1. IPED Annual Affordable Housing & Development Update: Opportunities in a Changing Economy The Fairmont Miramar Hotel Santa Monica, CA June 4 - 5, 2009

2. IMPORTANT RURAL HOUSING SPECIFIC ISSUES Go Zone/Disaster Area Credit Qualification For Exchange – Reform! 538 Interest Credit Subsidy – Protect! MPR/Restructuring Permanent Legislation Additional Subsidy – Existing, New and Preservation

3. 515 mortgage subordination and tax credit re-syndication to reposition properties. 9% LIHTC Transactions combining multiple sites have been closed repeatedly Alternative Funding Preservation Tools

4. Tiered rents for LIHTC properties? New 30 year RUP required CRCU rents will probably continue to be the standard Equity can be paid by non-RD sources or from RD sources with appraisal 20 year CNA Preservation Tools

5. Handbook – HB-3-3560 – Chapter 15 – Apply to prepay – Must be complete – but completeness can vary by office – Must demonstrate ability to prepay with loan commitment or assets You can receive incentives – equity take-out loan – From RD – 1% interest rate but little money and long wait – Obtain yourself – must locate and educate lenders ELIHPA

6. You may be able to prepay with a life -estate use restrictions for current residents – If housing determined to be unnecessary – If no adverse impact on minority persons And/Or you can offer for sale to a non-profit, at apprised value – Must offer for 6 months – If non profit makes offer, have up to 24 months to close – If neither happens, can prepay

7. MPR MPR is seeking pre-applications by 5 p.m. est June 29, 2009. The authorized restructuring tools are debt deferrals, revitalization grants, zero percent loans and soft-second loans. Market value. Excess cash. Simple transactions that involve no change in ownership. Complex transactions consist of a property transfer to new ownership or a subordination Portfolio transactions. Top ranked pre-applicants are invited to submit a formal application. Capital needs assessment Community market rent demonstration, allowing an owner to set a rent above the approved basic rent for any unit not currently occupied by a tenant receiving RA.

8. Richard Michael Price Nixon Peabody LLP 401 Ninth Street Suite 900 Washington, DC 20004 Telephone: (202) 585-8716 Facsimile: (202) 585-8080 E-Mail: rprice@nixonpeabody.com