AFL-CIO Investment Program presents to Regional Roundtable On Public Pension Funds and Targeted Investing Federal Reserve Bank of Boston Boston, Massachusetts December 6, 2006

AFL-CIO Investment Program Achievements AFL-CIO Housing Investment Trust 80,000 Multifamily Units 15,000 Single Family Units $5 Billion in Commitments $8 Billion Present Value of Real Estate Investments 480 Projects 69,712,000 Hours of Union Work Created AFL-CIO Building Investment Trust 120,000,000 Square Feet of Development $3.5 Billion in Commitments $5.7 Billion Present Value of Real Estate Investments 158 Projects 36,318,000 Hours of Union Work Created 1

BIT HIT $6 Billion HIT TOTAL RETURNS BIT TOTAL RETURNS Returns as of Sept. 30, 2006, annualized $3.63 Billion $2.34 Billion AFL-CIO Investment Program Steady Growth, Strong Performance 2

Our Investors * As of Sept. 30, AFL-CIO Housing Investment Trust Central Pension Fund of the IUOE And Participating Employers$ Contra Costa County Employees' Retirement Association$ New York City Employees' Retirement System$98.81 California Public Employees' Retirement System$97.67 Ohio Public Employees Retirement System$97.19 San Francisco City And County Employees' Retirement System$95.53 SEIU Pension Plans Master Trust$95.16 Transit Employees' Retirement Plan (Washington, DC)$88.82 The Teachers' Retirement System For The City Of New York$87.83 Milwaukee And Vicinity Building Trades United Pension Trust Fund$79.88 % of HIT Assets HeldTop 10 Investors $ millions 3

Our Investors * As of Oct. 1, AFL-CIO Building Investment Trust Bakery and Confectionery Union and Industry Int’l Pension Fund$ California Public Employees Retirement System$ Int’l Brotherhood of Painters and Allied Trades Union & Industry Pension Fund$ Plumbers and Pipefitters National Pension Fund$ Service Employees International Union Master Pension Trust$ National Roofing Industry Pension Fund$89.25 National Electrical Annuity Plan$67.48 Southern Nevada Culinary & Bartenders Pension Trust$64.97 Local 705 Int’l Brotherhood of Teamsters Pension Trust Fund$55.23 Annuity Plan of the Electrical Industry$51.43 % of BIT Assets Held Top 10 Investors $ millions 4

Historical Investments in the Boston Area AFL-CIO Housing Investment Trust 1,563 Total Multifamily Units 1,022 Affordable Units $164 Million in Commitments $238 Million Total Development Cost 16 Projects 2.1 Million Hours of Union Work Created AFL-CIO Building Investment Trust 836,000 Square Feet of Development 302 Multifamily Units 150 Hotel Rooms $200 Million in Commitments $451 Million Total Development Cost 8 Projects 3.4 Million Hours of Union Work Created 5

Total Development Cost$49.9 Million HIT Construction Financing$27.3 Million HIT Purchase of Participation Certificate (FHA Risk Sharing Program) $2.9 Million Total Units, Including Condos and Rental Apartments86 Market Rate Units36 Moderate and Low Income Units50 Financing Structure – Financing combined a conventional construction loan provided by the HIT and a local lender and a taxable permanent loan structured through MassHousing’s FHA Sec. 542(c) Risk Sharing Loan Program. Financing also included city, state and private funds, including low-income housing tax credits. A Major Multifamily Development in Boston’s South End Developed by the Planning Office for Urban Affairs and dedicated in Rollins Square AFL-CIO Housing Investment Trust 6

New YorkAchieved over $2 billion in total real estate activity 9.3 million hours of work for union members National Apartment Initiative Achieved $1.6 billion in total real estate activity 16.3 million hours of work for union members ChicagoTargeting $750 million in total real estate activity 5.6 million hours of work for union members New OrleansTargeting $1 billion in total real estate activity 6.5 million hours of work for union members Initiatives Focus on Economic Development and Job Creation in Specific Markets 7

New York City Community Investment Initiative AFL-CIO Housing Investment Trust 12,737 Total Multifamily Units 11,624 Affordable Units 2,526 Homeownership Loans $508 Million in Mortgage Loans $273 Million in Multifamily Finance $1.2 Billion Estimated Value of Real Estate Investments 13 Projects Since January 2002 AFL-CIO Building Investment Trust 69,000 Square Feet of Development $255.4 Million in Commitments $821 Billion Estimated Value of Real Estate Investments 5 Projects 8

Report Card AFL-CIO Housing Investment Trust (Debt Instruments) BIT (Equity Instruments) On Site Union Construction 100% Covered Facilities Union Operation: Office 82% Hotels 100% Groceries 100% Parking 86% Building Operations By Building 92% Total Dollars 72% 106 million hours of union work created over the life of the funds Currently $2.02 billion in total construction activity underway for both funds 223 signatory contracts representing 18 trades governing operations of BIT buildings Union Labor Policies HIT (Debt Instruments) On Site Union Construction 100% 9

Path of Destruction: – 200,000 homes destroyed or severely damaged – 500,000 people displaced – Area affected the size of Great Britain Gulf Coast Revitalization Program 10

Gulf Coast Revitalization Program Path of Reconstruction: – $250 Million Multifamily Housing – $250 Million Single Family Housing – $100 Million Hospital and Healthcare Finance – $100 Million Economic Development – $200 Million Public/Private Leverage HIT and BIT Activity Will Create $1 Billion in Investments. 11

Planned unionized facility in New Orleans A new strategy for high road economic development Housing Opportunity Local Economic Growth Training Jobs Factory Built Housing — 1,200 new housing units per year — union jobs 12

AFL-CIO Investment Program Historical Data 13

“What we are doing reflects the mission of the labor movement. This is what the labor movement is all about.” John Sweeney President, AFL-CIO New Orleans, LA June 14, 2006 AFLCIO Housing Investment Trust 1717 K Street, NW, Suite 707 Washington, DC (202) Boston Office Paul Barrett, Regional Marketing Director 655 Summer St. Boston, MA (617) AFL-CIO Housing Investment Trust AFL-CIO Building Investment Trust 14 AFL-CIO Building Investment Trust Mercantile-Safe Deposit & Trust Company Trustee Two Hopkins Plaza Baltimore, MD (410)