5 - AGMT FOR HSG FIN ANALYSIS AND ADIVSORY SERV

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CSG Advisors Incorporated Ja?ivary 28, 2015 Proposal: Housing Financial Analytical ard Advisory Services Page I I of 25 Example: City of San Francisco Hunters View. 1�edeveloj7 iew of the I bolters View public hor4siqy, olle of the first of the City's HOPE SF put4ic housing redevelopiacnt I-)wject, was fiired with sigtiijicaw financial challetigcs, indudhng potential s(MMIS, Of funding I)ased on ushig the City's annaol [10PE SF pledge. On hella1f of the Mayor's Office Of Housing, we analy�,ec) the optio7is and f'easd)i1ity for structuring City flmd fio), dw multiple phases cat the project including bridge fhlarlchlg uecls, ultimate take-out soafces, use of cel-tificotes of participation by the City wid County and idtirnate lesom-ces for such repayment, use of tax iiacreoiew and security for speciol State infrastructure. grant. We then served as fbumcicd aclvisor on the first phase of Vluiner% View 1)oluls. Placements with Major Banks. In the last 5 years, we have helped structure more than 50 private placerrients with major banks, including Wells, Citi, LIS Bank, BofA and rriany others. These are typically designed on a drawc1mvi7 basis to avoid any negative arbitrage. Short-Term Tax-Exempt Bonds Taken Out by GNMA Securities or Freddie Mac. We have assisted numerous issuers in designing and implementing short-term tax-exerapt bonds that (a) quality for 4% Low Income 110LISing Tax Credits, (b) utilize very low-cost cash-collateralized tax-exempt constrowtion financing Q minimize negative arbitrage and (d) provide perniarient financing through the GNMA market or Freddie Mac at long-term rates well below 4% in past months. A key concern we. have assisted issuers with is designing its compensation structure so that it receives a reasonable total return on the transaction despite the short period of tinie in which the bonds are outstanding. Understanding of 4% Tax Credits. Since access to tax credits is the main reason developers use multi-family bonds in the first place, our knowledge of such credits - the arriotint of bonds needed to meet the 50% rest, how long bonds need to be outstanding, how they are used in acquisition- rehabilitation and new construction, bow bridge debt is arranged - enables LIS to work very knowledgeably and efficiently for CSCDA. As an example of our experience, we structured the three largest tax credit raises in the history of the program: $35 million for San Francisco's North Beach, $210 million for modernizing 33 public housing projects in Puerto Rico, and $230 million for 21,000 units in Ne-,v York City. Bonds for Preservation Projects. We have sen7ed as financial advisor on more than 100 preservation projects irlClUcling a portfolio of ten projects for the San Francisco Redevelopment Agency, the City of Los Angeles, and the San Diego Housing Commission. These projects included expiring Section•236 mortgages where the developer desired to continue the interest reduction payments (IRP) under either 236(b) (where the 236 note remains outstanding and is held by as public agency) or 236(e) (where note is paid off and de-coupled froin the IRP). These financings also included bonds secured by tax-credits, interest reduction payments GRP) and, in the San Francisco transactions, bonds secured by Section-8 rents above tax-credit rents. CSGY also served as financial advisor on CHFA's purchase of C'alif'ornia's Section-236 portfolio from Fannie Mae. Refundings. We have completed multifamily bond refundings on more than 200 InUltifamily projects. California clients include Orange, Los Angeles, and Alameda Counties and the cities of Los Angeles, Fremont, Livermore, Santa Rosa, Analiefin, Vallejo, the San Diego Housing Con-111-lission and the Santa Cruz County Housing Authority. On behalf of these clients, we have helped establish and itriplernent clear refunding guidelines, procedures for analyzing default refunding requests and new regulatory policies. For example, Orange County has successfully obtained conversion of half of the units rented to persons below 801/0 of median