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Ansel Caine

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									                        2011 ANNUAL CONFERENCE
NEW DEVELOPMENTS IN MULTIFAMILY FINANCE
STRUCTURING MULTIFAMILY BOND ISSUES IN THE
CURRENT MARKET




ANSEL CAINE
VICE PRESIDENT


                                     MAY 20, 2011
RECENT HFA BOND STRUCTURES
 FHA-RISK SHARING
 FHA/GNMA
 FREDDIE MAC CREDIT ENHANCEMENT
 DIRECT LENDING




                                  2
PARITY FHA RISK-SHARING INDENTURE
GOALS        Refinance HFA-Owned Property with Minimal Debt
             Provide Fund for Rehabilitation of 134 Affordable Units in Issuer-Owned and
                  Operated Property
             Provide Funds for Other Affordable Housing Endeavors
SIZE         $12,375,000
BOND TYPE    Publicly Offered, Non-AMT, Fixed Rate, Governmental Bonds
BOND      FHA Risk-Sharing Credit Enhanced Mortgage Loan
STRUCTURE Level Debt, 18-Month Construction Period, 30-Year Permanent Financing
SECURITY     Aaa Rated Parity Bond Indenture
             FHA Risk Sharing Insurance, GNMA Securities and GSE Credit
                 Enhancement
             $292 Million of Outstanding Parity Bonds Secured




                                                                                     3
PARITY FHA RISK-SHARING INDENTURE
GOALS       Refund Existing Tax Exempt Bonds Under Parity Indenture
            Reduce Interest Rate Reduction to Borrowers
            Preserve Affordable Housing
            Increased Income to HFA
SIZE        $77,705,000
BOND TYPE   Publicly Offered, Non-AMT, Fixed Rate, Private Activity Bonds
BOND        Economic Refunding of AMT to Non-AMT
STRUCTURE   Refunded Five Existing Bond Series
            Financing 23 Mortgage Loans with FHA Risk-Sharing
            Structured to Match Remaining Amortization of 30 and 40-Year
                 Components
SECURITY    Aaa Rated Parity Bond Indenture
            FHA-Risk Sharing Insurance
            $155 Million of Outstanding Parity Bonds Secured




                                                                            4
FHA/GNMA WITH NIBP
GOALS       Provide Funds for New Construction of 195-Unit Multifamily
                 Development (113 Market Units and 82 60% AMI Units)
BOND TYPE   NIBP Rollout, No Market Component, Non-AMT, Fixed Rate, Private
                Activity Bonds
BOND        Standard CLC/PLC Structure
STRUCTURE   Construction-Phase Letter of Credit
            Level Debt, 2-Year Construction Phase, 39-Year Permanent Financing
SECURITY    Aaa Rated GNMA Securities
OTHER       Tax Credit Equity
SOURCES




                                                                                 5
FREDDIE MAC CREDIT EHANCEMENT WITH NIBP
GOALS       Provide Funds for 96 Affordable Housing Units (50% AMI or Lower) in
                 Downtown Suburban Area
SIZE        $12,900,000
BOND TYPE   58% NIBP Rollout, 42% Market Component, Non-AMT, Fixed Rate,
                Private Activity Bonds
BOND        Freddie Mac Guarantee
STRUCTURE   Construction-Phase Letter of Credit

SECURITY    Aaa Rated Freddie Mac Credit Enhancement
OTHER       Subordinate HFA Bonds Sold via Private Placement
SOURCES     Subordinate Loan from Municipality
            Tax Credit Equity




                                                                                  6
BANK PRIVATE PLACEMENTS
GOAL        Provide Funds for 209-Unit Multifamily Housing Development in
                 Downtown Urban Area
SIZE        $23,488,000
BOND TYPE   Privately Placed, Private Activity Bonds

BOND        6.0% Loan with Tax Credit Financed Rate Reduction
STRUCTURE

SECURITY    Development (Not Rated)
OTHER       Subordinate Loan from Municipality
SOURCES     Tax Credit Equity




                                                                            7
Wrap Up
  Landscape of multifamily bond structures has changed somewhat in recent
years
    Parity indentures can provide HFA with additional flexibility
    Financing structure will depend on the specific goals of the financing

Ansel Caine, Caine Mitter & Associates Incorporated
          Phone:     212-686-8820
          Email:     acaine@cainemitter.com




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