1. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development C o v er I m a g e S a m pl e: If u s e d a c o v er i m a g s h o ul d b e a gr a y s c al e ( B & W ) a n d “s e nt to b a c k” u n d er “ A rr a n g e” in th e D ra wi n g T o ol s - F or m at ta b NCSHA Board Meeting August 17, 2015 Secretary Kenneth C. Holt Maryland Department of Housing and Community Development

2. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development Multifamily facilitates production of affordable rental housing opportunities through its lending and equity financing products Works in partnership with the private sector Rehabilitation and New Construction Elderly and Family Housing Major Funding Sources – Federal and State –Federal -- Equity Raised from Low Income Housing Tax Credits –Federal -- Tax Exempt Revenue Bonds –State -- Loan Funds (RHF, RHW, PRHP) 2 Multifamily Housing Financing: Overview

3. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development MULTIFAMILY LOAN FUNDS Tax Exempt Revenue Bonds –Provide funds for loans with “below market” interest rates –Can qualify for “automatic” 4% Tax Credits –“Non-competitive” funding –Applications accepted on a first-come, first-serve basis –Project must meet basic income targeting and public purpose requirements State Loan Funds –Competitive (RHP, HOME) and Non-Competitive (RHW, PRHP) –Offer flexible “gap” financing –Subordinate to first mortgage when required –Cash flow payments when appropriate 3

4. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development FINANCING MECHANISMS Bond Financing –Taxable/Tax-Exempt Financing –FHA Risk-Sharing Program State-funded Gap Financing –FY 2016 - $20 million for 4% Bond projects (up to $2.5 million per project) –FY 2016 - $15.5 million for 9% projects (up to $2 million per project) –FY 2016 - $6 million for projects targeted to Local Governments (up to $75,000 per unit) 4

5. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development OTHER MULTIFAMILY INITIATIVES Section 811 Project Rental Assistance (PRA) Demo FY12 HUD NOFA Award –$11.2 million with goal of supporting 150 units for Persons with Disabilities (PWD), ages 18- <62 in the Baltimore and Washington, D.C. MSAs FY13 HUD NOFA Award – $9.8 million with goal of supporting 150 units for Persons with Disabilities (PWD), ages 18- <62 Statewide 2015 MFP Bridge Subsidy –$2.5 million to serve approximately 90 Persons with Disabilities (PWD), ages 18+ Weinberg Initiative Capital grant to create units for non-elderly persons with disabilities with incomes as low as 15% AMI MD-BRAC Preservation Initiative Loan from MacArthur Foundation that can be leveraged with other funds 5

6. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development PAST ACCOMPLISHMENTS AND GOALS 6 OutcomeFY 2014 (actual) FY 2015 (actual) FY 2016 (projected) Produce New Units (#)6311,435815 Preserve Existing Units (#)1,7761,5252,445 TOTAL PRODUCTION & PRESERVATION (#) 2,4072,9603,260 TOTAL PROJECT COSTS ($)$489,449,982$593,665,222$653,000,000

7. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development 7

8. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development 8 THE END RESULT: Parkview Towers Montgomery County Bonds / 4% Credits / MD- BRAC Preservation Loan Weinberg Initiative Terrapin Grove Senior Apartments Grasonville, Queen Anne’s County PRHP Loan

9. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development THE END RESULT: Gateway Crossing Washington County 9% Tax Credits / RHP Loan Mountain Village West Garrett County 9% Tax Credits / RHP Loan 9

10. Secretary Kenneth C. Holt Maryland Department of Housing and Community Development THE END RESULT: Rivers Edge Apartments and Studio for the Arts Salisbury, Maryland Wicomico County 9% Tax Credits / RHP Loan Weinberg Initiative Ellicott Gardens Howard County 9% Tax Credits/ RHP Loan 10