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CSG Advisors Incorporated January 28, 2015 Proposal: Housing Financial Analytical and Advisory Services Page 11 of 25 Example: City of San Francisco Hunters View. Redevelopment of the Hunters View public housing, one of the first of the City's HOPE SF public housing redevelopment project, was faced with significant financial challenges, including potential sources of funding based on using the City's annual HOPE SF pledge. On behalf of the Mayor's Office of Housing, we analyzed the options and feasibility for structuring City funds for the multiple phases of the project - including bridge financing needs, ultimate takemut sources, use of certificates of participation by the City and County and ultimate resources for such repayment, use of tax increment and security for special State infrastructure grant. We then served as financial advisor on the first phase of Hunters View bonds. Placements with Major Banks. In the last 5 years, we have helped structure more than 50 private placements with major banks, including Wells, Citi, US Bank, BofA and many others. These are typically designed on a drawdown 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 shomtetm tax - exempt bonds that (a) qualify for 4% Low Income Housing Tax Credits, (b) utilize very low -cost cash-collateralized tax- exempt construction financing (c) minimize negative arbitrage and (d) provide permanent 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 time 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 amount of bonds needed to meet the 50% test, how long bonds need to be outstanding, how they are used in acquisition - rehabilitation and new construction, how bridge debt is arranged - enables us 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:- $33 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 New York City. Bonds for Preservation Projects. We have served as financial advisor on more than 100 preservation projects including 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 a public agency) or 236(e) (where note is paid off and de- coupled from the IRP). These financings also included bonds secured by tax - credits, interest reduction payments (IRP) and, in the San Francisco transactions, bonds secured by Section -8 rents above tax - credit rents. CSG also served as financial advisor on CHFA's purchase of California's Section -236 portfolio from Fannie Mae. Refundings. We have completed Multifamily bond refivaclings on more than 200 multifamily projects. California clients include Orange, Los Angeles, and Alameda Counties and the cities of Los Angeles, Fremont, Livermore, Santa Rosa, Anaheim, Vallejo, the San Diego Housing Commission and the Santa Cruz County Housing Authority. On behalf of these clients, we have helped establish and implement 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 80% of median