Villa Santa FeSanta Barbara, CA

LIHTC PILOT SAMPLE TRANSACTION

Transaction Overview

• 167 Elderly Age Restricted Units, Age 62+• 106 Units (63%) of 15YR S8 Project Based Vouchers; Units

restricted at 50% & 60% of AMI• Two separate locations (106 & 61 Units) ~ 8 miles apart• $18.0 Million FHA Insured Mortgage• 4% LIHTCs & TEBs• $5.6 Million of Repairs or $33,605 p/unit• 3.15% Interest Rate• 35 Year Fully Amortizing Loan• ~ 55% LTV

Waivers Approved by HUD

• Waiver of IPA or CPA reviewed financials at project level, since the Sponsor’s financials were Audited

• Modification of Ground Lease Addendum, eliminating HUD purchase option, mutually aligned interests, e.g. Affordable Housing Goals

• Waiver of 20% Repair Escrow, large contingency & PP&B

• Waiver of Real Estate Taxes, e.g. Ground Lease & LIHTCs

Deal Specific Challenges

• Scattered Sites• Abandoned Oil Wells• Technically did not meet all the requirements of one of

LIHTC Pilot Criterion, but met portions, e.g. S8, Affordable, New LIHTC Reservation, previously a 221(d)(3)

• Deduction of Land Value due to Ground Lease, a market value “balancing act”

• Historical NOI lower than Underwritten NOI, due to recent increase in the S8 Rent

Timing

• Application Submittal – 12/14/2012• Firm Commitment Issuance – 03/12/2013• Closing – 06/10/2013*• Delays were due to a change in the LIHTC Investor

post commitment issuance and an significant increases in the total transaction costs.