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2008 SCANPH Conference: Juggling Priorities Friday, September 26, 2008 Joe Hagan President & CEO

2008 SCANPH Conference: Juggling Priorities Friday, September 26, 2008 Joe Hagan President & CEO. $6.9 Billion in Equity 170 Investors 1,750 Projects 100,000 Rental Units 70% of our deals are with non-profit developers. In California: $1.2 Billion 255 projects 13,200 Units.

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2008 SCANPH Conference: Juggling Priorities Friday, September 26, 2008 Joe Hagan President & CEO

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  1. 2008 SCANPH Conference: Juggling Priorities Friday, September 26, 2008 Joe Hagan President & CEO

  2. $6.9 Billion in Equity • 170 Investors • 1,750 Projects • 100,000 Rental Units • 70% of our deals are with non-profit developers • In California: • $1.2 Billion • 255 projects • 13,200 Units

  3. NEF and LISC Folks • Todd Fabian • Dan Wendle • Jason Barrios • Wade Okada • Charles Brown • Gina Nelson • Aiza Galdo • Mi Yeong Lee • Rebecca Itahara • Susan Castro-Valenzuela Pisgah Village. Pisgah is a 48-unit senior project   Highland Park, City of Los Angeles Developed by W.O.R.K.S (Women Organizing Resources, Knowledge and Services).

  4. Credit Officer is King Underwriting: Back to the 90s • Capitalized Operating Reserves • 3 months up to 9 months • Guarantees • Larger and Longer • Operating Expenses • Vacancy Rates • Mod Rehab and Section 8 deals • Not many interested buyers • Exceptions to policy are rare vs. common Chief Credit Officer

  5. Know thy Equity Partner • Underwrite your equity partner • Ownership • Liquidity • Investors • Size of warehouse line • Ask questions: • Do you have an investor for my deal? • When will you give me a binding commitment? • Will you put my deal on your warehouse line if you don’t have an investor at the time of closing?

  6. No Putzing Close your project on time NEF bids on Deal Set Pricing with a specific must close dates Equity Investor will not commit to a price until the deal is closed! Investor performs due diligence and closes with NEF NEF’s makes best guess We take the pricing risk NEF has about 90 days to close with the investor

  7. Watch your back end • Healthy Market for General Partnership interest • Soft Lenders imposing more requirements • Syndicators are looking to make fees at the back end • The loss of the recapture bond could benefit the GP

  8. Yes Martha, its true! • Equity is scarce • Returns keep increasing • Average pricing down six to ten cents • It will take time for the market to adjust • We need healthy markets and strong banks • Next couple of days are critical • All markets are efficient! • We will find a equity…we have to find the right price

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