Affordable Housing Preservation Summit An Overview of Financing and Servicing Options. Wells Fargo Bank Reine Yazbeck

Prepared and Presented by Reine Yazbeck2 Expertise and Resources at WFB  Community Lending and Investments  Multifamily Capital  Corporate Trust Services  Taxable and Tax-Exempt Bond Financing  Green Community Lending and Investments

Prepared and Presented by Reine Yazbeck3 Community Lending and Investments  Seeks to positively represent and contribute to its communities by providing debt and equity capital for economic development, job creation, and affordable housing in areas of need nationwide. Programs Include:  Short Term Construction Lending Financing for construction, bridge, or substantial rehabilitation of affordable Housing Properties. Loan Size $5-$50+ million Rents at 80% or less of the area median income  NMTC Products Reduced Interest Rate program available for community-oriented properties and mixed commercial properties that demonstrate community impact through job creation, neighborhood stabilization, or services in highly distressed census tracts.

Prepared and Presented by Reine Yazbeck4  EQ2 Products Financing for NPOs and Government Agencies engaged in community and economic development for low and moderate income areas. These programs are designed to help build the internal capacity of organizations by supporting specific programs that generate revenue which in turn helps improve access to conventional financing and ultimately leading to more affordable housing. Loan Size: $100,000- $1 million (average $400,000) Unsecured subordinated term loan; not a line of credit Types of EQ2s:  Revolving Loan Fund EQ2  REO EQ2  Real Estate EQ2  Green EQ2  Equity Investments LIHTC( Low-Income Housing Tax Credit) Direct equity investment :Specialize in direct equity investments in partnerships formed to construct or rehabilitate affordable housing through the purchase of tax credits and collaborate closely with the construction area of CLI. LIHTC Fund investment: work closely with the construction arm of CLI and directly with 3 rd party syndicators to invest in LIHTC funds that support affordable housing development. Community Lending and Development Cont’d

5 Multifamily Capital Specializes in providing construction and permanent financing for multi-family properties and healthcare facilities using the programs of the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac. We concentrate on our core business of originating, underwriting, selling, and servicing multifamily real estate loans. Affordable Housing Programs: Average Loan Size : $5+ million Eligible Projects: Multifamily and Senior Rental or Healthcare Affordability: Affordable properties must involve 4% or 9% low Income Housing Tax Credits (LIHTC), section 8, section 236, Tax abatement, or bonds. Loan Terms: Up to 40 years Loan to Value: Up to 90% Loan to Cost – Construction: Up to 87% for affordable, 90% for Section 8, and 83.3% for Market rate. Refinancing: Up to 85% (80% if cash out) Multifamily servicing portfolio: In excess of $50 Billion consisting of more than 10,000 loans total loan closings = $4.8 billion 2010 total affordable Housing Loan closings= $416 Million #1 FHA Lender, #2 Fannie Mae Lender, #2 Freddie Mac Lender* #1 In originated transactions and volume for conventional multi-family properties * *Based on the MBA commercial RE/Multifamily Finance Firms Annual Origination Volumes Year ending December 31, 2009

Prepared and Presented by Reine Yazbeck6 Corporate Trust Services  Perform the role of trustee on Bond deals issued by local, county and state government that preserve or rehab qualified multi-family housing projects and fund single family housing initiatives.  Trustee for 22 State housing agencies with over 3,500 + housing bond issues currently administered. Experience revolves around Single and Multifamily housing in a variety of issues including: Tax-exempt/taxable, fixed/variable rate, FHA, FNMA, GNMA, HUD Single Projects, Multiple Projects, SWAPs, Draw down bond programs, credit enhancements, 2 nd mortgage bonds, etc…. Duties include but are not limited to:  Monitor and review compliance with various regulatory agency requirements related to low + lower income tenants  Monitor cash flow and distribution of bond proceeds for multifamily acquisition + rehabilitation and single family mortgage funding.  Monitor, acquire, and review all other compliance items required by bondholders and bond issuers as dictated by governing bond documents.  Provide various reporting duties per SEC Regulations

Prepared and Presented by Reine Yazbeck7 Taxable and Tax-Exempt Financing  Wells Fargo provides financing for the rehabilitation of income and/or rent-restricted affordable housing properties, uncluding those with Low Income Housing Tax Credits (LIHTC) and/or Section 8 contracts.  As a direct bond purchaser, Wells Fargo also has the ability to purchase the bonds, which assists in overall cost reduction and eliminates remarketing fees. Property types: Income and/or rent restricted affordable housing properties, LIHTC, Section 8 Average loan amount: $2 to $15+ million Construction and Permanent financing Maximum LTV may vary based on restricted affordable housing rents Early rate lock available.

Prepared and Presented by Reine Yazbeck8 Green Community Lending & Investment  Since 2006, Wells Fargo has provided more than $150 million in financing for transactions that support both environmental and community development goals. Through Low Income Housing Tax Credits (LIHTCs), New Markets Tax Credits (NMTCs) and Green Equity Equivalent Investment (Green EQ2) programs, Wells Fargo Invests in affordable housing, community projects, and revolving loan fudns that support environmentally friendly development and rehabilitation.