Frequently Asked Questions
Q: What are the likely deal terms between development partners and Enterprise Community Development?
A: It will depend on the specific deal and the roles and responsibilities established between the development partner and ECD. We expect each project to consider, at a minimum, the following core components:
Ownership Split: Where there’s interest, we expect our partners to take an ownership role in each project we jointly pursue. The specifics of this interest will ultimately be driven by the project and whether its scale requires investor equity to help complete. Under this scenario, we expect ECD and the partner to share ownership within the Sponsor or General Partner entity.
Developer Fee Split: To be determined based on factors including ownership interests, division of duties among partners, and specifics of the project.
Cashflow Split: Will vary based on equity requirements and ownership splits
Equity requirement: Will vary based largely on ownership interest with ECD positioned to provide partner support through the Let’s Build Accelerator Fund (see Q#? below).
Pre-development funds: Generally expected to be funded by owners, with ECD taking lead and providing flexibility as required by partner.
Guarantees: Generally expected to be provided by ECD.
Q: Is a developer required to have an active deal to be admitted into the program?
A: Yes, the Let’s Build Accelerator is a joint venture strategy to help greenlight and move more viable projects to completion. Applicants to the program are expected to have prospective projects in mind that they believe will support neighborhood growth and positive impact in our region. See __ for more information around what represents an ideal project.
Q: What will be the geographic footprint of the deals?
A: At this phase of the program we are focused solely on projects located in the Mid-Atlantic region. We have defined the primary footprint of this region to include Pennsylvania, Maryland, Washington DC and Virginia. On a case-by-case basis we will also evaluate opportunities in New Jersey and North Carolina.
Q: How much equity do I have to provide?
A: Equity participation in projects is typically based on ownership interests. Accordingly the amount of equity demanded of a partner will be grounded in the final negotiated ownership structure. Under the LBA Equity Fund, we will evaluate providing financial support to partners enabling ownership in a general range of 10% - 20%. To the extent partners have additional funding they are able to bring into the project, ownership interest will be sized accordingly.
Q: Will I have to provide personal (or corporate) guarantees?
A: Under a typical structure, Enterprise Community Development anticipates providing all project guarantees to banking and other partners.
Q: What about deals that are out as RFP’s, how will that work?
A: Primary focus at this time is placed on projects brought to the LBA that are under site or similar control of the applicant. ECD welcomes the opportunity to collaboratively pursue prospective projects at the RFI, RFP or similar stage and invites applicants to clearly spotlight if this is the case at time of submission.
Q: We are a faith based organization, can we be a Let's Build development partner?
A: Yes. faith-based organizations, often pillars of their communities, are an intentional partner of interest for this program.
Q: We are a tenant organization, can we be a Let's Build development partner?
A: Yes. Organized, formal tenant organizations reflecting community interests and preferences are strong partners for the program.
Q: What should I know before I apply?
We welcome more questions and invite you to connect with us. Should you decide to begin an application, we recommend you first gather the following information:
Basic characteristics about your potential project to include address, potential use, potential project cost and status of site control (additional fields will be requested during your online application process).
Your organization’s formation date and EIN
Your organization’s ownership and leadership structure
Resumes of key decision makers and project leads
