Gulf South Housing Proposal

FastBloc Building System

Spring, 2022
Table of Contents
EXECUTIVE SUMMARY 3

COMPANY OVERVIEW 4
MISSION 4
OVERVIEW 4

INDUSTRY ANALYSIS 4
MARKET OVERVIEW 4
TARGET MARKET 5

COMPETITIVE ANALYSIS 7

MARKETING PLAN 8
PRODUCT- FASTBLOC BUILDING SYSTEM 8
ROOFING 10
MANUFACTURING 11
OFFERINGS TO THE LICENSEE 11
LICENSE TERMS 12
PLANT CONSTRUCTION 12
RAW MATERIALS 12
FINANCIALS
APPENDIX A: LICENSE TERM SHEET
APPENDIX B: BASF MATERIAL SPECIFICATIONS

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Executive Summary
The FastBloc Building System is a “green” building material designed for housing
construction ranging from single-family homes to low-rise apartment complexes.
FastBloc’s cost efficiency and speed of construction make it ideal for large volume
projects in both the government and private sector.

As a company, FastBloc focuses on emerging markets with a high demand for

housing. Our mission is to become the #1 choice of building material for affordable,
quality, energy efficient housing, worldwide.

The management team brings over 75 years of experience to the construction

industry, creating a unique combination of talent able to address a wide range of
challenges. Combine this with the affordability, strength and speed of construction,
and ability to utilize an unskilled labor force, it is easy to see FastBloc is well
positioned to address a wide range of construction projects. From high-end custom
homes to affordable, government-financed housing, FastBloc can provide a solution
that meets almost any need.

We have partnered with E. René Soulé & Associates to assist us with business
development in the Gulf Coast Region of the United States: FL, AL, MS, & LA. ERSA
Is a certified SBA HUBZone business concerned (Federal contractor) with over 10
years experience In the development, sales, and mortgage counseling for home
ownership.

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Company Overview
Mission
FastBloc’s mission is to deliver a superior building product and homes that can be
used to revolutionize housing, create jobs, and protect the environment.

ERSA’s mission is to provide a turn-key system for homeowners to purchase quality,

affordable housing that is L.E.E.D compatible.

Overview

Homes that are built with greater structural integrity give homeowners a peace of mind
knowing their families will be safe from man and Mother Nature. Energy efficient
homes save homeowners valuable discretionary income, allowing them to invest more
into their families and create a better quality of life. Improving the quality of life for
families is important because it leads to improving communities.

When families have a high-quality home, they are not constantly using all available to
make repairs. When families are stronger financially, they have more time and capacity
to invest in their communities. This increased capacity for community investment, as well
as the decreased impact of natural disasters, lowers the financial burden on Federal,
state/local governments.

As an industry leader in the design and fabrication of energy-efficient homes (annual

energy savings up to 60%) and buildings that can withstand hurricane-force winds
upward of 200 miles per hour. The polystyrene walls do not absorb moisture (i.e., mold)
and resist pests (i.e., termites).

Industry Analysis

Market Overview

The Bipartisan Policy Center is launching a new Housing Advisory Council, a

group of housing experts—including current and former federal, state, and local
public officials, academics, practitioners, and industry leaders—that will work
with BPC to develop bipartisan housing policies and guide policymakers.

The council is chaired by BPC Board Members Henry Cisneros, former Secretary of the
Department of Housing and Urban Development, and Pamela Hughes Patenaude,
former HUD Deputy Secretary, as well as two former mayors—San Diego’s Kevin
Faulconer and Philadelphia’s Michael Nutter.

Over the next year, the council will focus on helping BPC identify and prioritize policies
that:

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 • Continue to meet the urgent housing needs of Americans affected by COVID-19;
• Advance racial equity and opportunity through housing—by addressing
disproportionately high housing costs, entrenched segregation and concentrated
poverty, and disparities in homeownership and family wealth; and
• Preserve and build affordable homes to strengthen families and their financial
resilience and propel our country’s economic recovery.

The American Jobs Plan under the Biden administration would spend about $20B in
underserved communities and $40B to support public housing. “This includes the
construction or rehabilitation of 500,000 homes for low- and middle-income owners.”

The FY 2022 budget for HUD requests $1.9 billion for HOME, an increase of $500
million including $100 million set-aside for the new FirstHOME Downpayment
Assistance initiative. Additionally, allocation of $3 billion in CDBG-DR funds to help
communities recover from disasters and build inclusive resilience to climate change.

E. Rene’ Soulé’ & Associates partnerswith a certified HUD housing counseling agencies,
local Community Housing Development Corporation (CHDOs); Veteran-centric
organizations and NACA “Best Home Loan Mortgage” program in America to provide
homeownership counseling, mortgage loans and quality, affordable housing for home
ownership in the SE and gulf coast region of America.

Target Market

Our focus on efficient, green construction, quality and affordable housing, will help these
revolutionize homeownership for LMI persons in the SE and gulf coast region (LA, AL,
MS, & FL) of the United States to include those using the housing choice voucher
(HCV). The Federal dollars spent in these four states, alone, total about $1.71B in
FY2019 for HCV payment. The potential home owner market in those same four (4)
states total about 10,686,815 persons who are making between $35k to $75k per year.

STATE Total Population % LMI ($35 to Target Market

$75K) (TM)
FL 21,477,737 32.2 6,915,831
AL 4,903,185 31.2 1,529,794
MS 2,976,149 31.1 925,582
LA 4,648,794 28.3 1,315,609
Total TM 10,686,816

Source: Census Reporter; State Fact Sheets; HUD Rental Assistance

Projected cost to build a 3BR/2BA unit @1724 sq ft is $150,000 to include land. Cost to
build 10% of TM is $160,302,150,000. In addition, we anticipate building several
Veteran Villages using the tiny home concept; estimate cost per village is $20m. Lastly,

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we seek funding to build two (2) senior housing units for low income, able-bodied
seniors at $25m per unit.

We are ready to break ground in all four (4) states in the next 30 days.

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Competitive Analysis
FastBloc is made out of polystyrene, is formwork for concrete and rebar
construction, and falls in the category of an Insulated Concrete Form (ICF). While
there have been other ICF products introduced in the United States over the last 30+
years, their design and functionality were tremendously different from FastBloc and
did not have the same advantages FastBloc possesses.

The advantage of FastBloc is that it is very similar in design to a CMU block and
builders very quickly understand how it works. The CMU is cheaper than FastBloc
per block, but when factoring labor (CMU takes much longer and needs expensive
skilled masons), strength of the end product as well as energy efficiency, FastBloc
proves to be a superior and cost-efficient solution. We have seen FastBloc save an
average of 8% at retail prices and up to 25% at product cost on the construction of
walls.

As a post and beam construction system, FastBloc is also similar to wood

construction with EIFS exterior wall finishing that is prevalent in the United States.

6 Layer EIFS System vs. 2 Layer FastBloc System

The EIFS System above is widely used for exterior finishing in the states, which includes
EPS insulation (the same material FastBloc is made from). To eliminate water
penetration, multiple layers are required to be installed between the wood frame and the
synthetic stucco finish. FastBloc eliminates all these steps, requiring only the FastBloc
wall and the two-step stucco finish. FastBloc can achieve this due to the FastBloc EPS
insulation contains the concrete and rebar, so there is no way for water to penetrate and
get between the EPS and the wall. Simplifying this system increases the thermal barrier,

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decreases failure points within the wall for moisture to penetrate the home, and decrease
installation costs and time.

Marketing Plan
Product- FastBloc Building System
The Polystyrene Insulated Concrete Form (ICF) is
becoming well known as a cost-efficient alternative to
traditional methods of construction. There are many
advantages to using an ICF product as a builder, they
include the following:

1. Provides insulation for the home

2. Creates form for pouring concrete
3. Saves time to “frame” a structure
4. Is a lightweight material that is easy to handle
5. Results in stronger buildings that are better
able to withstand hurricanes, earthquakes, fire,
mold and pests.

The FastBloc Building System offers these advantages as well as other features that
separate it from the competition. FastBloc makes it simple and affordable to build.
The training needed to install FastBloc takes little time. The lightweight building
block provides a method of forming and insulating walls that can be quickly
assembled by almost anyone. The homes are energy efficient with a U-Value of
0.365 m2K/W. The “skeleton” inside the walls of a FastBloc structure is a structural
system commonly known as reinforced concrete post and beam construction, such
structures can be designed to carry significant, multi- story, loads.

The polystyrene walls do not absorb moisture (ie. mold) and resist pests (ie
termites). The polystyrene beads that are expanded into the ICF block contain fire
retardant and pest resistant chemicals. The interlocking “Building Block”
construction of the ICF foam blocks allow for ease of stacking and squaring walls.
The standard wall block and lintel/header block comprise the wall system. The
entire wall framing and insulating system is comprised of two lightweight blocks
and two accessory pieces, simplifying the builders ordering, storage and handling
time, cost and reducing waste. Vertical columns in the walls that are not filled with
concrete are used for plumbing and electrical systems.

FastBloc is currently produced and sold in Mexico and Costa Rica. The first FastBloc
home in the United States is currently breaking ground in Arizona. Homes have
been built in Mexico ranging from 330 square foot affordable housing units to 5,980
square foot beachfront properties. FastBloc has received the highest energy

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efficiency rating for a wall system by the Mexican Government (ONNCCE). FastBloc
has also been tested and approved in Mexico for earthquake and load bearing safety.
FastBloc’s post and beam construction increases the strength of homes and can be
engineered to withstand major earthquakes, floods and hurricanes.

In Mexico, FastBloc has received approvals and certifications from: INFONAVIT,

SHF, FOVISSSTE, RUV, and ONNCCE.

Time of Construction and Comparative Cost

As its name states, FastBloc is fast. Much faster than conventional CMU construction
or other concrete forming methods. This provides two distinct advantages. First,
the increased speed means a decrease in labor cost per home, making FastBloc more
cost efficient as compared to CMU. In Mexico this equates to roughly an 8% cost
savings per home at retail prices, and up to 25% savings at FastBloc’s factory cost.

Second, this time savings means a builder can increase the volume of homes
constructed annually without increasing its labor force. This is a key advantage for
builders who want to maximize their time, minimize risk, and increase returns.

Ease of Construction
Due to FastBloc’s post and beam construction and simple stacking method, the need
for skilled workers for wall framing is eliminated. Unskilled workers can be trained
in how to build with FastBloc in one to two days. In Mexico, high school students
and other unskilled labor have framed and enclosed 1,500 square foot schools in
four days (including walls, roof, exterior stucco, doors, and windows).

This simple construction will provide jobs for people living in the communities near
new housing developments. In many cases, people are able to participate in the
building of their own home and are trained in a skill that can provide them work for
many years.

Unlike CMU, FastBloc is light (three pounds per block) and easy to work with,
meaning the labor is not as physically demanding and injuries are greatly reduced.
FastBloc not only provides more jobs for locals, but it provides more desirable jobs
than construction projects using CMU. If people have a choice, they would rather
work with FastBloc.

Energy Efficient, “Green” Housing

As the world is moving towards being more environmentally conscious, FastBloc’s
insulation value and the energy savings it creates make it a very desirable choice for
both builder and owner. In Mexico, FastBloc has been tested and rated as one of the
most energy efficient wall products in the nation, with insulation values 31% higher
than the requirements for the hottest areas in Mexico.

For the homeowner, this means lower energy costs making their home more

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affordable to live in. Even in the warmest climates, the use of FastBloc has seen
energy bills reduced by half.

For the builder, providing energy efficient, green housing with quality construction
to customers is a great advantage over competitors.

For more information, including a full PDF brochure, please visit

www.FastBlocs.com.

Roofing
FastBloc is capable of utilizing multiple roof styles and materials in conjunction with
the wall system. Buildings can be designed to have flat or pitched roofs. To date,
roofs have been framed with polystyrene and concrete, steel, and wood. Depending
upon local customs, seismic and weather conditions and building requirements,
there are three options to choose from.

The first two options can be produced in a FastBloc facility. Both utilize polystyrene
in the roof to maximize thermal efficiency and both are used in Mexico in different
regions.

One option is a Sandwich Panel, made of polystyrene sandwiched by rolled steel.

This option is best utilized with a pitched roof and is faster to construct versus other
roofing methods, requiring minimal formwork. The top layer of steel provides the
outer shell of the roof as well as connects together for fast assembly. The
polystyrene underneath provides excellent thermal efficiency. The rolled steel can
also be utilized to build multi-story buildings. Please see the Appendix for more
information on the Sandwich Panel system.

A second option is called a “Bovedilla” system and is utilized in flat roof

construction. This system uses blocks of polystyrene as well, but instead of rolled
steel the Bovedilla sits on concrete beams and is covered with reinforced concrete.
The concrete layer on the exterior of the roof creates a stronger surface, but takes
longer to construct, requires more formwork, more curing time for the concrete, and
can only be utilized on flat roofs.

The third option would be to use a traditional roofing method to construct with
FastBloc, such as a wood framed pitched roof, which can easily be integrated to the
roof structure.

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Manufacturing
In order for FastBloc to maximize its ability to be cost competitive, it needs to be
produced in a fairly close proximity to the construction site. Typically, FastBloc is
price competitive up to a 300-mile radius from the factory.

On the other hand, the relative low cost to construct a factory compared to the
production output of FastBloc makes expansion and building new manufacturing
facilities very attractive.

A warehouse of approximately 10,000 square feet is required to house the Starter

and Medium sized FastBloc machinery.

Manufacturing Facility Costs

Factory Size Starter Medium Large
Capacity (blocks/yr) 1 500,000 1,500,000 3,500,000
FastBloc Machinery $600,000 $1,500,000 $3,200,000

As you can see from the table above, the cost of a “Starter” factory provides enough
capacity to produce an estimated 500 housing units of 1,800 square feet in size per
year.

The above price includes shipping, government fees2, supervision and consulting
costs for the supply and erection of the machinery on site. The price does not
include land, site improvements, manufacturing facility (building), soft costs or raw
materials used in the production of FastBloc.

Offerings to the Licensee

There are multiple benefits in being a FastBloc Licensee and a part of the FastBloc
network, including:
• Rights to the use of FastBloc’s proprietary and patented technology (where
applicable),
• Training in the use of FastBloc on the construction site,
• Ongoing Technical Support from their home and/ or regional offices,
• Assistance in the purchase of the machinery and materials needed to
assemble and operate a FastBloc manufacturing facility, including facility set
up and design,
• Support in obtaining certifications, testing results, etc, required by local
governing bodies for the use of FastBloc material in construction,

1 Capacity is based upon information provided by the equipment manufacturer, actual results may vary.
2 Government Fees are not anticipated to exceed $50,000. Should the total of all government fees exceed
$50,000, the excess will be added to the purchase price.

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 • Access to other FastBloc partners in order to learn best practices,
• Participation in the marketing and promotion of FastBloc,
• Opportunity for exclusive territorial rights (additional fees may apply).

Complete details regarding the benefits mentioned above are found in the License
Agreement.

License Terms
Please see Appendix A for License Term Sheet

Plant Construction
The machinery used in the manufacturing plant is from a reputable Indian firm with
operations in multiple countries. FastBloc has used the company’s machinery in
Mexico and has been pleased with the quality of the end product. Established in
1988, the company has worked in over 90 countries and produces over 2,000
machines per year.

Once a warehouse and material list is identified, it takes an average of 12 weeks3

from ordering the machinery to have it shipped from the manufacturer. Upon
arrival and clearance of customs, one or two technicians are sent to oversee
installation of the machinery into the factory. The estimated time to fully install and
test the machinery is 25 working days.

Raw Materials
FastBloc is made from Expanded Polystyrene (EPS) beads. EPS is a by-product of
refined oil and produced in many countries worldwide. FastBloc requires a type of
EPS bead that includes a fire-retardant chemical.

There are a few options for obtaining EPS beads. The most well-known producer of
EPS beads is BASF. BASF is the supplier for FastBloc in Mexico and is widely able to
supply product. Their large production capacity and dependability makes them an
attractive supplier.

Please refer to the Appendix B to see the BASF bead specifications.

3 Actual timelines may vary based on factors outside of our control such as shipping, customs, etc.

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Appendix A
License Term Sheet
Appendix B
BASF Material Specifications