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87(a) Credit Underwriting Report Housing Finance Authority of Miami‐Dade County and Miami‐ Dade County Department of Public Housing & Community Development Credit Underwriting Report VISTA BREEZE Multifamily Housing Revenue Bond Program / FY 2022 Surtax / SHIP Section A: Report Summary Section B: Multifamily Housing Revenue Bond Program Special and General Conditions Section C: Supporting Information and Schedules Prepared by AmeriNat® Final Report November 9, 2023 MHRB and SURTAX UNDERWRITING REPORT AMERINAT November 9, 2023 VISTA BREEZE TABLE OF CONTENTS Section A Report Summary Page  Recommendation A1‐A9  Overview A10‐A17  Uses of Funds A18‐A23  Operating Pro Forma A24‐A26 Section B MHRB Special and General Conditions B1‐B6 Section C Supporting Information and Schedules  Additional Development & Third‐Party Information C1‐C6  Borrower Information C7‐C11  Guarantor Information C12‐C13  Syndicator Information C14  General Contractor Information C15‐C16  Property Management Information C17‐C18 Exhibits 30 Year Pro Forma 1 Description of Features & Amenity Characteristics 2 1‐8 Completeness and Issues Checklist 3 1‐3 MHRB and SURTAX UNDERWRITING REPORT AMERINAT Section A Report Summary November 9, 2023 MHRB and SURTAX UNDERWRITING REPORT AMERINAT November 9, 2023 Section A Report Summary MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐1 November 9, 2023 Recommendation AmeriNat® (“AmeriNat”) recommends the Housing Finance Authority of Miami‐Dade County (“HFAMDC”) issue Multifamily Housing Revenue Bonds (“MHRB”) in the amount of $31,000,000 and Miami‐Dade County Department of Public Housing and Community Development (“PHCD”) authorize Surtax / State Housing Investment Program (“SHIP”) funding in the amount of $5,950,000 to Vista Breeze, Ltd. (“Applicant”) for the construction and permanent phase financing of Vista Breeze (the proposed “Development”). Please note that the average square footage size is shown for the rental units at the Development. The total square footage, per the Plan and Cost Review, is 48,767. As required by the Federal Fair Housing Act, at least 80% of the total units will be rented to residents that qualify as Elderly. Development Name: Address: City: Zip Code: County: County Size: Development Category: Development Type: Construction Type: Demographic Commitment: Primary:of the Units Unit Composition: # of ELI Units: ELI Units Are Restricted to AMI, or less. Total # of units with PBRA? # of Link Units: Are the Link Units Demographically Restricted? # of NHTF Units: South of S Shore Drive, approximately 250 ft east the intersection of S Shore Drive and Ray Street; North of S Shore Drive, approximately 400 ft northeast of the intersection of S Shore Drive and Ray Street (scattered site) Miami Beach 33141 Miami‐Dade Large DEVELOPMENT & SET‐ASIDES Vista Breeze 119 New Construction Mid‐Rise (4 Stories) Masonry Elderly: 55+ or 62+for 100% Bed Rooms Bath Rooms Units Square Feet AMI% Low HOME Rents High HOME Rents CU Rents Annual Rental Income 0 1.0 5 410 22% $375 Gross HC Rent Utility Allow. Net Restricted Rents PBRA Contr Rents Applicant Rents Appraiser Rents $379 $1,498 $1,498 $1,365 $1,365 $327,600 $81,900 0 1.0 20 410 30% $512 $133 $133 $242 $1,498 $1,498 $1,365 $1,365 $1,365 $1,365 $1,048,320 0 1.0 30 410 80% $1,024 $133 $891 $1,498 $1,4980 1.0 64 410 60% $1,365 $491,400$1,366 $133 $1,233 $1,498 $1,498 $1,365 119 48,790 $1,949,220 Buildings: Residential ‐ Non‐Residential ‐ Parking: Parking Spaces ‐ Accessible Spaces ‐ Set Asides: Absorption Rate: units per month for months. Occupancy Rate at Stabilization: Physical Occupancy Economic Occupancy Occupancy Comments DDA: QCT: Multi‐Phase Boost: QAP Boost: Site Acreage: Density: Flood Zone Designation: Zoning:Flood Insurance Required?: 20 55 4 Program % of Units # of Units % AMI Term (Years) MHRB 40% 48 60% 30 Surtax 16.8% 20 30% 30 Surtax 58.0% 69 60% 30 Surtax 25.2% 30 80% 30 PBV 100.0% 119 60% 30 38 3.0 1.21 98.347 AE Current: Residential Multi‐family Low Density District; Future: Low Density Residential Yes 97.00% 96.00% The CMA has a 100% weighted occupancy per the 3/2023 Market Study Yes No No No MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐2 November 9, 2023 Howard D. Cohen Bank of America Community Development Banking HACMB Development, LLC Principal 1 Principal 2 Principal 3 OD Guarantor 5: OD Guarantor 6: OD Guarantor 7: CC Guarantor 1: Co‐Developer: OD Guarantor 2: Atlantic Pacific Community Management, LLC Meridian Appraisal Group, Inc. 0.0049% Vista Breeze HACMB, Inc. Howard D. Cohen and Howard D. Cohen Revocable Trust Brooks + Scarpa Architects, Inc. Market Study Provider: Miami Beach Housing Initiatives, Inc. Meridian Appraisal Group, Inc. Atlantic Pacific Community Builders, LLC Miami‐Dade Couty Housing Finance Authority Syndicator: Bond Issuer: Principal 1 Atlantic Pacific Communities, LLC APC Vista Breeze Development, LLC APC Vista Breeze Development, LLC Vista Breeze HACMB, Inc. APC Vista Breeze, LLC Vista Breeze HACMB, Inc. Bank of America Community Development Banking or an affiliate thereof Developer: Bond Purchaser CC Guarantor 2: Limited Partner OD Guarantor 4: Operating Deficit Guarantor(s): Atlantic Pacific Communities, LLC OD Guarantor 3: Vista Breeze, Ltd. APC Vista Breeze, LLC OD Guarantor 1: Construction Completion Guarantor(s): CC Guarantor 3: CC Guarantor 4: CC Guarantor 5: CC Guarantor 6: CC Guarantor 7: 99.99% Vista Breeze, Ltd. APC Vista Breeze, LLC 0.0051% Atlantic Pacific Communities, LLC HACMB Development, LLC Howard D. Cohen and Howard D. Cohen Revocable Trust APC Vista Breeze Development, LLC HACMB Development, LLC Appreciation Holdings Manager, LLC DEVELOPMENT TEAM General Partner General Partner Appraiser: Management Company: Architect: General Contractor 1: Applicant/Borrower:Vista Breeze, Ltd.% Ownership MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐3 November 9, 2023 BoA Merrill Lynch FHFC ‐ Viability $10,800,000 $4,300,000 $3,000,000 $1,301,500 $5,950,000 / $1,003,969 / $4,085,000 Lien Position 1.00% FHFC ‐ SAIL FHFC ‐ SAIL ELI $600,000 $0.985Housing Credit (HC) Syndication Price Private Placement 3.2 Year 15 Pro Forma Income Escalation Rate Deferred Developer Fee Market Rent/Market Financing Stabilized Value Rent Restricted Market Financing Stabilized Value Bond Structure HC Annual Allocation ‐ Qualified in CUR Projected Net Operating Income (NOI) ‐ 15 Year 3.00% Loan to Cost ‐ SAIL Only Projected Net Operating Income (NOI) ‐ Year 1 $994,708 Operating Deficit & Debt Service Reserves Debt Service Coverage $11,900,000 Restricted Market Financing LTV $2,655,034 # of Months covered by the Reserves $20,380,000 $3,211,110 $29,760,000 5.0% 87.2% / 90.6% / 104.3% 1.12 1.07 FHFC ‐ NHTF PHCD / City of Miami Beach / HACMB 0.00%1.00% / 0.00% / 3.98% 62.8% 67.2% 18 18 0.00%1.00% / 0.00% / 3.98%1.00% 0.00% n/a n/a n/a 18 30 30 / 30 / 3018 2 50.7% 60.8% 17.9% 25.0% 34 56, 7, 8 1.19 Other $1,090,240 $2,585,299 1.07 1.06 1.00 / 1.00 / 1.00 $523,825 As‐Is Land Value HC Annual Allocation ‐ Equity Letter of Interest Loan to Cost ‐ Cumulative 2nd Source1st Source 91.8% 98.1% 127.3% / 132.3% / 152.3% 53.0% 74.1% 36.3% Lender/Grantor Amount Underwritten Interest Rate All In Interest Rate Loan Term 88.8% 6.94% Market Rate/Market Financing LTV Amortization 1 5th Source4th Source3rd Source PERMANENT FINANCING INFORMATION 43.0% / 44.6% / 51.4%30.0% 31.0% 33.1% Year 15 Pro Forma Expense Escalation Rate 2.00% 6.94% 1.00% 1.00% 0.00% n/a n/a / n/a / n/a40 MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐4 November 9, 2023 TOTAL $60,401,049 $60,401,049 $507,572 HC Equity BOA CDB $5,229,894 $26,149,470 $219,743 Deferred Developer Fee Developer $4,580,686 $3,211,110 $26,984 Local Government Subsidy City of Miami Beach HOME $1,003,969 $1,003,969 $8,437 Other Housing Authority of the City of Miami Beach $4,085,000 $4,085,000 $34,328 FHFC ‐ NHTF FHFC $1,301,500 $1,301,500 $10,937 Local Government Subsidy Miami Dade County FY 2022 Surtax / SHIP / HOME $5,950,000 $5,950,000 $50,000 FHFC ‐ SAIL FHFC $3,000,000 $3,000,000 $25,210 FHFC ‐ SAIL ELI FHFC $600,000 $600,000 $5,042 Local HFA Bonds HFAMDC / BoA Merrill Lynch $30,350,000 $10,800,000 $90,756 FHFC ‐ Viability FHFC $4,300,000 $4,300,000 $36,134 CONSTRUCTION/PERMANENT SOURCES: Source Lender Construction Permanent Perm Loan/Unit Per PHCD’s FY 2022 RFA for Surtax / SHIP funding, a maximum per unit Total Development Cost (“TDC”) of $430,000 for a new construction, mid‐rise, Enhanced Structural Systems Construction (“ESS”) property was set. The Development exceeds this amount due to escalating material and labor costs; however this policy shall not apply to Affordable Housing projects that have received 9% LIHTCs and other FHFC programs resulting from tax credit applications that were previously awarded with maximum total development cost per unit limits approved by FHFC. Additionally, The TDC limitations set forth in Resolution No. R‐346‐15 shall not apply to public housing projects owned or operated by Miami‐Dade County. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐5 November 9, 2023 Changes from the Application: COMPARISON CRITERIA YES NO Does the level of experience of the current team equal or exceed that of the team described in the Application? x Are all funding sources the same as shown in the Application? 1 Are all local government recommendations/contributions still in place at the level described in the Application? 1 Is the Development feasible with all amenities/features listed in the Application? x Do the site plans/architectural drawings account for all amenities/features listed in the Application? x Does the Applicant have site control at or above the level indicated in the Application? x Does the Applicant have adequate zoning as indicated in the Application? x Has the Development been evaluated for feasibility using the total length of set‐aside committed to in the Application? x Have the Development costs remained equal to or less than those listed in the Application? x Is the Development feasible using the set‐asides committed to in the Application? x If the Development has committed to serve a special target group (e.g. elderly, large family, etc.), do the development and operating plans contain specific provisions for implementation? x HOME ONLY: If points were given for match funds, is the match percentage the same as or greater than that indicated in the Application? N/A HC ONLY: Is the rate of syndication the same as or greater than that shown in the Application? 1 Is the Development in all other material respects the same as presented in the Application? 2, 3, 4, 5, 6 The following are explanations of each item checked "No" in the table above: 1. The Applicant indicated Local HFA Bonds as a construction source in the amount of $20,000,000 per a letter received from the Housing Finance Authority of Miami‐Dade County (“HFAMDC”). Per Resolution No. 2023‐04 approved by HFAMDC, an issuance of MHRB in an amount up to $33,800,000 has been approved for the Development. Bank of America Merrill Lynch Community Development Bank (“BoA CDB”) replaced Wells Fargo Community Lending and Investment (“WFCLI”) as the HC Syndicator and Investor Member of the Applicant. The per credit pricing remained unchanged at $0.985/dollar. The HC contribution increased from $10,547,635 to $26,149,470. BoA CDB replaced Wells Fargo Bank, N.A. (“Wells Fargo”) as the first mortgage construction lender. BoA CDB replaced Chase as the first mortgage permanent lender. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐6 November 9, 2023 The Applicant applied for 2023 Viability funding from FHFC under FHFC RFA 2023‐211 and the application was accepted by FHFC on May 23, 2022. Preliminary Viability funding in the amount of $4,300,000 will be in the form of a SAIL loan and has been sized based on the requirements of the FHFC RFA. Please see Exhibit 5 for additional details. 2. Total Development Costs have increased by $975,901 from $59,425,148 to $60,401,049 since the FHFC Viability application due to increases in construction costs, financial costs, Developer Fee and reserve accounts. 3. The Applicant submitted an extension request dated December 19, 2022 to extend the firm commitment issuance deadline from March 8, 2023 to September 8, 2023. The request was approved at the March 10, 2023 Florida Housing Board meeting. 4. The Applicant requested a change to the ownership structure of Atlantic Pacific Communities, LLC, a member of co‐developer APC Vista Breeze Development, LLC, in the transaction. Mr. Randy Weisburd, a natural person, was replaced by the Randy K. Weisburd Revocable Trust, with Mr. Weisburd as the sole trustee and beneficiary. The request was approved at the October 22, 2022 FHFC Board meeting. 5. The Applicant requested a change to the set‐asides for the Development: Original Set‐Asides per the PHCD Commitment Letter: 20 units at or below 30% of Area Median income (“AMI”) 31 units at or below 60% of AMI 68 units at or below 70% of AMI Proposed Set‐Asides: 20 units at or below 30% of AMI 69 units at or below 60% of AMI 30 units at or below 80% of AMI PHCD approved the set‐aside change via email dated October 30, 2023. 6. In a letter dated June 22, 2023, the Applicant submitted a request to alter the ownership structure of the Applicant as follows, with proposed changes in red: Application Applicant – Vista Breeze, Ltd. Co‐General Partner: HACMB – Vista Breeze, LLC (.0051%) Sole Manager/Member: ‐ Miami Beach Housing Initiatives, Inc. (5‐member Board) Managing General Partner: APC Vista Breeze, LLC (.0049%) Managing Member – APCHD MM II, Inc. (1.00%) Director and Sole Shareholder – Howard D. Cohen Officers: Howard D. Cohen, Randy K. Weisburd, Kenneth J. Cohen, Stanley D. Cohen, Kenneth Naylor Member – Howard D. Cohen Revocable Trust (99.00%) Sole Trustee & Beneficiary – Howard D. Cohen Proposed Applicant – Vista Breeze, Ltd. General Partner – Vista Breeze HACMB, Inc., a Florida 501(c)(3) not‐for‐profit (.0051%) MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐7 November 9, 2023 Sole Member – Housing Authority of the City of Miami Beach (5‐member Board) Special Limited Partner – APC Vista Breeze, LLC (.0049%) Managing Member – APCHD MM II, Inc. (1.00%) Director and Sole Shareholder – Howard D. Cohen Officers: Howard D. Cohen, Randy K. Weisburd, Kenneth J. Cohen, Stanley D. Cohen, Kenneth Naylor Member – Howard D. Cohen Revocable Trust (99.00%) Sole Trustee & Beneficiary – Howard D. Cohen FHFC staff approved the change for documentation purposes as of July 27, 2023; however, FHFC Board approval of an RFA waiver for the revised Applicant ownership structure is a condition precedent to loan closing. In the opinion of AmeriNat, the aforementioned changes are not anticipated to have a detrimental effect on the Development. Strengths: 1. The Development Team has demonstrated the ability to successfully develop and operate affordable multifamily rental communities using a variety of different subsidies. 2. A market study was performed by Meridian Appraisal Group, Inc. (“Meridian”) dated March 17, 2023 that identifies six existing comparable affordable properties located within the Competitive Market Area (“CMA”) with a total of 646 units. The report concludes an average weighted occupancy rate for the CMA of 100% which satisfies the minimum 92% occupancy rate requirement of Rule Chapters 67‐ 21 and 67‐48 F.A.C. The performance of comparable properties indicates significant demand for affordable housing. Other Considerations: 1. The Construction Contract contains language wherein actual documented increases in the cost of concrete and rebar only up to a maximum of 15% of their respective original amounts will be allowed. 2. Based upon the estimates of the Operating Pro Forma, the amount of Deferred Developer Fee may not be paid back in 15 years. To the extent the Deferred Developer Fee is not paid by the end of year 12, the Guarantors shall be obligated to contribute to the Applicant an amount equal to the unpaid Deferred Developer Fee. As such, any risk associated with any tax credit recapture resulting from the nonpayment of any Developer Fee is assumed by the Guarantors. The Guarantors have sufficient financial capacity to make a loan to the partnership, if needed. Language documenting this payment should be present in the Limited Partnership Agreement, once drafted. Issues and Concerns: 1. None Waiver Requests: 1. According to the FHFC RFA, the Corporation will review the limited partnership agreement or limited liability company operating agreement language on reserves for compliance with the RFA requirement. If the limited partnership agreement or limited liability company operating agreement does not specifically state that the parties will comply with the Corporation’s RFA requirements, the Corporation will require an amendment of the agreement and will not issue IRS form(s) 8609 until the amendment is executed and provided to the Corporation. The RFA includes language restricting the MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐8 November 9, 2023 disposition of any funds remaining in any operating deficit reserve(s) after the term of the reserve’s original purpose has terminated or is near termination. The RFA also requires the Corporation to review the limited partnership agreement or limited liability company operating agreement language on reserves for compliance with the RFA requirement. While Florida Housing will continue to require the Applicant to adhere to all requirements in the RFA including the restrictions on the disposition of any funds in an operating deficit reserve account, Florida Housing will not monitor the limited partnership agreement or limited liability company operating agreement language for compliance with these requirements, as this would require analysis of a legal contract. This deviation in process was included as an Information Item in the April 29, 2022 FHFC Board Meeting. Special Conditions: 1. PHCD approval of a Debt Service Coverage (“DSC”) below a 1.10x to 1.00 during the first 15 years of stabilized operations for the Development is a condition precedent to loan closing. 2. FHFC Board approval of an RFA waiver for the proposed Applicant ownership structure is a condition precedent to loan closing. 3. Receipt of an executed Management Agreement is a condition precedent to loan closing. 4. Receipt of the tax ID# for Vista Breeze HACMB, Inc., the General Partner in the transaction, and a satisfactory credit report for the entity is a condition precedent to loan closing. 5. Receipt of an executed P&P bond in the full amount of the Construction Contract is a condition precedent to loan closing. 6. Receipt of an executed Construction Contract is a condition precedent to loan closing. 7. Any changes to the Construction Contract as underwritten herein will require review and opinion by the construction consultant retained by AmeriNat. This is a condition precedent to loan closing. 8. Receipt of an executed HUD HAP contract consistent with the number of units, rents, and contract length as has been underwritten herein is a condition precedent to loan closing. 9. Completion of the HUD Section 3 pre‐construction conference is a condition precedent to loan closing. 10. The Development shall meet the Section 3 requirements of the Housing and Urban Development Act of 1968 as amended (12 U.S.C. 1701u and 24 CFR Part 135) is a condition precedent to loan closing. 11. Satisfactory receipt of the Affirmative Fair Housing Marketing Plan is a condition precedent to loan closing. 12. Per FHFC Rule 67‐48, the minimum DSC ratio shall be 1.10x for the SAIL Loan, including all superior mortgages. However, per Rule 67‐48, if the Applicant defers at least 35% of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when the primary expected source of repayment has been identified as projected cash flow, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐9 November 9, 2023 mortgages. The Applicant will be required to show permanent Deferred Developer Fee of at least 35% as the SAIL Loan DSC is 1.07x is a condition precedent to loan closing. Additional Information: 1. Per FHFC Rule Chapter 67‐48 F.A.C. (the “Rule”), the minimum (“DSC”) shall be 1.10x to 1.00 for the SAIL loan and all superior mortgages. However, per Rule 67‐48, if the Applicant defers at least 35% of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when the primary expected source of repayment has been identified as projected cash flow, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to show permanent Deferred Developer Fee of at least 35% as the SAIL Loan DSC is 1.07x. AmeriNat has utilized a total of $149,865 of the budgeted Operating Deficit Reserve (“ODR”) during the first five years of operations; this includes $58,870 to achieve a 1.07x DSC for the SAIL loan and all superior mortgages in Year 1 of stabilized operations and a 1.00x for all debt and fees, as shown in the One‐Year Operating Pro Forma and 15‐Year Pro Forma. 2. Per PHCD’s FY 2022 Multifamily RFA, the Development must achieve a DSC between 1.10x and 1.60x applicable to the first 15 years of operations. The PHCD RFA also states that DSC is subject to PHCD’s discretion. As detailed above, the Development will have an all‐in DSC of 1.00x to 1.00, inclusive of PHCD funding. As such, approval of the deviation via acceptance of this CUR is a condition precedent to loan closing. Recommendation: AmeriNat recommends HFAMDC issue MHRB in the amount of $31,000,000 and PHCD authorize Surtax / SHIP funding in the amount of $5,950,000 for the benefit of the Applicant for the construction and permanent phase financing of Vista Breeze. These recommendations are based upon the assumptions detailed in the Report Summary (Section A) and Supporting Information and Schedules (Section C). In addition, these recommendations are subject to the MHRB Special and General Conditions Recommendation (Section B). This recommendation is only valid for six months from the date of the report. The reader is cautioned to refer to these sections for complete information. Prepared by: Reviewed by: George J. Repity Kyle Kuenn Sr. Credit Underwriter Multifamily Chief Credit Underwriter MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐10 November 9, 2023 Overview Construction Financing Sources: Proposed First Mortgage Loan: The Applicant provided a letter of interest (“LOI”) from BoA CDB dated as of May 15, 2023, with term update emails dated July 12, 2023 and November 8, 2023. The LOI illustrates that BoA CDB will provide a construction loan in an amount not to exceed $30,350,000. The proceeds will be used to pay project costs on a drawdown basis either directly to the Borrower or through a Fiscal Agent, at the discretion of HFA MDC. The maximum term of the loan shall be 30 months from the date of loan closing, plus one six‐month extension. No extension requirements were included in the LOI or update email. The interest‐only construction loan will bear interest at a variable rate based on the daily SOFR index (5.32% as of the date of the LOI) plus a 1.95% spread, a BoA CDB underwriting adjustment of 1.00% and a closing cushion by the Applicant of 0.48%. AmeriNat added an additional 1.00% underwriting cushion to the rate stack for an all‐in interest rate of 9.75% for its underwriting. The annual HFAMDC Issuer Fee of 25 bps and Fiscal Agent Fee of $4,500 are included in the Pro Forma section of this report. Proposed Second Mortgage Loan: AmeriNat reviewed a Notice of Preliminary Award from Florida Housing, dated June 14, 2023, with a preliminary Viability Loan in the amount of $4,300,000. Based on the parameters listed in FHFC RFA 2023‐ 211, a Viability Loan in the amount of $4,300,000 has been sized. The Viability Loan is non‐amortizing with an interest rate of 1.00% over the life of the loan with annual payments based upon available cash flow as determined by Florida Housing. The Viability loan total term will be 20.5 years, including a 30‐month construction/stabilization period and an 18‐year permanent period. As required by the first mortgage lender and permitted by FHFC RFA 2023‐211, the Viability Loan will be coterminous with the first mortgage. Annual payments of all applicable fees will be required. Any unpaid interest will be deferred until cash flow is available. However, at the maturity of the Viability Loan, all principal and unpaid interest will be due. Viability loan proceeds shall be disbursed during the construction phase in an amount per Source Lender Applicant's Total Applicant's Revised Total Underwriter's Total Interest Rate Debt Service During Construction Local HFA Bonds HFAMDC / BoA Merrill Lynch $30,800,000 $30,350,000 $30,350,000 9.75% $2,959,125 FHFC ‐ Viability FHFC $4,300,000 $4,300,000 $4,300,000 0.00% $0 FHFC ‐ SAIL FHFC $3,000,000 $3,000,000 $3,000,000 0.00% $0 FHFC ‐ SAIL ELI FHFC $600,000 $600,000 $600,000 0.00% $0 FHFC ‐ NHTF FHFC $1,301,500 $1,301,500 $1,301,500 0.00% $0 Local Government Subsidy Miami Dade County FY 2022 Surtax / SHIP / HOME $5,950,000 $5,950,000 $5,950,000 0.00% $0 Local Government Subsidy City of Miami Beach HOME $503,969 $503,969 $1,003,969 0.00% $0 Local Government Subsidy City of Miami Beach HOME $500,000 $500,000 $0 Other Housing Authority of the City of Miami Beach $4,085,000 $4,085,000 $4,085,000 HC Equity BOA CDB $5,260,639 $4,967,777 $5,229,894 Deferred Developer Fee Developer $3,124,040 $4,492,639 $4,580,686 $59,425,148 $60,050,885 $60,401,049 $2,959,125Total : MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐11 November 9, 2023 construction draw which does not exceed the ratio of the Viability loan to Total Development Costs, unless approved by the credit underwriter. Proposed Third Mortgage Loan: The Applicant applied to Florida Housing for a $3,000,000 SAIL loan under FHFC RFA 2021‐205 for the construction/permanent financing of the Development. The SAIL loan total term will be 20.5 years, including a 30‐month construction/stabilization period and 18 years for the permanent period, As required by the first mortgage lender and permitted by FHFC Rule 67‐48, the SAIL loan term will be co‐ terminus with the first mortgage as requested by the first mortgage lender. The SAIL loan shall be non‐amortizing with a 1.00% interest rate over the life of the loan with annual payments based upon available cash flow as determined by Florida Housing. Any unpaid interest will be deferred until cash flow is available. However, at maturity of the SAIL loan, all principal and unpaid interest will be due. Annual payments of all applicable fees will be required. SAIL loan proceeds shall be disbursed during the construction phase in an amount per construction draw which does not exceed the ratio of the SAIL loan to Total Development Costs, unless approved by the credit underwriter. Proposed Fourth Mortgage Loan: The Applicant applied to Florida Housing for an ELI loan of $600,000 for construction/permanent financing of the Development. The ELI loan shall be non‐amortizing with a 0% interest rate over the life of the loan with principal forgivable at maturity provided the units are targeted to ELI Households for the first 15 years of the 50‐year Compliance Period. The Persons with Special Needs set aside requirement must be maintained throughout the entire 50‐year Compliance Period. The ELI loan total term will be 20.5 years, including a 30‐month construction/stabilization period and an 18‐year permanent period. As required by the first mortgage lender and by the FHFC RFA, the ELI loan term will be co‐terminus with the first mortgage. ELI loan proceeds shall be disbursed during the construction phase in an amount per construction draw which does not exceed the ratio of the ELI loan to Total Development Costs, unless approved by the credit underwriter. Proposed Fifth Mortgage: FHFC – NHTF Per an Invitation to Enter Credit Underwriting dated March 1, 2022, the Applicant is eligible for a NHTF loan of up to $1,301,500 for the construction/permanent financing of the Development. The NHTF loan shall be a non‐amortizing loan with an interest rate of 0.00% per annum for a total term of 30 years, including a 30‐month construction/stabilization period. The principal of the loan will be forgiven at maturity provided the units for which the NHTF loan amount is awarded are targeted as NHTF Link units for the first 30 years of the 50‐year Compliance Period. The NHTF loan funding will subsidize additional deep targeted units for Persons with Special Needs (NHTF Link units) at 22% of AMI. The NHTF Link units will be in addition to the requirement to set aside 50% of the total units as ELI set‐aside units and the required number of Link Units for Persons with Special Needs. As such, the Development will be required to set aside five (5) units as NHTF Link units, in addition to the ELI Set‐Aside units. After 30 years, all of the NHTF Link units may convert to serve residents at or below 60% of AMI; however, the Persons with Special Needs set‐aside commitments must be maintained throughout the entire 50‐year Compliance Period. NHTF loan proceeds shall be disbursed during the construction phase in an amount per construction draw which does not exceed the ratio of the NHTF loan to Total Development Costs, unless approved by the credit underwriter. Proposed Sixth Mortgage Loan – Miami‐Dade County FY 2022 Surtax / SHIP MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐12 November 9, 2023 The Applicant provided Resolution No. R‐285‐23 (the “Resolution”) dated April 4, 2023 from the Miami‐ Dade County Public Housing and Community Development (“PHCD”) for FY 2022 Surtax/SHIP funds in an amount not to exceed $5,950,000, and an email dated May 22, 2023 further clarified loan terms for the funding. The terms of the loan include 0.00% interest during construction (years 1 and 2) and 1.00% interest‐only payments for years 3–30 from Development cash flow, with another 1.00% interest accruing and due at maturity. The full principal is due at maturity and as modified prior to closing by the Mayor or Mayor’s designee in accordance with the results of underwriting. Proposed Seventh Mortgage Loan – City of Miami Beach HOME The Applicant provided a commitment letter dated July 6, 2023 from the City of Miami Beach (the “City”) for a loan totaling $1,003,969. The funds are comprised of two loans and will have one mortgage with two notes, as follows: 1) $500,000 ‐ Federal HOME Investment Partnerships Program ("HOME') funds were awarded to the Development by the City Commission's adoption of Resolution No. 2022‐32188, approving the one‐year action plan for Federal Funds for FY 2022. The loan is earmarked for the construction of a seawall at the Development ("Seawall Loan"). 2) $503,969 – HOME loan funds approved as of June 28, 2023, in a separate City Commission agenda item, the Mayor and City Commission adopted Resolution No. 2023‐32637, approving additional HOME funding to Borrower in the amount of $503,969 to be used toward the construction costs for the Development ("Construction Loan"). The terms of the non‐amortizing loan include (a) from the execution date of the Loan Documents through end of Affordability Period, a minimum of thirty (30) years from Development securing Certificate of Occupancy; (b) Default: failure to comply with provisions of Loan Documents including, without limitation, the failure to comply with the rules and regulations promulgated by the United States Department of Housing and Urban Development ("HUD"), at CFR Part 92, as same may be amended from time to time ("HOME Rules"), such as the failure to continuously operate the Development as an affordable rental project during the Affordability Period; (c) Interest Rate: 0.00%; Default Interest, upon default of Loan Documents, effective retroactively to date Loan is granted until paid, calculated based upon the rate prescribed by Section 55.03, Florida Statutes; (d) Origination Fee: none; and (e) Amortization: a balloon payment is due at maturity or upon default, plus any applicable default interest. Proposed Eighth Mortgage Loan – HACMB The Applicant provided an LOI dated August 19, 2022 outlining a $4,085,000 loan for the benefit of the Development. The loan, to be made by the Housing Authority of the City of Miami Beach (“HACMB”), includes a 30‐month construction period and a 0.00% interest rate. The loan has a 30‐year permanent term. Additional Construction Sources of Funds: The Applicant provided an LOI from BoA CDB dated June 8, 2023 and an update email dated July 12, 2023 which outlines the conditions of the purchase of the HC. A limited partnership or limited liability company formed by BoA CDB will provide a net equity investment of $26,149,470 in exchange for a 99.99% Investment Member ownership interest and a proportionate share of the total HC allocation estimated by BoA CDB to be$26,550,340. The HC allocation will be syndicated at a rate of approximately $0.985 per $1.00 of delivered tax credits. An initial HC equity installment of $5,229,894 will be available upon admission of the Investor to the partnership at construction loan closing, which satisfies the 15% FHFC RFA requirement. No other installments are available during the construction period. Please note that MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐13 November 9, 2023 the LOI did not include actual amounts for each pay‐in; rather, it provided percentages of the total equity available for each installment. Deferred Developer Fee: The Applicant will be required to defer $4,580,686 or 53.8% of the Developer Fee during the construction phase. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐14 November 9, 2023 Permanent Financing Sources: Proposed First Mortgage Loan: Per the executed Term Sheet issued by BoA CDB dated May 15, 2023 and an update email dated July 12, 2023, BoA CDB will facilitate a loan in an amount not to exceed $10,800,000. The Term Sheet indicated the loan will have an estimated rate of 6.94%, which has been assumed for underwriting purposes. Principal and interest payments will begin following the interest only period during construction, based on an 18‐year term and 40‐year amortization period. The Term Sheet was silent regarding conversion requirements. Annual payments of all applicable fees will be required. Fees include Permanent Loan Servicing Fees to be paid annually based on 25 basis points of the outstanding principal balance of the Bonds. The annual MHRB Compliance Monitoring Fee is an amount equal to $30.00 per rental unit in the Development. The Trustee Fee is included in First Mortgage Fees and is estimated at $4,500 annually. Please note that the Applicant has proposed a new 1st permanent mortgage lender (Citi Community Capital via Citibank, N.A.) and an increased loan amount ($11,875,000) which will be summarized in a separate recommendation for HFAMDC and PHCD approval. Proposed Second Mortgage Loan: AmeriNat reviewed a Notice of Preliminary Award from Florida Housing, dated June 14, 2023, with a preliminary Viability Loan in the amount of $4,300,000. Based on the sizing parameters in FHFC RFA 2023‐ 211, AmeriNat has sized the Viability Loan in the amount of $4,300,000. The Viability Loan is non‐ amortizing with an interest rate of 1.00% over the life of the loan with annual payments based upon available cash flow as determined by Florida Housing. The Viability loan total term will be 20.5 years, including a 30‐month construction/stabilization period and an 18‐year permanent period. As required by the first mortgage lender and permitted by FHFC RFA 2023‐211, the Viability Loan will be coterminous with the first mortgage. Annual payments of all applicable fees will be required. Any unpaid interest will be deferred until cash flow is available. However, at the maturity of the Viability Loan, all principal and unpaid interest will be due. Fees include an annual Permanent Loan Servicing Fee of 25 bps of the outstanding loan amount up to a maximum of $936 per month, subject to a minimum of $236 per month. Proposed Third Mortgage Loan: Source Lender Applicant's Total Applicant's Revised Total Underwriter's Total Interest Rate Amortization Years Term Years Annual Debt Service Local HFA Bonds Citibank, N.A.$10,725,000 $10,800,000 $10,800,000 6.94% 40 18 $742,195 FHFC ‐ Viability FHFC $4,300,000 $4,300,000 $4,300,000 1.00% n/a 18 $43,000 FHFC ‐ SAIL FHFC $3,000,000 $3,000,000 $3,000,000 1.00% n/a 18 $30,000 FHFC ‐ SAIL ELI FHFC $600,000 $600,000 $600,000 0.00% n/a 30 $0 FHFC ‐ NHTF FHFC $1,301,500 $1,301,500 $1,301,500 0.00% n/a 30 $0 Local Government Subsidy Miami Dade County FY 2022 Surtax / SHIP / HOME $5,950,000 $5,950,000 $5,950,000 1.00% n/a 30 $59,500 Local Government Subsidy City of Miami Beach HOME $503,969 $503,969 $1,003,969 0.00% n/a 30 $0 Local Government Subsidy City of Miami Beach HOME $500,000 $500,000 $0 Other Housing Authority of the City of Miami Beach $4,085,000 $4,085,000 $4,085,000 3.98% n/a 30 $0 HC Equity BOA CDB $26,303,193 $26,149,470 $26,149,470 Deferred Developer Fee Developer $2,511,448 $2,860,946 $3,211,110 $59,780,110 $60,050,885 $60,401,049 $874,695Total : MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐15 November 9, 2023 The Applicant applied to Florida Housing for a SAIL loan of $3,000,000 under FHFC RFA 2021‐205 for the construction/permanent financing of the Development. The SAIL loan will have a total term of 20.5 years, including a 30‐month construction/stabilization period and an 18‐year permanent period. As required by the first mortgage lender and permitted by Rule 67‐48, the SAIL loan term will be co‐terminus with the first mortgage. The Loan shall be non‐amortizing with a 1.00% interest rate over the life of the loan with annual payments based upon available cash flow as determined by Florida Housing. Any unpaid interest will be deferred until cash flow is available. However, at maturity of the SAIL loan, all principal and unpaid interest will be due. Annual payments of all applicable fees will be required. Fees include an annual Permanent Loan Servicing Fee of 25 bps of the outstanding loan amount up to a maximum of $936 per month, subject to a minimum of $236 per month and an annual Compliance Monitoring Multiple Program Fee of $1,023. Proposed Fourth Mortgage Loan: The Applicant applied to Florida Housing for an ELI loan of $600,000 for the construction/permanent financing of the Development. The ELI loan shall be non‐amortizing with a 0.00% interest rate over the life of the loan with principal forgivable at maturity provided the units are targeted to ELI Households for the first 15 years of the 50‐year Compliance Period. The Persons with Special Needs set‐aside requirement must be maintained throughout the entire 50‐year Compliance Period. The ELI loan total term will be 20.5 years, including a 30‐month construction/stabilization period and an 18‐year permanent period. As requested by the first mortgage lender and permitted by the FHFC RFA, the ELI loan term will be co‐ terminus with the first mortgage. Annual payments of all applicable fees will be required. Fees include an annual Permanent Loan Servicing Fee of 25 bps of the outstanding loan amount up to a maximum of $936 per month, subject to a minimum of $236 per month and an annual Compliance Monitoring Multiple Program Fee of $1,023. Proposed Fifth Mortgage: FHFC – NHTF Per an Invitation to Enter Credit Underwriting dated March 1, 2022, the Applicant is eligible for a NHTF loan of up to $1,301,500 for the construction/permanent financing of the Development. The NHTF loan shall be a non‐amortizing loan with an interest rate of 0.00% for a total term of 30 years, including a 30‐ month construction/stabilization period. The principal of the loan will be forgiven at maturity provided the units for which the NHTF loan amount is awarded are targeted as NHTF Link units for the first 30 years of the 50‐year Compliance Period. The NHTF loan funding will subsidize additional deep targeted units for Persons with Special Needs (NHTF Link units) at 22% of AMI. The NHTF Link units will be in addition to the requirement to set aside 50% of the total units as ELI set‐aside units and the required number of Link Units for Persons with Special Needs. As such, the Development will be required to set aside five (5) units as NHTF Link units, in addition to the ELI Set‐Aside units. After 30 years, the Applicant commits that all of the NHTF Link units may convert to serve residents at or below 60% of AMI; however, the Persons with Special Needs set‐aside commitment must be maintained throughout the entire 50‐year Compliance Period. Annual payments of all applicable fees will be required. Fees include an annual Permanent Loan Servicing Fee of 25 bps of the outstanding loan amount up to a maximum of $936 per month, subject to a minimum of $236 per month and an annual Compliance Monitoring Multiple Program Fee of $1,023. Proposed Sixth Mortgage Loan – Miami‐Dade County FY 2022 Surtax/SHIP The Applicant provided a Resolution dated April 4, 2023 from PHCD for FY 2022 Surtax/SHIP funds in an amount not to exceed $5,950,000 and an email dated May 22, 2023 further clarified loan terms for the funding. The terms of the loan include 0.00% interest during construction (years 1 and 2) and 1.00% interest‐only payments for years 3–30 from Development cash flow, with another 1.00% interest accruing and due at maturity. The full principal is due at maturity and as modified prior to closing by the Mayor or MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐16 November 9, 2023 Mayor’s designee in accordance with the results of underwriting. Please note, PHCD approval of a DSC below a 1.10x during the first 15 years of stabilized operations for the Development is a condition precedent to loan closing. Proposed Seventh Mortgage Loan – City of Miami Beach HOME The Applicant provided a commitment letter dated July 6, 2023 from the City of Miami Beach for a loan in the amount of $1,003,969. The funding is comprised of two pieces: a $500,000 Seawall Loan and a $503,969 Construction Loan. The non‐amortizing loan will include a 0.00% interest rate and a 30‐year term. A balloon payment is due at maturity or upon default during the term, plus any applicable default interest. Proposed Eighth Mortgage Loan – HACMB The Applicant provided a draft loan commitment dated August 19, 2022 outlining a $4,085,000 loan for the benefit of the Development. The loan, to be made by HACMB, includes a 30‐month construction period and a 0.00% interest rate. The loan has a 30‐year permanent term with compounded annual interest set at the long term applicable federal rate in effect for the month in which the construction financing closing occurs; the current rate is . The loan is non‐amortizing and annual interest payments will be only based on available cash flow. All principal and accrued interest will be due the earlier of 1) the sale or refinancing of the Development, or 2) at maturity. Additional Permanent Sources of Funds: An LOI dated June 8, 2023 and subsequent email dated July 12, 2023 from BoA CDB outlines the conditions of the purchase of the HC. A limited partnership or limited liability company formed by BoA CDB will provide a net equity investment of $26,149,470 in exchange for a 99.99% Investment Member ownership interest and a proportionate share of the total HC allocation estimated by BoA CDB to be$26,550,340. The HC allocation will be syndicated at a rate of approximately $0.985 per $1.00 of delivered tax credits. The HC equity contribution to be paid as follows: Capital Contributions Amount Percent of Total Due upon 1st Installment $5,229,894 20.00% Closing 2nd Installment $10,459,788 40.00% Completion 3rd Installment $9,806,051 37.50% Conversion 4th Installment $653,737 2.50% Receipt of Form(s) 8609 Total: $26,149,470 100% Annual Credits Per Syndication Agreement $2,655,034 Total Credits Per Syndication Agreement $26,550,340 Calculated HC Rate:$0.985 Limited Partner Ownership Percentage 99.99% Proceeds During Construction $5,229,894 MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐17 November 9, 2023 Deferred Developer Fee: The Developer will be required to permanently defer $3,211,110 or 37.7% in Developer Fee after stabilization, which meets the minimum 30% requirement per the Viability RFA, the 35% requirement per Rule 67‐48 for all superior mortgages and SAIL loan with a minimum combined DSC of 1.00x, and PHCD’s 10% minimum requirement. Based upon the estimates of the Operating Pro Forma, the amount of Deferred Developer Fee may not be paid back in 15 years. To the extent the Deferred Developer Fee is not paid by the end of year 12, the Guarantors shall be obligated to contribute to the Applicant an amount equal to the unpaid Deferred Developer Fee. As such, any risk associated with any tax credit recapture resulting from the nonpayment of any Developer Fee is assumed by the Guarantors. The Guarantors have sufficient financial capacity to make a loan to the partnership, if needed. Language documenting this payment should be present in the Limited Partnership Agreement, once drafted. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐18 November 9, 2023 Uses of Funds Notes to Actual Construction Costs: 1. The Applicant provided a draft Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price in the amount of $33,312,634 (the “Construction Contract”). The Construction Contract is dated as of July 2023 and is between the Applicant and Atlantic Pacific Community Builders, LLC (“APCB” or the “General Contractor”), a related entity of the Applicant. Te Construction Contract states the General Contractor will achieve substantial completion no later than 429 calendar days following commencement. The Owner will withhold 10% retainage from payment for all completed work until the Development reaches 50% completion, at which time no retainage will be withheld thereafter. Retainage shall not be released until final completion of the Development. Please note that the Construction Contract does contain language that actual documented increases in the cost of concrete and rebar only up to a maximum of 15% of their respective original amounts. In addition, the Development will provide washers/dryers to residents. As such, an estimate of $276,145 has been included for the appliances based on the schedule of values and is shown as a portion of “HC Ineligible Costs” for the New Rental Units line item. The remaining $390,108 of ineligible costs are based on the Applicant’s development budget. 2. The General Contractor will secure a P&P Bond to secure the Construction Contract and its cost is shown outside of the Construction Contract. Receipt of a P&P bond in the full amount of the Construction Contract is a condition precedent to loan closing. 3. The General Contractor’s Fee (consisting of general conditions, overhead, and profit) does not exceed 14.00% of allowable hard costs as allowed by FHFC RFA 2021‐205 and FHFC Rules 67‐21 and 67‐48. The General Contractor’s fee stated herein is for credit underwriting purposes only, and the final General Contractor’s fee will be determined pursuant to the final cost certification process as per Rule 67‐21 F.A.C. 4. A Plan and Cost Review (“PCR”) was engaged by AmeriNat and performed by GLE Associates, Inc. (“GLE”). GLE summarized their review of the construction contract and schedule of values in a report CONSTRUCTION COSTS: Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR New Rental Units $29,221,609 $33,312,634 $25,587,476 $215,021 $874,569 Recreational Amenities $1,041,578 $1,041,630 $0 $0 Site Work $0 $0 $3,634,134 $30,539 $1,817,000 Constr. Contr. Costs subject to GC Fee $30,263,187 $34,354,264 $29,221,610 $245,560 $2,691,569 General Conditions $4,091,026 $0 $1,753,296 $14,734 Overhead $0 $0 $584,432 $4,911 Profit $0 $0 $1,753,296 $14,734 General Liability Insurance $0 $449,721 $0 $0 Total Construction Contract/Costs $34,354,213 $34,803,985 $33,312,634 $279,938 $2,691,569 Hard Cost Contingency $1,665,632 $1,665,632 $1,665,631 $13,997 PnP Bond paid outside Constr. Contr.$0 $266,502 $266,502 $2,240 FF&E paid outside Constr. Contr.$0 $0 $1,041,630 $8,753 Other:Scheduling consultant / construction scheduler $0 $80,400 $0 $0 Other:General Liability Isurance $0 $0 $449,721 $3,779 Other:Seawall Inspection $0 $0 $2,556 $21 Other:Tree Mitigation Fee $0 $0 $115,000 $966 $36,019,845 $36,816,519 $36,853,674 $309,695 $2,691,569Total Construction Costs: MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐19 November 9, 2023 dated July 12, 2023. The review concludes that overall costs to construct are sufficient for satisfactory completion of the proposed development. The costs for similar type developments identified in the PCR range from $201,651 per unit to $294,295 per unit. The Development has a projected unit cost of $279,938.10 per unit, which GLE opines is appropriate for the scope proposed and is within the range of comparables. GLE did not identify any allowances listed in the Construction Contract. However, the Construction Contract contains language wherein actual documented increases in the cost of concrete and rebar only up to a maximum of 15% of their respective original amounts will be allowed. 5. A 5.00% hard cost contingency as allowed by the FHFC RFA 2021‐205 and FHFC Rules 67‐21 and 67‐ 48 has been underwritten. The PCR supports an amount between 5.00% and 8.00%. 6. FF&E paid outside of the Construction Contract is comprised of residential furnishings ($150,000), books ($1,000), computers/printers ($10,000), signage ($25,000), Security CCTV ($120,000), exterior benches and trash cans ($5,000), picnic benches and BBQ ($5,000), construction site security ($128,000), cleaning ($67,629.49), license plate recognition camera ($5,200), and seawall ($524,800). Notes to the General Development Costs: 1. AmeriNat reflects actual costs for the appraisal, market study, and plan and cost review analysis. 2. FHFC Administrative Fee is based upon a fee of 9% of the annual HC recommended herein. 3. FHFC Credit Underwriting Fee includes a Viability / SAIL / ELI / NHTF / HC credit underwriting fee of $30,051 and credit reporting fees of $300. GENERAL DEVELOPMENT COSTS: Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR Accounting Fees $40,000 $40,000 $40,000 $336 $40,000 Appraisal $12,770 $12,770 $5,500 $46 Architect's Fee ‐ Site/Building Design $1,522,480 $870,000 $825,000 $6,933 Architect's Fee ‐ Supervision $190,000 $190,000 $205,000 $1,723 Building Permits $1,547,490 $1,396,885 $1,396,885 $11,739 Builder's Risk Insurance $171,837 $171,837 $171,837 $1,444 Engineering Fees $295,062 $139,056 $0 $0 Environmental Report $6,700 $6,700 $6,700 $56 $6,700 FHFC Administrative Fees $239,230 $238,954 $232,677 $1,955 $232,677 FHFC Application Fee $9,000 $9,000 $3,000 $25 $3,000 FHFC Credit Underwriting Fee $24,905 $24,905 $30,351 $255 $30,351 FHFC Compliance Fee $229,316 $229,316 $236,331 $1,986 $236,331 Impact Fee $66,027 $66,027 $66,027 $555 Lender Inspection Fees / Const Admin $380,525 $380,525 $340,569 $2,862 Green Building Cert. (LEED, FGBC, NAHB)$50,000 $0 $81,800 $687 Insurance $521,682 $178,500 $178,500 $1,500 $178,500 Legal Fees ‐ Organizational Costs $555,000 $320,000 $320,000 $2,689 $320,000 Market Study $8,000 $8,000 $5,500 $46 $5,500 Marketing and Advertising $20,000 $20,000 $20,000 $168 $20,000 Plan and Cost Review Analysis $0 $0 $4,700 $39 Soil Test $13,650 $13,650 $13,650 $115 Survey $67,998 $67,998 $67,998 $571 Title Insurance and Recording Fees $415,244 $411,832 $411,832 $3,461 $411,832 Traffic Study $0 $0 $8,500 $71 Utility Connection Fees $228,690 $128,690 $128,690 $1,081 Soft Cost Contingency $314,731 $304,257 $240,052 $2,017 $6,930,337 $5,228,902 $5,041,099 $42,362 $1,484,891Total General Development Costs: MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐20 November 9, 2023 4. Impact Fees are based upon the schedule and calculation provided by the Applicant and confirmed by the City of Miami Beach. 5. Lender Inspection Fees / Construction Admin costs are based on proposals for building envelope, threshold, and materials testing and inspections provided by the Applicant, site inspections by GLE, and construction loan administration for draw processing. 6. The Applicant provided an executed engagement with Energy Cost Solutions Group, LLC to provide Green Building Services (LEED) for the Development. 7. A soft cost contingency of 5.00% has been underwritten, which is consistent with the FHFC RFA 2021‐ 205 and FHFC Rule Chapters 67‐21 and 67‐48 and may be utilized by the Applicant in the event soft costs exceed estimates. 8. The remaining general development costs appear reasonable. Notes to the Financial Costs 1. Financial costs were derived from the representations illustrated in the LOIs for the construction financing, permanent financing, and HC equity and appear reasonable to AmeriNat. 2. The interest reserve for the Construction Loan was calculated based on terms illustrated in the LOI from BoA CDB, the duration of construction referenced in the Construction Contract and the resultant calculation completed by AmeriNat through the use of a construction draw schedule provided by the Applicant. Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR Construction Loan Origination Fee $423,000 $303,500 $303,500 $2,550 Construction Loan Closing Costs $92,400 $91,050 $91,050 $765 Construction Loan Interest $2,749,595 $3,512,589 $3,782,476 $31,786 $878,420 Permanent Loan Origination Fee $107,250 $108,000 $108,000 $908 $108,000 Permanent Loan Closing Costs $32,175 $32,400 $32,400 $272 $32,400 Local HFA Application Bond Fee $0 $6,285 $6,285 $53 $6,285 Local HFA Bond Underwriting Fee $0 $0 $16,489 $139 $16,489 Local HFA Bond Trustee Fee $0 $0 $11,250 $95 $11,250 Local HFA Bond Cost of Issuance $614,053 $415,758 $415,758 $3,494 $415,758 SAIL Commitment Fee $0 $0 $30,000 $252 $30,000 SAIL Closing Costs $0 $0 $12,500 $105 $12,500 SAIL‐ELI Commitment Fee $0 $0 $6,000 $50 $6,000 SAIL‐ELI Closing Costs $0 $0 $6,500 $55 $6,500 Misc Loan Underwriting Fee $0 $109,000 $0 $0 Misc Loan Closing Costs $0 $195,482 $80,362 $675 $80,362 Closing Costs $0 $0 $12,500 $105 $12,500 Legal Fees ‐ Financing Costs $0 $135,000 $135,000 $1,134 $135,000 Placement Agent/Underwriter Fee $0 $0 $27,500 $231 $27,500 Initial TEFRA Fee $0 $0 $3,000 $25 $3,000 Other:FHFC Firm Commitment Extension Fee $0 $0 $49,015 $412 $49,015 Other:FEMA CLOMR / LOMR $0 $0 $12,000 $101 $12,000 Other:FHFC Viability Commitment Fee $0 $0 $43,000 $361 $43,000 Other:FHFC Viability Closing Costs $0 $0 $12,500 $105 $12,500 Other:HFAMDC Conversion Fee $0 $0 $189,688 $1,594 $4,018,473 $4,909,064 $5,386,773 $45,267 $1,898,479 $46,968,655 $46,954,485 $47,281,546 $397,324 $6,074,939Dev. Costs before Acq., Dev. Fee & Reserves FINANCIAL COSTS: NHTF Total Financial Costs: MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐21 November 9, 2023 3. The SAIL, ELI and Viability commitment fees are based on 1.00% of each loan. The FHFC Firm Loan Commitment Extension Fee is 1.00% of the SAIL,ELI and NHTF loan amounts, respectively. 4. FHFC closing costs of $6,500 for the ELI loan and $12,500 for each of the Viability, SAIL, and NHTF loans for FHFC legal counsel fees. 5. Local HFA Bond Cost of Issuance is based on the fees provided by the Applicant for Miami‐Dade County. 6. The Local HFA Bond Trustee Fee represents 30 months of the annual Bond Trustee Fee of $4,500. 7. FEMA CLOMR / LOMR represent costs associated with the flood plain map for the Development. 8. HFAMDC Conversion Fee – HFAMDC will charge a fee on conversion of construction to permanent financing on transactions with related parties (substantial users). The conversion fee will be required to be reserved in an account owned by the Applicant to be held by the fiscal agent or trustee under the primary transaction document. The conversion fee will be equal to 25 basis points of the original principal amount of the Obligation (or maximum allowable funding amount for draw down obligations) multiplied by the maximum construction period including extensions, in this case 30 months. If the transaction does not convert, the reserved conversion fee will be returned to the Applicant. 9. The remaining financial costs appear reasonable. Notes to the Other Development Costs: 1. Developer Fee does not exceed 18% of Development Costs before Land and exclusive of reserves as permitted by FHFC RFA 2021‐205 and FHFC Rule Chapters 67‐21 and 67‐48. Consultant agreements received comprised $80,400 which is shown as a subset of Developer Fee. 2. During construction, the Developer shall only be allowed to draw a maximum of fifty percent (50%) of the total developer fee, but in no case more than the payable developer fee during construction (the "Developer's Overhead"). No more than thirty‐five percent (35%) of Developer's Overhead will be funded at Loan closing. The remainder of the Developer's Overhead will be disbursed during construction on a pro rata basis, based upon the percentage of completion of the Development, as approved and reviewed by Florida Housing and the Servicer. The remaining unpaid developer fee shall be considered attributable to "Developer's Profit" and will not be funded until the Development has achieved one hundred percent (100%) lien free completion, and only after Retainage has been released. AmeriNat estimates payable Developer Fee at closing to be $1,071,450, the Developer’s Overhead is estimated to be $1,989,837, and the Developer’s Profit is estimated to be $2,444,576, which will be funded following 100% lien free completion. The remaining $3,003,588 will be permanently deferred and will be paid from the Development’s cash flow from operations. Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR Developer Fee ‐ Unapportioned $8,371,493 $8,487,575 $8,430,278 $70,843 DF to Consultant Fees $0 $0 $80,400 $676 $8,371,493 $8,487,575 $8,510,678 $71,518 $0Total Other Development Costs: DEVELOPER FEE ON NON‐ACQUISTION COSTS MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐22 November 9, 2023 Notes to Land Acquisition Costs: 1. The Applicant provided a Ground Lease (the “Ground Lease”) dated November 1, 2020 between the Applicant and the Housing Authority of the City of Miami Beach for three scattered sites being developed. The Ground Lease illustrates a term of 65 years from the date of construction loan closing and a capitalized lease payment of $3,850,000 due upon construction loan closing, but in no event later than December 31, 2022. AmeriNat received an Amended and Restated Ground Lease Agreement dated August 6, 2021, which increased the lease payment to $4,085,000, confirmed the 65‐year term, and extended the deadline to March 31, 2024 for lease term to begin. AmeriNat received a First Amendment to the Amended and Restated Ground lease Agreement dated June 1, 2023 which removed one parcel, leaving the two sites being used for the Development. 2. An Appraisal performed by Meridian August 16, 2023 identified an “As Is” value for the vacant land of $11,900,000, which supports the capitalized ground lease payment of $4,085,000. The lesser of the two values has been used for underwriting purposes. Notes to the Reserve Accounts: 1. The LOIs for debt and equity were silent regarding reserves; however, an operating reserve equal to approximately three months of operating expenses, debt service, and replacement reserves has been underwritten. Additionally, the Applicant has indicated they will be funding a start‐up/lease up reserve in the amount of $113,579. In exchange for receiving funding from the Corporation, the Corporation reserves the authority to restrict the disposition of any funds remaining in any operating deficit reserve(s) after the term of the reserve’s original purpose has terminated or is near termination. Authorized disposition uses are limited to payments towards any outstanding loan balances of the Development funded from the Corporation, any outstanding Corporation fees, any unpaid costs incurred in the completion of the Development (i.e., deferred Developer Fee), the Development’s capital replacement reserve account (provided, however, that any operating deficit reserve funds deposited to the replacement reserve account will not replace, negate, or otherwise be considered an advance payment or pre‐funding of the Applicant’s obligation to periodically fund the replacement reserve account), the reimbursement of any loan(s) provided by a partner, member or guarantor as set forth in the Applicant’s organizational agreement (i.e., operating or limited partnership agreement). The actual direction of the disposition is at the Applicant’s discretion so long as it is an option permitted by the Corporation. In no event, shall the payment of amounts to the Applicant or the Developer from any operating deficit reserve established for the Development cause the Developer Fee or General Contractor fee to exceed the applicable percentage limitations provided for in the FHFC RFA. Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR Land $4,085,000 $4,085,000 $4,085,000 $34,328 $4,085,000 $4,085,000 $4,085,000 $4,085,000 $34,328 $4,085,000 LAND ACQUISITION COSTS Total Acquisition Costs: Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR Operating Deficit Reserve (FHFC)$0 $410,246 $410,246 $3,447 $410,246 Reserves ‐ Start‐Up/Lease‐up Expenses $0 $113,579 $113,579 $954 $113,579 $0 $523,825 $523,825 $4,402 $523,825 RESERVE ACCOUNTS Total Reserve Accounts: MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐23 November 9, 2023 2. At the end of the Compliance Period, any remaining balance of the ODR less amounts that may be permitted to be drawn (which includes Deferred Developer Fee and reimbursements for authorized member/partner and guarantor loan(s) pursuant to the operating/partnership agreement), will be used to pay FHFC debt; if there is no FHFC loan debt on the proposed Development at the end of the Compliance Period, any remaining balance shall be used to pay any outstanding FHFC fees. If any balance remains in the ODR after the payments above, the amount should be placed in a Replacement Reserve account for the Development. In no event shall the payments of amounts to Applicant or the Developer from the Reserve Account cause the Developer fee or General Contractor Fee to exceed the applicable percentage limitations provided for in the Rule. Any and all terms and conditions of the ODR must be acceptable to FHFC, its Servicer and its Legal Counsel. Start‐Up/Lease‐up Expenses, insurance and Property Tax escrows are per the Applicant’s development budget. Notes to Total Development Costs: 1. Total Development Costs have increased by $975,901 from $59,425,148 to $60,401,049 since the Viability application due to increases in construction costs, financial costs, Developer Fee and reserve accounts. Applicant Costs Revised Applicant Costs Underwriters Total Costs ‐ CUR Cost Per Unit HC Ineligible Costs ‐ CUR $59,425,148 $60,050,885 $60,401,049 $507,572 $10,683,764TOTAL DEVELOPMENT COSTS: TOTAL DEVELOPMENT COSTS MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐24 November 9, 2023 OPERATING PRO FORMA FINANCIAL COSTS: Year 1 Year 1 Per Unit OPERATING PRO FORMA Gross Potential Rental Income $1,949,220 $16,380 Rent Subsidy (ODR)$58,870 $495 Other Income $0 Ancillary Income $7,140 $60 Gross Potential Income $2,015,230 $16,935 Less: Physical Vac. Loss Percentage: 2.91%$58,691 $493 Collection Loss Percentage: 0.97%$19,564 $164 Total Effective Gross Income $1,936,975 $16,277 Fixed: Real Estate Taxes $159,947 $1,344 Insurance $178,500 $1,500 Variable: Management Fee Percentage: 4.85%$93,905 $789 General and Administrative $60,690 $510 Payroll Expenses $178,500 $1,500 Utilities $95,200 $800 Maintenance and Repairs/Pest Control $47,600 $400 Grounds Maintenance and Landscaping $17,850 $150 Contract Services $29,750 $250 Security $44,625 $375 Reserve for Replacements $35,700 $300 Total Expenses $942,267 $7,918 Net Operating Income $994,708 $8,359 Debt Service Payments First Mortgage ‐ HFAMDC / BoA CDB $799,733 $6,720 Second Mortgage ‐ Viability $43,000 $361 Third Mortgage ‐ SAIL $30,000 $252 Fourth Mortgage ‐ SAIL ELI $0 $0 Fifth Mortgage ‐ NHTF $0 $0 6th / 7th / 8th Mortgages ‐ PCHCD / CMB / HACMB $59,500 $500 $35,070 $295 $10,750 $90 $8,523 $72 $3,855 $32 $4,277 $36 $0 $0 Total Debt Service Payments $994,708 $8,359 Cash Flow after Debt Service $0 $0 FINANCIAL COSTS: Annual Per Unit Debt Service Coverage Ratios DSC ‐ First Mortgage plus Fees 1.19x DSC ‐ Second Mortgage plus Fees 1.12x DSC ‐ Third Mortgage plus Fees 1.07x DSC ‐ Fourth Mortgage plus Fee 1.07x DSC ‐ Fifth Mortgage plus Fees 1.06x DSC ‐ 6th / 7th / 8th Mortgages and Fees 1.00x Financial Ratios Operating Expense Ratio 48.65% Break‐even Economic Occupancy Ratio (all debt)96.31% 6th / 7th / 8th Mortgage Fees ‐ PHCD / CMB / HACMB Third Mortgage Fees ‐ SAIL PLS & CM Fourth Mortgage Fees ‐ SAIL ELI PLS & CM Fifth Mortgage Fees ‐ NHTF PLS & CMINCOME:EXPENSES:First Mortgage Fees ‐ HFAMDC Admin & Trustee Fees Second Mortgage Fees ‐ Viability PLS & CM MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐25 November 9, 2023 Notes to the Operating Pro Forma and Ratios: 1. Gross Potential Rental Revenue is based upon all 119 of the units at the Development receiving Project Based Vouchers. The Development will also be utilizing Housing Credits in conjunction with SAIL, ELI, & NHTF which will impose rent restrictions. Under the HC, SAIL and ELI programs, the Development will set aside 16.807% of its total units (20 units) at or below 30% of Area Median Income (“AMI”). Additional restrictions imposed by the HC and SAIL programs consists of 57.983% of the total units (69 units) at or below 60% of AMI and 25.210% of the total units (30 units) at or below 80% of AMI. For the NHTF program, the Development will set aside 4.202% of the total units (5 units) at or below 22% of AMI. Overall, the maximum Housing Credit rents for 2022 published on FHFC’s website for the Development are achievable as confirmed by the appraiser as these were the rents in place at the time of the report. Please note that the utility allowances are based on a Section 8 Utility Allowance Study dated August 21, 2021 (the “UA Report”) completed by KN Consultants, LLC for HACMB. A rent roll for the Development property is illustrated in the following table: Miami Beach‐Kendall HMFA (Miami‐Dade County) 48,790119 $1,498 $1,498 Net Restricted Rents $242 $379 $891 $1,365$1,233 Annual Rental Income $81,900 $1,048,320 Bed Rooms 1.0 Bath Rooms 1.0 PBRA Contr Rents $1,498 $1,498 0 0 0 0 1.0 1.0 64 30 $1,024410 410 AMI% 22% Utility Allow. $133 Gross HC Rent $375 $512 410 41020 $133 Units Low HOME Rents 30% 60% 5 High HOME RentsSquare Feet 80% $1,366 CU Rents $1,365 $1,365 $1,365 Applicant Rents $1,498 $1,498 $133 $133 $1,498 $327,600 Appraiser Rents $1,365 $1,365 $1,365 $1,365$1,498 $491,400 $1,949,220 When calculating an average market rental rate based on the unit mix and annualized rent concessions, the rent advantage for all of the units at the Development is in excess of 110% of the applicable maximum Housing Credit rental rate. 2. Ancillary income includes items such as application fees, pet deposits, and other miscellaneous fees. 3. A 3.00% physical vacancy rate and a 1.00% collection loss rate was applied for underwriting purposes based on the Development and comparable developments as concluded in the appraisal. The inclusion of a portion of the ODR, as noted in item #13 on page A‐29, reduces those amounts to 2.89% and 0.96%, respectively. 4. AmeriNat utilized a real estate tax expense of $1,344 per unit based upon the Applicant’s pro forma and comparable properties surveyed by the appraiser. The estimate also took into account the income restrictions of the Development and a 4% early payment discount. 5. AmeriNat utilized an estimate of $1,500 per unit for insurance, which is consistent with the appraisal. The Development will be located in a flood zone designated “AE”. Zone “AE” is an area within the 100‐ year flood plain and, as such, flood insurance will be required. 6. The Applicant submitted a draft Property Management Agreement (the “Agreement”) dated May 16, 2023 wherein Atlantic Pacific Community Management, LLC (“APCM”), a related entity of the Applicant, will manage the Development. The Agreement states the initial term shall be for one year but will be automatically renewed on a yearly basis unless terminated by the Owner or Applicant in accordance with the Agreement. Upon stabilization, ACPM shall receive a monthly fee (“the Management Fee”) equal to 5.00% of monthly Effective Gross Income. An executed property management agreement is a condition precedent to loan closing. The inclusion of a portion of the ODR, as noted in item #13 on page A‐29, reduces that percentage to 4.80%. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE A‐26 November 9, 2023 7. Replacement Reserves of $35,700 or a minimum of $300 per unit per annum, per the FHFC RFA and Rule Chapters 67‐21 and 67‐48. 8. First Mortgage Fees are as follows: the MHRB has an Annual Authority Fee of 25 basis points of the original principal amount of the Bonds. In addition, the Developer will be required to pay the cost of an annual audit of the accounts held under the indenture a funding loan agreement. The minimum ongoing fee shall be $10,000 annually. The annual MHRB Compliance Monitoring Fee is an amount equal to $30.00 per rental unit in the Development. The Trustee Fee is included in First Mortgage Fees and is estimated at $4,500 annually. There is a 0.14% early redemption fee on the bonds with a minimum fee of $20,000. 9. The Viability Loan has an annual Permanent Loan Servicing Fee based on 25 basis points of the outstanding loan amount, with a minimum monthly fee of $236 and a maximum monthly fee of $936, and an hourly fee of $198 for extraordinary services. 10. The SAIL Loan has an annual Permanent Loan Servicing Fee based on 25 basis points of the outstanding loan amount, with a minimum monthly fee of $236 and a maximum monthly fee of $936, and an hourly fee of $198 for extraordinary services. The annual Compliance Monitoring Multiple Program Fee is $1,023. 11. The ELI Loan has an annual Permanent Loan Servicing Fee based on 25 basis points of the outstanding loan amount, with a minimum monthly fee of $236 and a maximum monthly fee of $936, and an hourly fee of $198 for extraordinary services. The annual Compliance Monitoring Multiple Program Fee is $1,023. 12. The NHTF Loan has an annual Permanent Loan Servicing Fee based on 25 basis points of the outstanding loan amount, with a minimum monthly fee of $236 and a maximum monthly fee of $936, and an hourly fee of $198 for extraordinary services. The annual Compliance Monitoring Multiple Program Fee is $1,023. 13. Based upon an estimated Net Operating Income (“NOI”) of $994,708 for the proposed Development’s initial year of stabilized operations; the First Mortgage loan can be supported by operations at a 1.19x to 1.00 Debt Service Coverage (“DSC”). The combined amount of the superior mortgages and SAIL loan can be supported by operations at a 1.07x to 1.00 DSC. All mortgage loans and fees can be supported by operations at a 1.00x to 1.00 DSC. Per FHFC Rule Chapter 67‐48 F.A.C. (the “Rule”), the minimum debt service coverage (“DSC”) shall be 1.10x to 1.00 for the SAIL loan and all superior mortgages. However, per Rule 67‐48, if the Applicant defers at least 35% of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when the primary expected source of repayment has been identified as projected cash flow, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. Please note that in order to meet the minimum DSC per Rule, the Development will need to utilize $77,895 of the ODR during year 1 of stabilized operations and a total of $254,659 over the first five years of stabilized operations. PHCD approval of a DSC below 1.10x to 1.00 is a condition precedent to loan closing. 14. A 15‐year Operating Pro forma attached hereto as Exhibit 1 reflects rental income increasing at an annual rate of 2% and expenses increasing at an annual rate of 3%. MHRB and SURTAX UNDERWRITING REPORT AMERINAT Section B MHRB Special and General Conditions November 9, 2023 MHRB and SURTAX UNDERWRITING REPORT AMERINAT November 9, 2023 Section B MHRB Special and General Conditions MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐1 November 9, 2023 Special Conditions This recommendation is contingent upon receipt of the following items by HFAMDC and PHCD at least two weeks prior to real estate loan closing. Failure to submit this item within this time frame may result in postponement of the loan closing date. 1. PHCD approval of a DSC below a 1.10x to 1.00 during the first 15 years of stabilized operations. 2. FHFC Board approval of a RFA waiver for the proposed Applicant ownership structure. 3. Receipt of an executed Management Agreement. 4. Receipt of the tax ID# for Vista Breeze HACMB, Inc., the General Partner in the transaction, and a satisfactory credit report for the entity. 5. Receipt of a P&P bond in the full amount of the Construction Contract. 6. Receipt of an executed Construction Contract. 7. Any changes to the Construction Contract as underwritten herein will require review and opinion by the construction consultant retained by AmeriNat. 8. Receipt of an executed HUD HAP contract consistent with the number of units, rents, and contract length as has been underwritten herein. 9. Completion of the HUD Section 3 pre‐construction conference. 10. The Development shall meet the Section 3 requirements of the Housing and Urban Development Act of 1968 as amended (12 U.S.C. 1701u and 24 CFR Part 135). 11. Satisfactory receipt of the Affirmative Fair Housing Marketing Plan. 12. Per FHFC Rule 67‐48 the minimum DSC ratio shall be 1.10x for the SAIL Loan, including all superior mortgages. However, per Rule 67‐48, if the Applicant defers at least 35% of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when the primary expected source of repayment has been identified as projected cash flow, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to show permanent Deferred Developer Fee of at least 35% as the SAIL Loan DSC is 1.07x. General Conditions This recommendation is contingent upon the review and approval of the following items by HFAMDC and PHCD at least two weeks prior to Real Estate loan closing. Failure to receive approval of these items within this time frame may result in postponement of the loan closing. 1. Applicant to comply with any and all recommendations noted in the Plan and Cost Review prepared by GLE Associates, Inc. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐2 November 9, 2023 2. Signed and sealed survey, dated within 90 days of closing, unless otherwise approved by HFAMDC and PHCD, and its Legal Counsel, based upon the particular circumstances of the transaction. The Survey shall be certified to HFAMDC and PHCD and its Legal Counsel, as well as the title insurance company, and shall indicate the legal description, exact boundaries of the Development, easements, utilities, roads, and means of access to public streets, total acreage and flood hazard area, and any other requirements of HFAMDC and PHCD. 3. Final “as permitted” (signed and sealed) site plans, building plans and specifications. The geotechnical report, if any, must be bound within the final plans and specifications. 4. Building permits and any other necessary approvals and permits (e.g., final site plan approval, water management district, Department of Environmental Protection, Army Corps of Engineers, Department of Transportation, etc.). Acceptable alternatives to this requirement are receipt and satisfactory review of a letter from the local permitting and approval authority that the above referenced permits and approvals will be issued upon receipt of applicable fees (with no other conditions), or evidence of 100% lien‐free completion, if applicable. If a letter is provided, copies of all permits will be required as a condition of the first post‐closing draw. 5. Final sources and uses of funds itemized by source and line item, in a format and in amounts approved by the Servicer. A detailed calculation of the construction interest based on the final draw schedule (see below), documentation of the closing costs, and draft loan closing statement must also be provided. The sources and uses of funds schedule will be attached to the Loan Agreement as the approved Development budget. 6. A final construction draw schedule showing itemized sources and uses of funds for each monthly draw. Viability, SAIL, ELI & NHTF Loan Proceeds shall be disbursed in an amount per Draw that does not exceed the ratio of the Viability, SAIL, ELI & NHTF loans, respectively, to the Total Development Cost during the construction or rehabilitation phase, unless otherwise approved by the Credit Underwriter. The closing draw shall include appropriate backup and ACH wiring instructions. 7. Construction Period Developer Fee shall be the lessor of i) 50% of the Total Developer Fee or ii) the Total Developer Fee less the Deferred Developer Fee listed in the Sources and Uses for the construction period, as calculated by the Servicer. At closing, a maximum of 35% of the Construction Period Developer Fee may be funded. Remaining Construction Period Developer Fee will be disbursed during construction/rehabilitation on a pro rata basis, based on the percentage of completion of the development, as approved and reviewed by FHFC and Servicer. Once the Development has achieved 100% lien free completion and retainage has been released, the Post‐Construction Period Developer Fee may be funded. Post‐Construction Period Developer Fee is the remaining portion of Developer Fee less Deferred Developer Fee listed in the Sources and Uses for the permanent period, as calculated by the Servicer. 8. Evidence of insurance coverage pursuant to the Request for Application governing this proposed transaction and, if applicable, the FHFC Insurance Guide. 9. The General Contractor shall secure a payment and performance bond equal to 100 percent of the total construction cost listing FHFC as a co‐obligee, whose terms do not adversely affect the Corporation’s interest, issued in the name of the General Contractor, from a company rated at least “A‐” by AMBest & Co., or a Corporation‐approved alternate security for the General Contractor’s performance such as a letter of credit issued by a financial institution with a senior long term (or equivalent) credit rating of at least “Baa3” by Moody’s, or at least “BBB‐” by Standard & Poor’s or MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐3 November 9, 2023 Fitch, or a financial rating of at least 175 by IDC Financial Publishing. The LOC must include “evergreen” language and be in a form satisfactory to HFAMDC and PHCD, its Servicer and its Legal Counsel. 10. Architect, Construction Consultant, and Applicant certifications on forms provided by Florida Housing will be required for both design and as‐built with respect to Section 504 of the Rehabilitation Act, the Americans with Disabilities Act (“ADA”), and Federal Fair Housing Act requirements, as applicable. 11. A copy of an Amended and Restated Limited Partnership Agreement reflecting purchase of the HC under terms consistent with the assumptions contained within this Credit Underwriting Report. The Amended and Restated Limited Partnership Agreement shall be in a form and of financial substance satisfactory to Servicer and to FHFC and its Legal Counsel. 12. Satisfactory resolution of any outstanding past due and/or noncompliance issues. 13. Payment of any outstanding arrearages to the Corporation, its Legal Counsel, Servicer or any agent or assignee of the Corporation for past due issues applicable to the Development team (Applicant or Developer or Principal, Affiliate or Financial Beneficiary, as described in Rule Chapters 67‐21.0025(5) and 67‐48.0075 (5) F.A.C., of an Applicant or a Developer). 14. At all times there will be undisbursed loan funds (collectively held by HFAMDC and PHCD, the first lender and any other source) sufficient to complete the Development. If at any time there are not sufficient funds to complete the Development, the Applicant will be required to expend additional equity on Development costs or to deposit additional equity with HFAMDC and PHCD which is sufficient (in HFAMDC and PHCD’s judgment) to complete the Development before additional loan funds are disbursed. This condition specifically includes escrowing at closing all equity necessary to complete construction or another alternative acceptable to HFAMDC and PHCD in its sole discretion. 15. At the end of the Compliance Period, any remaining balance of the ODR less amounts that may be permitted to be drawn (which includes Deferred Developer Fee and reimbursements for authorized member/partner and guarantor loan(s) pursuant to the operating/partnership agreement), will be used to pay FHFC debt; if there is no FHFC loan debt on the proposed Development at the end of the Compliance Period, any remaining balance shall be used to pay any outstanding FHFC fees. If any balance is remaining in the ODR after the payments above, the amount should be placed in a Replacement Reserve account for the Development. In no event shall the payments of amounts to Applicant or the Developer from the Reserve Account cause the Developer fee or General Contractor Fee to exceed the applicable percentage limitations provided for in the Rule. Any and all terms and conditions of the ODR must be acceptable to FHFC, its Servicer and its Legal Counsel. This recommendation is contingent upon the review and approval of the following items by HFAMDC and PHCD and its Legal Counsel at least two weeks prior to Real Estate loan closing. Failure to receive approval of these items within this time frame may result in postponement of the loan closing. 1. Documentation of the legal formation and current authority to transact business in Florida for the Applicant, the general partner/member(s)/principal(s)/manager(s) of the Applicant, the guarantors, and any limited partners/members of the Applicant. 2. Signed and sealed survey, dated within 90 days of closing, unless otherwise approved by HFAMDC and PHCD, and its Legal Counsel, based upon the particular circumstances of the transaction. The Survey shall be certified to HFAMDC and PHCD and its Legal Counsel, as well as the title insurance company, and shall indicate the legal description, exact boundaries of the Development, easements, utilities, roads, and means of access to public streets, total acreage and flood hazard area, and any other requirements of HFAMDC and PHCD. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐4 November 9, 2023 3. An acceptable updated Environmental Audit Report, together with a reliance letter to HFAMDC and PHCD, prepared within 90 days of Viability, SAIL, ELI & NHTF loan closing, unless otherwise approved by HFAMDC and PHCD, and Legal Counsel, based upon the particular circumstances of the transaction. Applicant to comply with any and all recommendations noted in the Environmental Assessment(s) and Update and the Environmental Review, if applicable. 4. Title insurance pro‐forma or commitment for title insurance with copies of all Schedule B exceptions, in the amount of the Viability, SAIL, ELI and NHTF loans naming FHFC as the insured. All endorsements required by HFAMDC and PHCD shall be provided. 5. HFAMDC and PHCD and its Legal Counsel shall review and approve all other lenders closing documents and the Amended and Restated Limited Partnership Agreement or other applicable agreement. HFAMDC and PHCD shall be satisfied in its sole discretion that all legal and program requirements for the Loans have been satisfied. 6. Evidence of insurance coverage pursuant to the Request for Application governing this proposed transaction and, if applicable, the FHFC Insurance Guide. 7. Receipt of a legal opinion from the Applicant’s Legal Counsel acceptable to HFAMDC and PHCD addressing the following matters: a. The legal existence and good standing of the Applicant and of any partnership or limited liability company that is the general partner of the Applicant (the "GP") and of any corporation or partnership that is the managing general partner of the GP, of any corporate guarantor and any manager; b. Authorization, execution, and delivery by the Applicant and the guarantors, of all Loan documents; c. The Loan documents being in full force and effect and enforceable in accordance with their terms, subject to bankruptcy and equitable principles only; d. The Applicant's and the guarantor's execution, delivery and performance of the loan documents shall not result in a violation of, or conflict with, any judgments, orders, contracts, mortgages, security agreements or leases to which the Applicant is a party or to which the Development is subject to the Applicant’s Partnership/Operating Agreement and; e. Such other matters as HFAMDC and PHCD or its Legal Counsel may require. 8. Evidence of compliance with local concurrency laws, as applicable. 9. UCC Searches for the Applicant, its partnerships, as requested by Legal Counsel. 10. Such other assignments, affidavits, certificates, financial statements, closing statements, and other documents as may be reasonably requested by HFAMDC and PHCD or its Legal Counsel in form and substance acceptable to HFAMDC and PHCD and its Legal Counsel, in connection with the loan(s). 11. Any other reasonable conditions established by HFAMDC and PHCD and its Legal Counsel. Additional Conditions This recommendation is also contingent upon the following additional conditions: 1. Compliance with all provisions of Sections 420.507, 420.5087, and 420.509, Florida Statutes, Rule Chapters 67‐21, 67‐48, 67‐53, and 67‐60, F.A.C., FHFC RFA 2021‐205, FHFC RFA 2023‐211, Section 42 I.R.C., and any other State and Federal requirements. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐5 November 9, 2023 2. Acceptance by the Applicant and execution of all documents evidencing and securing the Viability, SAIL, ELI & NHTF Loans in form and substance satisfactory to HFAMDC and PHCD and its Legal Counsel, including, but not limited to, the Promissory Note(s), the Loan Agreement(s), the Mortgage and Security Agreement(s), the Land Use Restriction Agreement(s), and Extended Low Income Housing Agreement(s). 3. If applicable, receipt and satisfactory review of Financial Statements from all Guarantors dated within 90 days of Real Estate Closing. 4. Guarantors are to provide the standard FHFC Construction Completion Guaranty, to be released upon lien free completion as approved by the Servicer. 5. Guarantors for the Viability Loan are to provide the standard FHFC Operating Deficit Guaranty. If requested in writing by the Applicant, the Servicer will consider a recommendation to release the Operating Deficit Guaranty if all conditions are met, including achievement of a 1.15x debt service coverage on the combined permanent first mortgage and Viability Loan as determined by FHFC, or the Servicer, and 90% occupancy, and 90% of the gross potential rental income, net of utility allowances, if applicable, for a period equal to 12 consecutive months, all as certified by an independent Certified Public Accountant, and verified by the Servicer. The calculation of the debt service coverage ratio shall be made by FHFC or the Servicer. Notwithstanding the above, the Operating Deficit Guaranty shall not terminate earlier than three (3) years following the final certificate of occupancy. 6. Guarantors for the SAIL are to provide the standard FHFC Operating Deficit Guaranty. If requested in writing by the Applicant, Servicer will consider a recommendation to release the Operating Deficit Guaranty if all conditions are met, including achievement of a 1.15 DSC on the combined permanent first mortgage and SAIL loan, as determined by FHFC or the Servicer, and 90% Occupancy and 90% of Gross Potential Rental Income net of utility allowances, if applicable, for a period equal to twelve (12) consecutive months, all certified by an independent Certified Public Accountant (“CPA”) and verified by the Servicer. The calculation of the debt service coverage ratio shall be made by FHFC or the Servicer. Notwithstanding the above, the Operating Deficit Guaranty shall not terminate earlier than three (3) years following the final certificate of occupancy. 7. Guarantors are to provide the standard FHFC Environmental Indemnity Guaranty. 8. Guarantors are to provide the standard FHFC Guaranty of Recourse Obligations. 9. A mortgagee title insurance lender’s policy naming HFAMDC and PHCD as the insured mortgage holder in the amount of the Viability, SAIL, ELI and NHTF Loans is to be issued at closing. Any exceptions to the title insurance policy must be acceptable to HFAMDC and PHCD or its Legal Counsel. All endorsements that are required by HFAMDC and PHCD are to be issued and the form of the title policy must be approved prior to closing. 10. Property tax and hazard insurance escrows are to be established and maintained by the First Lender or the Servicer. In the event the reserve account is held by HFAMDC and PHCD’s loan servicing agent, the release of funds shall be at HFAMDC and PHCD’s sole discretion. 11. Replacement Reserves in the minimum amount of $300 per unit per year are required to be deposited on a monthly basis into a designated escrow account, to be maintained by the First Mortgagee/Credit Enhancer, the Fiscal Agent, or HFAMDC and PHCD’s loan servicing agent. However, Applicant has the option to prepay Replacement Reserves, as allowed per FHFC RFA and FHFC Rule Chapters 67‐21 and 67‐48, in the amount of $35,700 (one‐half the required Replacement Reserves for Years 1 and 2), in order to meet the applicable DSC loan requirements. Applicant can waive this election, if at closing of MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE B‐6 November 9, 2023 the loan(s) the required DSC is met without the need to exercise the option. It is currently estimated that Replacement Reserves will be funded from Operations in the amount of $300 per unit per year for years 1 and 2, followed by $300 per unit per year thereafter. The initial Replacement Reserve will have limitations on the ability to be drawn. New construction or Redevelopment Developments (with or without acquisition) shall not be allowed to draw during the first five years or until the establishment of a minimum balance equal to the accumulation of five years of replacement reserves per unit. The amount established as a Replacement Reserve shall be adjusted based on a Capital Needs Assessment (“CNA”) to be received by the Corporation or its servicers, prepared by an independent third party and acceptable to the Corporation and its servicers at the time the CNA is required, beginning no later than the 10th year after the first residential building in the Development receives a certificate of occupancy, a temporary certificate of occupancy, or is placed in service, whichever is earlier (“Initial Replacement Reserve Date”). A subsequent CNA is required no later than the 15th year after the Initial Replacement Reserve Date and subsequently every five (5) years thereafter. 12. GLE Associates, Inc. or other construction inspector acceptable for HFAMDC and PHCD is to act as HFAMDC and PHCD’s inspector during the construction period. 13. Under the terms of the construction contract, a minimum of 10% retainage holdback on all construction draws will be withheld until construction is 50% complete and thereafter no additional retainage is withheld. Retainage will not be released until successful lien free completion of construction and issuance of all certificates of occupancy, which satisfies FHFC RFA 2021‐205 and FHFC Rule Chapters 67‐21 and 67‐48 minimum requirement. 14. Satisfactory completion of a pre‐loan closing compliance audit conducted by HFAMDC and PHCD or its Servicer, if applicable. 15. Closing of all funding sources prior to or simultaneous with the closing of the Viability, SAIL, ELI and NHTF loans. 16. HFAMDC Conversion Fee – HFAMDC will charge a fee on conversion of construction to permanent financing on transactions with related parties (substantial users). The conversion fee will be required to be reserved in an account owned by the Applicant to be held by the fiscal agent or trustee under the primary transaction document. The conversion fee will be equal to 25 basis points of the original principal amount of the Obligation (or maximum allowable funding amount for draw down obligations) multiplied by the maximum construction period including extensions. If the transaction does not convert, the reserved conversion fee will be returned to the Applicant. 17. HFA Administrative Non‐Conversion Fee – HFAMDC will charge an administrative fee for transactions with related parties (substantial users) that do not convert to permanent financing for failure to satisfy the conversion conditions or for full optional redemption prior to the outside conversion date. This fee will be equal to 25 basis points of the original principal amount of the Obligations (or maximum allowable funding amount for draw down obligations) multiplied by the maximum construction period including extensions. 18. Any other reasonable requirements of the Servicer, HFAMDC and PHCD or its Legal Counsel. MHRB and SURTAX UNDERWRITING REPORT AMERINAT Section C Supporting Information & Schedules November 9, 2023 MHRB and SURTAX UNDERWRITING REPORT AMERINAT November 9, 2023 Section C Supporting Information & Schedules MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐1 November 9, 2023 Additional Development & Third‐Party Supplemental Information Appraised Value: AmeriNat received and satisfactorily reviewed an appraisal prepared by Meridian Appraisal Group, Inc. (“Meridian”) dated August 16, 2023. The appraisal was executed by Robert Von, a State Certified General Real Estate Appraiser whose Florida license number is RZ1604 that expires November 30, 2024. The report estimates the hypothetical value, “As if Stabilized” of the Development’s leased fee interest, subject to unrestricted rents, based on market conditions prevailing on March 2, 2023 is $29,760,000. This conclusion is based on a market capitalization rate and a Net Operating Income derived from market rents and expenses supported by comparable market rate properties within the Development’s market. Upon stabilization, the resulting loan to value for the Permanent First Mortgage is equal to 39.9% and the loan to value for the combined Permanent First Mortgage, Viability Loan and SAIL loan is 64.4%. The report also estimates the hypothetical value, “As if Stabilized” of the Development’s leased fee interest, subject to the rental restrictions under the SAIL, ELI, NHTF, PBV and HC programs, and with market financing based on market conditions prevailing on March 2, 2023, is $20,380,000. This conclusion is based on a capitalization rate and a Net Operating Income derived from rents restricted by the aforementioned programs with expenses supported by comparable income‐restricted properties within the Development’s market. The resulting loan to value for the Permanent First Mortgage is equal to 58.3% upon stabilization and the loan to value for the combined Permanent First Mortgage, Viability Loan and SAIL loan is 94.1%. The report concludes that the Development’s “As Is” market value of the fee simple interest in the Development’s site based on market conditions prevailing on March 2, 2023 is $11,900,000. This supports the $4,085,000 that will be paid to the Housing Authority of the City of Miami Beach at loan closing in the form of a capitalized lease payment. Market Study: A separate market study dated March 17, 2023 was prepared by Meridian. The market study concludes there is demand in the marketplace for the Development as conceived and the market for affordable rental developments within the PMA is strong based upon capture rates of income‐eligible renter households and the weighted occupancy (100%) of comparable affordable housing developments. The Development will be located in Miami‐Dade County in what we have defined as the South Florida Regional Area (region) in the southern portion of Florida. For purposes of this discussion, the South Florida Regional Area is defined to contain the Miami‐Fort Lauderdale‐Palm Beach CBSA (Broward County, Miami‐Dade County and Palm Beach County) as defined by the US Census Bureau and includes the Key West Micropolitan Statistics Area (Monroe County). MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐2 November 9, 2023 These four counties encompass about 10,055 square miles of which 3,757 square miles are made up of water (37.36%) and 6,298 square miles are land area (83.51%). Palm Beach County encompasses 2,386 total square miles with 412 square miles of water (17.27%); Broward County encompasses 1,320 square miles with 114 square miles of water (8.66%); Miami‐Dade County encompasses 2,431 square miles with 485 square miles of water (19.96%); and Monroe County encompasses 3,738 square miles with 2,745 square miles of water (73.43%) and the Florida Everglades National Park makes up a large majority of the county total land area. Broward County is the state’s 2nd most populous with 8.93% of the state’s population. Miami‐Dade County is the state’s 1st most populous with 12.48% of the state’s population. Monroe County is the state’s 38th most populous with 0.38% of the state’s population. Palm Beach County is the state’s 3rd most populous with 6.86% of the state’s population. The Development will be located in a mixed‐use encompassing the city of Miami Beach. It is improved with established hotels, multi‐family apartments and condos interspersed with single family estates and commercial/retail corridors primarily catering to the tourist trade. The area is significantly built‐ up. The neighborhood is one of the higher income areas in Miami‐Dade County. There are necessary supporting commercial services for residential development and several employment centers are within proximity to the Development. There is significant multi‐family development (mostly older small projects) in the neighborhood, and demand for affordable housing in the area is high due to this submarket having the highest rental rates in the State of Florida, suggesting that the Development should receive market acceptance as an affordable apartment. The apartment market within Miami‐Dade County consists of a wide variety of unit types ranging from older subsidized housing, older market rate projects, newer affordable projects and new luxury market rate projects. The Development is located in the North Miami Beach submarket which is one of 16 submarkets in Miami‐Dade County. Apartment rents in the Miami market were rising at a 4.9% annual rate during the first quarter of 2023 and have posted an average annual gain of 7.8% over the past three years. There are 29,000 units currently underway, representing the largest under construction pipeline in over three years. Over the past three years, 20,000 units have been delivered, or a cumulative inventory expansion of 12.6%. Vacancies were basically in line with the 10‐year average as of 2023Q1 but trended upward over the past four quarters. The vacancy rate in the North Beach Submarket has remained stable over the past year, and at 6.7%, essentially aligns with the long‐term average. There have been more demolitions than completions over the past year. Even over an extended five‐year timeframe, the submarket's apartment stock has contracted. Reversing the recent trend, about 350 units are underway, which will expand the existing inventory by 4.9%. Rents have increased by an impressive 5.3% over the past year, which significantly exceeds the average annual growth of 2.6% over the past decade. The North Miami Beach submarket has the fifth largest inventory in Miami‐Dade County, the eighth highest number of deliveries in the past 12 months, the third most units MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐3 November 9, 2023 under construction, the tenth lowest vacancy rates, the seventh highest average absorption rate in the past 12 months and the 11th highest average rental rates. Overall, the North Miami Beach submarket is a good apartment location in Miami‐Dade County that is currently experiencing moderate to strong growth. The Development neighborhood is a mixed‐use encompassing the city of Miami Beach. It is improved with established hotels, multi‐family apartments and condos interspersed with single family estates and commercial/retail corridors primarily catering to the tourist trade. The area is significantly built‐up. The neighborhood is one of the higher income areas in Miami‐Dade County. There are necessary supporting commercial services for residential development and several employment centers are within proximity to the Development. There is significant multi‐family development (mostly older small projects) in the neighborhood, and demand for affordable housing in the area is high due to this submarket having the highest rental rates in the State of Florida, suggesting that the Development should receive market acceptance. The Primary Market Area (“PMA”) is where most of the demand will come from. The area determination is based on data gathered in the Small Area Data Case Study that can be found on the FHFC website. The study indicated that most affordable projects receive about 2/3 to 3/4 of their tenants from within 10 miles. The Competitive Market Area (“CMA”) is defined as those projects lying in closest proximity to the Development that are competitive with the Development property. In large markets, numerous competitive properties can be found in proximity (within two to three‐mile rings) of the Development. In smaller markets, the CMA may expand beyond the PMA to capture sufficient projects. The like‐kind, existing, stabilized properties within the Development’s Competitive Market Area (CMA), or submarket, for the purpose of determining a like‐kind inventory of competitive units, consists of six properties with a total of 646 units. There are currently an adequate number of elderly households within the income band necessary to support demand for the Development’s units, with a maximum Level of Effort of 20.8% in the 10‐mile ring, but lower at 13.0% in the five‐mile ring and 7.5% in the 10‐mile ring (Primary Market Area). The Level of Effort is relatively low due to the size of the existing and funded supply in relation to the size of the age and income qualified renter households in the market. Household growth of age and income‐qualified renter households in the Development’s 10‐mile ring is expected to increase by 165 households annually over the next five years. Annual growth greater than the project size is a positive demographic factor. The Capture Rates are low at 7.5%, 2.8% and 0.6% in the three, five and 10‐mile market areas, respectively. A Capture Rate of 10% or less in the three‐mile ring is a typical developer’s benchmark that a project is appropriately sized for the market. Based on this analysis, it appears the size of the Development project is appropriately sized, relative to the number of the age and income‐qualified renter households in the market. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐4 November 9, 2023 The Capture Rates are low at 1.9%, 0.7% and 0.2% in the three, five and 10‐mile market areas, respectively, for the units at the 80% AMI levels which is considered very low. Household growth of age and income qualified renter households in the 80% AMI bands, in the Development's 10‐mile ring is expected to increase by 326 households annually over the next five years. Based on the above data and Meridian’s knowledge of the demographics of the area, the Development’s unit mix is considered good for an elderly project. The Development's average studio (411 square feet) unit size is within the range of the market rate comparables and below the one restricted comparable that has a studio unit contains 538 square feet. Overall, the Development will have small units compared to the restricted and market rate comparables. The proposed Vista Breeze affordable apartment project for the elderly will consist of 119 affordable apartment units contained within two, four‐story buildings with structured parking. The Development will be Class B, mid‐rise apartment complex with competitive project amenities, unit features, unit sizes and unit mix in good condition after completion. With respect to the Development’s impact on existing housing stock, short‐ term is defined as the period it takes the Development to lease to stabilized occupancy. In the short‐term (defined as the period it takes the Development to lease to stabilized), there would be a moderate case for impact to the properties located within three miles of the Development due to the strength of the market overall and the distance between the Development and these projects. There are no existing elderly projects located within three miles of the Development. There is a weak case for overall short‐term impact on all of the projects in the CMA. Any impact beyond the Development’s lease‐up would be considered long‐term. Since the Miami‐Dade economy and apartment market are expected to perform well over the long‐term, there would be a weak case for long‐term impact to all of the properties located near the Development. There are no Guarantee Fund projects located within the CMA or within five miles of the Development or within 10‐miles of the Development. Based on the absorption history within other affordable and market rate projects, Meridian estimated an average absorption rate for the Development property of 38 units per month, which equates to an approximate three month lease up period. Environmental Report: A Phase I Environmental Site Assessment (“ESA”) was performed on both sites by Hydrologic Associates U.S.A., Inc. (“HA”) and their assessments were compiled in reports dated December 6, 2021. The purpose of the ESA’s was to assist the client in developing information to identify recognized environmental conditions (“REC”) in connection with the sites as reflected by the scope of the reports. Based on the information contained in the Phase I ESA reports and information reviewed in preparing the reports, HA did not identify RECs and, as such, no additional investigation is warranted at this time. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐5 November 9, 2023 Soils Test Report: NV5, Inc. (“NV5”) completed a geotechnical exploration of the sites and compiled their findings in a report dated as of January 19, 2022. The purpose was to explore the general subsurface condition at the sites, interpret and review the subsurface conditions with respect to the proposed construction, and provide geotechnical recommendations for foundation design, pavement design, and other site preparation. NV5 explored the subsurface conditions at the sites with 10 engineering test borings, five (5) borings at each site, drilled to depths of approximately 35 feet below existing grade. The borings were drilled with a truck‐mounted drill rig utilizing the rotary wash method. Samples of the subsurface materials were recovered continuously within the upper 10 feet of the ground surface and at approximately 5‐foot intervals thereafter using a Standard Penetration Test split‐spoon sampler (“SPT”) in substantial accordance with ASTM D‐1586, "Standard Test Method for Standard Penetration Test and Split‐Barrel Sampling of Soils." This test procedure drives a 1.4‐inch‐inner‐diameter split‐tube sampler into the subsurface using a 140‐pound hammer falling 30 inches. The total number of blows required to drive the sampler the second and third 6‐ inch increments is the SPT N‐value, in blows per foot, and is an indication of material strength. Upon completion of the borings, the boreholes were backfilled with soil cuttings and the upper few feet closed with cement grout. The soil/rock samples recovered from the borings were initially classified in the field and later reexamined by a geotechnical engineer in the laboratory to confirm field classifications. Visual soil classifications were made in accordance with ASTM D2487 and ASTM D2488. Groundwater was encountered in the borings between 2.8 and 3 feet below the existing ground surface. It should be noted that groundwater readings during drilling might not represent stabilized groundwater levels. Stabilized water levels would be best obtained by installing groundwater monitoring devices and taking readings over an extended period. Overall, the report provides recommendations based on the testing and analysis performed for site preparation and related construction. GLE confirmed that the detailed recommendations outlined were consistent with the information in the structural and civil engineering drawings. Plan & Cost Review: A PCR was engaged by AmeriNat and performed by GLE. GLE summarized their findings, conclusions and recommendations in a report dated July 12, 2023. GLE concludes the Development’s design is in general conformance with 2020 Florida Building Code (Seventh Edition), NFPA 13 (2019 Elevator Safety Act (Chapter 399), FDOT Standard Specifications for Road and Bridge Construction (2020 Edition), Code of Metropolitan Dade County Florida (Chapter 33 – Zoning Code of Miami‐Dade County, Florida), OSHA Hazard Communication Standard, NFPA 241 (Safeguarding Building Construction and Demolition), Miami‐Dade County Building Code Compliance Office (Product Control Division, Notice of Acceptance)Accessibility (FBC‐A), Building (FBC‐B), Energy Conservation (FBC‐ 7th Edition, Energy Conservation), Mechanical ((FBC‐7th Edition, Mechanical), MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐6 November 9, 2023 Plumbing (FBC‐7th Edition, Plumbing), Electrical (FBC‐7th Edition, Electrical), Accessibility (FBC‐7th Edition, Accessibility), Life Safety Code (7th Edition, Florida Fire Prevention Code), Federal Fair Housing Act as implemented by 24 CFR 100, Florida Accessibility Code for Building Construction as adopted pursuant to Section 553.503, Florida Statutes, Section 504 of the Rehabilitation Act of 1973, and Titles II and III of the Americans with Disabilities Act ("ADA") of 1990 as implemented by 28 CFR 35, incorporating the most recent amendments, regulations, and rules, as applicable. GLE reviewed a construction schedule that indicates the Development’s substantial completion in 422 days. The Construction Contract indicates substantial completion 429 days from the date of commencement. GLE concludes the duration appears to be appropriate and all milestones associated with major trades appear satisfactory. The review concludes that overall costs to construct are sufficient for satisfactory completion of the proposed development. The costs for similar type developments identified in the PCR range from $201,651 per unit to $294,295 per unit. The Development has a projected unit cost of $270,938.10 per unit, which is within the range provided. GLE did not identify any allowances in the Construction Contract. Please note that the Construction Contract does contain language wherein actual documented increases in the costs of concrete and rebar only up to a maximum of 15% of their respective original amounts will be allowed. GLE finds the drawings and specifications for the entire project to be satisfactory and generally defines all aspects of construction details required for successful completion of the improvements. Features & Amenities: The Applicant committed to provide certain Features and Amenities in accordance with the Application (listed in Exhibit 2 of this report). The PCR confirms the features and amenities to be constructed at the Development are in accordance with the representations made in the Application. ADA Accessibility Review: An ADA Accessibility Review was performed by GLE as part of the Plan & Cost Review engagement with AmeriNat. Executed Florida Housing Fair Housing, Section 504 and ADA Design Certification Forms 121, 126, and 128 certifying that the plans for the Development comply with these requirements have been received. Site Inspection: A site inspection was performed by AmeriNat on May 19, 2023. AmeriNat observed that the Development’s location; To the north is single family residential, to the south is multifamily development, to the east is multifamily development and to the west is a church. The location of the site is central to neighborhood shopping, employment, and healthcare facilities. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐7 November 9, 2023 Borrower Information Borrower Name: Vista Breeze, Ltd. Borrower Type: A Florida limited partnership Ownership Structure: The Borrower is a Florida limited partnership formed October 20, 2020 to construct, own and operate the Development. Vista Breeze HACMB, Inc. (“Managing General Partner” or “MGP”) is the 0.51% member of the Borrower. APC Vista Breeze, LLC (“Administrative General Partner” or “AGP”) is the 0.49% member of the Borrower. The Housing Authority of the City of Miami Beach (“HACMB”) is the sole member of the Managing GP and is governed by a four‐ member Board of Commissioners. APCHD MM II Inc. (“APCHD”) is the 1.00% member/manager of the Administrative GP. Howard D. Cohen is the Sole Shareholder, CEO, and Executive Director of APCHD, with Randy K. Weisburd (President), Kenneth J. Cohen (Officer), Stanley D. Cohen (Officer), and Kenneth Naylor (Officer) as members. Howard D. Cohen Revocable Trust is the 99.00% member of the Administrative GP, with Howard D. Cohen as Trustee and Beneficiary. BoA CDB, or an affiliate thereof, will be the 99.99% Limited Partner (“LP”) of the Borrower. Please note that FHFC Board approval of an RFA waiver for the revised Applicant ownership structure is a condition precedent to loan closing. Copies of the Articles of Incorporation and/or Organization and Certificates of Status have been provided on each of the pertinent ownership structure entities listed above. Contact Person(s): Kenneth Naylor knaylor@apcompanies.com Telephone: (305) 357‐4700 Applicant Address: 161 NW 6th Street, Suite 1020 Miami, FL 33136 Federal Employer ID: 88‐0735503 Experience: Vista Breeze, Ltd. (“Applicant”): A single‐asset entity created for the sole purpose of constructing and operating the Development. Vista Breeze HACMB, Inc. (“MGP”): A Florida 501(c)(3) entity formed to be the 0.51% manager/member of the MGP. The entity is governed by five officers/directors, and The Housing Authority of the City of Miami Beach is its sole shareholder. APC Vista Breeze, LLC (“AGP”): An entity created to serve as the 0.49% General Partner of the Borrower. APCHD MM II Inc. (1.00%) and the Howard D Cohen Revocable Trust (99.00%) are members of this entity. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐8 November 9, 2023 APCHD MM II Inc. (“APCHD MM”): An entity created to serve as the 1.00% manager/member of the AGP. Harold D. Cohen is the sole shareholder. The Housing Authority of the City of Miami Beach (“HACMB”): a public body corporate and politic established pursuant to Chapter 421 of the Florida Statutes, HACMB’s funding is primarily derived from federal grants under Section 8 Housing Assistance Payments and Low‐Income Public Housing contribution contract. HACBM is governed by a five‐member Board of Commissioners. Howard D. Cohen Revocable Trust (the “Trust”): The Trust is the 99.00% member of the AGP, with Howard. D. Cohen as its sole trustee and beneficiary. Howard D. Cohen: Mr. Cohen is the Chief Executive Officer of Atlantic Pacific Companies and has served in this position for over 20 years. Mr. Cohen’s role includes the oversight of all affiliated companies, managing the company’s investments and creating strategic partnerships. Mr. Cohen previously practiced with the law firms of Ruden McClosky, P.A. and Becker & Poliakoff, P.A., as a senior real estate attorney specializing in commercial real estate, financing and lending transactions. Mr. Cohen has more than 25 years of real estate investment, real estate law and management experience. APC Vista Breeze Development, LLC (“Developer”): An entity created to be the Developer entity for the transaction, the experience of the Developer resides in its sole member, Atlantic Pacific Communities, LLC via their principals, Howard D. Cohen (44.5% ownership through his trust), Stanley D. Cohen (18.5% ownership through his trust), Kenneth J. Cohen (18.5% ownership though his trust), and Randy Weisburd (18.5% ownership). HACMB Development, LLC (“Co‐Developer”): An newly created entity that will serve as the co‐developer for the transaction. The sole member/manager of the entity is Miami Beach Housing Initiatives, Inc. Miami Beach Housing Initiatives, Inc. (“MBHI”): MBHI is the sole member/manager of the Co‐Developer. The entity is a Florida 501(c)(3) and is managed by a five‐member Board as an affiliate of HACMB. MBHI was incorporated in 2004 and was created for the purpose of raising money to expand services to the community and also to undertake development of affordable housing. Atlantic Pacific Communities, LLC (“APC”): APC is the sole member of the Developer. Howard D. Cohen, through his trust, is the majority owner of the entity. Since inception, APC has completed (or has in development) 49 affordable/workforce housing communities in Florida, Texas, California, Maryland, and Washington DC with over 6,270 units and over $1.9 Billion in total development costs. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐9 November 9, 2023 Credit Evaluation: A Dun & Bradstreet Business and Information Reports (“DNBi”) was requested for APCHD and MBHI, however no information was available. Please note that the MGP has applied for but not yet received a tax ID#. As such, receipt of the tax ID# and a satisfactory DNBi for the entity is a condition precedent to loan closing. Applicant: A DNBi dated May 3, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records AGP: A DNBi dated May 3, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records HACMB: A DNBi dated July 23, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records Developer: A DNBi dated May 3, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records Co‐Developer: A DNBi dated May 3, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records Trust: A DNBi dated July 28, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records. APC: A DNBi dated July 28, 2023 was obtained. The composite credit appraisal reflected an acceptable credit background, with nothing adverse in the Public Records. Howard D. Cohen: An Experian Credit Profile Report was performed on Howard D. Cohen as of May 3, 2023, which showed no derogatory items. All items either have been paid satisfactory or are current. Banking and Trade References: The Applicant, MGP, AGP, APCHD (pass through entity), MBHI, the Developer and Co‐Developer are single‐purpose entities or entities that report little to no liquid assets; therefore, no banking and trade references were verified. APC: AmeriNat received a bank statement dated reporting liquidity held by City National Private Bank that confirms deposits in an amount that is consistent with the financial statement. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐10 November 9, 2023 HACMB: AmeriNat received documentation indicating a total of 31 accounts held by TD Bank, N.A. that confirm deposits in an amount that is consistent with the financial statement. Howard D. Cohen / Trust: AmeriNat received a bank statement from Wells Fargo Bank, N.A., dated December 31, 2022, that confirms deposits in the low eight figures, which is consistent with the provided financial statement. Note: All assets are held in the Trust for Howard D. Cohen. Trade references have been received for all parties and were found to be acceptable. Financial Statements: The Applicant, MGP, AGP, APCHD, Developer and Co‐Developer are either newly formed entities or have minimal assets and liabilities and no tax return filings per letters received from a representative of the Applicant. APC March 31, 2023 (Unaudited) Cash and Cash Equivalents: $ 205,614 Total Assets: $ 43,428,116 Total Liabilities: $ 3,104,671 Net Worth: $ 40,323,445 The financial information is based upon internally prepared financial statements for the period ending March 31, 2023. The company’s primary assets are Developer Fee Receivable and Pre‐construction Cost – Funded Projects. The company’s primary liability is a Line of Credit. Net Income for the same period totaled $2.89MM. AmeriNat received 2021 and 2022 U.S. Income Tax Returns for APC and found them to be satisfactory. APC reports it does not own any real estate. HACMB June 20, 2022 (Audit) Cash and Cash Equivalents: $ 13,990,942 Total Assets: $ 36,637,379 Total Liabilities: $ 10,715,446 Total Net Position: $ 25,921,933 The financial information is based upon audited financial statements for the period ending June 30, 2022. The company’s primary assets are capital/current assets. The company’s primary liability is long‐term debt. Net Income for the same period totaled $3.37MM. As a governmental entity, HACMB is exempt from federal and state taxes. Please note that HACMB’s financial information is inclusive of MBHI, their affiliate. A Schedule of Real Estate Owned, dated December 31, 2021, was provided which indicates ownership in four land parcels, one commercial storefront, and 10 multifamily properties located in Florida worth an estimated $57.7MM. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐11 November 9, 2023 Howard D. Cohen / Howard D. Cohen Revocable Trust December 31, 2022 (Unaudited) Cash and Cash Equivalents: $ 32,582,000 Total Assets: $ 206,289,000 Total Liabilities: $ 104,290,000 Net Worth: $ 101,999,000 Please note that Mr. Cohen’s financial statement as presented includes the Trust. The financial information is based upon internally prepared financial statements for the period ending December 31, 2022. AmeriNat was advised this is the most recent schedule available. Primary assets are Cash, Short Term Investments, Marketable Securities, and Investment in Properties. Primary liabilities include Liabilities in Investment Partnerships. AmeriNat reviewed the 2021 and 2022 U.S. Income Tax Returns and found them to be satisfactory. A Schedule of Real Estate Owned, dated December 31, 2022, was provided which indicates ownership in land, retail, and multifamily properties located in California, Florida, Georgia, North Carolina, DC and Texas. The schedules illustrate information reported through the period ending December 21, 2022. The Trust reports various percentage of ownership interests in 88 developments (32 affordable developments) totaling 19,080 housing units with an estimated market value of $3.4 billion and net worth totaling $1.3 billion. Contingent Liabilities: AmeriNat reviewed a Statement of Financial and Credit Affairs for the Applicant, MGP, AGP, APCHD, APC, MBHI, the Developer and Co‐Developer which stated they have no pending legal actions, bankruptcies, foreclosures, or unsatisfied judgments. There were no reported contingent liabilities for these entities. HACMB: Based on the SREO provided dated as of December 31, 2022, the entity shows four outstanding contingent liabilities with a maximum exposure of approximately $5.3MM. Trust: AmeriNat received an executed Contingent Liability statement dated December 31, 2022 that illustrates the Trust has $6.4MM in operating deficit guarantees and $214.6MM in construction loan repayment guarantees. Howard D. Cohen: AmeriNat received an executed Contingent Liability statement dated December 2022 that illustrates Mr. Cohen has operating deficit guarantees totaling $4.6MM, construction loan guarantees totaling $71.5MM, permanent loan guarantees totaling $4.8MM, and lines of credit in the amount of $3.7MM. Summary: The information provided indicates the principals have considerable relevant experience and the financial capacity to successfully construct, own, and operate the Development. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐12 November 9, 2023 Guarantor Information Guarantor Names: Vista Breeze, Ltd.; APC Vista Breeze, LLC; Vista Breeze HACMB, Inc,; Atlantic Pacific Communities, LLC; APC Vista Breeze Development, LLC; HACMB Development, LLC; Howard D. Cohen Revocable Trust and Howard D. Cohen, individually (collectively the “Guarantors”). Contact Person(s): Kenneth Naylor knaylor@apcompanies.com Telephone: (305) 357‐4700 Applicant Address: 161 NW 6th Street, Suite 1020 Miami, FL 33136 Nature of Guarantee: The Guarantors will sign Standard FHFC Construction Completion, Environmental Indemnity, Recourse Obligation and Operating Deficit Guaranties. The Construction Completion Guaranty will be released upon 100% lien‐free completion as approved by the Servicer. Guarantors for the Viability Loan are to provide the standard FHFC Operating Deficit Guaranty. If requested in writing by the Applicant, the Servicer will consider a recommendation to release the Operating Deficit Guaranty if all conditions are met, including achievement of a 1.15x debt service coverage (“DSC”) on the combined permanent first mortgage and Viability Loan as determined by FHFC, or the Servicer, and 90% occupancy, and 90% of the gross potential rental income, net of utility allowances, if applicable, for a period equal to 12 consecutive months, all as certified by an independent Certified Public Accountant (“CPA”), and verified by the Servicer. The calculation of the debt service coverage ratio shall be made by FHFC or the Servicer. Notwithstanding the above, the Operating Deficit Guaranty shall not terminate earlier than three (3) years following the final certificate of occupancy (“C/O”). For the SAIL, Guarantors are to provide the standard FHFC Operating Deficit Guaranty. If requested in writing by Applicant, the Servicer will consider a recommendation to release the Operating Deficit Guaranty if all conditions are met, including achievement of a 1.15x DSC on the combined permanent first mortgage, Viability loan and SAIL loan, as determined by FHFC or Servicer and 90% occupancy and 90% of the Gross Potential Rental Income, net of Utility Allowances, if applicable, for a period of 12 consecutive months, all certified by an independent CPA, and verified by the Servicer. The calculation of the DSC Ratio shall be made by FHFC or the Servicer. Notwithstanding the above, the Operating Deficit Guaranty shall not terminate earlier than three (3) years following the final C/O. Credit Evaluation: The credit evaluations for the Guarantors were summarized in the “Borrower Information” section of this report. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐13 November 9, 2023 Banking References: The banking references for the Guarantors were summarized in the “Borrower Information” section of this report. Financial Statements: The Guarantors were summarized in the “Borrower Information” section of this report. Contingent Liabilities: The Guarantors were summarized in the “Borrower Information” section of this report. Summary: Collectively, the person(s) and entities identified provide a financial position sufficient to serve as Guarantors to the proposed development. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐14 November 9, 2023 Syndicator Information Syndicator Name: Bank of America Community Development Bank (“BoA CDB”) Type: BoA CDB will have a controlling interest in the 99.99% investor limited partner Contact Person: Ben Rosenbaum SVP, Community Development Banking Binyamin.rosenbaum@bofa.com (954) 765‐2079 Address: 401 E. Las Olas Blvd. Fort Lauderdale, FL 33301 Experience: BoA CDB, a subsidiary of Bank of America Corporation, has, for more than forty years, helped create more than 32,000 affordable housing units for families, veterans and individuals with special needs. provide you with innovative full‐ service lending solutions and services for affordable housing, community facilities and mixed‐use commercial, retail and residential real estate projects coast‐to‐coast. We specialize in projects that serve a range of affordable housing needs from individuals, families, seniors, students and veterans, to the formerly homeless, those with special needs and other at‐risk groups. Whether your project requires conventional or permanent financing, tax credits, tax‐ exempt options, and specialized FHA loans. Financial Statements: Bank of America Corporation and Subsidiaries December 31, 2022 (in millions) (Annual Report) Cash and Cash Equivalents: $ 30,334 Total Assets: $ 3,051,375 Total Liabilities $ 2,778,178 Total Shareholders’ Equity: $ 273,197 The financial information is based upon the 2022 Annual Report for the period ending December 31, 2022. Total income for the entity was $94.95 billion, which yielded net income of approximately $27.52 billion over the same period. Summary: BoA CBD, with the support of its parent company Bank of America Corporation, has the sufficient financial capacity and experience to successfully serve as the HC syndicator and Investor Member of the Applicant. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐15 November 9, 2023 General Contractor Information General Contractor: Atlantic Pacific Community Builders, LLC (“APCB”) Type: A Florida limited liability company Contact Person: Joseph Roig, VP of Construction jroig@apcommunities.com Telephone (305) 357‐4707 Address: 161 NW 6th Street, Suite 1020 Miami, FL 33136 Experience: APCB is part of Atlantic Pacific Companies, and has experience partnering with private institutions, non‐profits, housing authorities, and faith‐based organizations to build market rate and affordable apartments across the country. Previous developments include full spectrum of suburban and urban product types, including garden style, mid‐rise, high‐rise, and Transit Oriented Development (“TOD”). APCB also has previous experience working as HUD general contractor, completing seventeen (17) prior multifamily developments, five of which had HUD involvement, from 2013 to 2020, totaling 3,011 units. APCB has another seven (7) projects under construction totaling 880 units, and five (5) proposed buildings in a pre‐construction pipeline. APCB submitted the license of Joseph Alexander Roig who is a Florida Certified General Contractor with license number CGC059835. The license is valid through August 31, 2024. Credit Evaluation: A DNBi was obtained for APCB dated July 28, 2023. The DNBi report reflects a clear history status with no bankruptcies, judgements, liens or suits. Banking and Trade References: AmeriNat received bank statements confirming deposits in the low seven figure range. AmeriNat received satisfactory banking and trade references for APCB. Financial Statements: AmeriNat received and reviewed financial statements, which are summarized as follows: Atlantic Pacific Community Builders, LLC December 31, 2022 (Unaudited) Cash and Cash Equivalents: $ 1,409,978 Total Assets: $ 17,455,585 Total Liabilities: $ 10,891,981 Total Equity: $ 6,563,604 An internally prepared balance sheet for the period ending December 31, 2022 was provided. APCB’s primary assets consist of account and pay applications receivable ($12.86MM). The primary liability for the entity consists of accounts payable ($10.2MM). Overall, the statements appear positive and present an acceptable financial position to serve as General Contractor for a development MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐16 November 9, 2023 of this size. Summary: APCB has experience in the construction industry and will provide a P&P Bond equal to 100% of the total Construction Contract, which is a condition precedent to loan closing. As such, AmeriNat recommends APCB be accepted as the General Contractor. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐17 November 9, 2023 Property Manager Information Name: Atlantic Pacific Community Management, LLC (“APCM”) Type: A Florida limited liability company Contact Person: Claudia Lopez, Director of Operations claudia@apmanagement.net Telephone (305) 357‐4702 Address: 8609 South Dixie Highway Pinecrest, FL 33156 Experience: APCM is an affiliate of Atlantic Pacific Management and offers onsite property management and full‐service accounting and financial reporting. APCM was formed to provide on‐site management, marketing, administrative, full‐charge accounting, financial reporting, asset management evaluation, and compliance monitoring for APC’s portfolio. APCM manages and performs compliance for properties with a variety of public funding sources, including: 9% and 4% Low‐ Income Housing Tax Credits from FHFC, Texas Department of Housing and Community Affairs, Maryland Department of Housing and Community Development, and District of Columbia Department of Housing and Community Development; local and state tax‐exempt bonds; state gap financing; HUD NSP, HOME, HODAG, and NHTF loans; and operating subsidies such as RAD, Project‐ Based or ACC contract’. Atlantic Pacific Management’s managed portfolio consists of over 21,800 multifamily units, of which nearly 19,000 are owned by APC and the balance are managed on behalf of 3rd party clients, including institutional owners. Management Agreement: The draft Management Agreement between APCM and the Applicant illustrates a monthly management fee of 5.00% per month of gross collections. The term of the Agreement will expire one year after the commencement date. The term shall automatically extend for successive one‐year periods unless either party terminates the Agreement in accordance with the terms and conditions of the Agreement. An executed Management Agreement is a condition precedent to loan closing. Management Plan: According to the Management Plan, APCM will comply with all of the requirements of the applicable Regulatory Agreements, including the Land Use Restriction Agreement. The Management Plan confirms the resident programs committed to in the Application will be implemented at the development. Summary: APCM demonstrates sufficient experience in the management of affordable multifamily housing to serve as the Property Manager for the Development. However, the selection of APCM to manage the Development must be approved by the FHFC’s Asset Management Department prior to lease‐up activity pursuant to Rule Chapter 67‐53, F.A.C. As the Development is MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE PAGE C‐18 November 9, 2023 proposed to be constructed, said approval is not required at loan closing. Continued approval is subject to ongoing satisfactory performance. MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 1, PAGE 1 November 9, 2023 Exhibit 1 Vista Breeze 30‐Year Operating Pro Forma Please note that the DSC is below the FHFC minimum of 1.10x for the combined superior mortgages and SAIL loan as required by Rule 67‐48; therefore, $149,865 of the budgeted ODR will need to be drawn during the first five years of stabilized operations. FINANCIAL COSTS: Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Year 11 Year 12 Year 13OPERATING PRO FORMAGross Potential Rental Income$1,949,220 $1,988,204 $2,027,968 $2,068,528 $2,109,898 $2,152,096 $2,195,138 $2,239,041 $2,283,822 $2,329,498 $2,376,088 $2,423,610 $2,472,082Rent Subsidy (ODR)$58,870$41,455 $28,971 $16,505 $4,065Other Income$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Ancillary Income$7,140$7,283 $7,428 $7,577 $7,729 $7,883 $8,041 $8,202 $8,366 $8,533 $8,704 $8,878 $9,055Gross Potential Income$2,015,230 $2,036,942 $2,064,368 $2,092,610 $2,121,692 $2,159,980 $2,203,179 $2,247,243 $2,292,188 $2,338,031 $2,384,792 $2,432,488 $2,481,138Less:Physical Vac. Loss Percentage: 2.91%$58,691$59,323 $60,122 $60,945 $61,792 $62,907 $64,165 $65,448 $66,757 $68,092 $69,454 $70,843 $72,260Collection Loss Percentage: 0.97%$19,564$19,775 $20,041 $20,315 $20,598 $20,969 $21,389 $21,816 $22,253 $22,698 $23,152 $23,615 $24,087Total Effective Gross Income $1,936,975 $1,957,844 $1,984,205 $2,011,350 $2,039,303 $2,076,104 $2,117,626 $2,159,978 $2,203,178 $2,247,241 $2,292,186 $2,338,030 $2,384,790Fixed:Real Estate Taxes$159,947$164,745 $169,688 $174,778 $180,022 $185,422 $190,985 $196,715 $202,616 $208,695 $214,955 $221,404 $228,046Insurance$178,500$183,855 $189,371 $195,052 $200,903 $206,930 $213,138 $219,532 $226,118 $232,902 $239,889 $247,086 $254,498Variable:Management Fee Percentage: 4.80%$93,905$94,917 $96,195 $97,511 $98,866 $99,671 $101,664 $103,698 $105,772 $107,887 $110,045 $112,246 $114,491General and Administrative$60,690$62,511 $64,386 $66,318 $68,307 $70,356 $72,467 $74,641 $76,880 $79,187 $81,562 $84,009 $86,529Payroll Expenses$178,500$183,855 $189,371 $195,052 $200,903 $206,930 $213,138 $219,532 $226,118 $232,902 $239,889 $247,086 $254,498Utilities$95,200$98,056 $100,998 $104,028 $107,148 $110,363 $113,674 $117,084 $120,597 $124,214 $127,941 $131,779 $135,732Maintenance and Repairs/Pest Control$47,600$49,028 $50,499 $52,014 $53,574 $55,181 $56,837 $58,542 $60,298 $62,107 $63,970 $65,890 $67,866Grounds Maintenance and Landscaping$17,850$18,386 $18,937 $19,505 $20,090 $20,693 $21,314 $21,953 $22,612 $23,290 $23,989 $24,709 $25,450Contract Services$29,750$30,643 $31,562 $32,509 $33,484 $34,488 $35,523 $36,589 $37,686 $38,817 $39,982 $41,181 $42,416Security$44,625$45,964 $47,343 $48,763 $50,226 $51,733 $53,285 $54,883 $56,530 $58,226 $59,972 $61,771 $63,625Reserve for Replacements$35,700$35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $35,700 $36,771 $37,874 $39,010Total Expenses $942,267 $967,659 $994,048 $1,021,229 $1,049,224 $1,077,469 $1,107,725 $1,138,869 $1,170,928 $1,203,927 $1,238,966 $1,275,034 $1,312,163Net Operating Income $994,708 $990,185 $990,157 $990,121 $990,079 $998,635 $1,009,900 $1,021,109 $1,032,250 $1,043,315 $1,053,221 $1,062,996 $1,072,628Debt Service PaymentsFirst Mortgage ‐ HFAMDC / Citi $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733 $799,733Second Mortgage ‐ Viability $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000Third Mortgage ‐ SAIL $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000Fourth Mortgage ‐ SAIL ELI $0$0$0$0$0$0$0$0$0$0$0$0$0Fifth Mortgage ‐ NHTF $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $06th / 7th Mortgages ‐ PHCD / CMB $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500$35,070 $30,547 $30,519 $30,484 $30,441 $32,865 $32,758 $32,640 $32,509 $32,365 $32,207 $32,034 $31,845$10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750 $10,750$8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523 $8,523$3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855 $3,855$4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277 $4,277$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Debt Service Payments$994,708 $990,185 $990,157 $990,122 $990,079 $992,503 $992,396 $992,277 $992,147 $992,003 $991,845 $991,672 $991,483Cash Flow after Debt Service$0 $0($0) ($0) ($0)$6,132 $17,505 $28,831 $40,104 $51,312 $61,376 $71,324 $81,145FINANCIAL COSTS: Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual AnnualDebt Service Coverage RatiosDSC ‐ First Mortgage plus Fees1.19x 1.19x 1.19x 1.19x 1.19x 1.20x 1.21x 1.23x 1.24x 1.25x 1.27x 1.28x 1.29xDSC ‐ Second Mortgage plus Fees1.12x 1.12x 1.12x 1.12x 1.12x 1.13x 1.14x 1.15x 1.17x 1.18x 1.19x 1.20x 1.21xDSC ‐ Third Mortgage plus Fees1.07x 1.07x 1.07x 1.07x 1.07x 1.08x 1.09x 1.10x 1.12x 1.13x 1.14x 1.15x 1.16xDSC ‐ Fourth Mortgage plus Fee1.07x 1.07x 1.07x 1.07x 1.07x 1.08x 1.09x 1.10x 1.11x 1.12x 1.13x 1.15x 1.16xDSC ‐ Fifth Mortgage plus Fees1.06x 1.06x 1.06x 1.06x 1.06x 1.07x 1.08x 1.09x 1.11x 1.12x 1.13x 1.14x 1.15xDSC ‐ 6th / 7th Mortgages and Fees1.00x 1.00x 1.00x 1.00x 1.00x 1.01x 1.02x 1.03x 1.04x 1.05x 1.06x 1.07x 1.08xFinancial RatiosOperating Expense Ratio48.65% 49.42% 50.10% 50.77% 51.45% 51.90% 52.31% 52.73% 53.15% 53.57% 54.05% 54.53% 55.02%Break‐even Economic Occupancy Ratio (all debt)96.26% 96.26% 96.26% 96.26% 96.26% 96.02% 95.51% 95.02% 94.55% 94.11% 93.73% 93.37% 93.03%Fourth Mortgage Fees ‐ SAIL ELI PLS & CMINCOME:EXPENSES:First Mortgage Fees ‐ HFAMDC Admin & Trustee FeesSecond Mortgage Fees ‐ Viability PLS & CMThird Mortgage Fees ‐ SAIL PLS & CMFifth Mortgage Fees ‐ NHTF PLS & CM6th / 7th Mortgage Fees ‐ PHCD / CMB MHRB and SURTAX UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 1, PAGE 1 November 9, 2023 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30$2,623,393 $2,675,861 $2,729,379 $2,783,966 $2,839,645 $2,896,438 $2,954,367 $3,013,454 $3,073,724 $3,135,198 $3,197,902 $3,261,860 $3,327,097 $3,393,639 $3,461,512$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$9,609 $9,802 $9,998 $10,198 $10,402 $10,610 $10,822 $11,038 $11,259 $11,484 $11,714 $11,948 $12,187 $12,431 $12,680$2,633,003 $2,685,663 $2,739,376 $2,794,164 $2,850,047 $2,907,048 $2,965,189 $3,024,493 $3,084,983 $3,146,682 $3,209,616 $3,273,808 $3,339,284 $3,406,070 $3,474,192$75,966 $77,485 $79,035 $80,615 $82,228 $83,872 $85,550 $87,261 $89,006 $90,786 $92,602 $94,454 $96,343 $98,270 $100,235$25,322 $25,829 $26,345 $26,872 $27,410 $27,958 $28,517 $29,087 $29,669 $30,263 $30,868 $31,485 $32,115 $32,757 $33,412$2,531,715 $2,582,349 $2,633,996 $2,686,676 $2,740,410 $2,795,218 $2,851,122 $2,908,145 $2,966,308 $3,025,634 $3,086,146 $3,147,869 $3,210,827 $3,275,043 $3,340,544$249,192 $256,668 $264,368 $272,299 $280,468 $288,882 $297,549 $306,475 $315,669 $325,139 $334,893 $344,940 $355,289 $365,947 $376,926$278,097 $286,440 $295,033 $303,884 $313,001 $322,391 $332,063 $342,024 $352,285 $362,854 $373,739 $384,952 $396,500 $408,395 $420,647$121,544 $123,975 $126,455 $128,984 $131,563 $134,195 $136,879 $139,616 $142,409 $145,257 $148,162 $151,125 $154,148 $157,231 $160,375$94,553 $97,390 $100,311 $103,321 $106,420 $109,613 $112,901 $116,288 $119,777 $123,370 $127,071 $130,884 $134,810 $138,854 $143,020$278,097 $286,440 $295,033 $303,884 $313,001 $322,391 $332,063 $342,024 $352,285 $362,854 $373,739 $384,952 $396,500 $408,395 $420,647$148,318 $152,768 $157,351 $162,072 $166,934 $171,942 $177,100 $182,413 $187,885 $193,522 $199,328 $205,307 $211,467 $217,811 $224,345$74,159 $76,384 $78,676 $81,036 $83,467 $85,971 $88,550 $91,207 $93,943 $96,761 $99,664 $102,654 $105,733 $108,905 $112,173$27,810 $28,644 $29,503 $30,388 $31,300 $32,239 $33,206 $34,202 $35,229 $36,285 $37,374 $38,495 $39,650 $40,840 $42,065$46,350 $47,740 $49,172 $50,647 $52,167 $53,732 $55,344 $57,004 $58,714 $60,476 $62,290 $64,159 $66,083 $68,066 $70,108$69,524 $71,610 $73,758 $75,971 $78,250 $80,598 $83,016 $85,506 $88,071 $90,713 $93,435 $96,238 $99,125 $102,099 $105,162$42,628 $43,906 $45,224 $46,580 $47,978 $49,417 $50,900 $52,427 $53,999 $55,619 $57,288 $59,007 $60,777 $62,600 $64,478$1,430,273 $1,471,966 $1,514,885 $1,559,067 $1,604,549 $1,651,370 $1,699,569 $1,749,187 $1,800,267 $1,852,851 $1,906,984 $1,962,711 $2,020,082 $2,079,143 $2,139,945$1,101,442 $1,110,384 $1,119,111 $1,127,609 $1,135,861 $1,143,848 $1,151,553 $1,158,957 $1,166,041 $1,172,783 $1,179,163 $1,185,158 $1,190,745 $1,195,901 $1,200,600$816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071 $816,071$43,000$43,000$43,000 $0$0$0$0$0$0$0$0$0$0$0$0$30,000$30,000$30,000 $0$0$0$0$0$0$0$0$0$0$0$0$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500 $59,500$31,166$30,899$30,608 $0$0$0$0$0$0$0$0$0$0$0$0$10,750$10,750$10,750 $0$0$0$0$0$0$0$0$0$0$0$0$8,523 $8,523 $8,523 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$3,855 $3,855 $3,855 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$4,277 $4,277 $4,277 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0 $0 $8 $0 $0 $0 $0 $0 $0 $0$1,007,142 $1,006,875 $1,006,584 $875,571 $875,571 $875,571 $875,571 $875,579 $875,571 $875,571 $875,571 $875,571 $875,571 $875,571 $875,571$94,300 $103,509 $112,527 $252,038 $260,290 $268,277 $275,982 $283,378 $290,470 $297,212 $303,592 $309,587 $315,174 $320,330 $325,029Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual1.30x 1.31x 1.32x 1.38x 1.39x 1.40x 1.41x 1.42x 1.43x 1.44x 1.44x 1.45x 1.46x 1.47x 1.47x1.22x 1.23x 1.24x 1.38x 1.39x 1.40x 1.41x 1.42x 1.43x 1.44x 1.44x 1.45x 1.46x 1.47x 1.47x1.17x 1.18x 1.19x 1.38x 1.39x 1.40x 1.41x 1.42x 1.43x 1.44x 1.44x 1.45x 1.46x 1.47x 1.47x1.17x 1.18x 1.19x 1.38x 1.39x 1.40x 1.41x 1.42x 1.43x 1.44x 1.44x 1.45x 1.46x 1.47x 1.47x1.16x 1.17x 1.18x 1.38x 1.39x 1.40x 1.41x 1.42x 1.43x 1.44x 1.44x 1.45x 1.46x 1.47x 1.47x1.09x 1.10x 1.11x 1.29x 1.30x 1.31x 1.32x 1.32x 1.33x 1.34x 1.35x 1.35x 1.36x 1.37x 1.37x56.49% 57.00% 57.51% 58.03% 58.55% 59.08% 59.61% 60.15% 60.69% 61.24% 61.79% 62.35% 62.91% 63.48% 64.06%92.76% 92.48% 92.23% 87.32% 87.21% 87.11% 87.03% 86.97% 86.92% 86.89% 86.88% 86.88% 86.90% 86.93% 86.98% MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 1 November 9, 2023 Vista Breeze Housing Finance Authority of Miami‐Dade County Multifamily Housing Bond Program Features and Amenities • Clubhouse with community/meeting rooms • Central Laundry Facility • Ample Parking • Gated Community with “carded” entry • Computer Center (internet access, facsimile, telephone and tenant e‐mail) Surtax Features and Amenities The proposed Development must meet all federal and state building code requirements, including but not limited to the following: Federal and State Building Code Requirements • Florida Building Code (5th Edition 2014) as adopted pursuant to Section 553.503, F.S. • The Fair Housing Act as implemented by 24 CFR 100 • Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28 CFR35, incorporating the most recent amendments, regulations and rules. • For Public Housing the Uniform Federal Accessibility Standards (UFAS) All Units for the proposed Development must include: • Termite prevention and pest control throughout entire compliance period • Full size stove/range • Primary entrance door with a threshold no more than a ½ inch rise • A clear opening of not less than 32 inches on all exterior doors. This includes the primary entrance door, all sliding glass doors, French doors, other double leaf doors, doors that open onto private decks, balconies, patios, and any other exterior doors • Lever handles on all door handles on primary entrance door and interior doors • Lever handles on all bathroom faucets and kitchen sink faucets • Mid‐point on light switches & thermostats not more than 48 inches above finished floor level • Cabinet drawer handles and cabinet door handles in bathroom and kitchen shall be lever or D‐pull type that operates easily using a single closed fist • Window covering for each window and glass door inside each unit • Energy features outlined in MDC Green Code through Ordinance No. 07‐65 (this Green Building requirement is for Developments using County resources only) and any other applicable requirements of other funding programs included in the Applicant’s submission.  Developers are encouraged to provide laundry hook ups in each unit. However, if individual laundry hook ups are not provided, then an on‐site laundry facility for resident use must be provided. Proposed Developments using Florida Housing Finance Corporation resources must include the features agreed to in the FHFC RFA for which the Applicant is receiving funding or features agreed to in the FHFC Non‐Competitive Application for 4% LIHTCs as well as features agreed to in the local HFA application for tax exempt bond financing. If the successful applicant applies for FHFC funding after a County award, all MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 2 November 9, 2023 features and amenities must be consistent with both the County and FHFC requirements and the proposed development costs must be within the costs previously approved by the County. • Clubhouse with community/meeting rooms • Central Laundry Facility • Ample Parking • Gated community with “carded” entry. • Computer center (internet access, facsimile, telephone, and tenant email) • Daily Activities • Assistance with Light Housekeeping, Grocery Shopping Features for Elderly Housing Developments – Provisions required by R‐617‐18, All developers, borrowers or grantees of Surtax, SHIP or HOME funds for affordable housing shall be required to provide the following: • A kitchen on the first, second or third floor of the building that can be used to cook food for the residents after a natural disaster; • A community room on the first, second or third floor of the development that has air conditioning where residents can go during and after a natural disaster; • A kitchen and/or community room on the first, second or third floor of the development that has water supplied by a pump connected to a generator during and after a natural disaster; • A minimum of one generator to operate the lights, air conditioner and other appliances in a community room and kitchen after a natural disaster and throughout the duration of a power outage. Such generators shall be maintained in good working order and shall be inspected before and after a natural disaster. FHFC Features & Amenities A. The Development will consist of: 119 Units located in 2 Mid‐Rise residential buildings Unit Mix: One hundred nineteen (119) zero bedroom/one bath units: 119 Total Units B. All units are expected to meet all requirements as outlined below. If the proposed Development consists of rehabilitation, the proposed Development’s ability to provide all construction features will be confirmed as outlined in Exhibit F of the FHFC RFA. The quality of the construction features committed to by the Applicant is subject to approval of the Board of Directors. The Development must meet all federal requirements and state building code requirements, including the following, incorporating the most recent amendments, regulations, and rules: The Federal Fair Housing Act as implemented by 24 CFR 100, Florida Accessibility Code for Building Construction as adopted pursuant to Section 553.503, F.S., Section 504 of the Rehabilitation Act MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 3 November 9, 2023 of 1973, and Titles II and III of the Americans with Disabilities Act (“ADA”) of 1990 as implemented by 28 CFR 35. All Developments must meet accessibility standards of Section 504. Section 504 accessibility standards require a minimum of 5 percent of the total dwelling units, but not fewer than one unit, to be accessible for individuals with mobility impairments. An additional 2 percent of the total units, but not fewer than one unit, must be accessible for persons with hearing or vision impairments. All of the accessible units must be equally distributed among different unit sizes and Development types and must be dispersed on all accessible routes throughout the Development. C. The Development must provide the following General Features: 1. Broadband infrastructure which includes cables, fiber optics, wiring, or other infrastructure, as long as the installation results in accessibility in each unit; 2. Termite prevention; 3. Pest control; 4. Window covering for each window and glass door inside each unit; 5. Cable or satellite TV hook‐up in each unit and, if the Development offers cable or satellite TV service to the residents, the price cannot exceed the market rate for service of similar quality available to the Development’s residents from a primary provider of cable or satellite TV; 6. Washer and dryer hook ups in each of the Development’s units or an on‐site laundry facility for resident use. If the proposed Development will have an on‐site laundry facility, the following requirements must be met:  There must be a minimum of one (1) Energy Star certified washer and one (1) Energy Star certified or commercial grade dryer per every 15 units. To determine the required number of washers and dryers for the on‐site laundry facility; divide the total number of the Developments’ units by 15, and then round the equation’s total up to the nearest whole number;  At least one washing machine and one dryer shall be front loading that meets the accessibility standards of Section 504;  If the proposed Development consists of Scattered Sites, the laundry facility shall be located on each of the Scattered Sites, or no more than 1/16 mile from the Scattered Site with the most units, or a combination of both. 7. At least two full bathrooms in all 3 bedroom or larger new construction units; 8. Bathtub with shower in at least one bathroom in at least 90% of the new construction non‐ Elderly units; 9. Elderly Developments must have a minimum of one elevator per residential building provided for all Elderly Set‐Aside Units that are located on a floor higher than the first floor. MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 4 November 9, 2023 10. Elderly Demographic Developments that are new construction units must have a full‐size range and oven. D. Required Accessibility Features, regardless of the age of the Development: Federal and state law and building code regulations requires that programs, activities, and facilities be readily accessible to and usable by persons with disabilities. Florida Housing requires that the design, construction, or alteration of its financed Developments be in compliance with federal and state accessibility requirements. When more than one law and accessibility standard applies, the Applicant shall comply with the standard (2010 ADA Standards, Section 504, Fair Housing Act, or Florida Building Code, Accessibility) which affords the greater level of accessibility for the residents and visitors. Areas required to be made accessible to mobility‐impaired residents and their visitors, including those in wheelchairs, shall include, but not be limited to, accessible routes and entrances, paths of travel, primary function areas, parking, trash bins, mail and package receiving areas for residents, pool and other amenities, including paths of travel to amenities and laundry rooms, including washers and dryers. E. The Development must provide the following Accessibility Features in all units: 1. Primary entrance doors on an accessible route shall have a threshold with no more than a ½‐ inch rise; 2. All door handles on primary entrance door and interior doors must have lever handles; 3. Lever handles on all bathroom faucets and kitchen sink faucets; 4. Mid‐point on light switches and thermostats shall not be more than 48 inches above finished floor level; and 5. Cabinet drawer handles and cabinet door handles in bathroom and kitchen shall be lever or D‐pull type that operate easily using a single closed fist. F. All Elderly (ALF or Non‐ALF) Demographic Developments must provide the following Accessibility Features:  20 percent of the new construction units must have roll‐in showers.  Horizontal grab bars in place around each tub and/or shower, or a Corporation‐approved alternative approach for grab bar installation. The installation of the grab bars must meet or exceed 2010 ADA Standards for Accessible Design, Section 609. In addition, the following standards for grab bars are required: o If a bathtub/shower combination with a permanent seat is provided, grab bars shall be installed to meet or exceed 2010 ADA Standards for Accessible Design, Section 607.4.1. MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 5 November 9, 2023 o If a bathtub/shower combination without a permanent seat is provided, grab bars shall be installed to meet or exceed 2010 ADA Standards for Accessible Design, Section 607.4.2. o If a roll‐in shower is provided, grab bars shall be installed to meet or exceed 2010 ADA Standards for Accessible Design, Section 608.3.2;  Reinforced walls for future installation of horizontal grab bars in place around each toilet, or a Corporation‐approved alternative approach for grab bar installation. The installation of the grab bars must meet or exceed the 2010 ADA Standards for Accessible Design;  All bathrooms in all new construction units must have vanity cabinets with at least one roll‐out shelf or drawer in bottom of cabinet;  Adjustable shelving in master bedroom closets (must be adjustable by resident); and  In one of the kitchen’s base cabinets, there shall be a large bottom drawer that opens beyond full extension, also referred to as an “over‐travel feature.” Drawers with the over‐ travel feature allow drawers to extend completely past the cabinet front so all the contents can be accessed. The drawer shall be deep and wide enough to store pots and pans and the drawer slides shall have a weight load rating of a minimum of 100 pounds. The drawers shall be mounted on a pair of metal side rails that are ball‐bearing. G. Green Building Features required in all Developments: All new construction units and, as applicable, all common areas must have the features listed below and all rehabilitation units are expected to have all of the following required Green Building features unless found to be not appropriate or feasible within the scope of the rehabilitation work utilizing a capital needs assessment as further explained in Exhibit F of the FHFC RFA: a. Low or No‐VOC paint for all interior walls (Low‐VOC means 50 grams per liter or less for flat; 150 grams per liter or less for non‐flat paint); b. Low‐flow water fixtures in bathrooms – WaterSense labeled products or the following specifications: i. Toilets: 1.28 gallons/flush or less, ii. Urinals: 0.5 gallons/flush, iii. Lavatory Faucets: 1.5 gallons/minute or less at 60 psi flow rate, iv. Showerheads: 2.0 gallons/minute or less at 80 psi flow rate; c. Energy Star certified refrigerator; d. Energy Star certified dishwasher; e. Energy Star certified ventilation fan in all bathrooms; f. Water heater minimum efficiency specifications:  Residential Electric: MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 6 November 9, 2023 i. Up to 55 gallons = 0.95 EF or 0.92 UEF; or ii. More than 55 gallons = Energy Star certified; or iii. Tankless = 0.97 EF and Max GPM of ≥ 2.5 over a 77◦ rise or 0.87 UEF and GPM of ≥ 2.9 over a 67◦ rise;  Residential Gas (storage or tankless/instantaneous): Energy Star certified  Commercial Gas Water Heater: Energy Star certified; g. Energy Star certified ceiling fans with lighting fixtures in bedrooms; h. Air Conditioning (in‐unit or commercial): i. Air‐Source Heat Pumps – Energy Star certified: a. ≥8.5 HSPF/ ≥15 SEER/ ≥12.5 EER for split systems b. ≥8.2 HSPF/ ≥15 SEER/ ≥12 EER for single package equipment including gas/electric package units ii. Central Air Conditioners – Energy Star certified: a. ≥15 SEER/ ≥12.5 EER* for split systems b. ≥15 SEER/ ≥12 EER* for single package equipment including gas/electric package units. NOTE: Window air conditioners and portable air conditioners are not allowed. Package Terminal Air Conditioners (PTACs) / Package Terminal Heat Pumps (PTHPs) are allowed in studio and 1 bedroom units; In addition to the required Green Building Features outlined above, proposed Developments with a Development Category of New Construction or Redevelopment, with or without acquisition, must commit to achieve one of the following Green Building Certification programs: __X__ Leadership in Energy and Environmental Design (LEED); or ______ Florida Green Building Coalition (FGBC); or ______ ICC 700 National Green Building Standard (NGBS); or ______ Enterprise Green Communities. H. Applicants who select the Elderly (ALF or Non‐ALF) Demographic must provide the required following Resident Program: 24 Hour Support to Assist Residents In Handling Urgent Issues An important aging in place best practice is providing the residents access to property management support 24 hours per day, 7 days a week to assist them to appropriately and efficiently handle urgent issues or incidents that may arise. These issues may include, but are not limited to, an apartment maintenance emergency, security or safety concern, or a health risk incident in their apartment or on the property. The management’s assistance will include a 24/7 approach to receiving residents’ requests for assistance that will include a formal written process for relevant property management staff to effectively assess and provide assistance for each request. MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 7 November 9, 2023 This assistance may include staff: • visiting or coordinating a visit to a resident’s apartment to address an urgent maintenance issue; • responding to a resident being locked out of their apartment; • contacting on‐site security or the police to address a concern; • providing contact information to the resident and directing or making calls on a resident’s behalf to appropriate community‐based emergency services or related resources to address an urgent health risk incident; • calling the resident’s informal emergency contact; or • addressing a resident’s urgent concern about another resident. Property management staff shall be on site at least 8 hours daily, but the 24‐ hour support approach may include contracted services or technology to assist the management in meeting this commitment if these methods adequately address the intent of this service. The Development’s owner and/or designated property management entity shall develop and implement policies and procedures for staff to immediately receive and handle a resident’s call and assess the call based on a resident’s request and/or need. At a minimum, residents shall be informed by the property management, at move‐in and via a written notice(s)/instructions provided to each resident and displayed in the Development’s common or public areas, that staff are available to receive resident calls at all times. These notices shall also provide contact information and direction to first contact the community‐based emergency services if they have health or safety risk concerns. I. The Applicant must provide the following Resident Programs: The quality of the Resident Programs committed to by the Applicant is subject to approval of the Board of Directors. The availability of the Resident Programs must be publicized on an ongoing basis such as through community newsletters, bulletin board posts, or flyers. 1. Daily Activities The Applicant or its Management Company must provide on‐site supervised, structured activities, at no cost to the resident, at least five days per week which must be offered between the hours of 8:00 a.m. and 7:00 p.m. If the Development consists of Scattered Sites, this resident program must be provided on the Scattered Site with the most units. 2. Computer Training The Applicant or its Management Company shall make available computer and internet training classes (basic and/or advanced level depending on the needs and requests of the residents). The training classes must be provided at least once a week, at no cost to the resident, in a dedicated space on site. Training must be held between the hours of 8:00 a.m. and 7:00 p.m., and electronic media, if used, must be used in conjunction with live instruction. If the Development consists of Scattered Sites, this resident program must be provided on the Scattered Site with the most units. MHRB and SURTAX CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 2, PAGE 8 November 9, 2023 3. Assistance with Light Housekeeping, Grocery Shopping and/or Laundry The Applicant or its Management Company must provide residents with a list of qualified service providers for (a) light housekeeping, and/or (b) grocery shopping, and/or (c) laundry and will coordinate, at no cost to the resident, the scheduling of services. The Developer or Management Company shall verify that the services referral information is accurate and up‐ to‐date at least once every six months. VIABILITY, SAIL, ELI, NHTF AND HC CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 3, PAGE 1 November 9, 2023 DEVELOPMENT NAME: Vista Breeze DATE: November 9, 2023 In accordance with the applicable Program Rule(s), the Applicant is required to submit the information required to evaluate, complete, and determine its sufficiency in satisfying the requirements for Credit Underwriting to the Credit Underwriter in accordance with the schedule established by the HFAMDC and PHCD. The following items must be satisfactorily addressed. “Satisfactorily” means that the Credit Underwriter has received assurances from third parties unrelated to the Applicant that the transaction can close within the allowed timeframe. Unsatisfactory items, if any, are noted below and in the “Issues and Concerns” section of the Executive Summary. FINAL REVIEW REQUIRED ITEMS: STATUS NOTE Satis. / Unsatis. 1. The development’s final “as submitted for permitting” plans and specifications. Note: Final “signed, sealed, and approved for construction” plans and specifications will be required thirty days before closing. Satis. 2. Final site plan and/or status of site plan approval. Satis. 3. Permit Status. Satis. 4. Pre‐construction analysis (“PCA”). Satis. 5. Survey. Satis. 6. Complete, thorough soil test reports. Satis. 7. Full or self‐contained appraisal as defined by the Uniform Standards of Professional Appraisal Practice. Satis. 8. Market Study separate from the Appraisal. Satis. 9. Environmental Site Assessment – Phase I and/or the Phase II if applicable (If Phase I and/or II disclosed environmental problems requiring remediation, a plan, including time frame and cost, for the remediation is required). If the report is not dated within one year of the application date, an update from the assessor must be provided indicating the current environmental status. Satis. 10. Audited financial statements for the most recent fiscal year ended or acceptable alternative as stated in Rule for credit enhancers, applicant, general partner, principals, guarantors, and general contractor. Satis. 11. Resumes and experience of applicant, general contractor, and management agent. Satis. 12. Credit authorizations; verifications of deposits and mortgage loans. Unsatis. 4 13. Management Agreement and Management Plan. Unsatis. 3 14. Firm commitment from the credit enhancer or private placement purchaser, if any. N/A 15. Firm commitment letter from the syndicator, if any. Satis. 16. Firm commitment letter(s) for any other financing sources. Satis. 17. Updated sources and uses of funds. Satis. 18. Draft construction draw schedule showing sources of funds during each month of the construction and lease‐up period. Satis. 19. Fifteen‐year income, expense, and occupancy projection. Satis. VIABILITY, SAIL, ELI, NHTF AND HC CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 3, PAGE 2 November 9, 2023 FINAL REVIEW REQUIRED ITEMS: STATUS NOTE Satis. / Unsatis. 20. Executed general construction contract with “not to exceed” costs. Unsatis. 6, 7 21. HC ONLY: 15% of the total equity to be provided prior to or simultaneously with the closing of the construction financing. Satis 22. Any additional items required by the credit underwriter. Unsatis. 1, 2, 5, 8, 9, 10, 11, 12 NOTES AND DEVELOPER RESPONSES: 1. PHCD approval of a Debt Service Coverage (“DSC”) below a 1.10x to 1.00 during the first 15 years of stabilized operations for the Development is a condition precedent to loan closing. 2. FHFC Board approval of an RFA waiver for the proposed Applicant ownership structure is a condition precedent to loan closing. 3. Receipt of an executed Management Agreement is a condition precedent to loan closing. 4. Receipt of the tax ID# for Vista Breeze HACMB, Inc., the General Partner in the transaction, and a satisfactory credit report for the entity is a condition precedent to loan closing. 5. Receipt of a P&P bond in the full amount of the Construction Contract is a condition precedent to loan closing. 6. Receipt of an executed Construction Contract is a condition precedent to loan closing. 7. Any changes to the Construction Contract as underwritten herein will require review and opinion by the construction consultant retained by AmeriNat. This is a condition precedent to loan closing. 8. Receipt of an executed HUD HAP contract consistent with the number of units, rents, and contract length as has been underwritten herein is a condition precedent to loan closing. 9. Completion of the HUD Section 3 pre‐construction conference is a condition precedent to loan closing. 10. The Development shall meet the Section 3 requirements of the Housing and Urban Development Act of 1968 as amended (12 U.S.C. 1701u and 24 CFR Part 135) is a condition precedent to loan closing. 11. Satisfactory receipt of the Affirmative Fair Housing Marketing Plan is a condition precedent to loan closing. 12. Per FHFC Rule 67‐48 the minimum DSC ratio shall be 1.10x for the SAIL Loan, including all superior mortgages. However, per Rule 67‐48, if the Applicant defers at least 35% of its Developer Fee following the last disbursement of all permanent sources of funding identified in the final credit underwriting report and, in the case of a Housing Credit Development, the final cost certification documentation, and when VIABILITY, SAIL, ELI, NHTF AND HC CREDIT UNDERWRITING REPORT AMERINAT VISTA BREEZE EXHIBIT 3, PAGE 3 November 9, 2023 the primary expected source of repayment has been identified as projected cash flow, the minimum DSC shall be 1.00x for the SAIL Loan, including all superior mortgages. The Applicant will be required to show permanent Deferred Developer Fee of at least 35% as the SAIL Loan DSC is 1.07x is a condition precedent to loan closing.