Fannie Mae Tax Exempt Bond Enhancement To encourage development of affordable housing properties, Fannie Mae and Freddie Mac provide credit enhancement for tax exempt bonds issued to finance acquisition, new construction, refinancing, moderate or substantial renovation of multifamily housing. Eligible multifamily properties for tax exempt bond credit include Affordable Housing properties with Low Income Housing Tax Credit rent restriction. Transactions maybe structured as new money issues, refunding, or credit substitution where Fannie Mae takes over an existing credit enhancer without the issuance of new bonds. Fannie Mae multifamily loan enhances payment of principle and interest on the bonds or mortgage loan, which in turn is used to make the required payments to the bondholders. Loan Amount $2 Million Minimum Term/Amortization 5 to 30 year terms Up to 30 year amortization Interest Rate Fixed Rate Variable rate is priced off the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. Debt Service Coverage Ratio Minimum 1.15 for fixed rate Minimum 1.0 for variable rate Loan to Value 80% maximum Occupancy Requirement 90% Physical Occupancy for 60 days at application. Assumable Assumable with lender approval and 1% fee. Replacement Reserve Impounds Required-$150 per unit Personal Recourse-Personal Guarantee Non-recourse with standard exceptions for fraud and misrepresentation