1. 2010 NC Affordable Housing Conference How Will Housing Credit Changes Affect Your Development?

2.  Recap of 2010  Stimulus Update  Outlook for 2011

3. Recap of 2010

4. Applications  Jan. 15 – prelim. app deadline  123 applications from 62 applicants  May 14 – full app deadline  77 applications from 45 applicants  August 16 – announce awards  31 projects to 29 applicants

5. Funding Sources  Awarded $20,503,819 in Federal Housing Credits to 31 projects in 25 counties  Awarded $14,811,000 in RPP loans to 19 projects

6. Outcomes  New Construction  24 projects with 1,407 units  Includes a 41 unit Adaptive Re-use  Rehab  7 projects with 505 units

7. Outcomes  Family  21 projects with 1,315 units  Elderly  10 projects with 597 units

8. Typical Project in 2010  60 units  $660k in federal credits  $1.1 million in state credit loan  $280k non-Metro/$1.1M Metro in soft debt  $780k in RPP funds (19 projects)  $95k-$2.5M in hard debt(17 projects)

9. Stimulus Funds  Exchange – $135 million to 36 projects funded in 2007/2008  $85 million disbursed  9 projects have drawn all funds

10. Stimulus Funds  TCAP – $52 million to 10 projects funded in 2009  $10.5 million disbursed  75% of all funds to be disbursed by end of year

11. Investor Interest  All 2009 projects have found investors  Prospects are good for the 2010 projects

12. Tax-exempt Bonds  26 applications since 2006  Only 10 submitted full apps  6 funded since 2006  3 new construction  3 rehabs (1 did not go forward)  2 applications in current cycle

13. Tax-exempt Bonds  Multi-project transactions  Acquisition/rehab of multiple Rural Development properties under a single bond issue  NCHFA serves as issuer

14. Tax-exempt Bonds  Multi-project transactions  2 transactions completed  9 projects, 320 units  8 projects, 246 units  Next transaction to close by end of year  8 projects, 472 units  7 projects submitted in current cycle

15. Outlook for 2011

16. Housing Credits  Est. $20 million in Federal Credits  Similar projects as in 2010  High demand for Credits and RPP  # of applications - ???  25 to 30 projects funded

17. Tax Exempt Bonds  No significant change in # of applications  Difficult to “pencil out”, limited investor interest, market issues  More multi-project transactions

18. 2011 and beyond  Federal Initiatives  Proposed changes, data collection  Energy Efficiency  Energy credits, building code changes  Sustainable Communities  Federal, state and local initiatives

19. Questions? Contact Information: Scott Farmer Director of Rental Investment North Carolina Housing Finance Agency 3508 Bush Street Raleigh, NC 27609 (919)877-5641 sfarmer@nchfa.com