1. Twinning Historic Tax Credits and New Markets Tax Credits Charlie Werhane Vice Chairman/COO Enterprise Community Investment, Inc. November 8, 2007

2. 2 Enterprise NMTC Portfolio Overview $515 million in allocations 26 NMTC investments closed 12 projects include the twinning of HTC and NMTC: Broad product mix

3. 3 Enterprise Portfolio Closed HTC/NMTC Transactions 47% HTC/NMTC 53% Non HTC/NMTC 340 mm

4. 4 Old Post Office – St. Louis, MO Fashion Square – St. Louis, MO Drury Hotel – San Antonio, TX Oak Street School – Buffalo, NY Court Square Center – Memphis, TN Project Impact Examples

5. 5 Court Square Center

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8. 8 Sources and Uses: ($ in millions) Sources:Uses: A Loan (Perm. Loan)$8Site Acquisition $1 B Loan (Sec. 108 Loan)$8.5Hard Costs$31.7 C Loan (BEDI Loan) $2Soft Costs$6.8 D Loan $.2Other$11.5 HTC Equity $6.3 NMTC Equity$11.3 Insurance proceeds$9.1 Other$5.6 Total:$51Total: $51

9. 9 NMTC Equity generated by twinning HTCs and NMTCs Total Federal HTC Equity (based off of QREs) is $6.3MM * Total Loans and Equity infused into project generating NMTC: A Loan (Perm. Loan)$8MM B Loan (Sec. 108 Loan)$8.5MM C Loan (BEDI Loan) $2MM D Loan $.2MM Federal HTC Equity $6.3MM * NMTC Equity boost to project on HTC approx.$2MM

10. 10 Complexity

11. ESIC has implemented the organizational structure to allow investors to take full advantage of the New Markets Tax Credit.

12. 12 Example of a Master Lease Structure - 1 Landlord Investment Fund $ QEI Master Tenant $ Equity $ QLICI Loans $ QLICI Equity Enterprise CDE HTCs HTCs, NMTC, Distributions Debt Service Enterprise Allocatee Allocation Subtenants Developer Equity/Property

13. 13 Example of a Master Lease Structure - 2

14. 14 THANK YOU