Supporting Healthy, Vibrant and Sustainable

Communities

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Macroeconomics(Investor Outlook)

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Introductions and Welcome

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Speakers

Paul HenleyVP Portfolio Management, Fifth Third CDC

Yianni VitellasVP – Portfolio / Risk Specialist Senior, Huntington CDC

Marge NovakVP – Investor Relations, Great Lakes Capital Fund

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State of the industry including the tax credit investment market. How the current market affects investment decisions. What the future holds. Investors share their concerns for the industry, as well as investor outlook, market demand, allocating agencies and underwriting.

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Market

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Market

Current Market – Return LevelsCurrent Market – Lower Tier PricingWhat Drives Investment Levels?• CRA• YieldCRA Recent Changes – Interagency Q&ACohnReznick Low-Income Housing Tax Credit Study

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Market

The Financial Accounting Standards Board (FASB) issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects,” which sets forth new accounting for qualifying investments. The primary provisions allow for the cost of an investment in an affordable housing project to be amortized and the resulting expense to be reflected as a component of the investor’s income tax provision rather than its operating income. The new accounting method, referred to as the “proportional amortization method”, will allow amortization of thetax credit investment to be reflected along with the primary benefits, the tax credits and other tax benefits, on a “net, netbasis” on the income tax expense line of the income statement.

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Investor – Syndicator Review

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Investor – Syndicator Review

Syndicator Track RecordInvestor ReportingCredit Committee ProcessWatch List Quarterly ReviewsSyndicator Rating Process

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Deal Side

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Deal Side

Investor Hot ButtonsRAD (Rental Assistance Demonstration Program)4% Credit / 9% CreditHigh ProfileMarket / Market StudyCost ContainmentDeveloper Track RecordDCR in Year 15

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Other

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Other

Regulatory Oversight and Reporting• Additional reporting requirementsCRA ExaminationsOFAC (Office of Foreign Assets Control)Federal Reserve – Affiliate Transactions (Regulation W)SCRA (Servicemembers Civil Relief Act)Public Welfare Investments – 12 CFR 24 Limits

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Questions and Answers