1. AHIC Scottsdale, AZ Presented by: Greg Griffin October 25, 2012

2. 2 2  32 LIHTC units  Located in rural Oregon  Y16 – 2013  Early Exit – Sold 2011  LP Equity – $857,853  Actual Credits Delivered $1,040,000  Loans  $724,000 original balance  $671,067 balance at sale  Value of real property and LP interest do not exceed debt Nonprofit Early Exit

3. 3 3  Troubled Project  Mortgage in technical default due to inadequate DCR  Lack of active GP  High vacancies  High administrative & maintenance costs  Poor cash flow  Mold, capital needs  Possible foreclosure  Possible recapture Nonprofit Early Exit

4. 4 4  Workout  Assign GP and LP interest to new third party entity (stronger financially with experienced LIHTC property management)  New entity required mold mediation totaling $112,000 as inducement to step in  New entity indemnifies investors against recapture  No known compliance issues at property  Property operations improve Nonprofit Early Exit

5. 5 5  Impact on Fund IRR  Beyond 10 year credit period  Delivered projected credits  Statute of limitations for recapture  Safeguards for Fund against future recapture  Indemnification  Consultants or Management Agents w/LIHTC experience Early Exit Considerations

6. 6 6  Financial strength of Indemnitor  Continued asset management rights  Owner’s Annual Certification of Compliance  Access to tenant files and Fair Housing documentation  Access to property for inspection  Fund consent requirements Early Exit Considerations