Fixed interest rates.

Fully amortizing loans.

Fully assumable, subject to FHA approval and a fee of 0.05% of the original FHA loan amount.

Non-recourse to key principals, subject to standard bad boy carve-outs.

New construction, substantial rehabilitation, acquisition, or refinance of multifamily properties.

Asset classes include conventional market rate, affordable housing inclusive of Section 8, LIHTC, and bond credit enhancements, small balance multifamily, manufactured housing, and seniors housing properties inclusive of independent living, assisted living, memory care, and skilled nursing.

Affordable projects must have a restriction of at least 20% at 50% AMI OR 40% at 60% AMI with economic rents no greater than LIHTC rents and a Regulatory Agreement in effect for at least 15 years after loan closing.

For properties less than three years from issuance of certificate of occupancy, minimum DSCR must be achieved for three consecutive months prior to closing. Equity take out allowed.

Borrowers must be a single asset entity with no prior bankruptcies. Borrowers can be for-profit or non-profit.

For construction loans, the maximum loan amount is based on the lesser of:

1. 85% , 87%, or 90% of HUD replacement cost for market rate, affordable, or rental assisted properties, respectively;

2. The amount of debt serviced by 85% (1.176x DSCR), 87% (1.15x DSCR), or 90% (1.11x DSCR) of NOI for market rate, affordable, or rental assisted properties, respectively;

3. Statutory per unit limits;

4. 100% of mortgageable transaction costs less the portion of grants, public loans, and tax credits applied to mortgageable costs.

For permanent loans, the maximum loan is based on the lesser of:

1. The amount of debt serviced by 85% (1.176x DSCR), 87% (1.15x DSCR), or 90% (1.11x DSCR) of NOI for market rate, affordable, or rental assisted properties, respectively;

2. 85% , 87%, or 90% of value for market rate, affordable, or rental assisted properties, respectively;

3. 85%, 87%, or 90% of acquisition cost (i.e. total cost to close) for market rate, affordable, or rental assisted properties, respectively; if refinance, the greater of 80% of value or 100% of the total cost of refinancing the existing indebtedness and other mortgageable transaction costs;

4. 100% of mortgageable transaction costs less the portion of grants, public loans and tax credits applied to mortgageable costs;

5. Statutory per unit limits;

Commercial and retail space is limited to the lesser of 25% of net rentable area or 20% of effective gross income.

Required during construction and permanent phase.

First year’s premium is paid at loan closing and included in mortgageable cost.

Annual payments at the following rates (rate x loan balance):

• 0.25% for broadly affordable (90%+ Section 8 or LIHTC) and green/energy efficient properties.

• 0.35% for affordable/inclusionary properties (10% to 90% Section 8 or LIHTC).

• 0.60% for market rate properties; 1.00% paid at closing for first year.

40 years plus construction period up to three years for construction deals.

Up to 35 years on permanent deals. Term not to exceed 75% of remaining economic life.

Fully amortizing.

For construction loans, fixed rate at commitment for both construction and permanent loans, based on market conditions and risk.

For permanent loans, fixed rate at commitment based on market conditions and risk.

Replacement reserves, taxes, and insurance typically required.

For construction projects, working capital and operating deficit escrows required during construction period and project lease-up.

For permanent projects, assurance of completion escrow (20% over and above repair total) for any required 1-year repairs.

Negotiable and lockout terms may vary (typically 0-year lock with 10% declining by 1% to 0% after year 10).

No yield maintenance.

For construction loans, standard third party reports (including Appraisal, Phase 1 Environmental Site Assessment, Architecture and Cost Reviews, and Market Analysis) are required.

For substantial rehab projects, a Capital Needs Assessment (CNA) report may be required to determine possible repairs on the existing structure.

For permanent loans, standard third party reports (including Appraisal, Phase 1 Environmental Site Assessment, and Capital Needs Assessment) are required. Properties older than 30 years may also need intrusive testing of important concealed components such as sewer lines and electrical panels.

Processing fees are competitive and include cost of third party reports and lender due diligence.

Borrower is responsible for legal fees and standard closing costs.

HUD Exam fee 0.30% of loan amount; payable at application submission to HUD, may be reimbursed from mortgage proceeds. The fee is reduced for projects located in Qualified Opportunity Zones.

HUD Inspection fee is 0.50% of loan amount for new construction or 0.50% of applicable improvement costs for substantial rehabilitation; payable at initial closing, may be reimbursed from mortgage proceeds.

For permanent loans, the Inspection fee is the greater of 1% of repairs or $30 per unit; with repairs below $100,000, the fee is a flat $1,500. Fee is payable at initial closing; may be reimbursed from mortgage proceeds.

Commitment financing fees are competitive and negotiable.

For construction loans, one-stage applications for affordable and rental assistance properties generally take five to seven months to close. Two stage applications for market rate projects generally close in eight to 10 months, though subject to deal specifics.

For permanent loans, the loan process typically takes five to six months to close, though subject to deal specifics.

Maximum underwritten physical occupancy of 93% for market rate properties. 95% for affordable properties with 80%+ units set aside as LIHTC units and underwritten rents at a 10% discount to market. 97% for rental assisted properties.

For construction loans, Davis-Bacon prevailing wage requirements apply.

A property generally qualifies as substantial rehabilitation when (a) the cost of repairs/improvements of $15,000 per unit adjusted by the HUD high cost factor for the geographical region; or (b) two or more building systems are being replaced along with any components with an estimated remaining life less than five years.

Loans in excess of $120 million have slightly lower loan to cost limits and slightly higher debt service coverage requirements.