1. 0 Financing Strategies I nnovative Chris Hilbert, VHDA Strategic Markets Development Manager VHC Tax Credit Conference September 5, 2013

2. 1 STRATEGIC MARKETS LENDING GROUP Aligning our programs with local /regional priorities Encouraging public/private partnerships Providing technical assistance Demonstrating commitment for mission-driven lending through long term investment

3. 2 SPARC Multifamily Rental Loan Program General Standards Guidelines Application Process Example Properties

4. 3 General Standards Loan Limit: $950,000 (NoVA $1,500,000) Loan Rates: REACH at 2.95% Fixed Loan Term: 25 - 30 years (depending upon age) Loan Fee: 0.5% Due at application Inc. Restrictions: 50% residents @ 50% AMI Loan Security: First lien deed of trust Appraisal: MAI appraiser required Environmental: Phase I/Environmental Screen

5. 4 General Standards (contd.) Replacement Reserve: Min. $250 PUPA Debt Service Coverage: Minimum 110% Arch. & Engineering Review: Required Rehab Investment Minimum: $15,000/unit Property Mgmt. Certification: New Requirement Readiness: Use and funding in place Loan Documents: Non-negotiable Construction/Perm: Only permanent financing

6. 5 Guidelines Project must address at least one of the five following critical housing needs in the Commonwealth: Frail Elderly (Assisted or Independent Living) Homelessness (Permanent Supportive Housing Only) Persons with Disabilities (Housing with Services) Preservation of Affordable Rental Housing (Expiring Subsidy) Revitalization (Need $1,000/unit local match and must be located in a Revitalization Area)

7. 6 Application Process VHDA Website Link to application http://www.vhda.com/BusinessPartners/MFDev elopers/MFFinancing/Pages/MF-SPARC- Program-Guidelines.aspx Application Application Checklist Exhibits to the Application SPARC Program Guidelines

8. 7 Cloverleaf Apartments Developer: Virginia Supportive Housing Critical Housing Need: Homelessness Adaptive Reuse of former skating rink Commercial Corridor (lowered NIMBY) 60 units of Permanent Supportive Housing Targeted towards Chronically Homeless One of the first regional SRO in the nation

9. 8 Cloverleaf Apartments Virginia Beach Before After

10. 9 Hilltop Homes Developer: Lynchburg Neighborhood Dev. Foundation Critical Housing Need: Revitalization Scattered-Site Historic Rehab 24 units located on 12 sites and 13 structures Avoids concentration of poverty Lowers NIMBY barriers vs. higher management costs Funding Sources: – Low Income Housing Tax Credits – VHDA SPARC – DHCD and Local - HOME

11. 10 Hilltop Homes Lynchburg BeforeAfter

12. 11 Contact Information: Chris Hilbert Strategic Markets Dev. Manager 804.343.5741 chris.hilbert@vhda.com