Fannie Mae’s Housing Development Tool

Investing with Public Partners to Support Housing

Presented by

Maria Day-Marshall

March 2008

Fannie Mae is a Leader in the U.S. Housing Finance Industry • • Government Sponsored Enterprise (GSE) For-profit company listed on the New York Stock Exchange (FNM) • Involved in the financing of 1 out of every 5 mortgages    Operate in the secondary mortgage market Issue mortgage backed securities (MBS) Purchase loans and MBS to hold in portfolio © 2008 Fannie Mae 1

Fannie Mae’s Commitment to Housing Fannie Mae provides stability, liquidity, and affordability to the nation's housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.

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Fannie Mae’s Housing and Community Development Division © 2008 Fannie Mae

Oxon Creek, Washington, DC

• • Our mission is to invest debt and equity in housing developments to support neighborhoods and community revitalization. We achieve our mission by investing with partners in viable housing developments and becoming the secondary market partner of choice for housing finance partners.

Uwajimaya, Seattle, WA

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What Does Housing and Community Development do?

• • • Offers front-end financing for single-family and multi-family housing, and mixed-use developments Seeks to produce tangible impact in neighborhoods Leverages other resources

Spicer’s Run, Baltimore, MD

© 2008 Fannie Mae

Wardman Court, Washington, DC

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Housing and Community Development Gets it Done in the Field

Local Experts: Coverage in all 50 states

© 2008 Fannie Mae • • •

Coaching Staff:

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DC Team Product Managers Credit Legal Asset Mgt

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Community Express ® Loan or line of credit to support the residential development agenda of Public Entities including the development of single-family housing, multifamily housing and mixed-use residential developments. © 2008 Fannie Mae 6

Community Express ® Features • • • • Up to 5-year term loan or line of credit Variable rate product • Full recourse to borrowing entity Flexible loan to be used for housing or housing related activities • Repayment source is flexible, but a plan must be in place Available to states, counties, municipalities, housing finance agencies and public housing authorities © 2008 Fannie Mae 7

Examples of Repayment Sources • • • • • • • HOPE VI Grant Funds Low Income Housing Tax Credit Equity Pay-in CDBG, FEMA or Other Grant Funds Bond Proceeds Cash Flows from Loan Portfolios Refinancings of Properties through Conventional Sources Sales Proceeds from Sale of Homes Financed with Loan © 2008 Fannie Mae 8

Sample Uses of Loan Funds • • Pre-development Financing Construction Financing for HOPE VI Redevelopment Project or Other Affordable Homeownership Units • • Preservation of Affordable Rental Housing Units Rehab Loans to Low- and Moderate-income Homeowners in Targeted Neighborhoods • Re-lending to Other Housing Partners © 2008 Fannie Mae 9

Community Express ® City and County of Denver • • $17.5 million line of credit Funds used to re lend to housing partners to finance costs associated with development of workforce housing • Repayment source is the cash flows from loan portfolios © 2008 Fannie Mae 10

Community Express ® St. Johns County, Florida • • $2 million line of credit Funds used to construct single family workforce housing • Repayment source is sales proceeds © 2008 Fannie Mae 11

Community Express ® Housing Authority of the City of Los Angeles • • $10 million revolving line of credit Funds used to purchase expiring use affordable multifamily properties in hot market • Repayment source is the refinancing of the properties through conventional sources © 2008 Fannie Mae 12

© 2008 Fannie Mae Community Express ® Cincinnati Metro Housing Authority • $4 million revolving line of credit • • • Funds used to provide construction financing for HOPE VI redevelopment project One repayment source is HOPE VI grant funds A second repayment source is low income tax credit equity pay-in 13

Community Express ® Grand Forks (ND) Housing Authority • • $5 Million Line of Credit • Funds used to construct 127 affordable housing home ownership units Affordable Housing District -- Sales prices start at $86,900 • © 2008 Fannie Mae Repayment source is sales proceeds 14

© 2008 Fannie Mae Community Express ® City of White Plains, NY • • $1 million line of credit • Funds used to provide rehab loans to low- and moderate-income homeowners in targeted neighborhoods • Primary repayment source is cash flows from the loan portfolio Secondary repayment source is CDBG funds 15

Benefits to Public Entities • • • • • • Flexible Use – Can be used for pre-development, acquisition, development, construction or rehabilitation for housing, and re-lending for housing purposes Competitive Interest Rates Stream-lined and Simplified Process Low Upfront Fees Low Collateral Requirements Allows Public Entities to Leverage Other Private/Public Sources of Funds to Develop Housing Projects © 2008 Fannie Mae 16

Contact us!

For more information contact:

Lisa Zukoff, Director

E-mail: [email protected]

Phone: 304-843-8089

Maria Day-Marshall, Senior Business Manager

E-mail: [email protected]

Phone: 202-752-3916 © 2008 Fannie Mae 17