Bond Credit Enhancement - Apartment Building Loan

Competitive, long-term AAA credit enhancement for well maintained and well located garden, high rise, or mid-rise multifamily properties. This highest rated enhancement is available to refund current tax-exempt or enhance fixed or variable rate bonds.

Structure
Loan Amount	minimum $4 million
Loan to Value	a. fixed rate: maximum 85% b. variable rate: maximum 85% *
Debt Service Coverage	a. fixed rate: minimum 1.25x b. variable rate: minimum 1.20x
Loan Terms	10 to 30 years
Amortization	a. fixed rate: 30 years for most projects b. variable rate: based on a 30 year schedule calculated at the underwriting mortgage rate **
Recourse	nonrecourse with standard carveouts
Rates	based on tax exempt bond rates
Underwriting Interest Rate	a. fixed rate: equal to sum of 1) Current Bond interest rate, 2) Fannie Mae/Rockland Commercial Mortgage annual fees, and 3) remarketing, issuer, bond trustee fees b. variable rate: equal to sum of: 1) the 52 weeks average BMA rate (or 3% floor) plus 2%, 2) Fannie Mae/Rockland Commercial Mortgage annual fees, 3) actual annual remarketing, issuer, bond trustee fees, and 4) deposits to interest rate cap escrow ;
Interest Rate Cap	a. variable rate: required from acceptable Fannie Mae provider, for a minimum of 5 years with the cap strike rate at 3% over the 52 week average BMA rate (or 3% floor) - must be replaced for subsequent periods of at least 5 years upon its expiration
* Greater of 85% of market value or 80% of value adjusted for favorable financing. ** Amortization payments will be deposited in a principal reserve fund with the bond trustee. Annual fees are not charged on funds deposited in the principal reserve. Fannie Mae will charge a fee of 15 basis points plus liquidity fee per year on amounts that are deposited in the principal reserve fund. Once the principal reserve fund balance reaches the maximum amount of 20% of the bond amount, bonds must be paid down.

Optional Features
Taxable Tails	taxable financing in excess of bond amount available through issuance of taxable bonds or a subordinate MBS/DUS loan
Subordinate Financing	soft secondary financing allowed up to 100% of value, with 25% of cash flow after first mortgage remaining
Assumability	fully assumable with lender's consent and 1% fee
Prepayment	fee maintenance required for 10 years equal to the present value of the unpaid guarantee and servicing fees; last 90 days at par

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