1. Ancient History FHA 1934 - 1986 FHA 1934 - 1986 31,987 loans 3,180,693 units about 61,000 units/year

2. More recent history FHA 1987 - 2006 FHA 1987 - 2006 17,166 loans 2,389,844 units about 60,000 units per year financed, or refinanced

3. Market Rate Rents vs Subsidy Rents vs Subsidy Mortgage and Interest Rate Mortgage and Interest Rate

4. Initial attraction Market Market Identification of a site Identification of a site What can go wrong? What can go wrong?

5. Flirting Scope of the project - market Scope of the project - market Local political landscape – zoning, design, traffic, etc. Local political landscape – zoning, design, traffic, etc. Putting the team together Putting the team together

6. The First date Developer Developer Investors Investors Lender Lender Architect Architect General Contractor General Contractor Lawyers Lawyers Management Agent Management Agent

7. Going Steady FHA vs other sources of financing? FHA vs other sources of financing? Lender engagement Lender engagement Zoning Zoning Environmental Environmental

8. Meeting the Parents Concept meeting with HUD Concept meeting with HUD Timing Timing APPS APPS Waivers? Waivers?

9. A pre-engagement ring? Preapplication submission Preapplication submissionMarketEnvironmental Rents / Expenses

10. Getting ready to pop the question Preparation of Firm Commitment application Preparation of Firm Commitment application A&E A&E Cost – (Davis who?) Cost – (Davis who?) Valuation Valuation Mortgage Credit Mortgage Credit

11. Getting ready to pop the question Preparation of Firm Commitment application Preparation of Firm Commitment application Asset Mgt issues Asset Mgt issues Fair Housing Fair Housing Legal Legal

12. The ring... Firm Commitment application submitted to HUD Firm Commitment application submitted to HUD Deficiencies? Deficiencies? Firm Commitment issued Firm Commitment issued

13. Planning the big day Firm Commitment accepted Firm Commitment accepted Rate lock – GNMA security Rate lock – GNMA security Prep the closing documents Prep the closing documents

14. The Happy Day Conditions to the Firm? Conditions to the Firm? Pre-closing passing papers Pre-closing passing papers Pre-Construction conference Pre-Construction conference Meet with Asset Mgt Meet with Asset Mgt Bring Donuts Bring Donuts