News

Money Matters: Mark Conine, Adrian Hartman and Ron Van Den Handel

In the fourth event of the series, finance experts Mark Conine, Adrian Hartman, and Ron Van Den Handel showcased innovative solutions to finance housing.

In the fourth event of the FutureIsNow speaker series, finance experts Mark Conine, Adrian Hartman, and Ron Van Den Handel, emphasized the various programs, non-profit and for-profit entities that can support prospective renters and home buyers, as well as the importance of establishing a close relationship with lenders and developing financial literacy.

Mark Conine, the president of the Arkansas Development Finance Authority, supports attainable housing efforts by offering down payment assistance and forgivable loans, alongside providing essential funding to developers working on attainable housing projects. He mentioned the Home Investment Partnerships Program (HOME) and National Housing Trust Fund as important financial sources. HOME assists community members in financing new constructions and provides tenant-based rental assistance for low-income individuals.

In 2023, $10.58 million was allocated for these endeavors, which can be paired with tax credits and other HUD assistance. His department also provides down payment assistance programs, like ADFA Move Up and Dream Down Payment Initiative, providing up to $15,000 of assistance that functions as a second mortgage at the same interest rate.

Adrian Hartman, senior vice president of Collier’s Mortgage, uses his knowledge of debt market solutions to promote the development of affordable housing options. Collier's Mortgage is a leading commercial mortgage banking firm that offers comprehensive capital market services for commercial real estate (CRE) investors nationwide. They specialize in agency finance, providing solutions for multifamily housing, senior and assisted living communities, and healthcare facilities.

Hartman defined many common lending terms, like Non-Recourse Finance/Debt, Loan to Value ratios, Loan to Cost ratios, and Debt coverage. These terms help investors determine investment risk and potential returns. He determined non-recourse debt solutions are crucial for real estate owners to manage risk and foster portfolio growth.

Ron Van Den Handel, managing director at Preston Hollow Community Capital, works on municipal market solutions for workforce housing. Handel discussed municipal bonds and explained that property tax abatement is a crucial component in making deals financially viable. Handel also discussed various aspects of the bond structure, including how debt service works, the involvement of municipalities or non-profits, and the long-term investment perspective. He also highlighted the efficiency of using tax-exempt debt for financing these projects.

This information is crucial for developers looking for the financial means to expand affordable housing options within Northwest Arkansas. With help from financial experts like those featured here, developers can take advantage of incentives and existing programs that support their endeavors.

Written by: Payton Willhite