HUDSON HOUSING CAPITAL EFFECT OF TAX REFORM ON PRICING HAND BOND PROGRAM HUDSON HOUSING CAPITAL EFFECT OF TAX REFORM ON PRICING

Impact on Tax Reform on Pricing REDUCTION IN TAX RATES HAS A DIRECT REDUCTION IN THE VALUE OF THE LOSSES The impact on bond deals are more dramatic because the ratio of losses to equity is higher REDUCTION IN CORPORATE TAXES LOWERS APPETITE COST OF FUNDS The investors are more focused on the cost of funds now vs the recent past Competing investments for the tax credit TAX RATE CHANGE FROM 35% / 25% / 21% – PENNY A PERCENT IN TAX RATE DIFFERING VIEW OF LOSSES BY INVESTORS

BENEFITS @ 35% CTR BENEFITS @ 21% CTR

2017 DEPRECIATION SCHEDULE 2018 DEPRECIATION SCHEDULE