Fannie Mae’s Housing Development Tool Investing with Public Partners to Support Housing Presented...

Fannie Mae’s Housing Development Tool

Investing with Public Partners to Support Housing

Presented by Maria Day-Marshall

March 2008

2© 2008 Fannie Mae

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

3© 2008 Fannie Mae

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.

4© 2008 Fannie Mae

Fannie Mae’s Housing and Community Development Division

• 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.

Oxon Creek, Washington, DC

Uwajimaya, Seattle, WA

5© 2008 Fannie Mae

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

Wardman Court, Washington, DC

Spicer’s Run, Baltimore, MD

6© 2008 Fannie Mae

Housing and Community Development Gets it Done in the Field

Coaching Staff:DC Team• Product Managers• Credit• Legal• Asset Mgt

Local Experts:Coverage in all 50 states

7© 2008 Fannie Mae

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.

8© 2008 Fannie Mae

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

9© 2008 Fannie Mae

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

10© 2008 Fannie Mae

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

11© 2008 Fannie Mae

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

12© 2008 Fannie Mae

Community Express® St. Johns County, Florida

• $2 million line of credit

• Funds used to construct single-family workforce housing

• Repayment source is sales proceeds

13© 2008 Fannie Mae

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

14© 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

15© 2008 Fannie Mae

• $5 Million Line of Credit

• Funds used to construct 127 affordable housing home ownership units

Community Express®

Grand Forks (ND) Housing Authority

• Affordable Housing District -- Sales prices start at $86,900

• Repayment source is sales proceeds

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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

17© 2008 Fannie Mae

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

18© 2008 Fannie Mae

Contact us!

For more information contact:

Lisa Zukoff, Director

E-mail: lisa_zukoff@fanniemae.com

Phone: 304-843-8089

Maria Day-Marshall, Senior Business Manager

E-mail: maria_k_day-marshall@fanniemae.com

Phone: 202-752-3916