Vesta's principal focus is the development of affordable housing for its own portfolio. It also provides development services to others, on a case-by-case basis. These services may include arranging for financing, whether debt or equity, or property management. Vesta's principals have closed financings totaling over $675 million, for the development and finance of more than 16,000 housing units in 11 states and Washington, DC.

Bond financing has been a facet of Mr. Erie's and Mr. Greenblatt's business activities since 1981 when they set out to provide bond financing tailored to clients' needs. Together they have arranged for bond financings totaling more than $250 million. Tax-exempt bonds continue to be a viable means to finance affordable housing. Indeed, since the demand for low-income housing tax credits outstripped supply, bonds have emerged as a vehicle for obtaining tax credits outside the tax credit allocation process.

The refunding of older, high interest rate, tax-exempt bonds is also a vehicle for updating the properties they financed, and preserving the affordable character of these properties. This financing strategy was critical to the success of turning around Monterey Village, one of the properties highlighted in "Distressed Properties." By refunding the defaulted bonds at a lower interest rate and longer term, the property could support additional debt, which was provided by the issuance of taxable bonds at the time of the tax-exempt refunding. This additional debt provided funds for the property improvements needed for the on-going viability of the property.

Obtaining and selling Low Income Housing Tax Credits is a specialized process for which many developers, particularly small developers, do not have the expertise. Vesta's staff learned the process at the inception of the program in 1986 and has kept current with the many changes to the program. We also have obtained and sold Historic Tax Credits, both stand alone and combined with Low-Income Tax Credits. We have raised nearly $120 million of equity from the sale of Low-Income and/or Historic Tax Credits. We are willing to assist developers through the application process and the placement of Low Income Housing Tax Credits with investors.

Vesta's management portfolio is predominantly, but not exclusively, properties in which it has an ownership interest. On a case-by-case basis we will consider fee management for other owners. We do manage properties for owners with whom we have a long-term relationship. We also will accept management of troubled properties for owners or lenders who are willing to make the necessary investment to turn them around.

Vesta's principals believe that it is important to Vesta that all affordable housing be run with professionalism. We bring this philosophy to all our undertakings. We have developed a national network of professionals who share this philosophy and call upon their specialized expertise whenever necessary. Likewise, we are willing to assist other owners, developers, or lenders who share this philosophy and find themselves in need of Vesta's expertise.