1. MMA Financial, LLC A MuniMae Company
Sale Strategies
Presented By Michael H. Gladstone, Esq.
IPED – Boston, MA.
October 11, 2007

2. Sell Property Before Y15 Is property key to fund yield?
Reduce risk by selling
New capital
New management
Bond
Indemnities
Buyer is more important than price

3. A Pre-Year 15 Exit Selling before Year 15: balancing act
But generally not before Year 13

4. A Pre-Year 15 Exit Pros Take advantage of market opportunities
Strike while iron is hot
Reduce expenses
Reduce exposures

5. A Pre-Year 15 Exit Cons Buyer may not comply with rules
Difficult to monitor (but if we finance buyer…)
Bonding expenses

6. Case Study – Sale as Workout Strategy
Hayden Pointe Apartments (Las Vegas)
252 unit garden-style
MMA took over as GP in 2000
Deficits of $400,000 per year
$ 715,000 in LIHTC per year
2 years remaining credits

7. Case Study con’t. Options:
1. Sell some fund credits (coupled with default refunding/refinancing of property)
Sell property
Investor favored sale

8. Case Study con’t. Forbearance Agreement with Lender
Sale paid Lender in full
Modest distribution to Fund
Received 85% of LIHTC
Strong, reliable buyer
Avoided recapture