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CRA Affordable Housing Fund I White Paper 7-2015
1. Fund Overview
The objective of the CRA Affordable Housing Fund, LLC (“Fund”) is
to generate income and to assist in satisfying financial institutions
Community Reinvestment Act requirements by directly investing in
affordable multifamily housing. The Fund will seek cash on cash returns,
paying quarterly returns to investors. The Fund seeks to provide financial
institutions a unique investment, which is responsive to the needs of the
community.
Acquired properties may still be within the original compliance period of
15 years, however; the Fund will also invest in affordable properties past
the 15 year period. All of the investments will qualify for CRA Community
Development investments. Many of the investments will have deed
covenants mandating affordability. The size of the acquired developments
will be in proportion to the markets they serve. The fund investment
duration is 3 to 5 years (compared to 15 year LIHTC).
About PHG Financial, LLC
PHG Financial, LLC is Michigan Limited Liability Company (LLC) acting as
the Managing Member of the CRA Affordable Housing Fund, LLC, a private
investment registered in Delaware.
The Managing Member is led by a Gerald Haan, an experienced real estate
professional with more than 20+ years’ experience.The Managing Member
is experienced in affordable housing, syndication, and compliance.The firm
offers the CRA Affordable Housing Fund, LLC to financial institutions.
PHG Financial, LLC ▪ Office: 312-637-5673 ▪ ghaan@phgfinancial.com
Complex
◾◾Determined to be a complex
investment due to compliance,
rent restrictions, and state
reporting regulations
◾◾ Fund manager is experienced
tax credit developer and
property manager with a
successful track record of
affordable LIHTC development
and property management
Responsive
◾◾Fund is responsive to communities
by preserving affordable
housing
Innovative
◾◾5 year term allows investors
to recirculate their CRA
investments
◾◾ PHG Financial; CRA Affordable
Housing Fund is a pioneer in
year 15 funds
◾◾Investors’ yield is not dependent
on federal corporate tax rates
◾◾No complex tax accounting;
straightforward real estate
equity fund
◾◾ Investors are paid quarterly
PHG Financial
CRA Affordable
Housing Fund
The CRA Affordable Housing Fund, LLC invests in affordable multifamily
properties, constructing a stable portfolio of income producing real estate assets.
Summary
CRA Affordable Housing Fund Advantages
2. Investment Terms
Account Structure Limited Liability Company
Investor Status Qualified Investor or Qualified Purchaser
Minimum Investment $500,000
Management Fee 1.50%
Incentive Allocation Tiered incentive allocation
Lock-up 5 years
Acquisition Fee 1%
Disposition Fee TBD
Preferred Annual Distribution 5% annually
Legal, Administrative, Accounting & Custody
At PHG Financial, we encourage open and transparent communication with
each of our clients. As part of this commitment we employ independent
third-party professionals in the areas of fund accounting, administration,
custody, and legal counsel.
Legal Barnes and Thornburg LLP
Administration Northern Trust Bank
Bank/Custody TBD
Auditor Plante Moran
Disclaimer
THIS IS NOT AN OFFERING OR THE SOLICITATION OF AN OFFER TO PURCHASE AN INTEREST IN CRA AFFORDABLE HOUSING FUND, LLC (THE “FUND”).
ANY SUCH OFFER OR SOLICITATION WILL ONLY BE MADE TO QUALIFIED INVESTORS BY MEANS OF A CONFIDENTIAL OFFERING MEMORANDUM AND
ONLY IN THOSE JURISDICTIONS WHERE PERMITTED BY LAW.
AN INVESTMENT IN THE FUND IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. OPPORTUNITIES FOR WITHDRAWAL, REDEMPTION AND
TRANSFERABILITY OF INTERESTS ARE RESTRICTED, SO INVESTORS MAY NOT HAVE ACCESS TO CAPITAL WHEN IT IS NEEDED. THERE IS NO SECONDARY
MARKET FOR THE INTERESTS AND NONE IS EXPECTED TO DEVELOP.
THE FEES AND EXPENSES CHARGED IN CONNECTION WITH THIS INVESTMENT MAY BE HIGHER THAN THE FEES AND EXPENSES OF OTHER INVESTMENT
ALTERNATIVES AND MAY OFFSET PROFITS. NO ASSURANCE CAN BE GIVEN THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED OR THAT AN
INVESTOR WILL RECEIVE A RETURN OF ALL OR PART OF HIS OR HER INVESTMENT. INVESTMENT RESULTS MAY VARY SUBSTANTIALLY OVER ANY GIVEN
TIME PERIOD.
PHG Financial PHG Financial
CRA Affordable
Housing Fund
Mid-West:
Harris Bank Building
115 S. LaSalle Street, Suite 2600
Chicago, IL 60603
Western Office:
11811 N. Tatum Blvd., Suite 1081
Phoenix, AZ 85028
Gerald Haan
Phone: 312-637-5673
Email: ghaan@phgfinancial.com
www.phgfinancial.com
Paul Henley
Phone: 312-637-5674
Email: phenley@phgfinancial.com