1. Florida Housing Coalition Annual Conference Preservation of Affordable Housing September 27, 2011

2. Fannie Mae and Freddie Mac  Preservation Programs - Expiring Section 8 HAP Contracts - Less than 10 Years of Restrictions  Bond Credit Enhancement – 4% LIHTC  9% LIHTC Mortgages  Green Refinance Plus – Fannie Mae

3. Preservation Programs – Immediate Funding  Debt Service Coverage Ratio – 1.20x – 1.25x - HUD Risk Share – 5 basis point reduction  Loan to Value – 80% - HUD Risk Share – increase LTV by 5%  Amortization – 30 to 35 years  Term – typically a minimum of 10 years  Minimum Occupancy – 85% Physical & 80% Economic  Recourse – Non-recourse except for standard carve-out provisions  Supplemental Loans - Available

4. Bond Credit Enhancement – 4% LIHTC  Immediate and Forward Commitment - Forward requires LOC from “A” – “AA” Rated Bank until construction/rehab and stabilization  General Underwriting - Debt Service Coverage Ratio – minimum of 1.15x (1.20x for VRB) - Loan to Value – maximum of 85% adjusted value or 90% of market value - Minimum Term – 15 years - Amortization – 30 to 35 years - Fixed or Variable Rate Bonds (Fannie Mae – only Fixed)  Processing Time – 90 days or less  Supplemental Loans – Available  HUD Risk Share – Normally available and may improve terms

5. 9% LIHTC Mortgages  Immediate and Forward Commitment - Same LOC Requirement if Forward Commitment  General Underwriting - Debt Service Coverage Ratio –1.15x - Loan to Value – 90% - Minimum Term – 15 years - Amortization – 30 to 35 years - Fixed or Variable Interest Rate  Processing Time – 75 days or less  Supplemental Loans – Available  HUD Risk Share – Normally available and may improve terms

6. Fannie Mae Green Refinance Plus  Benefits - 4%-5% more proceeds for energy retro-fitting - One Stop Customer Service – Fannie Mae Lender interacts with HUD/FHA  General Underwriting - Loan to Value – 85% - Minimum Debt Service Coverage Ratio – 1.15x - Term – 10 years or more - Amortization – 30 years - Fixed Interest Rate with no I/O period  Other Terms - Affordability Restrictions must remain for Term of Loan - Subsidy Layering Review may be required - Green PNA is required - Standard Appraisal and Phase I ESA required

7. Case Study #1 – Bonds with 4% LIHTC $6,400,000 Florida Housing Finance Corporation New Issue Bond Program CWCapital was Seller/Servicer Forward Commitment Acquisition/Rehab  CWCapital LLC served as the Freddie Mac TAH Seller/Servicer on $6,400,000 of NIBP bonds purchased by Treasury.  Bond proceeds were used to rehabilitate a 14- story, 200 unit elderly housing development.  Principal and interest on the mortgage loan was secured by a direct pay Credit Enhancement Agreement issued by Freddie Mac.  Initial Bond Issuance was split between Gap Bond amount of $2,850,000 and Permanent Bond amount of $6,400,000 and both were credit enhanced by Freddie Mac.  The all-in cost of capital for the financing was 4.638%.  Freddie Mac HUD Risk Share program utilized to improve terms.

8. Case Study #1 – Bonds with 4% LIHTC (continued)  Originally constructed in 1971 and consists of an existing 200-unit elderly housing development.  The Project includes 81 efficiency units and 119 1B/1B units and was affiliated with the Methodist Church.  The cost of the rehab was $6,418,000 or $32,090 per unit. The Project will receive a new 20-year, Section 8 HAP contract for 84% of the units upon expiration of the existing contract in 2012.  Rehabilitation will be floor-by-floor, and is expected to be completed within 15 months. SOURCES OF FUNDS - Permanent NIBP Bond Proceeds$ 6,400,000 Tax Credit Equity$ 5,488,000 Home Loan$ 3,923,000 Seller Subordinate Loan$ 2,500,000 Borrower Contribution$ 350,000 Total Sources$18,661,000 USES OF FUNDS - Permanent Purchase Price – Land and Building$ 4,600,000 Hard Construction Costs - Rehab$ 6,418,000 Soft Construction Costs / Financing$ 7,267,000 Transition Reserve/Contingency$ 376,000 Total Uses$18,661,000

9. Case Study #1 – Bonds with 4% LIHTC (continued) Interest Rate Stack All-In Cost 4.638%

10. Case Study #1 – Bonds with 4% LIHTC (continued) Flow of Funds Issuer Borrower Project Trustee CWCapital LLC Bond Proceeds Bond Mortgage Loan Proceeds used to rehabilitate Revenue Bonds Bond Proceeds Treasury Principal and Interest Loan Payment Credit Enhancement Agreement

11. Case Study – Rehab with Tenants in Place – 9% LIHTC $7,800,000 Fannie Mae Immediate Delivery Fixed Rate in Place Rehab with 9% LIHTC CWCapital was Fannie Mae DUS Lender Immediate Delivery Acquisition/Rehab  CWCapital LLC served as the Fannie Mae DUS Lender on an immediate delivery loan of $7,800,000.  Loan proceeds plus tax credit equity were used to rehabilitate a 180-unit garden apartment property with residents in place.  Tax Credit Equity Installments plus loan proceeds to fund the renovations.  Completion and Operating Deficits Guaranty required.  Fannie Mae HUD Risk Share program utilized to improve terms.

12. Case Study – Rehab with Tenants in Place – 9% LIHTC (continued)  Originally constructed in 1981 and consists of an existing 180-unit family and seniors development.  The Project includes 148 family units and 32 age-restricted units.  The cost of the rehab was $7,920,000 or $44,000per unit. The Project received a new 20-year, Section 8 HAP contract for 100% of the units in 2011.  Rehabilitation is expected to be completed within 15 months and the borrower provided an interim bridge loan to fund the timing gap from tax credit equity installments. SOURCES OF FUNDS - Permanent Loan Proceeds$ 7,800,000 Tax Credit Equity$10,786,000 Existing Reserves$ 303,000 Total Sources$18,889,000 USES OF FUNDS - Permanent Purchase Price – Land and Building$ 7,000,000 Hard Construction Costs - Rehab$ 7,920,000 Soft Costs / Financing$ 2,981,000 Reserve/Contingency$ 988,000 Total Uses$18,889,000