NCSHB

opportunities Leverage the benefits of the HUD Risk Sharing program insurance turnaround time lower cost vs. fully insured strong investor base Re-use existing taxable bond fund proceeds Attract new investors/funding tools Conduit issuer

products Conduit-only issuer Risk Sharing FFB (using HUD Risk Sharing) Pass-through bond issue (using HUD Risk Sharing)

conduit issuer

HFA’s as conduit issuer One-stop shop to support lending activities Source of revenue Alternative use of cap during low MRB-use years HFA’s typically provide a more efficient process for allocation of cap Leverages HFA affordable housing expertise

chfa’s conduit production

pass-through structure

Seeks to mimic the investor rates on HUD fully insured Ginnie Mae securities Leverages the lower cost and quicker turnaround of the HUD Risk Sharing program Locks the permanent rate at construction loan closing Up to 40 year term

pass-through sample loan terms Sample Borrower, LLC $12,000,000 PAB issued by CHFA (construction) 24 months, interest only 2.4% (2-year swap index plus 150) HUD Insured Paid down via investor equity to perm loan amount $6,025,000 permanent loan from CHFA 40 years, fully amortizing 4.56% (10 year swap index plus 225) HUD Insured

ffb - treasury

side by side comparison

lending pipeline

LIHTC lending capture rates