Multifamily Financing Programs Jim Weglarz Assisted Projects Session Manager of Business Development, Multifamily Finance December 3-4, 2012

IHDA Resources Tax Credit Programs Relevant Soft Money Programs Tax Exempt Bond Programs A+ Perm Mortgage Program

Federal Low Income Housing Tax Credits 9% LIHTCs Key Deadlines: Preliminary Project Assessment – December 13, 2012 Full Application – March 15, % LIHTCs Credits given along with Tax Exempt Bonds Must Submit a Preliminary Project Assessment – 30 Days prior to Full Application

State Donation Tax Credits Program Keys: For Non-Profit Organizations 50% of Donation given in the form of a state tax credit Credit can be transferred back to project sponsor

Soft Money Resources & Programs HOME Program Federal Source for affordable housing Greater Income Restriction on Units IL Housing Trust Fund Derived from IL Transfer Tax State Source for affordable housing Permanent Supportive Housing Program State Bond Program to Work with Targeted Populations Currently being reviewed

Tax Exempt Bond Options Construction and Permanent Debt Program along with 4% Credits Conduit Bond Program IHDA allocates against its annual volume cap Defers majority of underwriting to lender Risk Share Bond Program IHDA allocates against its annual volume cap IHDA acts as lender through HUD Risk Share Program

Affordable Plus Perm Mortgage (A+ Mortgage) – Basics and Targets 1 st Mortgage Taxable Financing for Affordable Housing New 9% Tax Credit Projects – Forward Commitments 15 Year 9% Tax Credit Projects – Maturing 1 st Mortgages 80/20 Properties – Acquisition and Post Rehab Perms

Affordable Plus Perm Mortgage (A+ Mortgage) - Terms Loan Amount = $400,000 to $20,000,000 Loan Term/Amortization = Up to 30 Years DCR/LTV - > 1.15 to 1.25 (For Entire Loan Term) – Loan to Value < 65% > 1.25 (For Entire Loan Term) – Loan to Value <80% Affordability – Minimum 80% AMI Recourse – Non-Recourse

Questions? Jim Weglarz Manager of Business Development Multifamily Finance