1. Loan Execution Panel Discussion
Presented By
Katey Forth Moderator Great Lakes Capital Fund
Paul DeKruiff Originator Great Lakes Capital Fund Zina Risk Underwriter Great Lakes Capital Fund Brian Jones Director Love Funding
Greg Mayernik Originator Love Funding

2. How To Choose The Best Loan Product.
Know Where Your Asset Is In Its Life-Cycle
Making, Setting, And Achieving Your Goal

3. Permanent Lending Products
Program Name
Fannie Mae LIHTC
Fannie Mae Preservation
Private Investor
Predevelopment
Maximum Loan To Value
*90%
**80%
80% - 90%
90%
Minimum Debt Coverage Ratio
*1.15
**1.20
N/A
Amortization 30
Loan Term
7,10,18,30
At least 15 years
Months
Rates (as of May 21, 2014)
4.15% %
Call
General Notes
 Prepayment Options Available
Prepayment Open With Payment 
Annotations
*These standards apply only to LIHTC projects with at least 8 years remaining in the initial 15-year compliance period. The Mortgage Loan must have a loan term that is equal to or greater than the remaining initial compliance period with 30-year amortization. (New tax credit deals)
**Applies to PRESERVATION deals - includes LIHTC with less than 8 years of compliance remaining, and catch all for recorded rent restrictions - ie, LURA

4. Loan Term Sheet Eligible Projects
Properties that are designated affordable via regulatory agreements or rent restrictions
(Including coterminous HAP contracts)
Any location in the country
Term and Amortization
7, 10, 18, or 30 year term
30 year amortization for new construction or significant rehabilitation
35 years available for properties with long term HAP contracts
Eligible Loan Amounts
$500,000 minimum
NO Maximum
Underwriting Criteria
Minimum Debt-Service-Coverage of 1.20x
Maximum Loan-to-Value 80% for refi or up to 90% for new 9% credits
Recourse/ Guarantees
Loans are non-recourse to borrower
Personal guarantees are required against fraud and bad acts
Rate Locked Commitment
Immediate loans rate locked for 30 days after completion of underwriting
Forward loan commitments can be rate locked for up to 30 months with 2% deposit
Legal Fees fixed at a maximum of $12,000 per loan for a typical transaction
Pre-payment
Loans will have yield maintenance provision
Pre-payment fee after the expiration of the yield maintenance is 1% of principal balance
Application and Origination
$2,500 plus deposit to pay for all third party reports – appraisals, credit checks, etc.
Origination Fee ranges from 1.0% to 2.0% depending upon loan size and complexity
Legal Fees
Legal Fees fixed at a maximum of $12,000 per loan
Replacement Reserves
A minimum of $250 per unit per year to be funded on a monthly basis
Replacement Reserve funding level will be evaluated after tenth year of the mortgage
Subordinate Financing
Soft subordinate loans are allowed, but must be subordinated to first mortgage
Loan Term Sheet

5. Fannie Mae Financing Loan Application And Submission Stage
Our Inspections
Third Party Reports
Credit Review
Mildly Painful forms….
Post-Closing
NO Audit Required
ALL Communication Is With GLCF
No REAC Inspections

6. FHA Financing Overview May 21, 2014
Brian Jones
Phone:
@bwjfinance
Greg Mayernik
Phone:

7. About Love Funding
Love Funding is a fully-approved HUD LEAN and MAP lender serving clients across the country from its headquarters in Washington D.C. and offices in Boston, Cleveland, Dallas, Denver, Kansas City, Knoxville, New York, Palm Beach, Tampa and St. Louis. The company offers refinance, construction and acquisition financing programs for multifamily, senior housing and healthcare facilities, including hospitals. Love Funding is one of the Love Companies, a St. Louis-based investment holding company with origins dating back to 1875.

8. HUD Section 221(d)(4) New Construction or Substantial Rehab
Manage expenses, collections and occupancy to maximize loan proceeds
HUD Section 221(d)(4) New Construction or Substantial Rehab
Market Rate
Affordable
>90% Rental Assistance
Maximum Term
40 years fully amortizing
Debt Service Coverage
1.20x
1.15x
1.11x
Loan to Replacement Cost
83.3%
87%
90%
MIP (1.0% at closing)
.65%
.45%
Maximum Underwritten Occupancy
93%
95%
Working Capital Escrow
4% of loan amount
Annual Replacement Reserve
Greater of: 1) .60% of total structure cost for new construction or .40% of loan amount for rehab or 2) $250 per unit per year.
HUD considers waivers when formula exceeds $500 per unit.
Initial Operating Deficit
Typically the greater of: 1) amount determined by underwriter, 2) 3% of loan amount or 3) 4 months debt service for walk-up or 6 months debt service for elevator buildings subject to a Certificate of Occupancy issuance.
Substantial Rehab Threshold
Cost of Repairs, replacements and/or improvements of the existing property must exceed the greater of: 1) 15% of the estimated replacement cost after completion of all repairs and improvements or 2) $6,500 adjusted regional HUD high cost factor.
Additionally, a property can qualify for substantial rehab if two or more building systems are being replaced.
Other
Davis-Bacon prevailing wage rates apply
Large loans are subject to more conservative underwriting
Subordinate financing is allowed from a governmental source and only in the form of a surplus cash note.

9. HUD Section 223(f) Refinance or Acquisition
Manage expenses, collections and occupancy to maximize loan proceeds
Market Rate
Affordable
>90% Rental Assistance
Maximum Term
35 years fully amortizing limited to 75% of the remaining economic life
Maximum Loan is Limited to the Lesser of:
Refinancing
1) Debt Service Coverage
1.20x
1.17x
1.15x
2) Loan to Value
83.3%
85%
87%
3) Eligible Costs
Greater of: 100% of eligible costs or, if cash out, 80% of market value
Acquisition
3) Eligible Transaction Costs
MIP
.65%
.45%
Maximum Underwritten Occupancy
93%
95%
Replacement Reserve
Initial deposit based on PCNA then annual deposits at the greater of $250 per unit or as identified in the PCNA
Other
Repairs can not exceed the greater of $6,500/unit multiplied by the high cost factor or 15% of the estimated replacement cost after completion repairs. Repairs are also limited to one major building system.
Davis-Bacon prevailing wage rates do not apply to repairs

10. >90% Project Based Rental Assistance
LIHTC Pilot Program Permanent Financing for Multifamily Housing with LIHTC
Overview
Working within the framework of the 223(f) loan program regulations, HUD created a loan program with a streamlined review process on transactions that are low risk. The Pilot program is designed to expedite application processing to meet tight external deadlines imposed by the LIHTC program.
Eligible Properties:
1) Re-syndicated LIHTC projects
Permanent financing for acquisition and/or refinance with moderate rehabilitation up to $40,000 per unit
2) Acquisition & Rehabilitation with LIHTC
Permanent financing for acquisition and/or refinance with moderate rehabilitation up to $40,000 per unit.
Projects with >90% rental assistance, market rate converting to LIHTC or affordable projects converting to LIHTC.
3) New constructed stabilized properties
Permanent financing under waiver of three year rule. Projects must have building permits prior to September 18, 2014.
MIP
.45%
Maximum Loan is Limited to the Lesser of:
Affordable
>90% Project Based Rental Assistance
1) LTV
85%
87%
2) Refinance LTC
100%
3) Acquisition LTC
90%
4) DSC
1.176x
1.15x
5) Dollar Maximum
$25 million

11. FHA Financing What is means for asset management
Pre-loan Application Stage
- Manage expenses
- Manage collections
- Manage occupancy
Loan Application and Submission Stage
- Forms, forms and more forms
- Forms…. see above
- Inspections
Post Loan Closing Stage
- Registration for on-line HUD reporting systems
- Physical inspections
- Annual audit and submission requirements