ST.

JOSEPHS IS A UNIQUE BUT UNDERUTILIZED HISTORIC SITE

Lower San Antonio District Oakland Historic Landmark 3 acre site, 6 buildings Buildings range in condition from decent to dilapidated
St. Josephs Court
2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

OUR VISION: A REVITALIZED MIXED USE DEVELOPMENT

New residential construction Rental units 63 100% affordable units Renovation of 80,000 sq ft of commercial space, for
Health care providers Social service organizations Non-profits

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

OUR DEVELOPMENT VISION IS PREDICATED ON 5 PRINCIPLES

Development Principles Feasibility Address Unmet Needs Create Opportunity

Build Community
Develop with Environment in Mind

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AGENDA

Site Location & Community Overview Site Design Community Support & Services Financing Residential & Commercial

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

THE MOST DIVERSE COMMUNITY IN THE COUNTRY

Large Asian, black, and mixed race populations

Large immigrant community

1990-2000 Geographic Comparison of Race Percentages
100%

75%

50%

25%

2 or more races Other Asian Black Native American White

0% '90 '00 '90 '00 '90 '00 '90 '00 '90 '00

Lower San Antonio

Oakland

Alameda County

California

USA

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DESPERATE NEED FOR AFFORDABLE HOUSING

Increasing rents High rent burden for low-income households Inadequate supply of affordable housing
2004 Shortfall of Affordable Housing
60,000 50,000 40,000 30,000

54,000

22,000
20,000 10,000 0 Units Needed Units Available

Poor condition of existing affordable housing

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AGENDA

Site Location & Community Overview Site Design Community Support & Services Financing Residential & Commercial

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

RESIDENTIAL UNITS NEIGHBOR COMMERCIAL BUILDINGS

Hismen Hin-Nu Terrace

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DESIGNING AFFORDABLE UNITS FOR FAMILIES

5/F: 4/F: 3/F: Residential Units Residential Units Residential Units

2/F:

Courtyard + Community Room + Residential Units

G/F:

Podium Parking Structure

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DESIGN COMPLEMENTS HISTORIC SITE AND MEETS RESIDENTS NEEDS

A. North Elevation

B. East Elevation

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DESIGN CREATES THREE NEW COMMUNITY SPACES

Shared Private

Public

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DESIGN IMPROVES SITE CIRCULATION AND PARKING

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

ABUNDANT SERVICES & AMENITIES IN NEIGHBORHOOD

7 Public Schools 2 Libraries 3 Parks & Rec Centers 2 Major Hospitals Many Physicians, Care Centers and Pharmacies Numerous Places of Worship Ample & Growing Retail, Restaurants & Groceries

St. Joseph Site Bank Gas Stations Supermarket/ Large Convenience Store Pharmacy Post Office Restaurant

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

CONVENIENT ACCESS TO PUBLIC TRANSPORTATION

BART
Downtown Oakland Downtown San Francisco

AC Transit Distance & Local Bus Lines

Over 50 lines within walking distance Express Service to: Downtown Oakland, Berkeley, San Francisco, Santa Clara County, and Stanford

St. Josephs Place is situated on a key transit corridor connecting the greater Bay Area

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AGENDA

Site Location & Community Overview Site Design Community Support & Services Financing Residential

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

63 100% AFFORDABLE UNITS

St. Joseph's Unit Mix (Total 63 Units + 1 2-Bd Manager's Unit) 3 Bd 40% 1 Bd 17% 2 Bd 43%

St. Joseph's Rent Comparison:

LSA Median vs. Weighted Average St. Joseph's
$1,600

$1,475

Monthly Gross Rents

$1,400 $1,200 $1,000 $800

$925 $750 $571

$912

St. Joseph's Affordability Mix Average = 38% AMI 10 9 50% AMI 30% AMI 35% AMI 40% AMI 17 27

$676

$600
$400 $200 $0 1 Bd: 2 Bd: 3 Bd: LSA Median

Weighted Average St. Joseph's

Average AMI = 38% Income: $17,000 - $45,000

St. Josephs Court
2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

RENTAL UNITS: FINANCING SOURCES AND USES

PRIMARY SCENARIO
NOI During Lease-up ($.04) AHP Grant ($.41) Developer equity 1st Mortgage: Tax-Exempt Private Activity Bonds MHP Loan

$20.9 MM
$0.85 MM $1.56 MM

$20.9 MM
$0.91 MM $2.12 MM
Financing Costs Land Costs

$5.22 MM

$4.79 MM

Soft Costs

City of Oakland

$5.31 MM

$13.06 MM
4% tax credits

Hard Costs

$7.50 MM

Sources

Uses

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AGENDA

Site Location & Community Overview Site Design Community Support & Services Financing Commercial

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

REHABILITATION IS FINANCIALLY FEASIBLE

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sources Uses
Citibank $5.7 MM Purchase Price $5.9 MM

$9.7 MM
Op. Inc. $0.6 MM HRTC $0.5 MM Equity Partners $2.0 MM LISC $0.7 MM

$9.7 MM Other Equity

Financing Costs $0.9 MM Hard Costs $1.7 MM

Soft Costs $1.1 MM

Loans

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

COMMERCIAL RENTS ARE BELOW SUBMARKET AVERAGE

Per Square Foot Rent Comparison
$1.75
$1.58 $1.69

$1.50
$1.34

$1.25 $1.00 $0.75 $0.50 $0.25 $0.00 Current Post-Rehab Market

Stabilized in 3rd year post-rehab Anticipate rise in vacancy in first year Cash back through increased TIs Reduce disparity in rents

Generate Leveraged IRR of 18% Generate Unleveraged IRR of 12%

Repositioned commercial assets offer attractive investment opportunity and will have positive impact on community

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

TAX CREDIT EQUITY CAN ENHANCE INVESTORS MONIES

$2,500,000
$2.1 MM

Considered Two Options:

Historical Rehabilitation Tax Credits

$2,000,000

$1,500,000

$1.3 MM

NMTC
$1,000,000

Relatively small tax incentive 20% of rehab costs Discounted to $0.90 on the dollar Preferred distribution of 3% CFAF
New Markets Tax Credits

$0.3 MM

$500,000
$0.5 MM

HRTC

$0 Tax Credit Equity

Allocation uncertain at time of proposal 39% of equity investment Discounted to $0.52 on the dollar Preferred distribution negotiable (6-12%)

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

CURRENT & FUTURE RENT DISTRIBUTION

Rents Today
$1.80 $1.70 $1.60

Rents in First Stabilized Year

$1.80 $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70

Rent PSF/Month

$1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 Com m ercial Non-Profit Medical

Com m ercial

Non-Profit

Medical

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

CURRENT TENANTS BY TYPE AND RENT RANGE

20 18 16 $1.80 $1.70 $1.60 $1.50 $1.40 $1.30 10 $1.20 8 6 4 2 0 $1.10 $1.00 $0.90 $0.80 $0.70

Number of Leases

14 12

Rent PSF/Month

Commercial

Non-Profit

Medical

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

CURRENT TENANTS BY TYPE AND LEASE DISTRIBUTION

20 18 16
Number of Leases
16
18 2009 2008

14 12 10 8 6 4 2 0

Uncertain 2007 2008 11 2008 2006 2007 2006

2005
2006 Month to Month Month to Month 2005 Month to Month

Commercial

Non-Profit

Medical

Leases on approximately 20% of rentable space extend to 2007 or beyond.

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

HRTC CALCULATION & STRUCTURE

HRTC Calculation HRTC Structuring National Park Service
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000

$3.4M Devel. Fee

application for certification

HRTC Certification
Technical State Historic assistance Preservation Office

Soft Costs

Property Owner
Renovation of historic property
$0.6M 20%

equity

credits

Limited Partnership
equity

Hard Costs

$0.5M 90%
Equity

credits
credits claimed

$0

Equity Investor

IRS

Basis

Allocation

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

NEW MARKETS TAX CREDIT STRUCTURE

NMTC Structuring IRS
credits claimed

CDFI Fund

Technical assistance

NMTC are provided in a variety of ways:

Loans Equity Technical assistance

Investors
equity credits

credits

Community Development Entity (CDE)

qualified investments

Structures also vary widely:

Type & Legal Terms Level of Risk Hurdle Rate

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

DEAL STRUCTURE WITH TAX CREDIT & CASH PARTNERS

The Sandwich Lease or Master Tenant Structure:

Equity Investors

Developer

Commercial Lenders

US Treasury

General Partners/ Landlord

Lease Payments/ Excess Cash

Tax Credit Equity Investor (CDE) Limited Partnership/ Owning Entity

Master Lease

Limited Lease Payments

St. Josephs Court

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

COMPARISON OF LIHTC, HRTC, AND NMTC

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

FINANCIAL PERFORMANCE

Leveraged Internal Rate of Return. 18% Unleveraged Internal Rate of Return. 12% Internal Rate of Return on $1M Equity Investment 14% Minimum DCR on First Mortgage.. 1.37 Ten Year Sale/Refinance Value (10.5% cap rate)... $12.2 M Net Present Value (11% discount rate) .... $1.7 M

St. Josephs Court commercial development is an attractive investment opportunity that exceeds expected returns and financial metrics while benefiting the local community

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

TAX CREDIT EQUITY INVESTMENTS

Historical Rehabilitation Tax Credits (HRTC)
Basis calculated as 20% of qualified costs Excludes purchase price Includes 20% developer fee Excludes parking and landscaping Meets Substantial Rehab Test Qualified expenses exceed adjusted basis in building Assumes 20% developer fee, which added to qualified costs yields basis of $3.4 M which is roughly cost allocated to building alone $0.90 cents on the dollar assumed for tax credit equity invested Equity investor requires 3% preferred distribution after debt service

New Markets Tax Credits (NMTC)

Did not include with original financing proposal b/c: Investors could not commit due to uncertain in new allocations (made this week) Remaining allocation is scarce Can pursue only if deal is infeasible without them based on conversations, its realistic to assume that we could get an additional $1M in equity the tail of the dog have to be further along on other sources of funding before can attract this investment Could attract better investment terms from lenders Basis calculated as 39% of equity investment Loans can be invested as equity if CDE is used as conduit HRTC equity included $0.52 cents on dollar assumed for tax credit equity invested Tax credit earned over 7 years, thus the substantial discount Total 1.6M if loans included as equity 0.3M if $1M equity and HRTC used Optimal solution = $590K in additional equity, which yields NMTC of $427K and covers $1.017M gap

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

LOAN TERMS

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

PRO FORMA NOI BUILD-UP

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

PRO FORMA CFAF BUILD-UP

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

IRR ANALYSIS BUILD-UP

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

ALTERNATE SCENARIO: 9% TAX CREDITS

SOURCES OF FUNDS 1st Mortgage: Taxable Bonds Oakland Redevelopment Agency AHP Loan NOI During Leasup Tax Credit Investor Proceeds AMOUNT $1,668,379 $7,241,298 $409,500 $36,799 $11,298,977 SOURCES OF FUNDS Hard Costs Land Costs Residential Construction Community Space Construction Parking Site Work and Offsites General Conditions Contractor Insurance and Bond Contingency Contractor Overhead and Profit Soft Costs Local Permits and Fees Architecture & Engineering Financing Costs Taxes and Insurance Developer fee - net Capitalized Operating Reserve Other Soft Costs Total AMOUNT

$2,124,175 $8,300,400 $703,440 $1,372,500 $385,120 $538,073 $225,991 $854,648 $683,731 $1,186,525 $732,555 $1,058,257 $233,227 $1,400,000 $217,598 $638,712 $20,654,951

Total

$20,654,951

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

CONSTRUCTION FINANCING
Tax-Exempt Construction Loan (Wells Fargo) Oakland Redevelopment Agency AHP Loan TOTAL $13,210,173 $5,308,005 $409,500 $18,927,678

FIGURE 5: Construction Loan Loan Terms Loan Term Interest Rate Draw Down Loan Fees Amount Construction Period Interest Fees Loan Available for Construction Costs Test: 50% of project costs are funded with tax exempt bonds Tax-Exempt Construction Loan 24 4.48% 0.55 0.70% 732,372 92,471 13,210,173 65.22%

Ratio Tests for Construction Loan First Mortgage 1,563,884 Tax Credits 7,502,057 St. Josephs Court Oakland CityStanford Housing Team Bank of America Low-Income Housing Challenge Tax Increment 5,308,005 2005

ACQUISITION COST ALLOCATION

Total Acquisition Price Total Site area (SF) Current comparable land cost in Oakland (per sf) Total Land Value Land Cost Allocation to Commercial Land Cost Allocation to Affordable Value of buildings (acquisition cost less land value) Total Building Square feet SF allocated to Commercial SF Allocated to Affordable / res (including demolition) Building cost allocated to commercial Building cost allocated Affordable/res Total Cost Allocated to Commercial Total Cost Allocated to Affordable/res Total

$8,000,000 135,147 $25

$3,378,675

Negotiated sale price

1,689,338 1,689,338 4,621,325 93,630 84,940 8,690

$4,192,410 $428,915 74% 26% $5,881,747 $2,118,253

91% 9%

$8,000,000

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

OFF-SITES AND SITE IMPROVEMENTS

Off-sites: utility linking costs on side street ($50k) Site Improvements ($255k) Grading Landscaping Paving

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AFFORDABLE HOUSING PROGRAM (AHP)

AHP is a grant provided through the Federal Home Loan Bank of San Francisco Uses Finance the purchase, construction, or rehabilitation of owner-occupied housing by or for very low-, low-, and moderate-income households Finance the purchase, construction, or rehabilitation of rental housing in which at least 20% of the units are occupied by and affordable for very low-income households Terms The funding can be written as a loan in case the development defaults on meeting its affordability requirements. In that case, the grant converts to a loan Maximum subsidy of $1 million per project $6,500 per unit Tax credit investor prefers that it be structured as a loan so the interest can accrue and the tax credit investor can claim additional losses the interest is deferred and non-cash Application Process For rental projects, at least 20% of the total units in the project (income-restricted and nonincome-restricted) must be set aside for very low-income households, i.e., those with incomes at or below 50% of Area Median Income (AMI)

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

MULTIFAMILY HOUSING PROGRAM (MHP) GENERAL FUNDING

The MHP loan is offered through the California Department of Housing and Community Development (HCD) Uses These funds are available as permanent financing for affordable multifamily rental and transitional housing developments Terms Loans will have 55-year terms, and bear simple interest at the rate of three percent per year. For the first 30 years, annual interest payments will be required in the amount of 0.42 percent of the outstanding principal loan balance. Specifies developer fee cash payout limit 1.20 debt coverage ratio limit will be applied using the maximum rents allowable Actual payment: The tables with income levels tells you the max you can get Application Process The maximum loan per project is $10,000,000. The maximum loan amount per restricted unit is a function of unit size, location, and affordability level see test in document exhibit The maximum possible income and rent limits are those set by the Tax Credit Allocation Committee (TCAC) Scoring: Affordability: Awards up to 35 points based on AMI% level, unit mix, uses of other funds, and other factors (see following slides)

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

KEY UNDERWRITING ASSUMPTIONS

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

MHP SCORECARD
MHP Score Card - Summary
Section 7320 (b) (1)-(7) of the MHP Regulation

SECTION
Extent Project Serves Households at the Lowest Income Levels (1) Maximum 35 Extent Project Addresses the Most Serious Identified Housing Needs (2) Maximum 15 Development and Ownership Experience of the Project Sponsor (3) Maximum 20 Percentage of Units for Families or Special Needs Population and "At-Risk" Rental Housing Developments (4) Maximum 35 Leverage of Other Funds (5) Maximum 20 Project Readiness (6) Maximum 15 Adaptive Reuse, Infill, or Proximity to Site Amenity (7) Maximum 10

Self Score 35 15 20

35

20 15 10

Total Point Score - Max 150

Self Scoring Total Notes (1) See MHP Exhibit 1 (2) 5 points for support of city council, city planning , etc; plus 10 points because >70% of units are 2 or more bedroom and project is in Alameda County (3) BRIDGE satisfies criteria (4) See MHP Exhibit 2 (5) See MHP Exhibit 3 (6) Project expected to meet project readiness criteria (7) Adaptive Reuse 150

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

MHP SCORECARD (CONTD)

MHP Exhibit 1 Total Number of Restricted Units in the Project (do not include the manager's unit, unless it is Restricted) 63 Points Awarded

Restricted Units Designated for Households with Incomes of

MHP Level A or less MHP Level B or less

Number of Restricted Units in this Category

17 9 Maximum 35

% Of Total Restricted Units in this Category

26.98% 14.29%

Scoring Factor

0.75 1.0 35

20 14

MHP Exhibit 2 Total Number of Project Units (include the manager's unit) B Unit Size or Designation 2 Bedroom 3+ Bedroom Total Point Award (maximum 35) C D E Scoring Factor 0.2 0.7

A 64 F Points Awarded 8.75 27.34 35

Number of % Of Total Project Units in this Units in this Category Category 28 25 43.75% 39.06%

MHP Exhibit 3 A Permanent Non MHP Funding Amount (Exclude other funds to be used with the NSSS funds) $15,667,744 D. MHP Funds Requested Non-Rural Projects B % of Total Non-MHP Funding Amount Attributable to 1, 2 Restricted Units 100% Exclude NSSS funding Point Award

C Dollar Amount of Permanent NonMHP Funds Attributable to Restricted Units (A X B) $15,667,744 $5,222,581

C divided by D (as a percentage) less 100 divided by 5, rounded down to the next whole number, x 0.5 will equal the point award, to a maximum of 20 points

20

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

OAKLAND REDEVELOPMENT AGENCY

The City of Oakland Redevelopment Agency will fund up to 40% of total development costs for affordable housing through tax increment financing Uses Available for property acquisition, demolition, construction costs, hard costs, developer fees, relocation costs. Rolls into permanent financing. Terms Structured as a 55-year simple interest soft loan of 3% per annum to be paid out of excess. To the extent payments cant made, they will be deferred for the term of the loan Annual replacement reserves of .6% of construction costs required and operating reserves equal to 6 months of operating expenses (including P&I) required 1% loan fee Application Process At least 20% of units must be below 80% AMI and at least 10% must be below 50% AMI Funds cover any gap between total development costs and other sources of funds up to 40% of total development cost

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

Total Redevelopment Agency Funds Actual % of development costs funded Interest (soft loan) Loan Fees (%) Loan Fees

NOI

Affordable Housing Program (AHP) Maximum AHP Loan Interest rate AHP Loan/Unit During Lease-Up Eligible AHP Units Captures NOI before debt service from permanent Total AHP Loan Requested NOI During Leasup Year 1 NOI Months of pre-interest NOI Total NOI During Leasup

NOI DURING LEASE-UP & FIRST MORTGAGE

1,000,000 0.0% 6,500 63 financing 409,500

$5,308,005 25% 3% 1% $53,080

begins (months 21-24)

147,195 3 36,799

First Mortgage Info Wells Fargo: 1st Mortgage: Tax Exempt Private Activity Bonds $1.6 M 30 Years, 5.7% (10 Year AAA Tax exempt Muni bond index + 1.5%) Required DCR of 1.15

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

PREDEVELOPMENT USES AND SOURCES

FIGURE 1A: Predevelopment Uses Predevelopment Uses

Predevelopment Uses Relocation $40,000 Architectural $549,416 Soils, Survey, Civil, Testing, Envt'l etc. $158,720 Tax Exempt Bond Deposit to CDLAC $15,639 CDLAC Application fee $600 City Planning Fees and Plan Check Fees $60,000 Tax Credit Monitoring Fee and application $34,138 Soft Cost Contingency $15,645 Total $874,159 Note: The predevelopment uses above are captured in the comprehensive "sources & uses" figure above

Predevelopment Sources
CalHFA Predevelopment Finance Program - loans up to $250,000 for predevelopment activities with 4% interest required, a 24 month maximum term, and a 1% finance fee charged at closing. Northern California Community Loan Fund (NCCLF) NCCLF has expressed interest in loaning up to $800,000 for St. Josephs predevelopment activities. Terms call for 6-7% fixed rate interest with a loan-to-value maximum of 100%.

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

AHP SCORECARD

Compares favorably to the rough cutoff of 64 points in the most recent funding round

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

TCAC 4% SCORECARD
4% Tax Credit Scorecard Sub-Category Points Note 1 6 2 3 3 10 4 17 5 10 6 8 7 72.5 8 20 Max Possible 6 3 10 15 10 8 52 20 124 St. Joseph Points 6 3 10 15 10 8 52 20 124 General Partner Experience Management Company Experience Housing Needs Site Amenities Service Amenities Sustainable Building Methods Lowest Income Readiness to Proceed Total

Notes 1 BRIDGE experience meets requirement 2 BRIDGE experience meets requirement 3 Large family project 4 Transit-oriented development strategy - bear bus stops and BART (7 points) Within .5 mile of a public library (2 points) Site is within .25 mile of convenience store (2 points) Within .25 miles of public schools (3 points) Within .5 miles of medical clinic (3 points) 5 Wired for Internet access and educational classes in community center 6 Project will exceed 15% improvement over Title 24 standards (5 points) Also will have energy efficient appliances, fluorescent light fixtures, and water conserving technologies (3 points) 7 Based on project affordability levels, score of 72.5 on TCAC Lowest Income Table 8 Expect to have full readiness to proceed

St. Josephs Court

2005 Stanford Housing Team Bank of America Low-Income Housing Challenge

Public Funds B General Partner Experience C Management Company Experience D Housing Needs E Site Amenities F Service Amenities G Neighborhood Revitalization H Balanced Communities I Sustainable Building Methods J Lowest Income K Readiness to Proceed L State Credit Substitution Total

3 4 5 6 7 8 9 10 11 12 13 14

37 6 3 10 17 10 9 8 72.5 20 2 6 3 10 15 10 9 8 52 20 2 155 6 3 10 15 10 9 8 52 20 2 155

TCAC 9% SCORECARD
9% Tax Credit Scorecard A Cost Efficiency Credit Reduction Public Funds B General Partner Experience C Management Company Experience D Housing Needs E Site Amenities F Service Amenities G Neighborhood Revitalization H Balanced Communities I Sustainable Building Methods J Lowest Income K Readiness to Proceed L State Credit Substitution Total Sub-Category Points Max Possible St. Joseph Points Note 20 20 1 13 2 2 3 37 4 5 6 7 8 9 10 11 12 13 14 6 3 10 17 10 9 8 72.5 20 2 6 3 10 15 10 9 8 52 20 2 155 6 3 10 15 10 9 8 52 20 2 155

Notes 1 Total Adjusted Threshold Limit Basis 15,655,454 Project's Total Eligible Basis 17,841,073 Difference (2,185,620) Calculated % below adjusted threshold basis lim -14.0% Points 13 2 2% voluntary credit reduction - 2 points 3 Committed Public Funds AHP 409,500 City of Oakland 7,241,298 Total 7,650,798 % of total development cost 37% Points 37 4 BRIDGE experience meets requirement 5 BRIDGE experience meets requirement Stanford Housing 2005

Notes 1 Total Adjusted Threshold Limit Basis 15,655,454 Project's Total Eligible Basis 17,841,073 Difference (2,185,620) Calculated % below adjusted threshold basis lim -14.0% Points 13 2 2% voluntary credit reduction - 2 points 3 Committed Public Funds AHP 409,500 City of Oakland 7,241,298 Total 7,650,798 % of total development cost 37% Points 37 4 BRIDGE experience meets requirement 5 BRIDGE experience meets requirement 6 Large family project 7 Transit-oriented development strategy - bear bus stops and BART (7 points) Within .5 mile of a public library (2 points) Site is within .25 mile of convenience store (2 points) Within .25 miles of public schools (3 points) Within .5 miles of medical clinic (3 points) 8 Wired for Internet access and educational classes in community center 9 Fruitvale / Lower San Antonio is a designated Neighborhood Revitalization area with public funds and planning efforts led by city council chair de la Fuente with aggressive involvement from organizations such as the Annie E. Casey Foundation 10 Ineligible for balanced communities points if taking neighborhood revitalization points 11 Project will exceed 15% improvement over Title 24 standards (5 points) Also will have energy efficient appliances, fluorescent light fixtures, and water conserving technologies (3 points) 12 Based on project affordability levels, score of 72.5 on TCAC Lowest Income Table 13 Expect to have full readiness to proceed 14 Agree to exchange Federal tax credits for State credits

St. Josephs Court

Team Bank of America Low-Income Housing Challenge