1. NCSHB

2. opportunities Leverage the benefits of the HUD Risk Sharing program insurance turnaround time lower cost vs. fully insured strong investor base Re-use existing taxable bond fund proceeds Attract new investors/funding tools Conduit issuer

3. products Conduit-only issuer Risk Sharing FFB (using HUD Risk Sharing) Pass-through bond issue (using HUD Risk Sharing)

4. conduit issuer

5. HFA’s as conduit issuer One-stop shop to support lending activities Source of revenue Alternative use of cap during low MRB-use years HFA’s typically provide a more efficient process for allocation of cap Leverages HFA affordable housing expertise

6. chfa’s conduit production

7. pass-through structure

8. Seeks to mimic the investor rates on HUD fully insured Ginnie Mae securities Leverages the lower cost and quicker turnaround of the HUD Risk Sharing program Locks the permanent rate at construction loan closing Up to 40 year term

9. pass-through sample loan terms Sample Borrower, LLC $12,000,000 PAB issued by CHFA (construction) 24 months, interest only 2.4% (2-year swap index plus 150) HUD Insured Paid down via investor equity to perm loan amount $6,025,000 permanent loan from CHFA 40 years, fully amortizing 4.56% (10 year swap index plus 225) HUD Insured

10. ffb - treasury

11. side by side comparison

12. lending pipeline

13. LIHTC lending capture rates