National Housing Trust Lending NHT Community Development Fund & Institute for Community Economics

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1 National Housing Trust Lending NHT Community Development Fund & Institute for Community Economics Investor Information Package 2016

2 About NHT Lending Made up of the National Housing Trust Community Development Fund (NHTCDF) and the Institute for Community Economics (ICE), NHT Lending is committed to providing access to flexible financing for the preservation and creation of affordable housing around the country. NHT Lending is funded by individual and institutional investments in the form of grants, program related investments (PRI s) and direct community impact investments. Our lending provides innovative lending products that respond to the need for flexible and affordable financing for affordable housing development. By combining the expertise of two unique loan funds, our team has a dynamic lending portfolio that supports a wide array of housing solutions around the country. Lending Impact Over 100 loans in 28 states and District of Columbia Deployed $36 million to leverage Over $1 billion in financing Preservation of over 11,000 homes Loan losses of <.01% NHTCDF recently launched a new product for energy retrofits and renewable energy. NHTCDF s first solar loan, closed in 2016, will lead to the production of 500,000 kwh/year and a reduction of 345 metric tons of CO2 Emissions. NHTCDF has also financed Washington, DC s first Community Solar Project and the first affordable housing property in Vermont to meet Passive Housing Standards. National Housing Trust Lending th St. NW Suite 100A Washington, DC

3 Current Investors National Housing Trust Lending th St. NW Suite 100A Washington, DC

4 Loan Products Our loan products are designed to meet the affordable housing and community development needs throughout the U.S. We specialize in pre-development, acquisition and bridge lending. We are willing to work with other CDFIs to package a below market rate loan that meets your needs. Finally, we pride ourselves on responding quickly to loan requests. NHTCDF typically considers funding within 60 days of submittal. Prospective borrowers are encouraged to contact NHT s lending team to discuss their borrowing needs as many of the following loan products are customizable to fit clients needs. National Housing Trust Lending th St. NW Suite 100A Washington, DC

5 Pre-Development Loans Pre-development loans are offered to assist affordable housing developers to cover predevelopment costs such as, but not limited to, feasibility analyses and preparation of loan applications, and to cover costs of preparing projects for syndication. Pre-Development Loan Terms Size of Loan: Up to $1,500,000 Term of Loan: Up to 5 years Rate: 5.75%-7% (Determined by Loan Committee) with Quarterly Interest Only Payments Fees: 1.5% origination fee Security: Loans can be made unsecured with full recourse to developer s balance sheet. Senior or subordinate liens are preferred and may be required Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

6 Acquisition Loans Acquisition loans are offered to affordable housing developers looking to complete an acquisition for an asset but do not have enough liquid capital to do so. Acquisition Loan Terms Size of Loan: Term of Loan: Rate: Up to $2,500,000 (we can accommodate larger requests up to $5 million in consortia with our lending partners) Up to 5 years (additional construction period may be added to term). Loans may be interest only or partially amortizing 5.5%-7% (Determined by Loan Committee) Fees: 1%-1.5% origination fee Security: 1st lien position in real estate. Subordinate acquisition financing or unsecured financing (for equity positions) may be considered with full recourse to sponsor Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

7 Bridge and Interim Development Loans Bridge and interim development loans are offered to affordable housing developers as a short-term loan that bridges the gap or gets a developer from point A to point B by leveraging the equity in a property that they own. Bridge and Interim Development Loan Terms Size of Loan: Term of Loan: Up to $2,000,000 (we can accommodate larger requests in consortia with our lending partners) Up to 5 years Rate: 5.5%-7% (Determined by Loan Committee) Fees: 1%-1.5% origination fee Security: Real estate or guarantee with committed take out sources Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

8 Green Retrofit Preservation Loan The Green Retrofit Preservation Loan is offered to multi-family property owners to improve operations through property improvements that reduce energy and water consumption. Green Retrofit Preservation Loan Terms Size of Loan: $1,000,000 Term of Loan: Up to 15 years with full or partial amortization Rate: 4.5%-5.5% (Determined by Loan Committee) Fees: 1%-1.5% origination fee Security: Determined on case by case basis. For energy retrofits, cash flow from savings must be available for debt service. Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

9 Washington, D.C. TOPA Loans The TOPA (Tenant Opportunity to Purchase Act) Earnest Money Deposit Loan provides D.C. tenant associations affordable and risk-free capital to cover the critical first step of the tenant purchase process: the earnest money deposit on their building. TOPA Loan Terms Size of Loan: Term of Loan: Fees: Up to $500,000 Up to 12 months 1% upfront fee (based on deposit amount) 40 basis point fee upon successful acquisition (based on acquisition price and assumes 5% deposit) No fees or interest are due if Tenant s or their assignees fail to purchase property No payments due during loan term Security: Pledge of fully refundable Earnest Money Deposit Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

10 Community Land Trust Lending Community Land Trust (CLT) loans provide acquisition loans to help CLT s expand and foreclosure prevention loans that help CLT s stabilize trouble properties on their land. We enjoy working with CLT s to create tailor made financing products to meet your needs. Community Land Trust Loan Terms Size of Loan: Up to $750,000 Term of Loan: Rate: Up to 60 months (additional interest only construction period may be added to term) 5%-6.5% (Determined by Loan Committee) Fees: 1%-1.5% origination fee Security: 1st lien position in real estate Prospective borrowers are encouraged to contact NHT s Lending Team to discuss their borrowing needs. National Housing Trust th St NW, 100A, Washington, D.C

11 Lending Team Michael Bodaken President ext.111 Michael Bodaken serves as President of the National Housing Trust, which engages in preservation policy, affordable housing development and lending. The Trust is committed to a balanced approach to fair housing, promoting access to high opportunity communities through mobility while ensuring that residents who remain in neighborhoods experiencing distress have access to resources that improve their housing and communities. The Trust also advocates for Green Preservation, urging the targeting of resources for energy-efficient retrofitting of existing affordable housing. He serves on the Board of Directors of Homes for America, Housing Justice Center, and Stewards of Affordable Housing for the Future (SAHF). Josh Earn Director of Lending jearn@nhtinc.org ext.134 Josh Earn is Director of Lending for the National Housing Trust overseeing its two CDFI s: The Institute for Community Economics (ICE) and the National Housing Trust Community Development Fund (NHTCDF). He is responsible for managing CDFI operations and lending. He has been at the Trust since 2010, where he has closed more than 50 loans disbursing more than $21 million to preserve affordable housing in 17 states and the District of Columbia. Josh has more than 10 years of non-profit management experience. He received a B.A. in Political Science and Religion from Williams College and an MBA from the Yale School of Management. Prior to business school, he ran the Israel Policy Forum s government relations program, supporting diplomatic efforts to achieve Middle East peace. Mary Rangel Loan Fund Administrator Investor Relations mwest@nhtinc.org ext. 110 Prior to joining the National Housing Trust in 2015, Mary held the Loan Adjuster position at Smart Financial Credit Union in Houston, TX monitoring and performing loan servicing and providing member counseling. She received her BBA from the University of Houston, College of Business. Mary supports investor relations work, manages internal file maintenance, maintains loan data on loan servicing systems, and oversees the borrower reporting processes and investor compliances for the Institute for Community Economics (ICE) and the NHT Community Development Fund (NHTCDF) the two lending affiliates of the National Housing Trust. National Housing Trust Lending th St. NW Suite 100A Washington, DC

12 Lending Team Debby Blazquez, CPA, CGMA Director of Finance ext.111 Debby Blazquez joined the National Housing Trust in She has a distinguished and diverse business background. Debby is a seasoned CFO, skilled auditor, proven leader and accomplished strategic planner with a strong foundation in human resources, organizational development, administrative operations, contract management, information technology, facility management and procurement. Her finance and accounting experience includes financial reporting and analysis, budgeting/forecasting, grants management, auditing, taxes, cash flow analysis, investments, internal controls and compliance, international accounting/ consolidations and system implementations. In addition, Debby is responsible for streamlining operations, organization-wide infrastructure projects, risk assessment, capital campaigns, buying, selling and financing commercial real estate, and negotiating commercial leases from both a lessee and lessor perspective. Halley Henry Loan Fund Communications hhenry@nhtinc.org ext.135 Halley Henry joined the National Housing Trust in 2016 and serves as the Communications and Fundraising Coordinator. Halley serves an integral role developing, implementing and maintaining both internal and external communication strategies that advance NHT s preservation work through the sharing of its effective practices, multi-faced approach, impact and success stories. Through tactics such as publications, partnerships with membership organizations, marketing, social media, media outreach and events, Halley serves as the liaison between the Trust and its stakeholders. In addition to her communications role, Halley also provides critical support for NHT s fundraising by assisting with the development of proposals, reports and marketing materials. Halley also supports NHT s President in engaging with funders and communicating information and activities across NHT s lines of business. National Housing Trust Lending th St. NW Suite 100A Washington, DC