Investor Perspective on Redeveloping Public Housing IPED March 29, 2007 Bernie Husser

2 Status of the Current Tax Credit Market 2006 Was Volatile Year Stability in 2007? Pricing/Demand is Strong Gulf Coast Credit Pricing

3 Tax Credit Yields Vs. 10-year Treasuries

4 Investor Perceptions of Public Housing Redevelopment What Makes Good Partners: Capacity of Development Team – Experience, Track Record Financial Strength of Guarantor Property Manager Experience Tax Credit Compliance & Investor Reporting

5 Public Housing Redevelopment in Gulf Coast Business Issues: Public Housing Optg Subsidy Changes (PEL) Expense Underwriting Supply & Demand Underwriting Section 8 Moderate Rehabilitation

6 Public Housing Redevelopment in Gulf Coast Tax Issues: State Tax Credits/Historic Credits Placed-in-Service Risk Bonafide Debt (Residual Analysis)

8 Investor Perspective on Redeveloping Public Housing IPED March 29, 2007 St. Petersburg, FL Bernie Husser