Presentation for Cahec Partners Conference

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• Presentation for Cahec Partners Conference
• June 11, 2009

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Key Lender Issues Today

• Upper Tier Investor need to ensure that equity
  will be available when needed
• Deferred Developer Fee prefer no more than 50
  initially
• Rents how do LIHTC rents compare to market
  rents
• Shadow market single family home prices versus
  rental rates
• Market are there concessions in the market that
  put the proposed property at a lease-up
  disadvantage

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Key Lender Issues Today

• REO schedule Macro view is important however,
  micro view is becoming critical. Be prepared to
  answer questions about any asset that is
  struggling in your portfolio
• Sponsor liquidity cash and availability of cash
  is key element in reviewing sponsor mortgage
  credit. Does the borrower have the ability to
  support the deal if necessary for a period of
  time
• Relationship lenders are seeking relationships
  that will provide multiple transactions as the
  in-depth credit review process is time consuming
  and the desire is to minimize the credit
  underwriting and work with known developers.
  This is especially true if we are working with
  BBT construction lending as deposits and other
  banking services will be a key component to
  getting approval to work with a sponsor.

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Programs

• 9 LIHTC
• Fannie Mae Funded/Unfunded Forwards
• Freddie Mac Unfunded Forwards
• FHA 221D4 (includes construction and perm)
• 4 Private Activity Bonds
• Fannie Mae Funded Forwards fixed rate
• Freddie Mac Forwards floating rate and Swaps
• FHA fixed rate

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AFFORDABLE HOUSING PERMANENT LOAN PROGRAM UPDATES
FOR FANNIE MAE FREDDIE MAC

• Forward Commitments for new construction or
  acquisition/rehab properties with 9 LIHTC and at
  least 40 of the units at 60 AMI

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Forward Commitment new construction or
acquisition/rehab Variable and Fixed Rate 4 Bond
credit enhancement transactions
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Preservation or LIHTC Expiring Use (less than 10
years remaining in tax credit compliance term) or
Project Based Section 8 HAP properties
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FHA overview

• 221D4 general parameters
• 90 of Replacement Cost
• 1.11x DSC
• Statutory Limitations (not typically a concern
  for areas outside NY, Chicago, SF, LA, DC)
• NOTE LIHTC deals are typically constrained by
  DSC, not cost due to the amount of equity/subsidy
  in the deals.
• Syndicator may require a 1.15x DSC as opposed to
  program guidelines of 1.11x DSC. Ask your
  syndicator!
• Current Rates
• 6.75 for taxable 221D4, plus MIP
• 5.75 for tax-exempt 221D4, plus MIP
• MIP is 45 bp per annum

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Grandbridge Real Estate Capital Contacts

• Philip Melton Senior Vice President
• 972-385-6005 ext. 22
• pmelton_at_gbrecap.com
• Karen Dubrosky Vice President
• 612-341-7895
• kdubrosky_at_gbrecap.com
• Cindy Hannon Vice President
• 678-244-9529
• channon_at_gbrecap.com
• Martha Mendoza Administrative Assistant
• 972-385-6005 ext. 23
• mmendoza_at_gbrecap.com