Tenant Advancement Commitment

• Tenant Advancement Commitments offer favorable pricing and credit terms for Borrowers who agree to create or preserve affordable rent levels on a portion of units at a property over the term of the loan.
• Borrowers will be evaluated for a Master Financing Commitment based on the Sponsor’s percentage and level of set aside unit affordability.
• For naturally affordable markets/submarkets, Borrower-provided resident social services may also be required. Services may include after school tutoring, ESL classes, career counseling, access to health services, etc.

Minimum aggregate Commitment of $100 million for loans originated during the commitment term.

12 months.

• Fixed- and floating-rate loans.
• 7-year minimum loan term.
• Attractive proceeds sizing and interest-only may be available.
• Loans will receive full mission pricing benefits.
• Loans originated under the commitment are not cross-collateralized or cross-defaulted.

• Assets do not need to be identified when the Commitment is originated.
• Each asset will be fully underwritten before adding to the Commitment; spread and availability of credit terms will be confirmed for each loan.

• Through the Preservation of Affordable Rent Covenant (PARC), Borrowers agree to limit rents on a portion of units in the property (Minimum Set-Aside Units) to 60%-80% AMI affordability levels.
• Rent affordability is calculated as annual rental rates that are no more than 30% of 60% AMI to 80% AMI or below, with adjustment for unit size. The restrictions apply to the unit rental rates and not the tenant incomes.
• Affordability of rents will be tested on an annual basis.
• Borrower must be in compliance with affordability requirements as of the first anniversary of the loan origination date.
• If a property is not in compliance with the affordability requirements, a noncompliance fee will remain in effect for a minimum of 6 months and until the property has re-achieved compliance.