1. Tax Exempt Bond Options In North Carolina

2. Two Tax Exempt Bond Programs – Acquisition/Mod-Rehab Deals FHA 223(f) LIHTC Pilot – New Construction/Substantial Rehabilitation Freddie Mac Tax Exempt Loan Program

3. FHA 223(f) LIHTC Pilot- Structure Short Term Tax Exempt Bonds – Issued by qualified agency. – Private Placement or Sale through Bond Underwriter. – Must Meet 50% Test. – Cash Collateralized. Taxable 223(f) Closed and Funded Immediately – Proceeds are collateral for Tax Exempt Bonds.

4. FHA 223(f) LIHTC Pilot- Benefits Allows Higher Rehab ($40,000 per unit) without needing to use 221(d)(4) program. No Davis Bacon Wages Required Quicker Execution Lower Interest Rate Lower Costs/Escrows

5. FHA 223(f) LIHTC Pilot- Underwriting Term: 35 Years Amortization: 35 years Maximum Loan to Value: 85% (87% with Section 8) Minimum Debt Coverage: 1.176 (1.15 with Section 8) Interest Rate: Note Rate Plus Mortgage Insurance Premium.

6. FHA 223(f) LIHTC Pilot- Process Concept Meeting with HUD Application Preparation and Submission HUD Review of Application and Issue of Commitment Closing

7. Freddie Mac TEL- Structure Qualified Agency Issue Tax Exempt Notes. Short Term Tax Exempt Notes purchased separately. Lender/Freddie Mac Provide Forward Commitment to Purchase Long Term Notes at stabilization. Freddie Mac Locks Rate at Construction closing for Commitment period (24 to 30 months).

8. Freddie Mac TEL- Benefits Early Rate Lock Flexibility for Bridging Equity Competitive Interest Rate Strong Loan Leverage No Davis Bacon Wages

9. Freddie Mac TEL - Underwriting Term: 15 to 18 Years Amortization: 35 years Maximum Loan to Value: 90% Minimum Debt Coverage: 1.15 Interest Rate: Spread over the 10 year Treasury. Add Issuer Fee.

10. Freddie Mac TEL - Process Pre-screen Package to Freddie Mac Issue Application Final Underwriting Issue Firm Commitment Closing Process at Stabilization – Construction Completion – Minimum 90 Days at 90% Occupancy – Review three months of certified operating statements and rent rolls