1. Tax Exempt Bond Options In North Carolina

2. TAX EXEMPT BOND PROGRAMS MODERATE REHABILITATION DEALS  Fannie Mae/Freddie Mac  FHA 223(f) LIHTC Pilot NEW CONSTRUCTION / SUBSTANTIAL REHABILITATION  FHA 221(d)(4)  Freddie Mac Tax Exempt Loan Program

3. AGENCY MOD-REHAB SHORT TERM TAX EXEMPT BONDS  Issued by qualified agency  Private Placement or Sale through Bond Underwriter  Must Meet 50% Test  Cash Collateralized TAXABLE FANNIE/FREDDIE LOAN FUNDED IMMEDIATELY OR DRAWS  Loan Proceeds are collateral for Tax Exempt Bonds  15 to 18 Year Term, 30 to 35 year amortization  Up to 90% LTV  1.15 Debt Coverage  Rates STRUCTURE

4. AGENCY MOD-REHAB BENEFITS Quickest Execution Lowest Costs No Conversion Risk AGENCY MOD-REHAB Interest Only Period BENEFITS

5. FHA 223(f) LIHTC PILOT 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  35 Year Term and Amortization  87% Loan to Value  1.15 Debt Coverage  Rates (Plus MIP) STRUCTURE

6. FHA 223(f) LIHTC Pilot BENEFITS Allows Higher Rehab ($40,000 per unit) without needing to use 221(d)(4) program Quicker Execution than 221(d)(4) Lowest Interest Rate Option Davis Bacon Wages Usually Not Required Lower Costs/Escrows than 221(d)(4)

7. FHA 221(d)(4) SHORT TERM TAX EXEMPT BONDS  Same as 223(f) Structure TAXABLE 221(d)(4) CLOSED AND FUNDED ON DRAW DOWN BASIS  Proceeds are collateral for Tax Exempt Bonds  40 Year Term and Amortization  87% Loan to Costs  1.15 Debt Coverage  Rates (Plus MIP)  Davis Bacon Wages  Escrows STRUCTURE

8. FHA 221(d)(4) BENEFITS Not Loan to Value Constrained Generally the Highest Leverage Longest Term and Amortization

9. Freddie Mac TEL  Qualified Agency Issues 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)  90% Loan to Value  1.15 Debt Coverage Ratio  Rate Plus Issuer Fee  Rate Lock Deposit STRUCTURE

10. Freddie Mac TEL BENEFITS Early Rate Lock Generally the Highest Leverage Flexibility for Short Term Bonds and Equity Pay- In Schedule Competitive Interest Rate Strong Loan Leverage Quick Execution No Davis Bacon Wages

11. HOW DO YOU CHOOSE? TIME SUBORDINATE DEBT LEVERAGE PRE-PAYMENT FLEXIBILITY