1. Fannie Mae’s Housing Development Tool Investing with Public Partners to Support Housing Presented by Maria Day-Marshall March 2008

2. 1© 2008 Fannie Mae Fannie Mae is a Leader in the U.S. Housing Finance Industry Government Sponsored Enterprise (GSE) For-profit company listed on the New York Stock Exchange (FNM) Involved in the financing of 1 out of every 5 mortgages  Operate in the secondary mortgage market  Issue mortgage backed securities (MBS)  Purchase loans and MBS to hold in portfolio

3. 2© 2008 Fannie Mae Fannie Mae’s Commitment to Housing Fannie Mae provides stability, liquidity, and affordability to the nation's housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.

4. 3© 2008 Fannie Mae Fannie Mae’s Housing and Community Development Division Our mission is to invest debt and equity in housing developments to support neighborhoods and community revitalization. We achieve our mission by investing with partners in viable housing developments and becoming the secondary market partner of choice for housing finance partners. Oxon Creek, Washington, DC Uwajimaya, Seattle, WA

5. 4© 2008 Fannie Mae What Does Housing and Community Development do? Offers front-end financing for single-family and multi-family housing, and mixed-use developments Seeks to produce tangible impact in neighborhoods Leverages other resources Wardman Court, Washington, DC Spicer’s Run, Baltimore, MD

6. 5© 2008 Fannie Mae Housing and Community Development Gets it Done in the Field Coaching Staff: DC Team Product Managers Credit Legal Asset Mgt Local Experts: Coverage in all 50 states

7. 6© 2008 Fannie Mae Community Express ® Loan or line of credit to support the residential development agenda of Public Entities including the development of single-family housing, multifamily housing and mixed-use residential developments.

8. 7© 2008 Fannie Mae Community Express ® Features Up to 5-year term loan or line of credit Variable rate product Full recourse to borrowing entity Flexible loan to be used for housing or housing- related activities Repayment source is flexible, but a plan must be in place Available to states, counties, municipalities, housing finance agencies and public housing authorities

9. 8© 2008 Fannie Mae Examples of Repayment Sources HOPE VI Grant Funds Low Income Housing Tax Credit Equity Pay-in CDBG, FEMA or Other Grant Funds Bond Proceeds Cash Flows from Loan Portfolios Refinancings of Properties through Conventional Sources Sales Proceeds from Sale of Homes Financed with Loan

10. 9© 2008 Fannie Mae Sample Uses of Loan Funds Pre-development Financing Construction Financing for HOPE VI Redevelopment Project or Other Affordable Homeownership Units Preservation of Affordable Rental Housing Units Rehab Loans to Low- and Moderate-income Homeowners in Targeted Neighborhoods Re-lending to Other Housing Partners

11. 10© 2008 Fannie Mae Community Express ® City and County of Denver $17.5 million line of credit Funds used to re- lend to housing partners to finance costs associated with development of workforce housing Repayment source is the cash flows from loan portfolios

12. 11© 2008 Fannie Mae Community Express ® St. Johns County, Florida $2 million line of credit Funds used to construct single- family workforce housing Repayment source is sales proceeds

13. 12© 2008 Fannie Mae Community Express ® Housing Authority of the City of Los Angeles $10 million revolving line of credit Funds used to purchase expiring use affordable multifamily properties in hot market Repayment source is the refinancing of the properties through conventional sources

14. 13© 2008 Fannie Mae Community Express ® Cincinnati Metro Housing Authority $4 million revolving line of credit Funds used to provide construction financing for HOPE VI redevelopment project One repayment source is HOPE VI grant funds A second repayment source is low income tax credit equity pay-in

15. 14© 2008 Fannie Mae $5 Million Line of Credit Funds used to construct 127 affordable housing home ownership units Community Express ® Grand Forks (ND) Housing Authority Affordable Housing District -- Sales prices start at $86,900 Repayment source is sales proceeds

16. 15© 2008 Fannie Mae Community Express ® City of White Plains, NY $1 million line of credit Funds used to provide rehab loans to low- and moderate-income homeowners in targeted neighborhoods Primary repayment source is cash flows from the loan portfolio Secondary repayment source is CDBG funds

17. 16© 2008 Fannie Mae Benefits to Public Entities Flexible Use – Can be used for pre-development, acquisition, development, construction or rehabilitation for housing, and re-lending for housing purposes Competitive Interest Rates Stream-lined and Simplified Process Low Upfront Fees Low Collateral Requirements Allows Public Entities to Leverage Other Private/Public Sources of Funds to Develop Housing Projects

18. 17© 2008 Fannie Mae Contact us! For more information contact: Lisa Zukoff, Director E-mail: lisa_zukoff@fanniemae.com Phone: 304-843-8089 Maria Day-Marshall, Senior Business Manager E-mail: maria_k_day-marshall@fanniemae.com Phone: 202-752-3916