1. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* This document contains pre-decisional opinions, advice, and recommendations that are offered as part of deliberations necessary to the formulation of government policies and processes. It is protected from disclosure under the Freedom of Information Act (“FOIA”) pursuant to the Deliberative Process Privilege under 5 U.S.C. § 552(b)(5). This document also contains commercially sensitive and confidential proprietary and trade secret information that is exempt from disclosure under Section (b)(4) of FOIA, 5 U.S.C. § 552 et seq. Multifamily for Tomorrow (MFT) Overview and Update Midwestern Lenders Conference October 13, 2015

2. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 2 Multifamily for Tomorrow (MFT) has four components Workload sharing Underwriter model and risk-based processing in Production Account Executive and Troubled Specialist model in Asset Management Streamlined organizational structures in HQ and field 1 1 2 2 3 3 4 4

3. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 3 MFH’s historic field model had 17 “hubs” and 50+ offices I 2 I

4. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 4 Through MFT, we are moving to 5 streamlined Regions I 6 I

5. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 5 Each Region will have 1 Regional Center and 1 or 2 Satellite offices. Asset Management staff have the option to remain in existing locations Northeast ▪ New York ▪ Boston ▪ Baltimore ▪ Buffalo ▪ Charleston ▪ Hartford ▪ Manchester ▪ Newark ▪ New York ▪ Philadelphia ▪ Pittsburgh ▪ Providence ▪ Richmond ▪ Washington Southeast ▪ Atlanta ▪ Jacksonville ▪ Birmingham ▪ Columbia ▪ Greensboro ▪ Jackson ▪ Knoxville ▪ Louisville ▪ Miami ▪ Nashville ▪ San Juan Midwest ▪ Chicago ▪ Minneapolis ▪ Detroit ▪ Cleveland ▪ Columbus ▪ Indianapolis ▪ Milwaukee Southwest ▪ Fort Worth ▪ Kansas City ▪ Albuquerque ▪ Des Moines ▪ Houston ▪ Little Rock ▪ New Orleans ▪ Oklahoma City ▪ Omaha ▪ San Antonio ▪ St. Louis ▪ Tulsa West ▪ San Francisco ▪ Denver ▪ Anchorage ▪ Boise ▪ Honolulu ▪ Las Vegas ▪ Los Angeles ▪ Phoenix ▪ Seattle ▪ Portland Regional Center: Satellite Office(s): Asset Management: Wave/ Region: 12345

6. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 6 Organization chart for Multifamily’s streamlined HQ model Ben Metcalf Deputy Assistant Secretary Office of Multifamily Housing Tom Davis Office of Recapitalization Director Peter Duklis Office of Field Support and Operations Director Nancie-Ann Bodell Office of Asset Management and Portfolio Oversight Director Ted Toon Office of Multifamily Production Director Carolyn Cockrell Program Systems Management Office Director Priya Jayachandran Program Administration Office Acting Director Kelly Haines Director Southwest Region Dan Burke Director Midwest Region Ruben Brooks Director Southeast Region TBA Director Northeast Region TBA Director West Region

7. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 7 77 MFT Rollout Progress

8. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 8 Multifamily is making swift progress with MFT The new business model has been fully implemented in HQ, the Southwest Region, and the Midwest Region. Wave 3 is complete in the Southeast Region. o Southeast Region staff reported to duty in their new locations and positions on July 13 th, 2015. o Classroom training for staff in the Southeast Region finished in August of 2015. Wave 4 is also underway in MFH’s Northeast Region. Employees in the Northeast will report to duty in February, 2016. As MFT progresses with each wave, HUD is evaluating the impact of the changes for stakeholders and staff and making adjustments as needed to ensure that the objectives of MFT are being met

9. *PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 9 Multifamily is making swift progress with MFT In Production, the Southwest Region appears to be meeting or exceeding expected performance benchmarks despite continued post-MFT adjustments MFH is implementing a new tool called AMPS (Asset Managers Processing System) which will provide unprecedented levels of accountability for workload tracking. Employees in the Southwest and Midwest Regions are adjusting to the new business model, and are working through adaptations adapts to new operating procedures and information systems. A national standardization process is being put in place in the new regions to foster increased national consistency.

10. Timeline for Wave 5 Milestone Proposed location letters sent Timing Job Exchange Buyout Application Period Reassignment letters sent Wave 5 off-the-rolls date Supervisor training begins Frontline report-to-duty date Sep 4 Oct 26 – Nov 16 Jan 6 – Feb 10 Wave 5 vacancy announcements posted Jan 11 Feb 16 May 14 May 23 Jun 13 Jun 20 Frontline training begins Supervisor report-to-duty dateMay 16 End of formal training period Sep 18 EVS “Best Places to Work” Index scores are higher in MFH offices that have completed the Multifamily for Tomorrow transformation EVSBPW Index*EVSBPW Index* 60 50 40 30 20 MFH Southwest RegionMFH Midwest Region 2014 EVS Survey (06/2014) 2015 EVS Survey (06/2015) 36.7 53.7 43.8 58.1 +17.0 + 14.3 *The Best Places to Work Index is based on the results of three EVS questions (40, 69, and 71).