome to the Texas Housing Conference 2006. On behalf of the TAAHP Board of Directors, I want to thank you for joining us for the next two days as we look at ways to expand and improve affordable housing throughout the State of Texas, including rebuilding in our Gulf Coast areas.

This has been an eventful year for affordable housing providers in Texas. In the aftermath of Katrina, TAAHP did its own inventory of surplus units statewide and disseminated this to relief organizations. Our TAAHP members stepped forward and welcomed the Katrina evacuees with housing, food, clothing and furniture, and then bravely faced the wrath and destruction caused by Rita three weeks later. In the midst of such devastation, the compassion and generosity of Texans, and particularly affordable housing providers, reached a new height. Never have I been so proud of our members.

This year’s conference theme – The Winds of Change – gives us an opportunity to examine the impact that Hurricanes Katrina and Rita have had on affordable housing in our State and to overhaul the way we do business as a result of those unfortunate winds.

Change has been a recurring theme in the past year. In January, John Garvin, who had served TAAHP as its Executive Director for five years, resigned to embark upon a new opportunity as Senior Advisor to the FHA Commissioner at HUD. In May, Jim Brown joined TAAHP as Executive Director. His diversified background and legislative knowledge base make him a valuable addition to our organization. In June, TAAHP moved its offices to within blocks of the Capitol knowing that 2007 will be an important legislative session for our members.

TDHCA also moved its offices and experienced leadership change, with Edwina Carrington vacating the Executive Director’s position, where she had served for four years, and returning to the private sector. Her successor, Michael Gerber, who comes to TDHCA from the Governor’s staff, is a true friend of affordable housing. Our TAAHP members worked side-by-side with Mike in the aftermath of Katrina and Rita – he was an important part of the Texas recovery team and we look forward to working with Mike in his new role.

As our industry moves forward, propelled by these Winds of Change, remember that change can be good. It brings new opportunities and fresh perspectives, and just like those volatile winds, it makes us rethink our positions and redirect our energies. I hope this will be evident in this year’s conference filled with new topics and new faces.

Whether you are here as a Sponsor, Exhibitor, Speaker, or Participant, we welcome your ideas and your input, not just in the next few days, but throughout the year, on ways that we can achieve our mutual mission of increasing the supply and quality of affordable housing in Texas.

Enjoy the conference – and your time here with us in Austin!

Diana McIverBoard President

Welcome to the Texas Housing Conference 2006: The Winds of Change. TAAHP will bring together a cadre of recognized and successful professionals in their respective fields to address some of the more pressing issues facing Affordable Housing Providers today. The winds of two devastating storms not only destroyed the homes and lives of many Texans, but also caused a ripple effect throughout the Texas development / building industry: material costs are pushing projects out of budget, insurance providers are seeking a rate structure that allows their business bottom line to remain in the black, and new challenges are de-veloping daily. Other issues of interest relate to meeting the Fair Housing Regulations and dealing with a public unwilling to examine the community benefits from Affordable Housing projects in their area: the NIMBY’s. The Texas legislature, in response to Texas Supreme Court mandate, adopted a new school financing plan which reduces independence on prop-erty taxes, but through the new gross margin tax creates a new financial burden on some of us in the Affordable Housing industry. Both the Senate and House recognized potential inequities in the new legislation and by joint resolution have agreed to address the problems early on in the 2007 Legislative Session

TAAHP has planned a conference that will address many of these issues, seek your input, and through a commitment to join with other housing provider associations, will formulate a housing agenda for the 2007 Legislative Session.

The Texas Housing Conference 2006: The Winds of Change would not be possible but for the generous support from its sponsors and exhibitors. The 2006 conference has the largest number of exhibitors in the history of the conference; 40. We hope you will stop by their booths and engage in a dialogue that not only enhances your business plan or bottom line, but also to exchange ideas so that all of us may better serve our industry: Affordable Housing Providers. Have an enjoyable and safe conference.

A NOTE FROM THE EXECUTIVE DIRECTOR:

Jim T. BrownExecutive Director, TAAHP

Texas Housing Conference 2006: The Winds of ChangePage 2

Hotel Map

General ConferenCe InformatIon

RegistRation / infoRmation

The Registration / Information desk is located on the Lake Level in the San Jacinto Ballroom Foyer. TA-AHP staff and volunteers will be available to register attendees and answer questions.

Registration / Information Desk hours:

Wednesday, July 26, 11:30am - 6:00pmThursday, July 27, 7:30am - 5:00pmFriday, July 28, 7:30am - 9:00am

To leave a message for TAAHP, or any attendee, during the conference, please call the Four Seasons at 512-478-4500. The hotel operator will en-sure that the message is delivered.

admission / sessions

Your name tag allows you admit-tance to all conference sessions, receptions, breaks, and meals. You must weaR YouR name tag at all times. If you lose your name tag, please request a replacement at the in-formation desk. Anyone without a name tag will not be admitted to any event until they show proof of registration and receive a new name tag.The Opening Session and the Leg-islative Update Luncheon will be held in the Four Seasons Ballroom A, and the breakout sessions will be held in the San Jacinto Ball-rooms East and West and in the Waterloo.

exhibit hall

There are numerous lenders, inves-tors, property management firms, government agencies, etc. exhibiting at the conference. Please take some time to visit the Exhibit Hall in the Four Seasons Ballroom B -D (Lake Level).

All breaks, receptions, and breakfast will be held in the Exhibit Hall.

TAAHP would like to extend our thanks to our sponsors and ex-hibitors for their contribution to the Texas Housing Conference 2006: The Winds of Change.

Texas Housing Conference 2006: The Winds of ChangePage 4

TAAHP814 San Jacinto, Suite 408, Austin, TX, 78701

512-476-9901 www.taahp.org

Agenda at a glance

Texas Housing Conference 2006: The Winds of Change Page 5

Exhibitors & Exhibit Hall Layout

AmeriNational Community Services, Inc.Apartment Finder MagazineApollo Housing Capital (Bronze)Bank of America (Gold)Boston Capital (Bronze)Business Insurance GroupCapmark Financial Inc. (Platinum)Capstone Real Estate Services, Inc.CenterPoint EnergyCharterMac Capital LLC (Platinum)Citibank (Platinum)Coats|Rose (Silver)Column Guaranteed LLC (Silver)DB Berkshire Mortgage (Silver)Enterprise Community Investment, Inc. (Silver)FDI Property Management ServicesFederal Home Loan Bank of DallasICI Construction, Inc.JPMorgan Chase (Platinum)Lancaster Pollard

Exhibitor Booth NumbersLocke Liddell & Sapp LLP (Silver)MMA Financial (Platinum)National Equity Fund (Silver)Novogradac & Company LLP (Bronze)O’Connor & Associates (Bronze)Orion Real Estate Services, Inc. (Bronze)PNC MultiFamily Capital (Platinum)Property Tax Advocates, Inc.Raymond James Tax Credit Funds (Bronze)Red Capital Group (Gold)Reznick Group, P.C. (Platinum)Stearns Bank (Bronze)TDHCATexas Inter-Faith (Gold)UCP of TexasU.S. Bank National AssociationU.S. Dept. of HUDWachovia Bank (Bronze)Wells Fargo (Bronze)

Texas Housing Conference 2006: The Winds of Change Page 7

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Investment Builders, Inc. MacDonald & Associates

Conference Sponsors

Staff would like to thank

Diana McIver and her staff

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for all their additional help this year.

Tuesday, July 25, 2006Eighth Annual TAAHP Golf Tournament & 19th Hole ReceptionFalconhead Golf Course, Sponsored by:1:00pm Boxed Lunch, Sponsored by: Solutions Plus, Inc.2:00pm Shotgun Start

Wednesday, July 26, 200610:00am - 1:00pmExhibitor Set-Up, Four Seasons Ballroom

11:00am - 6:00pmRegistration / Information Desk Open, San Jacinto Ballroom Foyer

1:30pm - 3:00pmOpening Session: The Winds of Change, The Future, Four Seasons Ballroom AAs the winds of Katrina and Rita wreaked havoc with the Gulf Coast areas, creating devastating losses of life, homes, and businesses, Texans stepped forward offering food, shelter, and employment to those in need. As we open our 2006 Housing Conference, we are pleased to have Elizabeth Ames Jones, Chair of the Railroad Commission and Mike Gerber, Executive Director of TDHCA, offer their insights for the future.

Introduction by: Jim Brown, Executive Director, TAAHP

Welcome Remarks by: Diana McIver, President, TAAHP

Opening Comments by: Mike Gerber, Executive Director, TDHCA

Michael Gerber, the Executive Director of the Texas Department of Housing and Community Affairs, began his employment on May 17, 2006. Gerber previously served in Governor Rick Perry’s Office of Budget, Planning, and Policy for two years and 16 years in Washington D.C. working for various agencies including the US Department of Housing and Urban Development. He also served as Legislative Assistant in the office of Senator Kay Bailey

Hutchison and in the same capacity for Senator Phil Gramm. He received his under-graduate degree from George Washington University and an MBA from Marymount University. Keynote Address by:Elizabeth Ames Jones, Chair, Railroad Commission

Over a year ago Governor Rick Perry handpicked a sitting member of the Texas Legislature to fill a vacancy on the Railroad Commission of Texas. He chose, Elizabeth Ames Jones, a 6th generation Texan from San Antonio who had previously served in the Texas Legislature.Elected Chairman of the three member Commission last September, Jones is only the 4th woman to serve on the 114 year old agency. Along with her Legislative focus on energy issues, Chairman Jones’ service on the Urban Affairs committee gave her a keen understand-ing of the issues that affect our industry. Elizabeth and her husband Will are both graduates of the University of Texas at Austin and the proud parents of two college-aged children. Please join TAAHP in welcoming Chairman Jones to the Texas Housing Conference 2006: The Winds of Change.

3:00pm - 3:30pmRefreshment Break, Exhibit Hall, Four Seasons BallroomSponsored by:

3:30pm - 4:45pm Breakout Sessions

Aftermath of Katrina / Rita: Recovery & Readiness, Four Seasons Ballroom A

Learn how to deal with the aftermath of a hurricane, including the state and federal requirements for restoring your tax credit property, what you need to do to protect your partnership’s investment, and the potential restoration opportunities in areas affected by the hurricane.

Moderator:Tim Kemper, CPA, Managing Principal, Reznick Group, P.C.

Panelists:Antoinette M. “Toni” Jackson, Attorney, Coats|RoseBill Wenson, President, Wenson & Associates, Inc.Linda McMahon, Senior Vice President, JPMorgan ChaseBrooke Boston, Deputy Executive Director of Programs, TDHCA

Creative Financing and Gap Solutions, San Jacinto Ballroom East

Grants and soft dollars from a variety of sources are available to both profit and non-profit developments. Get insight from an administrator of these funds and hear from a developer-consultant about the benefits of these awards, and possible consequences. Also, learn how accessible these funds really are and listen to debt providers discuss debt structures, some old reliables with enhanced features, and some new trends.

Moderator:

Sally Gaskin, President, SGI Ventures, Inc.

Panelists:Robert Onion, Market Director, CitibankCamile Pahwa, Vice President, DMA Development Company, LLCRay Landry, Vice President, Davis- Penn Mortgage CompanyRobbye Meyer, Acting Director of Multifamily Finance, TDHCA

Year 15 - Nonprofit Transfer Strategies for Expiring LIHTC PropertiesSan Jacinto Ballroom West

Low Income Housing Tax Credit (LIHTC) properties developed in the early years of the pro-gram are reaching the end of the 15 year LIHTC compliance period, and are eligible for sale to their nonprofit sponsors. Also, the projects with tax credits allocated early in the program (before 1990) are not subject to extended use restrictions. Year 11 in the life of a tax credit deal is an ideal time to begin planning and taking action. We will discuss transfer strategies for the nonprofit sponsor, action plan for purchasers, and review partnership provisions in-cluding rights of first refusal, purchase options, exit taxes, and preservation of affordability.

Moderator:Mike Clark, Principal, Alpha-Barnes Real Estate Services

Panelists:Gregory Griffin, Director, Disposition Manager, Enterprise Investment Community, Inc.Marian O’Conor, Assistant General Counsel and Chief Tax Counsel, Enterprise Investment Community, Inc.

5:00pm - 6:30pmOpening Reception, Exhibit Hall, Four Seasons BallroomSponsored by:

ConferenCe Program

Texas Housing Conference 2006: The Winds of ChangePage 8

Thursday, July 27, 20067:30am - 5:00pmRegistration / Information Desk Open, San Jacinto Ballroom Foyer

8:00am - 9:00amContinental Breakfast, Exhibit Hall, Four Seasons BallroomSponsored by:

9:00am - 10:15am Breakout Sessions

Hot Equity Topics, Four Seasons Ballroom A

Prices have been high! Are they going to drop? What is the best way to get the best deal from your equity partner? Hear what this panel has to say about the latest interest hikes by the Fed and the impact on affordable housing equity.

Moderator:

Mike Sugrue, Principal, Solutions Plus, Inc.

Panelists:

Tom Dixon, Vice President, Boston CapitalNicole Flores, Senior Vice President, PNC MultiFamily CapitalMike Fowler, President, SunAmerica Affordable Housing PartnersMarie Keutmann, Managing Director of Acquisitions, MMA Financial

Designs for the Future: From Red to Green, San Jacinto Ballroom East

Change has been sweeping our industry. Changing lifestyles, changing community ex-pectations, and changing operational costs all drive design decisions ultimately affect-ing your bottom line. Come meet with experts in green design, and building, to learn how to meet these challenges and even help save on costs.

Moderator:

Sandra Williams, Executive Director, Alamo Area Mutual Housing Association, Inc.

Panelists:

Kelly Osburn, Principal and Vice President, Humphreys & Partners Architects, L.P.Frank Pollacia, Architect, ArchitetturaAbbey R. Ehrman, LEED-AP, Contects, LLC

Post Hurricane Insurance Woes and Your Bottom Line, San Jacinto Ballroom West

Why is Wind Coverage so difficult to obtain in Tier I and II Counties? And, if available, why is it so expensive? How do insurers / reinsurers view my risk / exposures? What does the future hold for insurance premiums and coverages? A senior executive at an insurance wholesaler / intermediary company helps you understand the ins and outs of the insurance business and provides some clarification on the recent crisis involving availability and costs of Wind Coverage.

Moderator:

Mike Clark, Principal, Alpha-Barnes Real Estate Services

Panelist:

Scott Wolf, Senior Vice President, Colemont Insurance Brokers - Texas

ConferenCe Program10:15am - 10:45amRefreshment Break, Exhibit Hall, Four Seasons BallroomSponsored by:

10:45am - 12:00pmBreakout Sessions

Examining Housing Markets in Texas, San Jacinto Ballroom East

Our panelists will discuss the current state of the conventional and LIHTC apartment markets as well as the trends affecting affordable rental properties in Texas. The panel-ists will review the current market as seen from a market analyst / appraiser, a lender / syndicator, TDHCA, and a developer, and how each may view the same data and have different conclusions.

Moderator:Jerry Wright, Managing Director, Capmark Securities Inc.

Panelists:David Ross, Vice President and Director of Market Research, Capmark FinanceCraig Young, Director of Business Development, O’Connor & AssociatesDeepak Sulakhe, Senior Vice President, Southwest HousingTom Gouris, Director of Real Estate Analysis, TDHCA

Workouts: The Trouble with Troubled Properties, San Jacinto Ballroom West

What are the characteristics of a troubled property? Is the trouble due to market or management? What are the steps to resolving issues with troubled properties? These and other questions will be discussed at this interactive session. Listen to the experts share their experiences from many perspectives, including that of attorney, syndicator, developer / owner, and lender.Moderator:Edwina Carrington, Principal, Reznick Group, P.C.

Panelists:Cynthia Bast, Partner, Locke Liddell & Sapp LLPChris Bergmann, Development Partner, Trammell Crow ResidentialDakar Gibbs, Senior Client Manager, Bank of AmericaJustin Ginsberg, Managing Director, CharterMac

12:00pm - 1:30pmConference Luncheon: Legislative Update, Four Seasons Ballroom ASponsored by:

Public School Refinance was a hot topic in this year’s Special Legislative Session, with the burden of revenues for financing Texas schools transferred from property taxes to an all new Business tax! Come hear about this new tax and how it will affect your busi-ness, and what you might expect to see in way of property tax reform. In addition to state issues, we will have an expert on hand to update us on federal issues affecting the affordable housing industry.

Moderator:Granger MacDonald, President-Elect, TAAHP

Presenters:Cindy Lee, Associate, Cantey & Hanger. L.L.P.Scott Norman, Vice President, Texas Association of BuildersGreg Brown, Federal Legislative Director, Tax Policy, NAHBJim Brown, Executive Director, TAAHP

Texas Housing Conference 2006: The Winds of Change Page 9

1:30pm - 2:45pmBreakout Sessions

Downsizing: When Your Market or Your Site Can’t Support 100 UnitsSan Jacinto Ballroom East

Texas is seeing a trend towards smaller apartment communities in smaller markets. The ru-ral communities and smaller cities have unmet affordable housing needs, but these markets cannot support the 100 to 200 unit apartment communities of their larger metropolitan neighbors. And even in the larger cities, popular infill sites may call for a smaller devel-opment. Who makes loans under $1M and how do investors view these smaller markets? Hear from financial and development experts who have experienced success in the smaller markets.

Moderator: Diana McIver, DMA Development Company, LLC

Panelists:Brian Gallagher, Senior Vice President, CDTGinger McGuire, Senior Vice President, Lancaster PollardSharon Baranofsky, Acquisitions Manager, National Equity FundDennis Hoover, President, Hamilton Valley Management

Addressing Fair Housing While Fighting NIMBY, San Jacinto Ballroom West

This session will discuss how developers can work with neighborhoods and tenant groups to successfully address and fight NIMBY concerns. It will also address those issues that could potentially trigger Fair Housing Violations when dealing with community relations.

Moderator: Antoinette M. “Toni” Jackson, Attorney, Coats|Rose

Panelists:Robert Voelker, Shareholder, Munsch Hardt Kopf & Harr, P.C.Shad Bogany, Owner / Realtor, ERA Bogany Properties Steve Ford, Director, Resolution, Inc.

Partnering for Success: What Makes Relationships Work?, Waterloo

Whether you partner to alleviate financial risk, to gain experience, or for other benefits, Partnerships and Joint Ventures in the development of real estate can be a good thing - or a horrible disaster. Listen to those who have been there and learn from their experiences, both good and bad. Learn about the splits of developer fees, ownership interests and cash flow, and how to negotiate a good deal and avoid a tarnished reputation.

Moderator: Tom Scott, CEO, Coach Realty Services

Panelists:Ann Lott, President and CEO, Dallas Housing AuthorityMark Mayfield, CEO, Texas Housing FoundationBarry Palmer, Director, Coats|RoseWendy Melton, Vice President, DB Berkshire Mortgage

2:45pm -3:15pmRefreshment Break, Exhibit Hall, Four Seasons BallroomSponsored by:

ConferenCe Program3:15pm - 4:45pmClosing Session: Change Can Be Good - Moving ForwardFour Seasons Ballroom ASponsored by:

It has been a year filled with change in the affordable housing industry, and we must take the lessons learned and use them to move forward. Listen to what industry leaders project for the future of affordable housing in Texas.

Moderator: Diana McIver, President, TAAHP

Panelists:

Elizabeth Anderson, Chair, TDHCAJim Brown, Executive Director, TAAHPJohn Pitts, Attorney, John Pitts

5:00pm - 6:30pmTomorrow the Allocations, Enjoy the Evening ReceptionExhibit Hall, Four Seasons BallroomSponsored by:

Conference Adjourns.......see you next year!

Texas Housing Conference 2006: The Winds of ChangePage 10

thankseveryone

for helping to make

this a

record breaking conference!

FPOUse InDesign File

Officers:President: Diana McIver, DMA Development Co., LLC

Past President: Jerry Wright, Capmark Securities Inc.

President-Elect: G. Granger MacDonald, MacDonald & Associates

Directors:Don Bethel, Bethel Realty Co.Mike Clark, Alpha-Barnes Real Estate ServicesJOT Couch, Texas Inter-Faith Housing Corporation

TAAHP Board of Directors

Vice President: Tom Scott, Coach Realty Services

Vice President: Mike Sugrue, Solutions Plus, Inc.

Treasurer: Tim Kemper, Reznick Group, P.C.

Linda McMahon, JP Morgan CHASEIke Monty, Investment Builders, Inc.Ron Williams, Southeast Texas Housing Finance CorporationSandi Williams, Alamo Area Mutual Housing Association

Sally Gaskin, SGI Ventures, IncDennis Hoover, Rural Rental Housing Association of TexasAntoinette M. “Toni” Jackson , Coats|RoseMike Lankford, Lankford Interests, LLC

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TAAHP History

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