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federal tax credits (the “Federal Tax Credits”) and 99.99% of the federal low income housing historic tax
credits (the “Federal Historic Tax Credits”) available to the Borrower. The Federal Investor Limited Partner
is expected to make an aggregate capital contribution of Federal Tax Credit equity in the approximate
amount of $29,673,555* when fully funded. The Federal Investor Limited Partner is also expected to make
an aggregate capital contribution of Federal Historic Tax Credit equity in the approximate amount of
$[7,197,410]* when fully funded.
State Tax Credit Equity. The Borrower has entered into an agreement with Commonwealth
Advisors Capital LLC, a Virginia limited liability company (the “State Investor Limited Partner,” and
together with the Federal Investor Limited Partner, the “Investor Limited Partners”). Simultaneously with
the closing of the Bonds, the State Investor Limited Partner will acquire 100% of the state historic tax
credits (the “State Historic Tax Credits” and together with the Federal Tax Credits and the Federal Historic
Tax Credits, the “Tax Credit Equity”) anticipated to be granted to the Project. The State Investor Limited
Partner is expected to make an aggregate capital contribution of State Historic Tax Credit equity in the
approximate amount of $[9,103,866]* when fully funded.
Bridge Loan
Simultaneously with the closing of the Bonds, the Borrower will close on the Bridge Loan from
the Bridge Lender in an amount equal to approximately $19,000,000* to bridge a portion of the Tax Credit
Equity contributions. The Bridge Loan will be secured by an assignment of partnership interests and capital
contributions, [a sponsor guaranty], and will be repayable from certain capital contributions. The Bridge
Loan will bear interest at a rate of [6.25]%* per annum and will have an [24]-month term*. A portion of
the proceeds of the Bridge Loan is expected to be deposited to the Collateral Fund in exchange for the
disbursement of an equal amount of Bond proceeds to pay Project Costs.
GRRP Loan
The Borrower has been awarded a Green and Resilient Retrofit Program Loan from HUD in an
amount equal to approximately $10,000,000* (the “GRRP Loan”). The GRRP Loan will be secured by [the
Project], will be repayable from 50% of Cash Flow (as defined in the FHA Insured Mortgage Loan
Documents), will bear interest at a rate of [1.00]%* per annum, and will mature on [May 1, 2068]*.
Surplus Cash Note
Simultaneously with the issuance of the Bonds, the General Partner will make a surplus cash loan
(the “Surplus Cash Note”) in a principal amount equal to approximately $2,000,000* to the Borrower. The
Surplus Cash Note will be [un]secured by [the Project]. The Surplus Cash Note is anticipated to be repaid
from [surplus cash generated by Project revenues], will bear interest at a rate equal to long-term AFR, and
will have a [480]-month term*.
THE PROJECT AND THE PRIVATE PARTICIPANTS
The information under this heading has been provided solely by the Borrower and has not been
independently verified by the Issuer, the Underwriter, FHA, the FHA Lender or any of their respective
counsel, members, officers or employees. No representation whatsoever as to the accuracy, adequacy or
completeness of such information is made by the Issuer, the Underwriter, FHA, the FHA Lender or any of
their respective counsel, members, officers or employees.
* Preliminary; subject to change.
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