Loan Execution Panel Discussion Presented By Katey Forth Moderator Great Lakes Capital Fund Paul DeKruiff Originator Great Lakes Capital Fund Zina Risk Underwriter Great Lakes Capital Fund Brian Jones Director Love Funding Greg Mayernik Originator Love Funding

How To Choose The Best Loan Product. Know Where Your Asset Is In Its Life-Cycle Making, Setting, And Achieving Your Goal

Permanent Lending Products   Program Name Fannie Mae LIHTC Fannie Mae Preservation Private Investor Predevelopment Maximum Loan To Value *90% **80% 80% - 90% 90% Minimum Debt Coverage Ratio *1.15 **1.20 1.15 - 1.20 N/A Amortization 30 Loan Term 7,10,18,30 At least 15 years 6 - 18 Months Rates (as of May 21, 2014) 4.15% - 5.85% Call General Notes  Prepayment Options Available Prepayment Open With Payment  Annotations *These standards apply only to LIHTC projects with at least 8 years remaining in the initial 15-year compliance period. The Mortgage Loan must have a loan term that is equal to or greater than the remaining initial compliance period with 30-year amortization. (New tax credit deals) **Applies to PRESERVATION deals - includes LIHTC with less than 8 years of compliance remaining, and catch all for recorded rent restrictions - ie, LURA

Loan Term Sheet Eligible Projects Properties that are designated affordable via regulatory agreements or rent restrictions (Including coterminous HAP contracts) Any location in the country Term and Amortization 7, 10, 18, or 30 year term 30 year amortization for new construction or significant rehabilitation 35 years available for properties with long term HAP contracts Eligible Loan Amounts $500,000 minimum NO Maximum Underwriting Criteria Minimum Debt-Service-Coverage of 1.20x Maximum Loan-to-Value 80% for refi or up to 90% for new 9% credits Recourse/ Guarantees Loans are non-recourse to borrower Personal guarantees are required against fraud and bad acts Rate Locked Commitment Immediate loans rate locked for 30 days after completion of underwriting Forward loan commitments can be rate locked for up to 30 months with 2% deposit Legal Fees fixed at a maximum of $12,000 per loan for a typical transaction Pre-payment Loans will have yield maintenance provision Pre-payment fee after the expiration of the yield maintenance is 1% of principal balance Application and Origination $2,500 plus deposit to pay for all third party reports – appraisals, credit checks, etc. Origination Fee ranges from 1.0% to 2.0% depending upon loan size and complexity Legal Fees Legal Fees fixed at a maximum of $12,000 per loan Replacement Reserves A minimum of $250 per unit per year to be funded on a monthly basis Replacement Reserve funding level will be evaluated after tenth year of the mortgage Subordinate Financing Soft subordinate loans are allowed, but must be subordinated to first mortgage Loan Term Sheet

Fannie Mae Financing Loan Application And Submission Stage Our Inspections Third Party Reports Credit Review Mildly Painful forms…. Post-Closing NO Audit Required ALL Communication Is With GLCF No REAC Inspections

FHA Financing Overview May 21, 2014 Brian Jones bjones@lovefunding.com Phone: 216-925-4801 @bwjfinance Greg Mayernik gmayernik@lovefunding.com Phone: 216-583-0810

About Love Funding Love Funding is a fully-approved HUD LEAN and MAP lender serving clients across the country from its headquarters in Washington D.C. and offices in Boston, Cleveland, Dallas, Denver, Kansas City, Knoxville, New York, Palm Beach, Tampa and St. Louis. The company offers refinance, construction and acquisition financing programs for multifamily, senior housing and healthcare facilities, including hospitals. Love Funding is one of the Love Companies, a St. Louis-based investment holding company with origins dating back to 1875.

HUD Section 221(d)(4) New Construction or Substantial Rehab Manage expenses, collections and occupancy to maximize loan proceeds HUD Section 221(d)(4) New Construction or Substantial Rehab Market Rate Affordable >90% Rental Assistance Maximum Term 40 years fully amortizing Debt Service Coverage 1.20x 1.15x 1.11x Loan to Replacement Cost 83.3% 87% 90% MIP (1.0% at closing) .65% .45% Maximum Underwritten Occupancy 93% 95% Working Capital Escrow 4% of loan amount Annual Replacement Reserve Greater of: 1) .60% of total structure cost for new construction or .40% of loan amount for rehab or 2) $250 per unit per year. HUD considers waivers when formula exceeds $500 per unit. Initial Operating Deficit Typically the greater of: 1) amount determined by underwriter, 2) 3% of loan amount or 3) 4 months debt service for walk-up or 6 months debt service for elevator buildings subject to a Certificate of Occupancy issuance. Substantial Rehab Threshold Cost of Repairs, replacements and/or improvements of the existing property must exceed the greater of: 1) 15% of the estimated replacement cost after completion of all repairs and improvements or 2) $6,500 adjusted regional HUD high cost factor. Additionally, a property can qualify for substantial rehab if two or more building systems are being replaced. Other Davis-Bacon prevailing wage rates apply Large loans are subject to more conservative underwriting Subordinate financing is allowed from a governmental source and only in the form of a surplus cash note.

HUD Section 223(f) Refinance or Acquisition Manage expenses, collections and occupancy to maximize loan proceeds Market Rate Affordable >90% Rental Assistance Maximum Term 35 years fully amortizing limited to 75% of the remaining economic life Maximum Loan is Limited to the Lesser of: Refinancing 1) Debt Service Coverage 1.20x 1.17x 1.15x 2) Loan to Value 83.3% 85% 87% 3) Eligible Costs Greater of: 100% of eligible costs or, if cash out, 80% of market value Acquisition 3) Eligible Transaction Costs MIP .65% .45% Maximum Underwritten Occupancy 93% 95% Replacement Reserve Initial deposit based on PCNA then annual deposits at the greater of $250 per unit or as identified in the PCNA Other Repairs can not exceed the greater of $6,500/unit multiplied by the high cost factor or 15% of the estimated replacement cost after completion repairs. Repairs are also limited to one major building system. Davis-Bacon prevailing wage rates do not apply to repairs

>90% Project Based Rental Assistance LIHTC Pilot Program Permanent Financing for Multifamily Housing with LIHTC Overview Working within the framework of the 223(f) loan program regulations, HUD created a loan program with a streamlined review process on transactions that are low risk. The Pilot program is designed to expedite application processing to meet tight external deadlines imposed by the LIHTC program. Eligible Properties: 1) Re-syndicated LIHTC projects Permanent financing for acquisition and/or refinance with moderate rehabilitation up to $40,000 per unit 2) Acquisition & Rehabilitation with LIHTC Permanent financing for acquisition and/or refinance with moderate rehabilitation up to $40,000 per unit. Projects with >90% rental assistance, market rate converting to LIHTC or affordable projects converting to LIHTC. 3) New constructed stabilized properties Permanent financing under waiver of three year rule. Projects must have building permits prior to September 18, 2014. MIP .45% Maximum Loan is Limited to the Lesser of: Affordable >90% Project Based Rental Assistance 1) LTV 85% 87% 2) Refinance LTC 100% 3) Acquisition LTC 90% 4) DSC 1.176x 1.15x 5) Dollar Maximum $25 million

FHA Financing What is means for asset management Pre-loan Application Stage - Manage expenses - Manage collections - Manage occupancy Loan Application and Submission Stage - Forms, forms and more forms - Forms…. see above - Inspections Post Loan Closing Stage - Registration for on-line HUD reporting systems - Physical inspections - Annual audit and submission requirements