LIHTC Advisors. The Oaks Apartments. GP Acquisition Opportunity. 84 Units 1911 North Kennedy Street Jerome, ID 83338

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1 LIHTC Advisors The Oaks Apartments 84 Units 1911 North Kennedy Street Jerome, ID GP Acquisition Opportunity

2 LIHTC Advisors W. Explorer Drive Suite 200 Boise, ID CONFIDENTIALITY & DISCLAIMER John Nicolas (phone) (direct) (fax) Jordan Skyles (phone) (direct) (fax) The information contained in this package is confidential and is intended for review solely by the person receiving it directly from LIHTC Advisors. It should not be copied, distributed, nor made available to any person without the written consent from LIHTC Advisors. The information in this package has been obtained from sources we believe reliable. However, LIHTC Advisors has not verified and will not verify, any of the information contained herein and makes no guarantee, warranty, or representation about it. It is the sole responsibility of any interested parties to independently confirm the accuracy and completeness of the information provided herein. All prospective clients must conduct their own due diligence and take appropriate measures to verify all information. Jeff Irish (phone) (direct) (fax) 2 LIHTC ADVISORS THE OAKS I & II 84 UNITS

3 The Oaks Apartments I & II 84 Units 1911 North Kennedy Street Jerome, ID Table of Contents PROPERTY OVERVIEW Description Area Highlights Summary Photos Area Maps FINANCIAL ANALYSIS Financial Summary Income & Expenses Cash Flow Summary Unit Mix Income & Rent Limits Historical AMI, MAX Rent, & FMR COMPARABLE PROPERTIES Rent Comparables Map Rental & Occupancy Statistics Rent Comparable Details DEMOGRAPHIC ANALYSIS Demographic Analysis 3 LIHTC ADVISORS THE OAKS I & II 84 UNITS

4 Property Overview HIGHLIGHTS Well Maintained, Two-Phase LIHTC Property With a PIS Date of 2008 & Bedroom Duplex Style Homes with Attached Double Car Garages Less Than Two Hours from Boise, ID GP Acquisition Opportunity- Property Still Within Credit Delivery Period 4 LIHTC ADVISORS THE OAKS I & II 84 UNITS

5 Property Description The Oaks Apartments I & II is an 84-unit affordable housing community located in Jerome, ID. Jerome is located 15 minutes from Twin Falls, ID and less than two hours Boise, ID. The property has a low historical vacancy and currently is 100% occupied (as of May 2017). The Oaks Apartments I was built and placed into service in 2007 and 2008 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place with Idaho Housing and Finance Association, which requires all units to be rented to income qualifying tenants earning no more than 35%, 45%, and 55% of the Area Median Income. The Oaks Apartments II was built and placed into service in 2008 and 2009 under the Section 42 Low- Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place with Idaho Housing and Finance Association, which requires all units to be rented to income qualifying tenants earning no more than 35%, 40%, 45%, 50%, and 55% of the Area Median Income. The property is still within the credit delivery period and the initial 15-year tax credit compliance period. Please see the Property Summary page for further details. A qualified purchaser can be a non-profit or for-profit entity that agrees to acquire the GP Interests of both phases and to fulfill the obligations to the existing LP investor, current lender, and IHFA affordability restrictions. Residents benefit from 3 bedroom floor plans with full appliance package, washer and dryer hook-ups, attached two car garages with opener, and private fenced backyard. The community features a state of the art fitness center, basketball court, and playground. COMMUNITY AMENITIES Fitness Center Playground Basketball Court Picnic Area UNIT AMENITIES Full Appliance Package Open Floor Plan Attached Two Car Garage with Opener Private Fenced Yard W/D Hook-Ups 5 LIHTC ADVISORS THE OAKS I & II 84 UNITS

6 Area Highlights Jerome is a city in Jerome County, Idaho and has a population of 15,698, up from 7,780 in The city is the county seat of Jerome County and is part of the Twin Falls Micropolitan Statistical Area. Twin Falls is the largest city of Idaho s Magic Valley region with a population of 44,125. Twin Falls is home to the College of Southern Idaho (CSI), a large community college in the northwestern part of the city. Several Idaho universities, including Boise State University, Idaho State University, and the University of Idaho, offer classes on the CSI campus. The nursing program received money from the state budget to construct a state of the art nursing facility which complements the nursing program. Twin Falls, the state s 7th largest city, is the fastest growing city in South-Central Idaho. Twin Falls is the home of cheese producer Glanbia Foods, a major American division of the Irish food company Glanbia, Falls Brand, another awardwinning food company, is located in the southern part of Twin Falls. Other large employers include Amalgamated Sugar Company, makers of White Satin sugar, and Lamb Weston, which has a food processing plant located in west Twin Falls. NEIGHBORHOOD AMENITIES Horizon Elementary School (0.7 miles) Jerome High School (1.2 miles) Jerome Public Library (1.9 miles) Rodley s Family Market (2.7 miles) Walmart (3.9 miles) LOCATION HIGHLIGHTS Population: 15,698 Located 15 miles from Twin Falls, Idaho Twin Falls is home to The College of Southern Idaho which has an enrollment of 9,000 students TOP EMPLOYERS Aardema Dairy Arlo G. Lott Trucking, Inc. Double A Dairy Hilex Poly Jerome Cheese Walmart 6 LIHTC ADVISORS THE OAKS I & II 84 UNITS

7 Property Summary NAME & LOCATION Property Name The Oaks Apartments I & II Property Address 1911 North Kennedy Street Jerome, ID SECTION 42 LIHTC RESTRICTIONS Placed in Service Phase I: 2007 & 2008 Phase II: 2008 & 2009 End of Initial Compliance Period Phase I: 12/31/2022 Phase II: 12/31/2023 End of Extended Use Period Phase I: 12/31/2047 Phase II: 12/31/2048 SITE INFORMATION Assessor s Parcel Number RPJ A Number of Units 84 Number of Buildings 42 Number of Stories 1 Rentable Square Feet 92,820 Year Built Phase I: 2007 & 2008 Phase II: 2008 & 2009 Lot Size Acres Density 6.86 Units/Acre Type of Ownership Fee Simple Landscaping Mature Trees, Shrubs & Grass Topography Relatively Flat UTILITIES Water City of Jerome Electric Idaho Power Gas Intermountain Gas CONSTRUCTION Exterior Stone & Stucco Roof Composite Shingle # OF UNITS RENTABLE SF PLACED INTO SERVICE 84 92,820 Phase I: 2007 & 2008 Phase II: 2008 & 2009 LOT SIZE acres 7 LIHTC ADVISORS THE OAKS I & II 84 UNITS

8 Aerial Map 8 LIHTC ADVISORS THE OAKS I & II 84 UNITS

9 Local Map The Oaks Apartments I & II A Horizon Elementary School (0.7 miles) B Jefferson Elementary School (1.2 miles) C Jerome High School (1.2 miles) D Summit Elementary School (1.5 miles) E D A E F Jerome Middle School (1.8 miles) Jerome Public Library (1.9 miles) B G Ridleys Family Market, Family Dollar, D & B (2.7 miles) F C H Pizza Hut (2.8 miles) I Walmart, Burger King, Taco Bell, Wendy s (3.9 miles) G H I 9 LIHTC ADVISORS THE OAKS I & II 84 UNITS

10 Local Map THE OAKS I & II Jerome Middle School Summit Elementary School Horizon Elementary School Jefferson Elementary School Jerome High School Jerome Public Library 10 LIHTC ADVISORS THE OAKS I & II 84 UNITS

11 Regional Map Twin Falls, ID (15 miles) Mountain Home, ID (73 miles) Boise, ID (116 miles) 11 LIHTC ADVISORS THE OAKS I & II 84 UNITS

12 Financial Analysis 12 LIHTC ADVISORS THE OAKS I & II 84 UNITS

13 Financial Summary- Phase I YE VITAL DATA NOI $76,258 Debt Service $63,016 Net Cash Flow After Debt Service $13,242 T-12 (THROUGH APRIL 2017)- VITAL DATA NOI $74,771 Debt Service $63,016 Net Cash Flow After Debt Service $11,755 Financing- Phase I 1ST MTG - Enterprise Mortgage Investment, Inc Original Loan Amount $762,200 YE 2016 Loan Amount $693,520 Interest Rate 7.35% Amortization Period 360 Maturity Date July 1, 2027 Annual Debt Service $63,016 PROFORMA Debt Coverage Ratio 1.72 PROFORMA- VITAL DATA NOI $108,162 Debt Service $63,016 Net Cash Flow After Debt Service $45, LIHTC ADVISORS THE OAKS I & II 84 UNITS

14 Income & Expenses- Phase I OPERATIONAL ANALYSIS YE 2016 PER UNIT TRAILING-12 (APRIL '17) PER UNIT PROFORMA PER UNIT Rental Income $301,511 $7,538 $302,998 $7,575 $311,922 $7,798 (1) POTENTIAL RENTAL INCOME $301,511 $7,538 $302,998 $7,575 $311,922 $7,798 OTHER RENTAL INCOME Damages $6,274 $157 $6,100 $152 $6,252 $156 Cleaning $3,039 $76 $2,646 $66 $2,712 $68 Misc. Other Income $6,717 $168 $6,658 $166 $6,825 $171 Total Other Rental Income $16,030 $401 $15,404 $385 $15,789 $395 GROSS POTENTIAL INCOME $317,541 $7,939 $318,402 $7,960 $327,711 $8,193 ECONOMIC LOSS Vacancy Loss 3.25% ($9,810) ($245) 2.95% ($8,945) ($224) 3.00% ($9,358) ($234) Bad Debt 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Concessions 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Total Economic Loss 3.25% ($9,810) ($245) 2.95% ($8,945) ($224) 3.00% ($9,358) ($234) EFFECTIVE GROSS INCOME $307,731 $7,693 $309,457 $7,736 $318,353 $7,959 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 11% $34,102 $853 10% $30,578 $764 11% $35,125 $878 (2) Total Property Insurance Expense 3% $9,874 $247 3% $9,569 $239 3% $9,808 $245 Total Property Utility Expense 14% $42,010 $1,050 15% $45,280 $1,132 15% $46,412 $1,160 TOTAL FIXED OPERATIONAL EXP 28% $85,986 $2,150 28% $85,427 $2,136 29% $91,346 $2,284 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 5% $14,709 $368 5% $16,034 $401 5% $16,434 $411 Total Repairs & Maintenance 8% $25,163 $629 7% $22,505 $563 5% $16,000 $400 (3) Total Administrative Expenses 8% $23,700 $592 9% $27,736 $693 5% $15,912 $398 (4) Total Leasing & Marketing 4% $11,147 $279 3% $10,633 $266 1% $2,000 $50 (5) Total Payroll and Salary Expenses 12% $36,681 $917 12% $38,116 $953 12% $39,069 $977 Property Management Fee 6.69% $20,573 $ % $20,722 $ % $15,918 $398 (6) TOTAL VARIABLE OPERATIONAL EXP 43% $131,973 $3,299 44% $135,745 $3,394 33% $105,333 $2,633 TOTAL FIXED & VARIABLE EXP 71% $217,959 $5,449 71% $221,173 $5,529 62% $196,679 $4,917 Reserves & Replacements $13,513 $338 $13,513 $338 $13,513 $338 TOTAL OPERATING EXPENSES 75% $231,472 $5,787 76% $234,686 $5,867 66% $210,192 $5,255 NET OPERATING INCOME $76,258 $1,906 $74,771 $1,869 $108,162 $2, LIHTC ADVISORS THE OAKS I & II 84 UNITS

15 Comments to Income & Expenses- Phase I (1) Rental Income: Actual leased rents per the 6/2017 rent roll annualized. (2) Property Tax Expense: Analysis assumes actual 2016 Property Taxes increased by 3.0% Total Value $1,391,979 Taxes $34, (3) Repairs & Maintenance: Analysis assumes a reduction based on expenses observed at comparable LIHTC properties. (4) Administrative: Analysis assumes the removal of Training/Travel/Meals Expense and a reduction to $500 annually for Data Processing/Computer Expense. (5) Leasing & Marketing: Analysis assumes a reduction due to the historical occupancy of the property being very high and asking the maximum allowable rents. (6) Property Management Fee: Analysis assumes a reduction based on market conditions and expenses observed at comparable LIHTC properties. 15 LIHTC ADVISORS THE OAKS I & II 84 UNITS

16 Cash Flow- Phase I PROPERTY CASH FLOW ANALYSIS Utilize YE, YTD or PROFORMA OPERATIONS Proforma Vac %: 3.00% 3.00% 3.00% 3.00% 3.00% Assumed Annual Income Growth Rate % 2.25% Bad Debt: 0.00% 0.00% 0.00% 0.00% 0.00% Assumed Annual Expense Growth Rate % 2.50% Concess: 0.00% 0.00% 0.00% 0.00% 0.00% CASH FLOW SUMMARY Year #: INCOME POTENTIAL RENTAL INCOME $311,922 $318,940 $326,116 $333,454 $340,957 $348,628 Total Other Rental Income $15,789 $16,144 $16,507 $16,879 $17,258 $17,647 GROSS POTENTIAL INCOME $327,711 $335,084 $342,624 $350,333 $358,215 $366,275 Economic Operational Loss Vacancy Loss 3.00% ($9,358) ($9,568) ($9,783) ($10,004) ($10,229) ($10,459) Bad Debt 0.00% $0 $0 $0 $0 $0 $0 Concessions 0.00% $0 $0 $0 $0 $0 $0 Total Operational Loss 3.00% ($9,358) ($9,568) ($9,783) ($10,004) ($10,229) ($10,459) EFFECTIVE GROSS INCOME $318,353 $325,516 $332,840 $340,329 $347,987 $355,816 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $35,125 $36,179 $37,264 $38,382 $39,534 $40,720 Total Property Insurance Expense $9,808 $10,053 $10,305 $10,562 $10,826 $11,097 Total Property Utility Expense $46,412 $47,573 $48,762 $49,981 $51,231 $52,511 TOTAL FIXED OPERATIONAL EXP $91,346 $93,805 $96,331 $98,926 $101,591 $104,328 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $16,434 $16,845 $17,266 $17,698 $18,141 $18,594 Total Repairs & Maintenance $16,000 $16,400 $16,810 $17,230 $17,661 $18,103 Total Administrative Expenses $15,912 $16,310 $16,718 $17,136 $17,564 $18,003 Total Leasing & Marketing $2,000 $2,050 $2,101 $2,154 $2,208 $2,263 Total Payroll and Salary Expenses $39,069 $40,046 $41,047 $42,073 $43,125 $44,203 Property Management Fee 5.00% $15,918 $16,276 $16,642 $17,016 $17,399 $17,791 TOTAL VARIABLE OPERATIONAL EXP $105,333 $107,926 $110,584 $113,307 $116,097 $118,956 TOTAL FIXED & VARIABLE EXPENSE $196,679 $201,732 $206,915 $212,233 $217,688 $223,284 Replacement & Reserve Deposits $13,513 $13,513 $13,513 $13,513 $13,513 $13,513 TOTAL OPERATING EXPENSES $210,192 $215,244 $220,428 $225,745 $231,201 $236,797 PROPERTY NET OPERATING INCOME $108,162 $110,272 $112,412 $114,584 $116,786 $119, LIHTC ADVISORS THE OAKS I & II 84 UNITS

17 Cash Flow- Phase I PROPERTY NET OPERATING INCOME $108,162 $110,272 $112,412 $114,584 $116,786 $119,019 TOTAL 1ST MTG DEBT SERVICE $63,016 $63,016 $63,016 $63,016 $63,016 $63,016 DEBT SERVICE COVERAGE RATIO CASH FLOW AFTER DEBT SERVICE $45,145 $47,256 $49,396 $51,568 $53,770 $56,003 TOTAL REDUCTIONS TO NET CASH $0 $0 $0 $0 $0 $0 NET CASH FLOW FOR DISTRIBUTION $45,145 $47,256 $49,396 $51,568 $53,770 $56,003 PARTNERSHIP DISTRIBUTIONS & PMTS 1) Credit Deficiency IM $0 $0 $0 $0 $0 $0 2) IM Federal Tax Liability IM $0 $0 $0 $0 $0 $0 3) Investor Services Fee IM $4,032 $4,153 $4,277 $4,406 $4,538 $4,674 4) Operating Reserve Funding Partnership $0 $0 $0 $0 $0 $0 5) Deferred Development Fee MM $0 $0 $0 $0 $0 $0 6) Repayment of Operating Deficit Contributions MM $0 $0 $0 $0 $0 $0 7) Company Administration Agreement MM $41,114 $43,103 $45,119 $47,162 $49,232 $51,329 8) Investor Member Distribution (10%) IM $0 $0 $0 $0 $0 $0 Managing Member Distribution (90%) MM $0 $0 $0 $0 $0 $0 TOTAL PARTNERSHIP DISTRIBUTIONS $45,145 $47,256 $49,396 $51,568 $53,770 $56,003 Accrued Company Administrative Fee $202,485 $188,250 $172,831 $156,228 $138,436 $119,456 $99,286 PARTNER DISTRIBUTIONS SUMMARY Total Combined Investor Member Distributions IM $4,032 $4,153 $4,277 $4,406 $4,538 $4,674 Total Combined Managing Member Distributions MM $41,114 $43,103 $45,119 $47,162 $49,232 $51,329 TOTAL PARTNER DISTRIBUTIONS $45,145 $47,256 $49,396 $51,568 $53,770 $56,003 CAPITAL TRANSACTION ANALYSIS SALE PROCEEDS NOI $112,412 $114,584 $116,786 $119,019 Cap Rate 7.25% 7.25% 7.25% 7.25% Sale Price $1,550,515 $1,580,465 $1,610,840 $1,641,645 Cost of Sale 4.00% 4.00% 4.00% 4.00% Outstanding Debt $653,232 $637,711 $621,010 $603,219 Prepayment Penalty (Estimated at 2%) $13,065 $12,754 $12,420 $12,064 Operating Reserve Balance $65,133 $65,133 $65,133 $65,133 Reserve & Replacement Balance $87,089 $87,089 $87,089 $87,089 TOTAL SALE PROCEEDS $974,420 $1,019,003 $1,065,198 $1,112,917 DISTRIBUTION OF NET PROCEEDS FROM SALE a) IM Federal Income Tax Liablity $0 $0 $0 $0 b) IM Credit Deficiency $0 $0 $0 $0 c) Unpaid Investor Services Fee $0 $0 $0 $0 d) Deferred Development Fee $0 $0 $0 $0 e) MM Advance Repayment $0 $0 $0 $0 f) Investor Member Distribution (10%) $97,442 $101,900 $106,520 $111,292 Managing Member Distribution (90%) $876,978 $917,102 $958,678 $1,001,626 PARTNERSHIP DISTRIBUTION SUMMARY FROM SALE Investor Member $97,442 $101,900 $106,520 $111,292 Managing Member $876,978 $917,102 $958,678 $1,001,626 TOTAL PARTNER DISTRIBUTION FROM SALE $974,420 $1,019,003 $1,065,198 $1,112,917 *NOTE: TAX CONSQUENCES OR CAPITAL ACCOUNT BALANCE CONSIDERATIONS ARE NOT TAKEN INTO ACCOUNT IN THIS ANALYSIS. 17 LIHTC ADVISORS THE OAKS I & II 84 UNITS

18 Cash Flow Assumptions- Phase I DISTRIBUTION OF NET CASH FLOW ASSUMPTIONS (Per Exhibit A-4 of Operating Agreement) Analysis assumes the following: - No Amount for any Credit Deficiency or IM Tax Liability. - Investor Services Fee is paid in accordance with Exhibit I of the Partnership Operating Agreement. - No remaining Deferred Developer Fee. - Company Administration Fee is paid in accordance with Exhibit E of the Partnership Operating Agreement. - Any remaining Cash Flow is divided between the Investor Member (10%) and the Managing Member (90%) per Section 8.01 of Partnership Operating Agreement. DISTRIBUTION OF NET CASH PROCEEDS FROM A SALE (Per Section 8.02 of the Operating Agreement) Analysis assumes the following: - No Capital Accounts considerations or tax consequences were included. - An Exit Cap of 7.25% and a 4.0% Cost of Sale. - An estimated Prepayment Penalty of 2% for the Outstanding Debt. - The same balances in the Replacement Reserve or Operating Reserve Accounts at the time of sale that are seen in the 2016 Audit. 18 LIHTC ADVISORS THE OAKS I & II 84 UNITS

19 Unit Mix- Phase I UNIT TYPE (SET-ASIDE) NUMBER OF UNITS UNIT SIZE (RSF) ASKING RENT May 2017 ASKING RENT June 2017 RENT PER SF MAX RENT CURRENT UA MAX NET LIHTC RENT 3 BD 2 BTH- 30% 2 1,105 $349 $361 $0.32 $430 $69 $361 3 BD 2 BTH- 40% 2 1,105 $490 $505 $0.44 $574 $69 $505 3 BD 2 BTH- 50% 36 1,105 $631 $649 $0.57 $718 $69 $649 3 BD 2 BTH UNIT TOTAL 40 44,200 24,394 25,096 27,856 25,096 3 BD 2 BTH UNIT AVG 1,105 $610 $0.57 $0.59 $714 $643 TOTAL POTENTIAL 40 44,200 $24,394 $25,096 $27,856 $25,096 AVERAGE 1,105 $610 $627 $0.59 $696 $627 * The unit mix above was based on 5/2017 Rent Roll. Unit Breakdown By Unit Type $630 $625 Asking Rents to Net Max Tax Credit Rents $ % $620 $615 $610 $610 3 BD $605 $600 3 BD Asking Rent Max Net Rent 19 LIHTC ADVISORS THE OAKS I & II 84 UNITS

20 Financial Summary- Phase II YE VITAL DATA NOI $79,048 Debt Service $63,226 Net Cash Flow After Debt Service $15,822 T-12 (THROUGH APRIL 2017)- VITAL DATA NOI $79,721 Debt Service $63,226 Net Cash Flow After Debt Service $16,496 Financing- Phase II 1ST MTG - Enterprise Mortgage Investment, Inc Original Loan Amount $800,000 YE 2016 Loan Amount $725,867 Interest Rate 6.90% Amortization Period 360 Maturity Date October 1, 2027 Annual Debt Service $63,226 PROFORMA Debt Coverage Ratio 1.54 PROFORMA- VITAL DATA NOI $97,617 Debt Service $63,226 Net Cash Flow After Debt Service $34, LIHTC ADVISORS THE OAKS I & II 84 UNITS

21 Income & Expenses- Phase II OPERATIONAL ANALYSIS YE 2016 PER UNIT TRAILING-12 (APRIL '17) PER UNIT PROFORMA PER UNIT Rental Income $311,097 $7,070 $309,781 $7,040 $321,910 $7,316 (1) POTENTIAL RENTAL INCOME $311,097 $7,070 $309,781 $7,040 $321,910 $7,316 OTHER RENTAL INCOME Damages $4,659 $106 $4,740 $108 $4,859 $110 Cleaning $6,993 $159 $5,679 $129 $5,821 $132 Misc. Other Income $8,028 $182 $7,349 $167 $7,532 $171 Total Other Rental Income $19,680 $447 $17,768 $404 $18,212 $414 GROSS POTENTIAL INCOME $330,777 $7,518 $327,549 $7,444 $340,122 $7,730 ECONOMIC LOSS Vacancy Loss 4.10% ($12,769) ($290) 3.52% ($10,893) ($248) 3.50% ($11,267) ($256) Bad Debt 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Concessions 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Total Economic Loss 4.10% ($12,769) ($290) 3.52% ($10,893) ($248) 3.50% ($11,267) ($256) EFFECTIVE GROSS INCOME $318,007 $7,227 $316,656 $7,197 $328,855 $7,474 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 11% $34,781 $790 9% $29,631 $673 11% $35,824 $814 (2) Total Property Insurance Expense 3% $10,461 $238 3% $10,182 $231 3% $10,437 $237 Total Property Utility Expense 14% $43,170 $981 15% $46,130 $1,048 14% $47,283 $1,075 TOTAL FIXED OPERATIONAL EXP 28% $88,412 $2,009 27% $85,943 $1,953 28% $93,545 $2,126 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 5% $17,383 $395 6% $19,240 $437 6% $18,260 $415 (3) Total Repairs & Maintenance 7% $22,277 $506 6% $17,754 $403 5% $17,600 $400 (3) Total Administrative Expenses 9% $27,653 $628 10% $30,294 $689 6% $18,728 $426 (4) Total Leasing & Marketing 4% $11,410 $259 3% $10,339 $235 1% $2,200 $50 (5) Total Payroll and Salary Expenses 13% $39,795 $904 13% $41,289 $938 15% $50,109 $1,139 (6) Property Management Fee 5.69% $18,095 $ % $18,140 $ % $16,443 $374 (7) TOTAL VARIABLE OPERATIONAL EXP 43% $136,613 $3,105 43% $137,057 $3,115 38% $123,340 $2,803 TOTAL FIXED & VARIABLE EXP 71% $225,024 $5,114 70% $223,000 $5,068 66% $216,885 $4,929 Reserves & Replacements $13,935 $317 $13,935 $317 $14,353 $326 TOTAL OPERATING EXPENSES 75% $238,959 $5,431 75% $236,935 $5,385 70% $231,238 $5,255 NET OPERATING INCOME $79,048 $1,797 $79,721 $1,812 $97,617 $2, LIHTC ADVISORS THE OAKS I & II 84 UNITS

22 Comments to Income & Expenses- Phase II (1) Rental Income: Actual leased rents per the 6/2017 rent roll annualized. (2) Property Tax Expense: Analysis assumes actual 2016 Property Taxes increased by 3.0% Total Value $1,411,542 Taxes $34, (3) Contract Services / Repairs & Maintenance: Analysis assumes a reduction based on expenses observed at comparable LIHTC Properties. (4) Administrative: Analysis assumes the removal of Training/Travel/Meals Expense and a reduction to $500 annually for Data Processing/Computer Expense. (5) Leasing & Marketing: Analysis assumes a reduction due to the historical occupancy of the property being very high and asking the maximum allowable rents. (6) Payroll & Salary: The Property Manager for both phases resides rent free. Analysis includes the Manager Rent Concession under Payroll & Salary. (7) Property Management Fee: Analysis assumes a reduction based on market conditions and expenses observed at comparable LIHTC properties. 22 LIHTC ADVISORS THE OAKS I & II 84 UNITS

23 Cash Flow- Phase II PROPERTY CASH FLOW ANALYSIS Utilize YE, YTD or PROFORMA OPERATIONS Proforma Vac %: 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Assumed Annual Income Growth Rate % 2.25% Bad Debt: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Assumed Annual Expense Growth Rate % 2.50% Concess: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CASH FLOW SUMMARY Year #: INCOME POTENTIAL RENTAL INCOME $321,910 $329,153 $336,558 $344,131 $351,874 $359,791 $367,886 Total Other Rental Income $18,212 $18,622 $19,041 $19,469 $19,907 $20,355 $20,813 GROSS POTENTIAL INCOME $340,122 $347,774 $355,599 $363,600 $371,781 $380,146 $388,700 Economic Operational Loss Vacancy Loss 3.50% ($11,267) ($11,520) ($11,780) ($12,045) ($12,316) ($12,593) ($12,876) Bad Debt 0.00% $0 $0 $0 $0 $0 $0 $0 Concessions 0.00% $0 $0 $0 $0 $0 $0 $0 Total Operational Loss 3.50% ($11,267) ($11,520) ($11,780) ($12,045) ($12,316) ($12,593) ($12,876) EFFECTIVE GROSS INCOME $328,855 $336,254 $343,820 $351,556 $359,466 $367,554 $375,824 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $35,824 $36,899 $38,006 $39,146 $40,321 $41,530 $42,776 Total Property Insurance Expense $10,437 $10,698 $10,965 $11,239 $11,520 $11,808 $12,103 Total Property Utility Expense $47,283 $48,465 $49,677 $50,919 $52,192 $53,497 $54,834 TOTAL FIXED OPERATIONAL EXP $93,545 $96,062 $98,648 $101,305 $104,033 $106,835 $109,714 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $18,260 $18,717 $19,184 $19,664 $20,156 $20,660 $21,176 Total Repairs & Maintenance $17,600 $18,040 $18,491 $18,953 $19,427 $19,913 $20,411 Total Administrative Expenses $18,728 $19,197 $19,677 $20,168 $20,673 $21,189 $21,719 Total Leasing & Marketing $2,200 $2,255 $2,311 $2,369 $2,428 $2,489 $2,551 Total Payroll and Salary Expenses $50,109 $51,362 $52,646 $53,962 $55,311 $56,694 $58,111 Property Management Fee 5.00% $16,443 $16,813 $17,191 $17,578 $17,973 $18,378 $18,791 TOTAL VARIABLE OPERATIONAL EXP $123,340 $126,382 $129,500 $132,695 $135,968 $139,322 $142,759 TOTAL FIXED & VARIABLE EXPENSE $216,885 $222,445 $228,148 $233,999 $240,001 $246,158 $252,473 Replacement & Reserve Deposits $14,353 $14,784 $15,227 $15,684 $16,154 $16,639 $17,138 TOTAL OPERATING EXPENSES $231,238 $237,228 $243,376 $249,683 $256,155 $262,797 $269,612 PROPERTY NET OPERATING INCOME $97,617 $99,026 $100,444 $101,873 $103,310 $104,757 $106, LIHTC ADVISORS THE OAKS I & II 84 UNITS

24 Cash Flow- Phase II PROPERTY NET OPERATING INCOME $97,617 $99,026 $100,444 $101,873 $103,310 $104,757 $106,212 TOTAL 1ST MTG DEBT SERVICE $63,226 $63,226 $63,226 $63,226 $63,226 $63,226 $63,226 DEBT SERVICE COVERAGE RATIO CASH FLOW AFTER DEBT SERVICE $34,392 $35,800 $37,219 $38,647 $40,085 $41,531 $42,987 TOTAL REDUCTIONS TO NET CASH $0 $0 $0 $0 $0 $0 $0 NET CASH FLOW FOR DISTRIBUTION $34,392 $35,800 $37,219 $38,647 $40,085 $41,531 $42,987 PARTNERSHIP DISTRIBUTIONS & PMTS 1) Credit Deficiency IM $0 $0 $0 $0 $0 $0 $0 2) IM Federal Tax Liability IM $0 $0 $0 $0 $0 $0 $0 3) Investor Services Fee IM $6,524 $6,720 $6,921 $7,129 $7,343 $7,563 $7,790 4) Operating Reserve Funding Partnership $0 $0 $0 $0 $0 $0 $0 5) Deferred Development Fee MM $0 $0 $0 $0 $0 $0 $0 6) Repayment of Operating Deficit Contributions MM $0 $0 $0 $0 $0 $0 $0 7) Company Administration Fee MM $27,868 $29,080 $30,297 $31,518 $32,742 $33,968 $35,197 8) Investor Member Distribution (10%) IM $0 $0 $0 $0 $0 $0 $0 Managing Member Distribution (90%) MM $0 $0 $0 $0 $0 $0 $0 TOTAL PARTNERSHIP DISTRIBUTIONS $34,392 $35,800 $37,219 $38,647 $40,085 $41,531 $42,987 Accrued Company Administrative Fee $146,156 $144,384 $142,182 $139,569 $136,566 $133,195 $129,479 $125,441 PARTNER DISTRIBUTIONS SUMMARY Total Combined Investor Member Distributions IM $6,524 $6,720 $6,921 $7,129 $7,343 $7,563 $7,790 Total Combined Managing Member Distributions MM $27,868 $29,080 $30,297 $31,518 $32,742 $33,968 $35,197 TOTAL PARTNER DISTRIBUTIONS $34,392 $35,800 $37,219 $38,647 $40,085 $41,531 $42,987 CAPITAL TRANSACTION ANALYSIS SALE PROCEEDS NOI $101,873 $103,310 $104,757 $106,212 Cap Rate 7.25% 7.25% 7.25% 7.25% Sale Price $1,405,140 $1,424,971 $1,444,925 $1,464,996 Cost of Sale 4.00% 4.00% 4.00% 4.00% Outstanding Debt $665,533 $647,671 $628,537 $608,040 Estimated Prepayment Premium (2%) $13,311 $12,953 $12,571 $12,161 Operating Reserve Balance $131,315 $131,315 $131,315 $131,315 Reserve & Replacement Balance $58,122 $58,122 $58,122 $58,122 TOTAL SALE PROCEEDS $859,528 $896,785 $935,457 $975,632 DISTRIBUTION OF NET PROCEEDS FROM SALE a) IM Federal Income Tax Liablity $0 $0 $0 $0 b) IM Credit Deficiency $0 $0 $0 $0 c) Unpaid Investor Services Fee $0 $0 $0 $0 d) Deferred Development Fee $0 $0 $0 $0 e) MM Advance Repayment $0 $0 $0 $0 f) Investor Member Distribution (10%) $85,953 $89,678 $93,546 $97,563 Managing Member Distribution (90%) $773,575 $807,106 $841,911 $878,069 PARTNERSHIP DISTRIBUTION SUMMARY FROM SALE Investor Member $85,953 $89,678 $93,546 $97,563 Managing Member $773,575 $807,106 $841,911 $878,069 TOTAL PARTNER DISTRIBUTION FROM SALE $859,528 $896,785 $935,457 $975,632 *NOTE: TAX CONSQUENCES OR CAPITAL ACCOUNT BALANCE CONSIDERATIONS ARE NOT TAKEN INTO ACCOUNT IN THIS ANALYSIS. 24 LIHTC ADVISORS THE OAKS I & II 84 UNITS

25 Cash Flow Assumptions- Phase II DISTRIBUTION OF NET CASH FLOW ASSUMPTIONS (Per Exhibit A-4 of Operating Agreement) Analysis assumes the following: - No Amount for any Credit Deficiency or IM Tax Liability. - Investor Services Fee is paid in accordance with Exhibit I of the Partnership Operating Agreement. - No remaining Deferred Developer Fee. - Company Administration Fee is paid in accordance with Exhibit E of the Partnership Operating Agreement. - Any remaining Cash Flow is divided between the Investor Member (10%) and the Managing Member (90%) per Section 8.01 of Partnership Operating Agreement. DISTRIBUTION OF NET CASH PROCEEDS FROM A SALE (Per Section 8.02 of the Operating Agreement) Analysis assumes the following: - No Capital Accounts considerations or tax consequences were included in the analysis. - An Exit Cap of 7.25% and a 4.0% Cost of Sale. - An estimated Prepayment Penalty of 2.0% for the Outstanding Debt. - The same balances in the Replacement Reserve or Operating Reserve Accounts at the time of sale that are seen in the 2016 Audit. 25 LIHTC ADVISORS THE OAKS I & II 84 UNITS

26 Unit Mix- Phase II UNIT TYPE (SET-ASIDE) NUMBER OF UNITS UNIT SIZE (RSF) ASKING RENT May 2017 ASKING RENT June 2017 RENT PER SF MAX RENT CURRENT UA MAX NET LIHTC RENT 3 BD 2 BTH- 30% 3 1,105 $349 $361 $0.32 $430 $69 $361 3 BD 2 BTH- 35% 2 1,105 $420 $433 $0.38 $502 $69 $433 3 BD 2 BTH- 40% 3 1,105 $490 $505 $0.44 $574 $69 $505 3 BD 2 BTH- 45% 2 1,105 $560 $577 $0.51 $646 $69 $577 3 BD 2 BTH- 50% 32 1,105 $631 $649 $0.57 $718 $69 $649 3 BD 2 BTH- 55% 2 1,105 $701 $720 $0.63 $789 $69 $720 3 BD 2 BTH UNIT TOTAL 44 48,620 26,071 26,826 29,862 26,826 3 BD 2 BTH UNIT AVG 1,105 $593 $0.55 $0.54 $679 $610 TOTAL POTENTIAL 44 48,620 $26,071 $26,826 $29,862 $26,826 AVERAGE 1,105 $593 $610 $0.54 $679 $610 * The unit mix above was based on 5/2017 Rent Roll. Unit Breakdown By Unit Type 100% 3 BD $615 $610 $605 $600 $595 $590 $585 $580 Asking Rents to Net Max Tax Credit Rents $610 $593 3 BD Asking Rent Max Net Rent 26 LIHTC ADVISORS THE OAKS I & II 84 UNITS

27 Tax Credit Property Income & Rent Limits INCOME 35% 40% 45% 50% 55% 1 Person $13,545 $15,480 $17,415 19,350 $21,285 2 Person $15,470 $17,680 $19,890 $22,100 $24,310 3 Person $17,395 $19,880 $22,365 $24,850 $27,335 4 Person $19,320 $22,080 $24,840 $27,600 $30,360 5 Person $20,895 $23,880 $26,865 $29,850 $32,835 6 Person $22,435 $25,640 $28,845 $32,050 $35,255 7 Person $23,975 $27,400 $30,825 $34,250 $37,675 Jerome County Effective Year: 2017 Area Median Income: $49,200 The Oaks Apartments I & II is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 35%, 40%, 45%, 50%, and 55% of the local Area Median Income (AMI) for the county. Tax Credit Maximum Allowable Rents Set Aside Unit Type # of Units Max Rent UA Max Net Rent 30% 3 BD 5 $430 $69 $361 35% 3 BD 2 $502 &69 $433 40% 3 BD 5 $574 $69 $505 45% 3 BD 2 $646 $69 $577 50% 3 BD 68 $718 $69 $649 55% 3 BD 2 $789 $69 $ LIHTC ADVISORS THE OAKS I & II 84 UNITS

28 AMI Growth Rate Year AMI % Change 2012 $49, $48,800 (1.01%) 2014 $47,200 (3.28%) 2015 $50, % 2016 $47,800 (4.78%) 2017 $49, % $51,000 $50,000 $49,000 $48,000 $47,000 $46,000 3 Yr Avg 1.50% 5 Yr Avg 0.04% $45, *The high watermark year is 2010 at $50,500 Max Allowable LIHTC Rent Growth- 3BD/ 60% Year Rent % Change 2012 $ $ % 2014 $ % 2015 $ % 2016 $ % 2017 $ % $880 $860 $840 $820 $800 $780 3 Yr Avg 1.84% 5 Yr Avg 1.65% $ SOURCE: novoco.com 28 LIHTC ADVISORS THE OAKS I & II 84 UNITS

29 FMR Averages Year FMR Avg. % Change 2012 $ $ % 2014 $ % 2015 $ % 2016 $925 (1.28%) 2017 $ % $950 $900 $850 $800 3 Yr Avg 0.76% 5 Yr Avg 5.10% $ Fair Market Rents Year 3 BD 2012 $ $ $ $ $ $955 SOURCE: novoco.com 29 LIHTC ADVISORS THE OAKS I & II 84 UNITS

30 Rent Comparables THE OAKS I & II OCCUPANCY COMPS AVERAGE OCCUPANCY THE OAKS I & II RENT/SF COMPS AVERAGE RENT/SF 100% 99% $0.54 $ LIHTC ADVISORS THE OAKS I & II 84 UNITS

31 Rent Comparables Map A B The Oaks Apts. I & II B Windwood Apts. A Haven Park Apts. 31 LIHTC ADVISORS THE OAKS I & II 84 UNITS

32 Occupancy & Rent per SF Occupancy- 99% Average 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% A B Rent Per SF- $0.78 Average $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 A B The Oaks Apts. I & II B Windwood Apts. A Haven Park Apts. 32 LIHTC ADVISORS THE OAKS I & II 84 UNITS

33 Rent Comparables THE OAKS I & II 84 UNITS OCCUPANCY: 100% YEAR BUILT: North Kennedy Street Jerome, ID Unit Type # of Units Rent SF Rent Per SF 3BD 2BTH- 30% 2 $349 1,105 $0.32 3BD 2BTH- 40% 2 $490 1,105 $0.44 3BD 2BTH- 50% 36 $631 1,105 $0.57 3BD 2BTH- 30% 3 $349 1,105 $0.32 3BD 2BTH- 35% 2 $420 1,105 $0.38 3BD 2BTH- 40% 3 $490 1,105 $0.44 3BD 2BTH- 45% 2 $560 1,105 $0.51 3BD 2BTH- 50% 32 $631 1,105 $0.57 3BD 2BTH- 55% 2 $701 1,105 $0.63 TOTALS/AVG. 84 $601 1,105 $0.54 A HAVEN PARK 20 UNITS OCCUPANCY: 97% YEAR BUILT: 2002 Unit Type # of Units Rent SF Rent Per SF 3BD 1.5BTH 20 $700 1,089 $0.64 TOTALS/AVG. 20 $700 1,089 $0.64 *Market Rate Property 900 East Main Street Jerome, ID Distance to Subject: 1.3 miles 33 LIHTC ADVISORS THE OAKS I & II 84 UNITS

34 Rent Comparables B WINDWOOD 30 UNITS OCCUPANCY: 100% YEAR BUILT: 1985 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 8 $ $0.97 2BD 1BTH 18 $ $0.86 3BD 2BTH 4 $830 1,000 $0.83 TOTALS/AVG. 30 $ $0.88 *Section 8 Property 921 South Davis Street Jerome, ID Distance to Subject: 2.2 miles 34 LIHTC ADVISORS THE OAKS I & II 84 UNITS

35 Demographics JEROME MEDIAN HOME COST JEROME MEDIAN RENT JEROME COUNTY UNEMPLOYMENT RATE $106, % (3/2017) JEROME COUNTY JOB GROWTH 0.3% (since 2/2017) SOURCE: careertrends.com, areavibes.com 35 LIHTC ADVISORS THE OAKS I & II 84 UNITS

36 Demographic Analysis POPULATION 1 MILE 3 MILES 5 MILES 2017 Estimated Population 3,612 12,434 14,973 Population Growth % 2.98% 2.88% HOUSEHOLDS 2017 Estimated Households 1,211 4,208 5,016 Household Growth % 3.04% 2.93% INCOME 2017 Household Income: Average $47,622 $49,967 $49, Household Income: Median $40,224 $39,721 $41,612 HOUSEHOLD INCOME LEVELS BY POPULATION 1,800 1,600 1,400 1,200 1, Under $25,000 $25,000- $50,000 $50,000- $75,000 $75,000- $100,000 $100,000- $125,000 $125,000- $150,000 $150,000- $200,000 $200,000+ OWNER 65% RENTER 35% OCCUPIED 95% VACANT 5% SOURCE: CoStar 36 LIHTC ADVISORS THE OAKS I & II 84 UNITS

37 LIHTC Advisors