1. Midwest Regional update: LIHTC Pilot and RAD
Multifamily Midwest Region
Midwest Regional update: LIHTC Pilot and RAD
Midwest Lenders Conference
October 14th, 2015
Chicago, IL

2. A look back… A look ahead… FY15 Production “Pilot Pointers” “RADvice”
Multifamily Midwest Region
A look back…
FY15 Production
A look ahead…
“Pilot Pointers”
“RADvice”
Midwest Regional Update > Topics

3. Multifamily Midwest Region
FY15 Midwest Region
Total Production

4. FY15 Production Regional comparison: Northeast = 175 Midwest = 172
Multifamily Midwest Region
FY15 Production
Regional comparison:
Northeast = 175
Midwest = 172
West = 166
Southwest = 158
Southeast = 140
FY15 was a challenging year for the Midwest Region (MFT Transformation), but we issued 172 firm commitments!
SOA breakdown:
221(d)(4) = 41 (second most)
223(f) = 92 (most)
223(a)(7) = 39 (second most)
LIHTC units: 8,973 (most)
Midwest Regional Update > FY15 Production > Total

5. FY15 LIHTC Production (Nationally)
Multifamily Midwest Region
FY15 LIHTC Production (Nationally)
FHA has significantly increased its LIHTC production:
(as of 9/9/15)
Midwest Regional Update > FY15 Production > Total LIHTC (Nationally)

6. LIHTC Pilot Production
Multifamily Midwest Region
FY15 Midwest Region
LIHTC Pilot Production

7. FY15 LIHTC Pilot Production
Multifamily Midwest Region
FY15 LIHTC Pilot Production
CLOSINGS: 4
Total volume = $39.6M
Total units = 631
Avg. days to closing = 86 (Pilot goal is 120; national avg. is 101)
FIRM COMMITMENTS: 6
Total volume = $46.6M
Total units = 824
Avg. days to firm = 56
ACTIVE APPLICATIONS: 4
Total volume = $23.6M
Total units = 515
Midwest Regional Update > FY15 Production > LIHTC Pilot

8. FY15 LIHTC Pilot Application Data
Multifamily Midwest Region
FY15 LIHTC Pilot Application Data
Project Location (State)
AVERAGE APPLICATION
Loan size = $6.7M
# of units = 124
LIHTC equity = $3.9M
Loan-to-cost = 47%
Rehab/unit = $29k
Note: Averages based on 4% deals with rehab (3-Year Rule Waiver applications not included); outliers have been removed
Midwest Regional Update > FY15 Production > LIHTC Pilot > Application Data

9. FY15 LIHTC Pilot Application Data
Multifamily Midwest Region
FY15 LIHTC Pilot Application Data
Eligibility Category
* Some or all were also Assisted/Section 8
AVERAGE APPLICATION
Loan size = $6.7M
# of units = 124
LIHTC equity = $3.9M
Loan-to-cost = 47%
Rehab/unit = $29k
Note: Averages based on 4% deals with rehab (3-Year Rule Waiver applications not included); outliers have been removed
Midwest Regional Update > FY15 Production > LIHTC Pilot > Application Data

10. FY15 LIHTC Pilot Application Data
Multifamily Midwest Region
FY15 LIHTC Pilot Application Data
Assisted vs Non-Assisted
AVERAGE APPLICATION
Loan size = $6.7M
# of units = 124
LIHTC equity = $3.9M
Loan-to-cost = 47%
Rehab/unit = $29k
Note: Averages based on 4% deals with rehab (3-Year Rule Waiver applications not included); outliers have been removed
Midwest Regional Update > FY15 Production > LIHTC Pilot > Application Data

11. FY15 LIHTC Pilot Application Data
Multifamily Midwest Region
FY15 LIHTC Pilot Application Data
LIHTC: 4% vs 9%
Note: All 9% deals were 3-Year Rule Waiver applications
AVERAGE APPLICATION
Loan size = $6.7M
# of units = 124
LIHTC equity = $3.9M
Loan-to-cost = 47%
Rehab/unit = $29k
Note: Averages based on 4% deals with rehab (3-Year Rule Waiver applications not included); outliers have been removed
Midwest Regional Update > FY15 Production > LIHTC Pilot > Application Data

12. FY15 LIHTC Pilot Application Data
Multifamily Midwest Region
FY15 LIHTC Pilot Application Data
Elderly vs Family
AVERAGE APPLICATION
Loan size = $6.7M
# of units = 124
LIHTC equity = $3.9M
Loan-to-cost = 47%
Rehab/unit = $29k
Note: Averages based on 4% deals with rehab (3-Year Rule Waiver applications not included); outliers have been removed
Midwest Regional Update > FY15 Production > LIHTC Pilot > Application Data

13. Multifamily Midwest Region
FY15 Midwest Region
RAD Production

14. FY15 RAD Production (Section 221(d)(4) only)
Multifamily Midwest Region
FY15 RAD Production (Section 221(d)(4) only)
CLOSINGS: 3 Total volume = $28.4M Total units = 507 Avg. days to closing = 139
FIRM COMMITMENTS: 7
Total volume = $50.0M
Total units = 1,306
Avg. days to firm = 79
ACTIVE APPLICATIONS: 6
Total units = 1,342
Midwest Regional Update > FY15 Production > RAD

15. FY15 RAD Application Data
Multifamily Midwest Region
FY15 RAD Application Data
Project Location (Region)
Southwest = 0
AVERAGE APPLICATION
Loan size = $8.0M
# of units = 235
LIHTC equity = $10.1M
Loan-to-cost = 30%
Rehab/unit = $54k
Note: Averages based on sub rehab applications (new construction applications not included)
Midwest Regional Update > FY15 Production > RAD > Application Data

16. FY15 RAD Application Data
Multifamily Midwest Region
FY15 RAD Application Data
Sub Rehab vs New Const.
AVERAGE APPLICATION
Loan size = $8.0M
# of units = 235
LIHTC equity = $10.1M
Loan-to-cost = 30%
Rehab/unit = $54k
Note: Averages based on sub rehab applications (new construction applications not included)
Midwest Regional Update > FY15 Production > RAD > Application Data

17. FY15 RAD Application Data
Multifamily Midwest Region
FY15 RAD Application Data
LIHTC: 4% vs 9%
AVERAGE APPLICATION
Loan size = $8.0M
# of units = 235
LIHTC equity = $10.1M
Loan-to-cost = 30%
Rehab/unit = $54k
Note: Averages based on sub rehab applications (new construction applications not included)
Midwest Regional Update > FY15 Production > RAD > Application Data

18. FY15 RAD Application Data
Multifamily Midwest Region
FY15 RAD Application Data
Elderly vs Family
AVERAGE APPLICATION
Loan size = $8.0M
# of units = 235
LIHTC equity = $10.1M
Loan-to-cost = 30%
Rehab/unit = $54k
Note: Averages based on sub rehab applications (new construction applications not included)
Midwest Regional Update > FY15 Production > RAD > Application Data

19. Multifamily Midwest Region
“Pilot Pointers”

20. “Pilot Pointers” Concept meeting HAP renewal/rent increase request
Multifamily Midwest Region
“Pilot Pointers”
Concept meeting
HAP renewal/rent increase request
Good narrative
Waiver requests
$40k/unit rehab threshold, 1 system
Completion assurance
Comprehensive S+U, flow of funds
Equity pay-ins
Secondary financing, bridge loans
Developer fee
Pilot Loan Committee
Closing documents, subordinate debt
Midwest Regional Update > “Pilot Pointers”

21. Multifamily Midwest Region
A bit of “RADvice”

22. “RADvice” Concept meeting CHAP Good narrative Waiver requests
Multifamily Midwest Region
“RADvice”
Concept meeting
CHAP
Good narrative
Waiver requests
RPCA Tool
Development team
Contingency
Davis-Bacon
Relocation
Scattered sites
Age restrictions
Ground leases, seller notes
Tax abatements
Criterion 5 expense analysis
Midwest Regional Update > “RADvice”

23. “RADvice” (cont’d) Comprehensive S+U, flow of funds Equity pay-ins
Multifamily Midwest Region
“RADvice” (cont’d)
Comprehensive S+U, flow of funds
Equity pay-ins
Secondary financing, bridge loans
Developer fee vs BSPRA/SPRA
Regional Loan Committee + RAD Approval Committee (RCC)
Closing documents, subordinate debt
Midwest Regional Update > “RADvice”

24. Multifamily Midwest Region
Resources

25. Multifamily Midwest Region
Resources
LIHTC Pilot website:
MAP Guide REV-2 Chapter 14 (coming soon!)
RAD website: hud.gov/rad
RAD FHA Underwriting Notice (H )
Midwest Regional Update > Resources

26. Resources (Midwest Region)
Multifamily Midwest Region
Resources (Midwest Region)
Chicago Underwriter Branch Chiefs:
Scott Greuel
(312)
Midwest Region Production Division website: states/shared/working/r5/production
Steve Ott
(312)
Midwest Regional Update > Resources