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RMC Consulting Services are offered independently or in conjunction
with RMC's financing services. RMC provides owners and acquirers
with the strategic consulting services needed to develop, implement
and close virtually any type of HUD recapitalization including:
· Section 236 Interest Reduction Payments Decoupling
· Section 202 Recapitalization
· Flexible Subsidy Recapitalization
· ELIHPA and LIHPRHA Recapitalization
· Mark Up to Market - Standard, Discretionary, and Non-profit
Transfer
· Capital Repair Program for Non-profits - i.e. "The
Mark Up to Budget Program"
· Prepayment Facilitation/Refinancing
· Section 8 Enhanced Voucher Processing/Implementation
· Section 8 Contract Termination
RMC works with owners and buyers to develop recapitalization strategies
and then fully implements these transactions in coordination with
all other involved parties. As the consultant, RMC is responsible
for the overall transaction implementation and serves as the primary
point of contact with all parties from transaction inception to
closing.
Consulting Methodology
Each owner or purchaser has its own unique business objectives,
just as each HUD-assisted property has its own unique mix of subsidies,
restrictions, and physical improvement needs. HUD offers a variety
of programs that can work individually or collectively to achieve
the physical and financial goals of a property and its owner. However,
understanding key ownership objectives, and HUD's insurance, subsidy
and preservation programs are key factors in developing the best
value-producing recapitalization transactions. Property owners and
buyers can take advantage of RMC's consulting services to achieve
business objectives such as:
· Completing capital improvements
· Stabilizing Project or Property operations
· Increasing distributable cash flow
· Addressing Partnership tax concerns
· Realizing equity value through refinancing
· Preserving a property as affordable
Rockport Mortgage has the knowledge
and proven expertise to create the optimal value for owners in the
context of both conventional and affordability-oriented preservation
transactions. To do so, Rockport Mortgage first develops the most
advantageous Strategic Plan to support an owner's specific business
objectives and then coordinates implementation with all involved
parties including HUD, state agencies, local governments, residents,
appraisers, capital needs assessors, and lenders. To begin the process
of determining the best value-producing transaction that can be
implemented, RMC uses the information completed by the owner in
the Property Specification Form as a starting point.
From there, RMC works closely with the owner to fully develop the
recapitalization transaction that will achieve the owner's short
and long-term business objectives.
Compensation
Compensation for the consulting services is directly tied to the
value Rockport Mortgage creates in the transaction. Since the ultimate
value will be generated at the closing, the majority of compensation
is paid when a closing results. Periodic payments can be viewed
as installments against the overall value of the transaction.
Our consulting fee structure typically involves an:
· Engagement Fee
· Proposal Fee
· Closing Fee
These fees are set based on each individual transaction's risk,
reward, and complexity. RMC will work with the client to determine
the best compensation structure for each transaction.
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