New York State HALT Task Force (“Halt Abusive Lending Transactions”) 1.Since 2007, the Governor’s HALT Task Force has led the coordination of foreclosure and prevention efforts in response to the foreclosure and subprime crisis in New York State, including: · June 2008 passage of subprime legislation instituting changes to the foreclosure legal process (e.g., 90 day lender notice before initiating foreclosure proceedings); · $25 million in awards from DHCR to nonprofit homebuyer counseling services; · $2 million grant program by the NY State Department of Banking for consumer credit counseling and legal services; · NYHOMES issuance of $2.56 million in grants to provide counseling and legal assistance to homeowners at risk of foreclosure; · NYHOMES administering of $54.5 million in first round federal NSP funds, with plans to apply to HUD for second round of NSP

New York State 1 st Round NSP Awards – HUD Requirements 1. A AREAS OF GREATEST NEED (measured by HUD Estimated Foreclosure Abandonment Risk Score of 8-10) \ Priority given to Counties evidencing: § G reatest percentage of home foreclosures; § H ighest percentage of homes financed with subprime mortgages; and § Greatest likelihood of facing an increase in foreclosures. 2. A AFFORDABILITY TO LOW, MODERATE, AND MIDDLE INCOME RESIDENTS (measured at or below 120% AMI) § At least 25% of NSP funds awarded must be targeted to low-income households with incomes at or below 50% of AMI. 3. PURCHASE PRICE DISCOUNTS Prices paid by grantees for foreclosed or abandoned homes must be at least 5% below the current market appraised value for individual properties, and 15% below current market appraised value for bulk purchases. 4. E EXTENDED AFFORDABILITY PrProjects will provide extended affordability to homebuyers or, as applicable, renters, based at a minimum on HOME affordability rules; 5. HOMEBUYER COUNSELING FGrantees must provide pre-purchase homeowner counseling for end-buyers; 6. ENVIRONMENTAL COMPLIANCE Projects to comply with federal environmental review requirements; 7. DAVIS-BACON COMPLIANCE

New York State 1 st Round NSP Awards – Other Key Criteria Proposals reflect a focused strategy to achieve effective neighborhood stabilization; Applicants demonstrate appropriate levels of administrative, organizational, and financial capacity, and relevant real estate development experience to execute and monitor projects; Applicants have prior experience in managing federal CDBG and/or HOME programs; Proposals achieve maximum potential leverage with other funding sources; Other criteria including but not limited to: minimizing of displacement; promotion of long-term sustainability through “green” building practices or retrofits; provision for supportive housing; project readiness

New York State 1 st Round NSP Awards – USE OF FUNDS 5% B - Acquisition and Rehab of Foreclosed and Abandoned Homes and Residential Properties79% C - Land Banking of Foreclosed Homes1% D - Demolition of Blighted Structures3% % Total Grant $ E - Redevelopment of Demolished or Vacant Properties (Generally New Construction Only)12% A - Financing Mechanisms (Loan Loss Reserves, Homebuyer Assistance and Subsidies) for Acquisition and Rehab of Foreclosed Homes and Residential Properties

NY State 1 st Round NSP Awards – EXAMPLES BY USE OF FUNDS F Financing Mechanisms – City of Rochester: approximately $1.6 million for a loss reserve to leverage $14,000,000 in construction financing from private lenders. Hudson River Housing, Inc. (Dutchess County): $270,000 to fund homebuyer downpayment assistance and subsidize home purchases. B. Acquisition and Rehabilitation – CDC of Long Island (with Suffolk County): $3.2 million to purchase and rehab up to 25 single family homes for low-income renters; City of Albany: $1,128,350 toward the purchase and rehab of 10 abandoned homes for homeowner occupancy; $3,796,425 for the purchase and rehab of 17 abandoned multi-family homes, containing 47 units, for eventual rental to low-income households C. Land Banking of Foreclosed Homes - Town of Tonawanda: $250,000 for the purchase of 6 foreclosed and abandoned homes containing 14 units, the sites of which to be held for future development of new affordable homebuyer units. D. Demolition of Blighted Structures – City of Niagara Falls: $250,000 towards a larger targeted demolition program to assemble sites for a planned homebuyer and rental development ; E. Redevelopment of Vacant or Demolished Properties – City of Schenectady (with Better Neighborhoods, Inc.): $935,000 to construct 10 new single-family affordable homes with universal design and green building technologies; Cypress Hills LDC (Brooklyn): $1.6 million to construct 29 new low- to moderate-income condominiums.