WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY WHEDA

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1 WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY WHEDA

2 WHO WE ARE The Wisconsin Housing and Economic Development Authority (WHEDA) is a public body corporate and politic, created in 1972 by the Wisconsin Legislature, that provides low-cost financing for housing, small business and agricultural development. As a lender, WHEDA has over $3 billion in assets. Governed by a Board of Directors, WHEDA is a selfsupporting, public corporation, not a state agency; relying on interest from loans and investments, origination and servicing fees and housing management services.

3 COMMUNITY PARTNERS WHEDA Working closely with our community partners to implement our low-cost financing programs. Our partners include: Lenders, Single Family and Business Lenders; Traditional and Non-Traditional Business Owners and Home Buyers Local Government Officials Developers Economic Development Professionals Non-profits Farmers Community Groups

4 WHEDA HOME OWNERSHIP We provide low, fixed interest rate mortgages to low and moderate-income individuals and families to purchase their home. We have helped more than 110,000 individuals and families realize their dream of home ownership.

5 WHEDA Features AND Benefits 100% FINANCING NO Minimum Borrower Investment Up to 97 LTV/105 CLTV SPECIAL PRICING for FIRST TIME HOME BUYERS and VETERANS! WHEDA-Easy Close 2 nd Down Payment Assistance up to 105% CLTV GIFTS and GRANTS OK! Reduced MI coverage OR No Mortgage Insurance No Loan Level Pricing Adjustments EVER! Serviced locally by WHEDA, not a competitor!

6 WHEDA AFFORDABLE HOUSING We offer favorable rates and terms to owners and developers for the construction, acquisition, rehabilitation or preservation of affordable rental housing for families, seniors and persons with special needs. We offer long term, low interest rate bond financing programs for multi-family and mixed-use developments. Emerging Business opportunities

7 2016 LIHTC Complete list of 2016 Applicants and Awardees may be found at

8 WHEDA Developer Training

9 Affordable Housing Bond Loan Financing

10 Commercial Lending We support business and agricultural development through a variety of financing programs that put more capital directly into the hands of Wisconsin s small business owners and farmers

11 PARTNERING WITH LENDERS Worked with lenders to extend credit to more than 118,000 families to purchase their first homes. Assisted developers and lender to finance more than 77,000 affordable rental units. Backed lenders who ve made more than 29,000 small business and agricultural loan guarantees.

12 Commercial Lending (cont.) Business and Agricultural Development Programs Include: Small Business Guarantee Neighborhood Business Revitalization Guarantee Agribusiness Guarantee CROP Guarantee WHEDA Participation Loan Program

13 Small Business Guarantee

14 Neighborhood Business Revitalization (NBRG) Guarantee

15 WHEDA Participation Loan Program Intent of the program is to help Lenders in one of two ways: 1.Participate on loans to help reduce the Bank s exposure to collateral weaknesses and reduce capital reserve requirements (Subordinated participation) 2.Participate on loans that exceed the Bank s lending limits (Shared pro rata participation) 3.Participation up to 50% or $2mm whichever is less

16 WHEDA Participation Loan Program Shared pro-rata collateral position will underwrite using Lender s interest rate and origination fee structure. Will match rate/fees and term if possible. Subordinated collateral position interest rate is risk priced during underwriting and up to a 3% origination fee is required SBA 504 Interim Financing Match bank terms 1% origination fee

17 Eligibility, Use of Proceeds Land, plant, or equipment for any of the following: Facilities for manufacturing or commercial real estate activities Facilities for the retail sale of goods or services Other eligible projects* *Activities of a long-term nature, such as long-term working capital may also be eligible

18 Agri-Business Loan Guarantee Program (AGBS)/ACT 316 Assists in the startup, or expansion of a business that develops products using WI s raw agricultural commodity. - Current:. Loan may not exceed $750,000 - Act 316:. Loan may exceed $750,000 but guaranteed amount is capped at $750,000 - Gurrent:. Guarantee term set at approval - Act 316:. In workouts, guarantee is extended Guarantee may be for up to 90% LTV

19 CREDIT RELIEF OUTREACH PROGRAM (CROP)/ACT Current: Max guarantee based upon the max loan of $150,000 - Act 316: Max guarantee $250,000 - Current: 90% guarantee for loans <$50,000 80% guarantee for loans >$50,000 - Act 316: up to 90% of loan amount (with $250,000 guarantee limit)

20 New Markets Tax Credits Process Timing Geography /map2_popup.php Leveraged Small Loan Pool

21 NMTC Mapping Tool

22 STRENGTH THROUGH PARTNERSHIPS WHEDA has financial strength, a professional staff of mission-oriented individuals and over 40 years of experience to get the job done. We are dedicated to improving housing quality and economic vitality in Wisconsin.

23 How to Contact your Business Development Officer

24 WORKING WITH WHEDA Kim Plache Community Development Officer, WHEDA 414/