Florida Housing Finance Corporation. Banyan Court

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1 Page 1 of 48 Florida Housing Finance Corporation Credit Underwriting Report Banyan Court Tax-Exempt Multifamily Mortgage Revenue Note ( MMRN or Notes ), State Apartment Incentive Loan Program ( SAIL ), Extremely Low Income Loan ( ELI ), and 4% Non-Competitive Housing Credits ( HC ) RFA ( BS) SAIL Financing of Affordable Multifamily Housing Developments to be used in conjunction with Tax-Exempt Bond Financing and Non-Competitive Housing Credits Section A: Report Summary Section B: MMRN, SAIL, & ELI Loan Special and General Conditions HC Allocation Recommendation and Contingencies Section C: Supporting Information and Schedules Prepared by First Housing Development Corporation of Florida FINAL REPORT January 10, 2018

2 Page 2 of 48 Banyan Court Report Summary Recommendation Overview Use of Funds Operating Pro Forma TABLE OF CONTENTS Section A Page A1-A9 A10-A14 A15-A20 A21-A23 Section B MMRN, SAIL, & ELI Loan Special and General Conditions HC Allocation Recommendation and Contingencies B1-B9 B10 Section C Supporting Information and Schedules Additional Development & Third Party Information Applicant Information Guarantor Information General Contractor Information Syndicator Information Property Management Information C1-C8 C9-C14 C15-C16 C17-C18 C19-C20 C11-C22 Exhibits 15 Year Pro Forma 1. Housing Credit Allocation Description of Features and Amenities Completion and Issues Checklist

3 Page 3 of 48 Section A Report Summary

4 Page 4 of 48 Recommendation First Housing Development Corporation ( First Housing, FHDC, or Servicer ) recommends Tax-Exempt Multifamily Mortgage Revenue Note in the amount of $11,200,000, a SAIL Loan in the amount of $5,400,000, an ELI Loan in the amount of $600,000, and an annual HC Allocation of $758,300 to finance the construction and permanent financing of Banyan Court ( Development ). Development Name: Banyan Court DEVELOPMENT & SET-ASIDES RFA/Program Numbers: RFA / BS Address: rd Avenue N. City: Lake Worth Zip Code: County: Palm Beach County Size: Large Development Category: New Construction Development Type: Garden Apts (1-3 Stories) Construction Type: Concrete Demographic Commitment: Primary: Family for 100% of the Units Unit Composition: # of ELI Units: 9 ELI Units Are Restricted to 33% AMI, or less. Total # of units with PBRA? # of Link Units: 5 Are the Link Units Demographically Restricted? Yes # of NHTF Units: 0 0 Palm Beach County, Miami-Fort Lauderdale-Pompano MSA Bed Bath Rooms Rooms Units Square Feet ,062 1,062 Low High HOME HOME Gross HC AMI% Rents Rents Rent 33% $534 60% $972 33% $617 60% $1,122 Utility Allow. $29 $29 $32 $32 Net Restricted Rents $ 505 $ 943 $ 585 $ 1,090 PBRA Contr Rents Applicant Rents $ 505 $ 943 $ 585 $ 1,090 Appraiser Annual Rental Rents CU Rents Income $ 487 $ 505 $ 30,300 $ 925 $ 943 $ 430,008 $ 572 $ 585 $ 28,080 $ 1,077 $ 1,090 $ 497, ,056 $ 985,428 The utility allowances are based on an Energy Consumption Model Estimate for electricity prepared by Matern Professional Engineering, Inc. ( Matern ) and approved by Florida Housing Finance Corporation ( Florida Housing or FHFC ). The Appraiser concluded to higher utility allowances than what was approved by Florida Housing. Persons with a Disabling Condition Set-Aside Commitment: The proposed Development must set aside fifty percent (50%) of the ELI Set-Aside units (5 units) as Link units for Persons with a Disabling Condition. In order to meet the commitment to set aside ELI units as Link units for

5 Page 5 of 48 Persons with a Disabling Condition, the Applicant has developed and executed a Memorandum of Understanding ( MOU ) with at least one designated Special Needs Household Referral Agency that provides supportive services for Persons with a Disabling Condition in Palm Beach County. The MOU was approved by Florida Housing on December 20, After 15 years, all of the ELI set aside units may convert to serve residents at or below 60% Area Median Income ( AMI ). The Persons with a Disabling Condition set-aside requirement must be maintained through the entire Compliance Period. Buildings: Residential - 4 Non-Residential - 0 Parking: Parking Spaces Accessible Spaces - 6 Set Asides: Program % of Units MMRN 10.0% MMRN 70.0% SAIL/ELI 10.0% SAIL 90.0% Housing Credits 100.0% # of Units % AMI 33% 60% 33% 60% 60% Term (Years) State Housing Initiatives Partnership ("SHIP") 100.0% 85 60% 30 Absorption Rate: 15 units per month for 5.7 months. Occupancy Rate at Stabilization: Physical Occupancy 96.00% Economic Occupancy Occupancy Comments N/A - New Construction DDA: No QCT: Yes Multi-Phase Boost: No QAP Boost: Site Acreage: Density: 20.2 Flood Zone Designation: Zoning: MF-20 (Low Density Multifamily) Flood Insurance Required?: 95.00% No X No

6 Page 6 of 48 Applicant/Borrower: General Partner Limited Partner Construction Completion Guarantor(s): CC Guarantor 1: CC Guarantor 2: CC Guarantor 3: CC Guarantor 4: CC Guarantor 5: Operating Deficit Guarantor(s): OD Guarantor 1: OD Guarantor 2: OD Guarantor 3: OD Guarantor 4: OD Guarantor 5: Note Purchaser Developer: Principal 1 Principal 2 Principal 3 Principal 4 Co-Developer: Principal 1 General Contractor 1: Management Company: Syndicator: Architect: Market Study Provider: Appraiser: DEVELOPMENT TEAM BDG Banyan Court, LP BDG Banyan Court GP, LLC Enterprise Community Investment, Inc. ("Enterprise") BDG Banyan Court, LP BDG Banyan Court GP, LLC Banyan Development Group, LLC ("BDG, LLC") Scott Zimmerman Louis Vogt BDG Banyan Court, LP BDG Banyan Court GP, LLC BDG, LLC Scott Zimmerman Louis Vogt Valley National Bank ("Valley National") BDG, LLC Scott Zimmerman Louis Vogt Alexander Kiss Jeffrey Kiss JRRED, Inc. Judd Roth Carr Builders LLC AGPM, LLC ("AGPM") Enterprise Forum Architecture & Interior Design, Inc. Meridian Appraisal Group ("Meridian") Meridian % Ownership 0.01% 99.99%

7 Page 7 of 48 Lien Position Lender/Grantor Amount Underwritten Interest Rate All In Interest Rate Loan Term Amortization Market Rate/Market Financing LTV Restricted Market Financing LTV Loan to Cost - Cumulative Loan to Cost - SAIL Only Debt Service Coverage Operating Deficit Reserve # of Months covered by the Reserves 1st Source First FHFC/ Valley National PERMANENT FINANCING INFORMATION 2nd Source 3rd Source 4th Source 5th Source Second Third Fourth Fifth FHFC - SAIL FHFC - ELI SHIP/Palm Beach County Lender $6,432,000 $5,400,000 $600,000 $115,000 $ % 4.70% 1.00% 0.00% 1.00% 0.00% % N/A % 81% 149% 31% 57% 89% 94% 26% 0.00% 1.00% 60% N/A 95% 95% N/A 0.00% 61% 61% N/A $292, % 158% 158% Other The minimum Debt Service Coverage ( DSC ) ratio shall be 1.10x for the SAIL Loan, including all superior mortgages. However, if the Applicant defers at least 35% of its Developer Fee for at least six (6) months following construction completion, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to defer 35% of the Developer Fee for at least six months following construction completion.

8 Page 8 of 48 Deferred Developer Fee As-Is Land Value $538,474 $2,450,000 Market Rent/Market Financing Stabilized Value $13,240,000 Rent Restricted Market Financing Stabilized Value $7,930,000 Projected Net Operating Income (NOI) - Year 1 $472,939 Projected Net Operating Income (NOI) - 15 Year $534,234 Year 15 Pro Forma Income Escalation Rate 2.00% Year 15 Pro Forma Expense Escalation Rate 3.00% Note Structure Private Placement Housing Credit (HC) Syndication Price $1.00 HC Annual Allocation - Initial Award $709,973 HC Annual Allocation - Qualified in CUR $758,300 HC Annual Allocation - Equity Letter of Interest $752,241 CONSTRUCTION/PERMANENT SOURCES: Source Lender Construction Permanent Tax-Exempt Note FHFC/Valley National $11,200,000 $6,432,000 Second Mortgage FHFC - SAIL $5,400,000 $5,400,000 Third Mortgage Fourth Mortgage FHFC - ELI SHIP/Palm Beach County $600,000 $115,000 $600,000 $115,000 Housing Credit Equity Enterprise $1,440,487 $7,521,660 Deferred Developer Fee BDG, LLC and JRRED, Inc. $1,559,625 $538,474 Deferred Reserves N/A $292,022 $0 TOTAL $20,607,134 $20,607,134 Changes from the Application: Perm Loan/Unit $75,671 $63,529 $7,059 $1,353 $88,490 $6,335 $0 $242,437 COMPARISON CRITERIA YES NO Does the level of experience of the current team equal or exceed that of the team described in the Application? Are all funding sources the same as shown in the Application? 2. Are all local government recommendations/contributions still in place at the level described in the Application? Is the Development feasible with all amenities/features listed in the Application? Do the site plans/architectural drawings account for all amenities/features listed in the Application? Does the applicant have site control at or above the level indicated in the Application? 1. X X X X Does the applicant have adequate zoning as indicated in the Application? Has the Development been evaluated for feasibility using the total length of setaside committed to in the Application? Have the Development costs remained equal to or less than those listed in the Application? X X 3.

9 Page 9 of 48 Is the Development feasible using the set-asides committed to in the Application? If the Development has committed to serve a special target group (e.g. elderly, large family, etc.), do the development and operating plans contain specific provisions for implementation? SAIL ONLY: If points were given for match funds, is the match percentage the same as or greater than that indicated in the Application? HC ONLY: Is the rate of syndication the same as or greater than that shown in the Application? Is the Development in all other material respects the same as presented in the Application? X X N/A X 4. The following are explanations of each item checked "No" in the table above: 1. The Application lists Selma Roth as a shareholder and Penny Roth as an officer of Judd Roth Real Estate Development, Inc.; however, Selma Roth is not a shareholder and Penny Roth is no longer an officer. See Waiver Requests/Special Conditions for additional information. 2. Since the Application, the requested amount of Corporation-issued MMRN has decreased from $11,500,000 to $11,200,000 and the Syndicator has changed from Raymond James Tax Credit Funds, Inc. to Enterprise. 3. The Total Development Cost ( TDC ) has decreased by a total of $60,077 from $20,667,211 to $20,607,134 or 0.29% since the Application. 4. Since the Application, the syndication rate has decreased from $1.15 to $1.00 per tax credit dollar. The above changes have no substantial material impact to the MMRN, SAIL, ELI, or HC recommendation for this Development. Does the Development Team have any FHFC Financed Developments on the Past Due/Noncompliance Report? According to the FHFC Asset Management Noncompliance Report, dated November 22, 2017, the Development has the following noncompliance item(s) not in the correction period: None

10 Page 10 of 48 According to the FHFC Past Due report, dated November 22, 2017, the Development Team has the following past due item(s): None Closing of the loan is conditioned upon verification that any outstanding past due, and/or noncompliance items noted at the time closing, have been satisfied. Strengths: 1. The Principals, Developer, and Management Company are experienced in affordable multifamily housing. 2. The Principals have sufficient experience and substantial financial resources to develop and operate the proposed Development. 3. Meridian prepared a Market Study for the Development, dated August 21, The weighted average occupancy rate for existing properties in the Competitive Market Area is 99.8%. Other Considerations: None Mitigating Factors: None Waiver Requests/Special Conditions: 1. The Application listed Selma Roth as a shareholder and Penny Roth as an officer of Judd Roth Real Estate Development, Inc., a co-developer. Letters, dated November 30, 2017, request that Selma Roth be removed, as she is not a shareholder and never has been and for Penny Roth to be removed as she is no longer an officer. Per Rule Chapters and 67-21, Principals of each Developer, including all co-developers, may be changed only by written request of an Applicant to Corporation staff and approval of the Board after the Applicant has been invited to enter credit underwriting. First Housing recommends that Selma Roth be removed as a shareholder as this was a mistake in the Application. Further, First Housing recommends Penny Roth be removed as an officer. The request is contingent upon Board approval on January 26, 2018.

11 Page 11 of 48 Additional Information: 1. Per the Request for Application ( RFA ), Florida Housing limits the TDC to $225,400 per unit for a new construction concrete garden apartment complex. The TDC for the Development, exclusive of land and Operating Deficit Reserves ( ODR ) is $17,866,112 or $210,190 per unit, which is within the underwriting parameters. 2. FHDC has completed the required minimum first mortgage qualifying test and finds that the proposed first mortgage amount equals or exceeds the requirement. 3. The utility allowances contained in this report are based on an Energy Consumption Model Estimate for electricity, prepared by Matern and approved by Florida Housing. 4. The Applicant must develop and execute a MOU with at least one designated Special Needs Household Referral Agency that provides supportive services for Persons with a Disabling Condition for the county where the proposed Development will be located (Palm Beach County) due by December 31, 2017, but no later than the date the first building is placed in serviced. First Housing received a copy of the MOU, which was approved by Florida Housing on December 20, The Applicant has applied to Valley National to provide construction and permanent funding ( Funding Loan ). The Funding Loan is requested pursuant to any Federal, State or local requirements concerning the proposed tax-exempt private activity allocation and/or Low Income Housing Tax Credit requirements. The Funding Loan will be originated by Valley National on behalf of FHFC ( Governmental Lender ). The proceeds of the Funding Loan will be used by FHFC to fund a mortgage loan with matching economic terms ( Project Loan ) to the Applicant to finance the construction and permanent financing of the Development. The Funding Loan will be a non-recourse obligation of FHFC secured solely by receipts and revenues from the Project Loan and the collateral pledged (including a first mortgage lien with respect to the Development). Under the MMRN structure, the Funding Loan replaces the purchase by Valley National of the taxexempt bonds. 6. The survey, dated June 22, 2017, indicates the Development s site contains acres. The third party reports do not reflect the exact same site acreage. First Housing has utilized the survey for the Development s site acreage and adjusted Section C of this report to reflect acres. Issues and Concerns: None

12 Page 12 of 48 Recommendation: First Housing recommends MMRN Tax Exempt Note in the amount of $11,200,000, a SAIL Loan in the amount of $5,400,000, an ELI Loan in the amount of $600,000, and an annual 4% HC Allocation of $758,300 to finance the construction and permanent financing of the Development. These recommendations are based upon the assumptions detailed in the Report Summary (Section A), and Supporting Information and Schedules (Section C). In addition, these recommendations are subject to the MMRN, SAIL, and ELI Loan Special and General Conditions and the HC Allocation Recommendation and Contingencies (Section B). This recommendation is only valid for six months from the date of the report. The reader is cautioned to refer to these sections for complete information. Prepared by: Stephanie Petty Underwriter Reviewed by: Ed Busansky Senior Vice President

13 Page 13 of 48 Overview Construction Financing Sources: Construction Sources Lender Application Revised Applicant Underwriter Construction Interest Rate Annual Construction Debt Service Tax-Exempt Note FHFC/Valley National $11,500,000 $11,200,000 $11,200, % $435,680 Second Mortgage FHFC - SAIL $5,400,000 $5,400,000 $5,400, % $54,000 Third Mortgage FHFC - ELI $600,000 $600,000 $600, % $0 Fourth Mortgage SHIP/Palm Beach County $115,000 $115,000 $115, % $1,150 Housing Credit Equity Enterprise $2,449,162 $1,398,995 $1,440,487 N/A N/A Deferred Developer Fee BDG, LLC and JRRED, Inc. $2,706,367 $1,906,324 $1,559,625 N/A N/A Deferred Reserves N/A $0 $0 $292,022 N/A N/A Total $22,770,529 $20,620,319 $20,607,134 $490,830 First Mortgage: First Housing reviewed a Term Sheet, dated November 20, 2017, provided by Valley National, which indicates Valley National will provide up to an $11,200,000 (subject to final budget, sources and uses of funds, and LIHTC equity pay-in schedule) Tax-Exempt Note issued by Florida Housing, on a draw down basis. The term of the Loan will be twenty-four (24) months from the closing date with one, six (6) month extension. Interest shall accrue on the outstanding principal balance at a variable rate equal to 1.85% plus the 30-day London Interbank Offered Rate ( LIBOR ). Payments of interest only will be required until maturity. The construction interest is calculated based upon the current one-month LIBOR rate of 1.51% (as of December 18, 2017), plus a 1.85% spread, an annual FHFC Issuer Fee of 24 basis points ( bps ), an annual Fiscal Agent Fee of 0.04%, and a 0.25% underwriting cushion, for an all-in interest rate of 3.89%. FHFC SAIL/ELI Loans: First Housing reviewed an invitation to enter credit underwriting, dated March 31, 2017, from FHFC with a preliminary SAIL Loan in the amount of $5,400,000 and a preliminary ELI Loan in the amount of $600,000. The SAIL Loan is non-amortizing with an interest rate of 1% plus servicing and compliance monitoring fees for a total term of up to 17.5 years, of which 2.5 years is for the construction/stabilization period (2 years plus one 6 month extension). The SAIL Loan term was extended to be coterminous with the first mortgage, as permitted by Rule Chapter Annual payments of all applicable fees will be required. To the extent that development cash flow is available, annual interest payments at the 1% rate will be required; any unpaid interest will be deferred until cash flow is available. However, at the maturity of the SAIL Loan, all principal and unpaid interest will be due.

14 Page 14 of 48 The ELI Loan is non-amortizing with an interest rate of 0% plus servicing and compliance monitoring fees for a total loan term of up to 17.5 years, of which 2.5 years is for the construction/stabilization period (2 years plus one 6 month extension). The ELI Loan term was extended to be co-terminus with the first mortgage, as permitted by RFA Annual payments of all applicable fees will be required. Principal is forgivable at maturity, provided the units for which the ELI Loan amount is awarded are targeted to ELI households for the first 15 years of the 50 year Compliance Period. However, after 15 years, all of the ELI set aside units may convert to serve residents at or below 60% AMI. The Persons with a Disabling Condition set aside requirement must be maintained through the entire Compliance Period. Palm Beach County SHIP Loan: First Housing reviewed a letter from Palm Beach County, dated November 30, 2017, outlining the terms for the proposed SHIP Program Loan. The loan amount is $115,000 for a term of 30 years, which is non-amortizing. The loan bears interest at 1% per annum with a balloon payment at maturity. The SHIP Loan requires 100% of the units to be set-aside at 60% of AMI for an affordability period of 30 years. Housing Credit Equity: First Housing has reviewed an executed Equity Proposal, dated June 28, 2017, indicating Enterprise, or its designee, will acquire 99.99% ownership interest in the Partnership. Based on the proposal, the annual HC allocation is estimated to be in the amount of $752,241 and a syndication rate of $1.00 per dollar. Enterprise anticipates a net capital contribution of $7,521,660 and has committed to make available 19.15% or $1,440,487 of the total net equity during the construction period. An additional $6,081,173 will be available at completion, stabilization, and upon receipt of the Form The first installment, in the amount of $1,128,249 or 15.00%, meets the FHFC requirement that 15% of the total equity must be contributed at or prior to the closing. Deferred Developer Fee: To balance the sources and uses of funds during construction, the Developer is required to defer $1,559,625 or approximately 57.23% of the total Developer Fee of $2,725,339. Deferred Reserves: The Syndicator is requiring at least 3 months of operating expenses, reserve contributions, and debt service, to be funded with the Stabilized Capital Contribution. First Housing has estimated an Operating Deficit Reserve of $292,022, based on this requirement.

15 Page 15 of 48 Permanent Financing Sources: Permanent Sources Lender Application Revised Applicant Underwriter Term Yrs. Amort. Yrs. Interest Rate Annual Debt Service Tax-Exempt Note FHFC/Valley National $4,850,000 $6,432,000 $6,432, % $374,897 Second Mortgage FHFC - SAIL $5,400,000 $5,400,000 $5,400, % $54,000 Third Mortgage FHFC - ELI $600,000 $600,000 $600, % $0 Fourth Mortgage SHIP/Palm Beach County $115,000 $115,000 $115, % $1,150 Housing Credit Equity Enterprise $8,163,873 $7,363,134 $7,521,660 N/A N/A N/A N/A Deferred Developer Fee BDG, LLC and JRRED, Inc. $2,706,367 $710,185 $538,474 N/A N/A N/A N/A Total $21,835,240 $20,620,319 $20,607,134 $430,047 First Mortgage: First Housing reviewed a Term Sheet, dated November 20, 2017, from Valley National, which indicates Valley National will provide a tax-exempt permanent loan in the amount of $6,432,000, subject to final underwriting. The term of the loan is 15 years amortized over a 35 year period. Valley National estimates the interest rate to be 4.45% and fixed at closing. For underwriting purposes, the interest is calculated based upon the rate of 4.45% and a 0.25% credit underwriting cushion, for an all-in interest rate of 4.70%. Monthly principal and interest payments will be required until maturity. In addition to the actual Note rate, there is a FHFC Issuer Fee of 24 bps, servicing fees, compliance monitoring fees, and Fiscal Agent fees included in the Debt Service Coverage ratio analysis. The Note will mature 15 years following the termination of the construction phase and conversion to the permanent phase. At maturity, the Applicant may satisfy the Note via refinancing or sale of the Development pending market feasibility. In the event the Applicant is unable to refinance or effectuate a sale to fund payoff of the Note, such event would not cause an event of default under the loan documents. Rather, should this situation occur, it would trigger a Mortgage Assignment Event whereby Valley National agrees to cancel the Note in exchange for an assignment by the Fiscal Agent of the mortgage and all other related documents and accounts. The Fiscal Agent would cancel the Note and discharge the lien of the Funding Loan Agreement, and it would then assign the Note and any other related documents and collateral to Valley National, effectively ending the transaction. Under this scenario, the Note will have been redeemed/cancelled not by payment of cash but by the assignment of the mortgage loan documents and there is no default. As the new direct mortgagee, Valley National would then be in a position to work with the Applicant to arrive at a resolution without involvement of either FHFC or the Fiscal Agent (as the Note would have been cancelled and would no longer be outstanding).

16 Page 16 of 48 FHFC SAIL/ELI Loans: First Housing reviewed an invitation to enter credit underwriting, dated March 31, 2017, from FHFC with a preliminary SAIL Loan in the amount of $5,400,000 and a preliminary ELI loan in the amount of $600,000. The SAIL Loan is non-amortizing with an interest rate of 1% plus servicing and compliance monitoring fees for a total term of up to 17.5 years, of which 2.5 years is for the construction/stabilization period (2 years plus one 6 month extension). The SAIL Loan term was extended to be coterminous with the first mortgage, as permitted by Rule Chapter Annual payments of all applicable fees will be required. In addition and to the extent that development cash flow is available, annual interest payments at the 1% rate will be required; any unpaid interest will be deferred until cash flow is available. However, at the maturity of the SAIL Loan, all principal and unpaid interest will be due. The ELI Loan is non-amortizing with an interest rate of 0% plus servicing and compliance monitoring fees for a total loan term of up to 17.5 years, of which 2.5 years is for the construction/stabilization period (2 years plus one 6 month extension). The ELI Loan term was extended to be co-terminus with the first mortgage, as permitted by RFA Annual payments of all applicable fees will be required. Principal is forgivable at maturity provided the units for which the ELI Loan amount is awarded are targeted to ELI households for the first 15 years of the 50 year Compliance Period. However, after 15 years, all of the ELI set aside units may convert to serve residents at or below 60% AMI. The Persons with a Disabling Condition set aside requirement must be maintained through the entire Compliance Period. The annual multiple program Compliance Monitoring Fee of $918 for each of the SAIL Loan and the ELI Loan will be billed annually. The Servicing Fees will be billed based upon the outstanding loan amounts, with a monthly fee of 25 bps of the outstanding loan amount, with a minimum monthly fee of $211 for each loan, and a maximum monthly fee of $840 for each loan, billed annually. Palm Beach County SHIP Loan: First Housing reviewed a letter from Palm Beach County, dated November 30, 2017, outlining the terms for the proposed SHIP Program Loan. The loan amount is $115,000 for a term of 30 years, which is non-amortizing. The loan bears interest at 1% per annum with a balloon payment at maturity. The SHIP Loan requires 100% of the units to be set-aside at 60% of AMI for an affordability period of 30 years.

17 Page 17 of 48 Housing Credit Equity: The Applicant has applied to FHFC to receive 4% Housing Credits directly from the U.S. Treasury in conjunction with tax exempt financing. A HC calculation is contained in Exhibit 2 of this credit underwriting report. Based on an executed Equity Proposal, dated June 28, 2017, Enterprise, or its designee will provide HC equity as follows: Syndication Contributions Capital Contributions Amount Percentage of Total When Due 1st Installment $1,128, % 2nd Installment $312, % 3rd Installment $444, % 4th Installment $5,428, % 5th Installment $208, % Total $7,521, % Admission 50% Construction Completion Construction Completion Stabilization 8609's Annual Credit Per Syndication Agreement $752,241 Calculated HC Exchange Rate $1.00 Limited Partner Ownership Percentage 99.99% Proceeds Available During Construction $1,440,487 Deferred Developer Fee: To balance the sources and uses of funds during the permanent funding period, the Developer is required to defer $538,474 or approximately 19.76% of the total Developer Fee of $2,725,339.

18 Page 18 of 48 Uses of Funds CONSTRUCTION COSTS: Revised Applicant Costs Underwriters Total Costs - CUR HC Ineligible Costs - CUR Applicant Costs Cost Per Unit New Rental Units $9,519,359 $9,629,065 $9,629,065 $113,283 $0 Site Work $850,000 $0 $0 $0 $0 Constr. Contr. Costs subject to GC Fee $10,369,359 $9,629,065 $9,629,065 $113,283 $0 General Conditions $1,368,500 $544,042 $544,042 $6,400 $0 Profit $0 $804,027 $804,027 $9,459 $0 General Liability Insurance $0 $137,214 $137,214 $1,614 $0 Payment and Performance Bonds $0 $93,306 $93,306 $1,098 $0 Total Construction Contract/Costs $11,737,859 $11,207,654 $11,207,654 $131,855 $0 Hard Cost Contingency $557,175 $560,383 $548,857 $6,457 $0 FF&E paid outside Constr. Contr. $0 $100,000 $100,000 $1,176 $0 Total Construction Costs: Notes to the Total Construction Costs: $12,295,034 $11,868,037 $11,856,511 $139,488 $0 1. The Applicant has provided an executed construction contract, dated December 4, 2017, in the amount of $11,207,654. This is a Standard Form of Agreement between Owner, BDG Banyan Court, LP and Contractor, Carr Builders LLC where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price ( GMP ). Per the contract, substantial completion is to be achieved by no later than 395 days from the date of commencement, with an additional 30 days for final completion. The construction contract specifies a 10% retainage until 50% of the GMP, at which time 5% retainage will be withheld. 2. The General Contractor ( GC ) fee is within the maximum 14% of hard costs allowed by Rule Chapters and 67-21, excluding Payment and Performance Bonds ( P&P Bonds ) and General Liability Insurance. The GC fee stated herein is for credit underwriting purposes only, and the final GC fee will be determined pursuant to the final cost certification process as per Rule Chapters and First Housing adjusted Hard Cost Contingency to 5% of the total construction contract (excluding P&P Bonds and General Liability Insurance), which is within the allowable 5% of total hard costs for new construction developments as required by Rule Chapters and The General Contractor has budgeted for P&P Bonds to secure the construction contract.

19 Page 19 of 48 GENERAL DEVELOPMENT COSTS: Revised Applicant Costs Underwriters Total Costs - CUR HC Ineligible Costs - CUR Applicant Costs Cost Per Unit Accounting Fees $25,000 $25,000 $25,000 $294 $10,000 Appraisal $7,500 $7,500 $5,000 $59 $0 Architect's Fee - Landscape $0 $25,000 $25,000 $294 $0 Architect's Fee - Site/Building Design $225,000 $225,000 $225,000 $2,647 $0 Architect's Fee - Supervision $50,000 $25,000 $25,000 $294 $0 Building Permits $89,250 $96,291 $96,291 $1,133 $0 Builder's Risk Insurance $200,000 $71,517 $71,517 $841 $0 Engineering Fees $125,000 $125,000 $125,000 $1,471 $0 Environmental Report $25,000 $25,000 $25,000 $294 $0 FHFC Administrative Fees $56,423 $58,911 $68,247 $803 $68,247 FHFC Application Fee $3,000 $3,000 $3,000 $35 $3,000 FHFC Credit Underwriting Fee $11,661 $25,000 $22,650 $266 $22,650 FHFC Compliance Fee $205,952 $0 $0 $0 $0 Impact Fee $0 $572,000 $557,504 $6,559 $0 Lender Inspection Fees / Const Admin $50,000 $50,000 $50,000 $588 $0 Green Building Cert. (LEED, FGBC, NAHB) $25,000 $25,000 $25,000 $294 $0 Insurance $200,000 $0 $0 $0 $0 Legal Fees - Organizational Costs $270,000 $80,000 $100,000 $1,176 $50,000 Market Study $6,000 $6,000 $5,000 $59 $5,000 Marketing and Advertising $100,000 $100,000 $100,000 $1,176 $100,000 Plan and Cost Review Analysis $0 $0 $2,000 $24 $0 Property Taxes $50,000 $50,000 $50,000 $588 $0 Soil Test $25,000 $25,000 $25,000 $294 $0 Survey $30,000 $30,000 $30,000 $353 $0 Title Insurance and Recording Fees $98,850 $88,850 $88,850 $1,045 $0 Utility Connection Fees $200,000 $425,000 $425,000 $5,000 $0 Soft Cost Contingency $0 $100,000 $108,752 $1,279 $0 Total General Development Costs: $2,078,636 $2,264,069 $2,283,811 $26,868 $258,897 Notes to the General Development Costs: 1. General Development Costs are the Applicant's updated estimates, which appear reasonable. 2. First Housing has utilized actual costs for: FHFC Credit Underwriting, Market Study, Appraisal, and Plan and Cost Analysis ( PCA ). 3. The FHFC Administrative Fee is based on 9% of the recommended annual 4% Housing Credit allocation of $758, The Applicant has been approved for an Impact Fee Affordable Housing Assistance Program funding award in the amount of $14,495.90, which has been netted against the total Impact Fee. 5. First Housing included an additional $20,000 in Legal Fees, as the Applicant s figure appeared on the low end.

20 Page 20 of First Housing adjusted the Soft Cost Contingency to be 5% of the General Development Costs less the soft cost contingency, as allowed by RFA and Rule Chapters and for new construction developments. FINANCIAL COSTS: Revised Applicant Costs Underwriters Total Costs - CUR HC Ineligible Costs - CUR Applicant Costs Cost Per Unit Construction Loan Origination Fee $100,000 $0 $0 $0 $0 Construction Loan Commitment Fee $100,000 $113,945 $112,000 $1,318 $0 Construction Loan Interest $538,174 $420,076 $487,962 $5,741 $0 Permanent Loan Commitment Fee $0 $100,000 $64,320 $757 $64,320 Permanent Loan Origination Fee $100,000 $64,320 $0 $0 $0 Permanent Loan Closing Costs $100,000 $0 $0 $0 $0 FHFC Note Fiscal Agent Fee $0 $10,000 $0 $0 $0 FHFC Note Cost of Issuance $0 $180,000 $216,170 $2,543 $216,170 SAIL Commitment Fee $0 $54,000 $54,000 $635 $54,000 SAIL Interest $0 $67,500 $0 $0 $0 SAIL-ELI Commitment Fee $0 $0 $6,000 $71 $6,000 Other: SAIL/ELI Extension Fee $0 $0 $60,000 $706 $60,000 Other: Other Closing Costs $0 $10,000 $0 $0 $0 Total Financial Costs: Dev. Costs before Acq., Dev. Fee & Reserves Notes to the Financial Costs: $938,174 $1,019,841 $1,000,452 $11,770 $400,490 $15,311,844 $15,151,947 $15,140,773 $178,127 $659, The Construction Loan Commitment Fee of $112,000 is based on a commitment fee of 1% on the total Construction Note amount of $11,200, The Construction Loan Interest of $487,962 is based on a 24 month term, an interest rate of 3.89% and an average outstanding balance of 56%. 3. The Permanent Loan Commitment Fee of $64,320 is based on a commitment fee of 1% on the total Permanent Note amount of $6,432, Cost of Issuance ( COI ), provided by Florida Housing, includes MMRN, SAIL, and ELI Loan Closing Costs and expenses of the Fiscal Agent, Real Estate Counsel, MMRN Counsel, Disclosure Counsel, and other fees. 5. SAIL Commitment Fee is based on 1% of the SAIL Loan. 6. SAIL-ELI Commitment Fee is based on 1% of the ELI Loan.

21 Page 21 of SAIL/ELI Extension Fee is based on 1% of the SAIL and ELI Loan amounts. NON-LAND ACQUISITION COSTS Applicant Costs Revised Applicant Costs Underwriters Total Costs - CUR Cost Per Unit HC Ineligible Costs - CUR Building Acquisition Cost $0 $0 $0 $0 $0 Total Non-Land Acquisition Costs: $0 $0 $0 $0 $0 Notes to the Non-Land Acquisition Costs: 1. As this is new construction, there are no non-land acquisition costs. DEVELOPER FEE ON NON-ACQUISTION COSTS Revised Underwriters HC Ineligible Applicant Costs Applicant Costs Total Costs - CUR Cost Per Unit Costs - CUR Developer Fee - Unapportioned $2,706,367 $2,727,350 $2,725,339 $32,063 $0 Total Other Development Costs: $2,706,367 $2,727,350 $2,725,339 $32,063 $0 Notes to the Other Development Costs: 1. The recommended Developer's Fee does not exceed 18% of Total Development Cost before Developer Fee and ODR as allowed by RFA and Rule Chapters and LAND ACQUISITION COSTS Revised Underwriters HC Ineligible Applicant Costs Applicant Costs Total Costs - CUR Cost Per Unit Costs - CUR Land Acquisition Cost $2,449,000 $2,449,000 $2,449,000 $28,812 $2,449,000 Total Acquisition Costs: $2,449,000 $2,449,000 $2,449,000 $28,812 $2,449,000 Notes to Acquisition Costs: 1. First Housing reviewed a Purchase and Sale Agreement, dated August 31, 2016, between Townhomes Pineapple Ridge Lake Worth LLC ( Seller ) and AGPM Acquisitions, LLC ( Buyer ). According to the terms of the agreement, the purchase price of the approximately 3.67 acres of land located at 3 rd Avenue North, Lake Worth, FL is $2,100,000, with a closing date of no later than July 31, The Buyer is entitled to three (3) 60 day extensions for an extension deposit of $5,000 for each extension. The extension deposits shall be applied to the purchase price at closing. The Buyer has requested the three extensions, which extended the closing date to January 31, First Housing reviewed

22 Page 22 of 48 an Assignment of Purchase and Sale Agreement, dated October 17, 2016, where APGM Acquisitions, LLC assigns all of its rights to BDG Banyan Court, LP. First Housing received an executed First Amendment to Purchase and Sale Agreement, dated January 2, 2018, which extends the closing date to on or before April 30, 2018, for an extension deposit of $25, First Housing reviewed a Purchase and Sale Agreement, dated September 13, 2016, between Barbara R. Boutros ( Seller ) and Banyan Development Group, LLC ( Buyer ). According to the terms of the agreement, the purchase price of the approximately 0.63 acres of land located at th Avenue North, Lake Worth, FL is $349,000, with a closing date of no later than July 31, The Buyer is entitled to three (3) 60 day extensions for an extension deposit of $5,000 for each extension. The extension deposits shall be applied to the purchase price at closing. The Buyer has requested the three extensions, which extended the closing date to January 31, First Housing reviewed an Assignment of Purchase and Sale Agreement, dated October 17, 2016, where Banyan Development Group, LLC assigns all of its rights to BDG Banyan Court, LP. First Housing received an executed Addendum to Purchase and Sale Agreement, dated January 5, 2018, which indicates that the Buyer and Seller have agreed to extend the closing date to February 28, The appraiser valued the vacant land at $2,450,000, which supports the total purchase price of the two contracts of $2,449,000. RESERVE ACCOUNTS Revised Underwriters HC Ineligible Applicant Costs Applicant Costs Total Costs - CUR Cost Per Unit Costs - CUR Operating Deficit Reserve (Syndicator) $200,000 $292,022 $292,022 $3,436 $292,022 Total Reserve Accounts: $200,000 $292,022 $292,022 $3,436 $292,022 Notes to Reserve Accounts 1. An ODR is required by the Syndicator and will be funded from the Stabilized Capital Contribution. The ODR will be funded in the total amount of at least 3 months of operating expenses, reserve contributions, and debt service. The Developer projects a reserve amount of $292,022. At the end of the Compliance Period, any remaining balance of the ODR less amounts that may be permitted to be drawn (which includes Deferred Developer Fee, remaining Land Value Payment, and reimbursements for authorized member/partner and guarantor loan(s) pursuant to the operating/partnership agreement), will be used to pay FHFC loan debt; if there is no FHFC loan debt on the proposed Development at the end of the Compliance Period, any remaining balance shall be used to pay any outstanding FHFC fees. If any balance is remaining in the ODR after the payments above, the amount should

23 Page 23 of 48 be placed in a Replacement Reserve account for the Development. In no event shall the payments of amounts to the Applicant or the Developer from the Reserve Account cause the Developer Fee or General Contractor Fee to exceed the applicable percentage limitations provided for in Rule Chapters and Any and all terms and conditions of the ODR must be acceptable to Florida Housing, its Servicer and its legal counsel. TOTAL DEVELOPMENT COSTS TOTAL DEVELOPMENT COSTS: Revised Underwriters HC Ineligible Applicant Costs Applicant Costs Total Costs - CUR Cost Per Unit Costs - CUR $20,667,211 $20,620,319 $20,607,134 $242,437 $3,400,409 Notes to Total Development Costs: 1. Total Development Costs have decreased by a total of $60,077 from $20,667,211 to $20,607,134 or 0.29% since the Application.

24 Page 24 of 48 Operating Pro Forma Banyan Court FINANCIAL COSTS: Year 1 Year 1 Per Unit OPERATING PRO FORMA Gross Potential Rental Income $985,428 $11,593 Miscellaneous $20,400 $240 Wa s her/dryer Renta l s $30,600 $360 Gross Potential Income $1,036,428 $12,193 Less: Physical Vac. Loss Percentage: 4.00% $41,457 $488 Collection Loss Percentage: 1.00% $10,364 $122 Total Effective Gross Income $984,607 $11,584 Fi xed: Real Estate Taxes $145,033 $1,706 Insurance $42,500 $500 Variable: Management Fee Percentage: 4.00% $39,384 $463 General and Administrative $19,125 $225 Payroll Expenses $102,000 $1,200 Utilities $85,000 $1,000 Marketing and Advertising $6,375 $75 Maintenance and Repairs/Pest Control $34,000 $400 Grounds Maintenance and Landscaping $12,750 $150 Reserve for Replacements $25,500 $300 Total Expenses $511,667 $6,020 Net Operating Income $472,939 $5,564 Debt Service Payments First Mortgage - FHFC/Valley National $374,897 $4,411 Second Mortgage - FHFC - SAIL $54,000 $635 Third Mortgage - FHFC - ELI $0 $0 Fourth Mortgage - SHIP/Palm Beach County $1,150 $14 First Mortgage Fees - FHFC/Valley National $25,457 $299 Second Mortgage Fees - FHFC - SAIL $10,998 $129 Third Mortgage Fees -FHFC - ELI $3,450 $41 Fourth Mortgage Fees -SHIP/Palm Beach County $1,000 $12 Total Debt Service Payments $470,952 $5,541 Cash Flow after Debt Service $1,988 $23 FINANCIAL COSTS: Annual Per Unit Debt Service Coverage Ratios DSC - First Mortgage plus Fees 1.18x DSC - Second Mortgage plus Fees 1.02x DSC - Third Mortgage plus Fees 1.01x DSC - Fourth Mortgage plus Fee 1.00x DSC - All Mortgages and Fees 1.00x Financial Ratios Operating Expense Ratio 51.97% Break-even Economic Occupancy Ratio (all debt) 95.01% INCOME: EXPENSES: Notes to the Operating Pro Forma and Ratios: 1. The MMRN & SAIL programs do not impose any rent restrictions. However, this Development will be utilizing Housing Credits in conjunction with the Tax-Exempt Note

25 Page 25 of 48 financing which will impose rent restrictions. The rent levels are based on the 2017 maximum LIHTC rents published on FHFC s website for Palm Beach County less the applicable utility allowance. Below is the rent roll for the Development: Palm Beach County, Miami-Fort Lauderdale-Pompano Beach MSA Bed Bath Rooms Rooms Units Square Feet ,062 1,062 AMI% 33% 60% 33% Low HOME Rents High HOME Rents Gross HC Rent $534 $972 $617 60% $1,122 Utility Allow. $29 $29 $32 $32 Net Restricted Rents $ $ $ $ ,090 PBRA Contr Rents Applicant Rents $ $ $ $ ,090 Appraiser Rents $ $ $ CU Rents $ $ $ Annual Rental Income 30,300 $ 1,077 $ 1,090 $ 497,040 $ $ $ 430,008 28, ,056 $ 985, The Vacancy and Collection loss rate of 5.00% is based on First Housing s estimate, which is supported by the appraisal. 3. Miscellaneous Income is comprised of revenue from vending machines, late charges, pet deposits, forfeited security deposits and other miscellaneous sources. Total Miscellaneous Income of $240 per unit/per year is supported by the appraisal. 4. The Development will offer full-size washer/dryer appliances for rent to the residents. The appraiser concluded to an annual income of $30,600, which First Housing found acceptable. 5. Based upon operating data from comparable properties, third-party reports (appraisal and market study) and First Housing's independent due diligence, First Housing represents that, in its professional opinion, estimates for Rental Income, Vacancy, Other Income, and Operating Expenses fall within a band of reasonableness. 6. The Applicant has submitted a Management Agreement, dated September 1, 2017, and an Amendment to Management Agreement, dated December 12, 2017, which reflects a management fee equal to the greater of $1,500 per month or 4% of gross operating revenues. However, AGPM, LLC is entitled to an additional 1% Incentive Management Fee, calculated and paid annually, but only payable if the Debt Service Coverage Ratio on all mortgage loan payments exceeds 1.0 or breakeven debt coverage after the payment of 1% Incentive Management Fee. Meridian concluded to an overall management fee of 4.25% of Effective Gross Income; however, First Housing utilized the 4%. 7. The resident is responsible for electric, cable, phone and internet. The landlord is responsible for water/sewer, water heating, pest control, and trash expenses.

26 Page 26 of Replacement Reserves of $300 per unit per year are required. 9. The minimum DSC ratio shall be 1.10x for the SAIL Loan, including all superior mortgages. However, if the Applicant defers at least 35% of its Developer Fee for at least six (6) months following construction completion, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to defer 35% of the Developer Fee for at least six months following construction completion. 10. Refer to Exhibit I, Page 1 for a 15-Year Pro Forma, which reflects rental income increasing at an annual rate of 2%, and expenses increasing at an annual rate of 3%.

27 Page 27 of 48 Section B MMRN, SAIL, ELI Loan Special and General Conditions HC Allocation Recommendation and Contingencies

28 Page 28 of 48 Special Conditions This recommendation is contingent upon the review and approval of the following items by Florida Housing and First Housing at least 30 days prior to Real Estate Loan Closing. Failure to submit and to receive approval of these items within this time frame may result in postponement of the MMRN pricing date and/or MMRN, SAIL, and ELI Loan closing date. For competitive MMRN sales, these items must be reviewed and approved prior to issuance of the notice of MMRN sale: 1. Firm Commitment from Valley National (construction and permanent financing) for the MMRN with terms and conditions that are not substantially different than those utilized in this credit underwriting report. 2. Receipt of Firm Commitment from Palm Beach County, for the SHIP loan. 3. Receipt and satisfactory review of the executed operating agreement for BDG Banyan Court GP, LLC. 4. Florida Housing s Board approval of the change in Judd Roth Real Estate Development, Inc. s structure. 5. Receipt and satisfactory review of the Final signed, sealed approved for construction plans and specifications by the Construction Consultant and the Servicer. 6. Satisfactory receipt and review of updated financials for the Guarantors, dated within 90 days of closing. 7. If the Applicant defers at least 35% of its Developer Fee for at least six (6) months following construction completion, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to defer 35% of the Developer Fee for at least six months following construction completion. 8. Receipt of an Asbestos and Lead Based Paint ( LBP ) Survey, as required by the Phase I Environmental.

29 Page 29 of 48 General Conditions This recommendation is contingent upon the review and approval of the following items by Florida Housing and First Housing at least 30 days prior to Real Estate Loan Closing. Failure to submit and to receive approval of these items within this time frame may result in postponement of the closing date: 1. Payment of any outstanding arrearages to the Corporation, its legal counsel, Servicer or any agent or assignee of the Corporation for past due issues applicable to the Development Team (Applicant or Developer or Principal, Affiliate or Financial Beneficiary, as described in (5) F.A.C. and (5) F.A.C. of an Applicant or a Developer). 2. On Solid Ground ( OSG ) is to act as construction inspector during the construction phase. 3. At all times there will be undisbursed loan funds (collectively held by Florida Housing, the first mortgage lender and any other source) sufficient to complete the Development. If at any time there are not sufficient funds to complete the Development, the Applicant will be required to expend additional equity on Development Costs or to deposit additional equity with Florida Housing which is sufficient (in Florida Housing s judgment) to complete the Development before additional loan funds are disbursed. This condition specifically includes escrowing at closing all equity necessary to complete construction or another alternative acceptable to Florida Housing in its sole discretion. 4. During construction, the Developer is only allowed to draw a maximum of 50% of the total Developer Fee but in no case more than the payable Developer Fee during construction, which is determined to be "developer's overhead". No more than 35% of "developer's overhead" will be funded at closing. The remainder of the "developer's overhead" will be disbursed during construction on a pro rata basis, based on the percentage of completion of the Development, as approved and reviewed by FHFC and the Servicer. The remaining unpaid Developer Fee (if applicable) shall be considered attributable to "developer's profit", and may not be funded until the Development has achieved 100% lien free completion, and only after retainage has been released. 5. Signed and sealed survey, dated within 90 days of loan closing, unless otherwise approved by Florida Housing, and its legal counsel, based upon the particular circumstances of the transaction. The Survey shall be certified to Florida Housing, and its legal counsel, as well as the title insurance company, and shall indicate the legal description, exact boundaries of

30 Page 30 of 48 the Development, easements, utilities, roads, and means of access to public streets, total acreage and flood hazard area and any other requirements of Florida Housing. 6. Building permits and any other necessary approvals and permits (e.g., final site plan approval, Department of Environmental Protection, Army Corps of Engineers, the Water Management District, Department of Transportation, etc.) or a letter from the local permitting and approval authority stating that the above referenced permits and approvals will be issued upon receipt of applicable fees (with no other conditions), or evidence of 100% lien-free completion, if applicable. If a letter is provided, copies of all permits will be required as a condition of the first post-closing draw. 7. Final "as permitted" (signed and sealed) site plans, building plans and specifications. The geotechnical report must be bound within the final plans and specifications, if applicable. 8. Final sources and uses of funds schedule itemized by source and line item, in a format and in amounts approved by the Servicer. A detailed calculation of the construction loan interest based upon the final draw schedule, documentation of the closing costs, and draft loan closing statement must also be provided. The sources and uses of funds schedule will be attached to the Loan Agreement as the approved development budget. 9. A final construction draw schedule showing itemized sources and uses of funds for each monthly draw. SAIL Program loan proceeds shall be disbursed during the construction phase in an amount per draw that does not exceed the ratio of the SAIL Loan to the Total Development Costs, unless approved by First Housing. ELI Loan proceeds shall be disbursed during the construction phase in an amount per draw which does not exceed the ratio of the ELI Loan to the Total Development Cost, unless approved by First Housing. The closing draw must include appropriate backup and ACH wiring instructions. 10. Evidence of insurance coverage pursuant to the RFA governing this proposed transaction and, as applicable, the FHFC Insurance Guide. 11. A 100% Payment and Performance Bond or a Letter of Credit ( LOC ) in an amount not less than 25% of the construction contract is required in order to secure the construction contract between the GC and the Applicant. In either case, Florida Housing must be listed as co-obligee. The P&P Bonds must be from a company rated at least "A-" by A.M. Best & Co with a financial size category of at least FSC VI. FHFC, and/or legal counsel must approve the source, amount(s) and all terms of the P&P Bonds, or LOC. If the LOC option is utilized, the LOC must include "evergreen" language and be in a form satisfactory to Florida Housing, its Servicer and its legal counsel.