Multifamily Bond Financing –

"Back in Vogue"

Moderator

Barry Krinsky, CITI

Panelists

David Danenfelzer, TSAHC

Helen Feinberg, RBC Capital Markets

Jim Spound, R4 Capital Funding

Cody Wilson, Stifel Nicolaus & Company, Incorporated

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10-Year UST 30-Year MMD

With US economic data still tepid and global growth

slowing, interest rates have trended lower over the

past month.

Historical Performance of 10-year UST versus 30-year MMD

Source: Bloomberg. Thomson Reuters

Reflects market conditions as of July 15, 2016

Thomson Reuters Municipal Market Data (MMD) AAA curve is a proprietary yield curve that provides the offer-side of AAA rated state general obligation bonds

25-year average = 4.78%

07/15/16 = 2.05%

25-year average = 4.59%

07/15/16 = 1.58%

Despite the threat of higher interest rates, long-term

municipal bond fund flows have been positive since

September 2015.

Source: ICI Group

Numbers in millions

Reflects market conditions as of July 15, 2016

$0

$500

$1,000

$1,500

$2,000

$2,500

Long-Term Tax-Exempt Mutual Fund Net Flows

Since September 2015, net inflows have totaled $46.6 billion

Credit spreads continue to contract as investors look

for yield.

Source: Bloomberg. Thomson Reuters

Reflects market conditions as of July 15, 2016

Thomson Reuters Municipal Market Data (MMD) AAA curve is a proprietary yield curve that provides the offer-side of AAA rated state general obligation bonds

“BBB” Credit Spread over “AAA”

60

80

100

120

140

160

180

200

Average = 123 basis points

07/15/2016 = 77 basis points

Dogwood Housing, Inc.

Alabama, Mississippi, Tennessee, North Carolina

■ Bond proceeds were used to acquire and rehabilitate nine (9) multifamily residential

rental housing facilities comprising a total of 539 units located in various locations in

AL, MS, TN and NC

■ All properties are operating under a project-based section 8 HAP contract and have

an average REAC score of 97

■ Financing Summary

■ Proforma DSCR of 1.26x for Series 2016A and 1.20x for Series 2016B

■ Rehab per unit = $5,025

■ LTV = 93%

■ 35-year term / 35-year amortization

■ Non-recourse, no credit enhancement or mortgage insurance

■ Optional call in 5 years at 105%

■ Series 2016A financing rate = 4.07%

■ Subordinate Series 201B financing rate = 5.12%

■ Blended financing rate = 4.10%

Source: Bloomberg. Thomson Reuters

$23,150,000

Public Finance Authority

Multifamily Housing Revenue Bonds

(Dogwood Housing, Inc. Project)

Series 2016

Standard & Poor’s Ratings

Series 2016A

“A-”

(Subordinate) Series 2016B

“BBB”

Stifel, Nicolaus & Company, Incorporated

Sole Manager

June 16, 2016

Tulsa Pythian Manor, Inc.

Tulsa, Oklahoma

■ Bond proceeds will be used to refinance and rehabilitate two multifamily residential

rental housing facilities known as Tulsa Pythian Manor (151 units) and Pythian

Manor West (101 units)

■ The projects are operating under a project-based section 8 HAP contract and are

designated towards seniors ages 62 and older

■ Financing Summary

■ Proforma DSCR of 1.49x

■ Rehab per unit = $21,532

■ LTV = 94%

■ 35-year term / 35-year amortization

■ Non-recourse, no credit enhancement or mortgage insurance

■ Optional call in 5 years at 105%

■ Series 2016A financing rate = 3.81%

■ Taxable Series 2016A-T financing rate = 3.45%

■ Blended financing rate = 3.80%

$7,710,000

Tulsa County Industrial Development

Multifamily Housing Revenue Bonds

(Pythian Manor, Inc. Project)

Series 2016

Standard & Poor’s Ratings

Series 2016A

“A-”

(Taxable) Series 2016A-T

“A-”

Stifel, Nicolaus & Company, Incorporated

Sole Manager

July 14, 2016

Source: Bloomberg. Thomson Reuters