TENNESSEE HOUSING DEVELOPMENT AGENCY 2018 MULTIFAMILY TAX-EXEMPT BOND AUTHORITY PROGRAM DESCRIPTION

TENNESSEE HOUSING DEVELOPMENT AGENCY 2018 MULTIFAMILY TAX-EXEMPT BOND AUTHORITY PROGRAM DESCRIPTION

Tennessee Housing Development Agency Multifamily Tax-Exempt Bond Authority 2018 Summary THDA has authorized the allocation of Multifamily Tax-Exempt Bond Authority to local issuers for multifamily developments: $210 million in Multifamily Tax-Exempt Bond Authority for developments which will close financing by the date specified in the Firm MTBA Commitment Letter. Bonds must be issued by a local board or other issuing entity with jurisdiction in the area of the proposed development, or by an entity from outside the area of the proposed development, such entity having the authority to issue bonds in the area of the proposed development and consent from the issuing entity in the area of the proposed development. Some units must be occupied low-income households: twenty percent (20%) of the units must be occupied by households with incomes no greater than fifty percent (50%) of area median income, or forty percent (40%) of the units must be occupied by households with incomes no greater than sixty percent (60%) of area median income. THDA will allocate a maximum of twenty five million dollars ($25,000,000) in Multifamily Tax-Exempt Bond Authority per development. The application submission period extends until the earlier of the date upon which all Multifamily Tax-Exempt Bond Authority made available hereunder is fully committed or September 20, 2018. Multifamily Tax-Exempt Bond Authority will be allocated only to eligible applications on a first come, first served basis. If THDA receives multiple applications on the same day that, in the aggregate, request more Multifamily Tax-Exempt Bond Authority than is available, those applications will be ranked according to Part IV-C. Applicants must meet THDA and federal tax requirements and all other applicable federal, State, and local laws or ordinances. A non-refundable application fee is required with each application.

Tennessee Housing Development Agency Multifamily Tax-Exempt Bond Authority 2018 Program Description Part I: Multifamily Tax-Exempt Authority Available A. Purpose The Tennessee Housing Development Agency (THDA) is making Multifamily Tax-Exempt Bond Authority ( MTBA ) available to local issuers for financing multifamily housing units in Tennessee. The MTBA can be used only to provide financing for new construction of affordable rental housing units, for conversion of existing properties through adaptive reuse, or for acquisition and rehabilitation of rental units, subject to the conditions and requirements described below, and subject to Internal Revenue Service requirements. B. Amount Two hundred and ten million dollars ($210,000,000) of MTBA is available during the application submission period described in Part V. C. Availability MTBA will be available statewide to eligible applicants until the end of the application period specified in Part V and subject to all other requirements of this Program Description. Page 1 of 25

A. Use of MTBA Part II: Eligibility 1. Any MTBA allocated pursuant to this Program Description must be used to provide financing for the development such that, as of the rehabilitation or new construction placed in service date, a minimum of fifty percent (50%) of the amount of Tax-Exempt Bond Authority closed and sold remains outstanding and such amount of bonds outstanding otherwise meets the requirements of Section 42(h)(4). 2. Applicants for and recipients of MTBA must issue bonds no later than 11:59 PM Central Time on the date specified in the Firm MTBA Commitment Letter. 3. To the extent not otherwise specified herein, all federal tax requirements for private activity bonds must be met. B. Eligible Developments 1. The development must be: a. New construction; b. A conversion of an existing property not being used for housing; or c. Acquisition and rehabilitation. 2. To the extent not otherwise required, the development must have hardwired smoke detectors, with battery backup, in the bedroom areas of all units. 3. One hundred percent (100%) of the units in buildings with elevators in the development and all ground floor units in non-elevator buildings in the development are covered multifamily dwellings (as defined in the Fair Housing Act). All covered multifamily dwellings must meet all accessible design requirements under the Fair Housing Act and must otherwise be designed and built in accordance with the Fair Housing Act (including one of the eight safe harbors recognized by HUD as shown on Exhibit 5) and all other areas in the development open to the public are public accommodations as defined in the Americans with Disabilities Act and must be designed and built in accordance with the Americans With Disabilities Act. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. C. Ineligible Developments 1. Developments involving entities or individuals previously involved in a development that, at any time within a period of one year prior to the submission of the application for 2018 MTBA, failed to submit any documentation required in Part IX-E. 2. Developments involving entities or individuals previously determined, in THDA s sole discretion, to be or have been involved in any MTBA Application that received an allocation of MTBA but (a) failed to meet established deadline for issuance and sale of the tax-exempt bonds; or (b) failed to place the development in service; or (c) failed to meet other requirements of this Program Description. 3. In the event that any of the following triggering events occur with regard to a proposed development or a development that has received an allocation of MTBA from THDA, all individuals involved in the owner and developer, as determined Page 2 of 25

by THDA, in its sole discretion, of the relevant development will be prohibited from participating in the MTBA program in Tennessee for a period of five (5) years commencing with the year in which THDA becomes aware of the occurrence of the triggering event: a. General Partner/Managing Member/Sole Stockholder entity being removed from the ownership entity of a previous development due to poor performance and/or malfeasance. THDA staff will communicate with other parties involved in the development (e.g. lender and syndicator) to determine the circumstances surrounding the removal; or b. Uncured event of default under the Section 1602 or Tax Credit Assistance Program; or c. Fair Housing Act violations involving a finding of discrimination by an adverse final decision from a federal court or a judgment enforcing the terms of a consent decree; d. Foreclosure involving loss of units to the affordable housing stock or failure to notify THDA of foreclosure (including a deed in lieu of foreclosure transaction); or e. Misrepresentation of any item, as determined by THDA in its sole discretion, in the Application, as determined by THDA in its sole discretion; or f. Failure to fulfill commitments made for points; or g. Failure to respond to any written request from THDA for information and/or documentation within thirty (30) days of the date of such request; or h. Failure to fully satisfy all applicable compliance monitoring requirements; or i. Being placed in No Further Monitoring status. 4. Prohibition of an individual s participation in the MTBA program in Tennessee pursuant to Part II-C-4 shall be determined by THDA staff. Any individual so prohibited may appeal the determination to the THDA Executive Director and the THDA Board Chair. The determination of prohibition shall be at the sole discretion of the THDA Executive Director and the THDA Board Chair and shall not be appealable to the THDA Board or the Tax Credit Committee of the THDA Board. a. There will be no prohibition if the triggering event occurred prior to the date of the approval of this Program Description by the THDA Board of Directors. b. There will be no prohibition if THDA becomes aware of the triggering event more than five (5) years after its occurrence. c. No prohibition will be imposed on a development or proposed development involving the prohibited individuals that received an allocation of Tax Credits between the occurrence of the triggering event and the time THDA becomes aware of the triggering event. 5. Any prohibition of participation in the Low-Income Housing Tax Credit Program pursuant to Part VII-A-4-c of the Low-Income Housing Tax Credit 2018 Qualified Allocation Plan shall constitute a prohibition of participation in the MTBA program pursuant to Part II-C-4. 6. Voluntary withdrawal of a MTBA Application in accordance with all applicable program requirements will not cause ineligibility. D. Identity of Interests Page 3 of 25

If a development involves acquisition of land or buildings, there can be no more than a fifty percent (50%) identity of interest between buyer and seller. E. Tenants to be Served 1. Twenty percent (20%) of the units in the development must be occupied by households with incomes no greater than fifty percent (50%) of the area median income; or 2. Forty percent (40%) of the units in the development must be occupied by households with incomes no greater than sixty percent (60%) of the area median income. F. Notice to Applicants Meeting Eligibility Requirements 1. THDA will notify each applicant when the eligibility determination and scoring of the application is complete. 2. If THDA determines that an application meets all of the eligibility requirements of this Program Description, a Conditional MTBA Commitment Letter or a Firm MTBA Commitment Letter may be issued. G. Notice to Applicants Not Meeting Eligibility Requirements or Incomplete 1. THDA will notify applicants if THDA determines that (a) any two or more developments proposed in two or more applications constitute a single development for purposes of applying the development limits specified in Part II-A or Part II-B (b) developers or related parties reflected in two or more applications constitute a single entity for purposes of applying the developer or related party limitation specified in Part II-D. 2. Applicants with uncured deficiencies may, at THDA s sole discretion, be removed from further consideration under this Program Description after THDA, in its sole discretion, determines that the deficiencies have remained uncured for a period of at least 30 calendar days. Page 4 of 25

A. New Construction Part III: Limits 1. A development involving new construction may not receive more than twenty five million dollars ($25,000,000) of MTBA. 2. Applicant may submit a written request for an exception to the maximum MTBA limit for new construction. The request must be included with the application, and include sufficient supporting documentation and information to substantiate the request as determined by THDA, in its sole discretion. Only one request per application will be considered. Requests may be granted or denied by THDA, in its sole discretion. B. Acquisition and Rehabilitation, Conversion, and Preservation 1. Substantial Rehabilitation: maximum $25,000,000 of MTBA a. Developments involving substantial rehabilitation must be rehabilitated so that, upon completion of all rehabilitation as described in the Physical Needs Assessment, the major building systems will not require further substantial rehabilitation for a period of at least fifteen (15) years from the required placed in service date. Major building components are roof structures, wall structures, floor structures, foundations, plumbing systems, central heating and air conditioning systems, electrical systems, interior and exterior doors, windows, parking lots, elevators, and fire/safety systems. Rehabilitation hard costs must be no less than the greater of thirty percent (30%) of building acquisition costs or eleven thousand dollars ($11,000) per unit. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. b. Applicant may submit a written request for an exception to the maximum MTBA limit for substantial rehabilitation. The request must be included with the application, and include sufficient supporting documentation and information to substantiate the request as determined by THDA, in its sole discretion. Only one request per application will be considered. Requests may be granted or denied by THDA, in its sole discretion. 2. Moderate Rehabilitation: maximum $16,000,000 of MTBA a. Developments involving moderate rehabilitation must be rehabilitated so that, upon completion of all rehabilitation, rehabilitation hard costs must be no less than the greater of twenty five percent (25%) of building acquisition cost or seven thousand dollars ($7,000) per unit. The rehabilitation scope of work must include, at a minimum, all appliances in all units being Energy-Star compliant, and all work specified in the Physical Needs Assessment with regard to drywall, carpet, tile, interior and exterior paint, the electrical system, heating and air conditioning systems, roof, windows, interior and exterior doors, stairwells, handrails, and mailboxes. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. Page 5 of 25

b. Applicant may submit a written request for an exception to the maximum MTBA limit for moderate rehabilitation. The request must be included with the application, and include sufficient supporting documentation and information to substantiate the request as determined by THDA, in its sole discretion. Only one request per application will be considered. Requests may be granted or denied by THDA, in its sole discretion. 3. Limited Rehabilitation: maximum $13,700,000 of MTBA a. Developments involving limited rehabilitation must be rehabilitated so that, upon completion of all rehabilitation, rehabilitation hard costs must be no less than the greater of twenty percent (20%) of building acquisition cost or six thousand dollars ($6,000) per unit. The rehabilitation scope of work must include, at a minimum, all work specified in the Physical Needs Assessment with regard to interior and exterior common areas, interior and exterior painting and/or power washing, gutters, parking areas, sidewalks, fencing, landscaping, and mailboxes. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. b. Applicant may submit a written request for an exception to the maximum MTBA limit for limited rehabilitation. The request must be included with the application, and include sufficient supporting documentation and information to substantiate the request as determined by THDA, in its sole discretion. Only one request per application will be considered. Requests may be granted or denied by THDA, in its sole discretion. 4. All rehabilitation expenditures must satisfy the requirements of Section 42(e)(3)(A)(ii) of the Code. C. Special Request Applications 1. A Special Request Application may receive MTBA subject to approval by the Tax Credit Committee of the THDA Board of Directors. A Special Request Application must satisfy, without limitation, all of the following conditions as determined by THDA, in its sole discretion: a. A Special Request Application must propose preservation of a development with existing income and rent restrictions. The Initial Application must include documentation, acceptable to THDA, in its sole discretion, verifying the existing income and rent restrictions. Existing income and rent restrictions must be related to one of the following: (i) The Low-Income Housing Tax Credit program; (ii) The MTBA program; or (iii) A program administered by USDA or HUD, AND b. A Special Request Application must propose a minimum of five hundred (500) low-income units at a single location/site, as determined by THDA, in its sole discretion. The minimum MTBA request for this type of a Special Request Application is forty million dollars ($40,000,000) OR c. A Special Request Application must propose a package of multiple USDA Rural Development developments submitted pursuant to Part IV-B Multiple Page 6 of 25

Applications for a Single Development and requesting a minimum of twenty five million dollars ($25,000,000) of MTBA. 2. Special Request Applications approved by the Tax Credit Committee of the THDA Board of Directors will not count against the limits specified in Part III-B or the limit specified in Part III-E. 3. A single applicant, developer, owner, or related parties, as determined by THDA, in its sole discretion, may only submit one (1) Special Request Application per calendar year. 4. Any MTBA allocated to a Special Request Application will come from MTBA requested and received by THDA in addition to the amount specified in Part I-B. The MTBA amount specified in Part I-B is not available for allocation to Special Request Applications. 5. A Conditional MTBA Commitment Letter (as described in Part VIII-A-1) issued to a Special Request Application may have an expiration date up to thirty (30) months from the date of issuance. 6. The notice requirement (as described in Part VIII-A-1-d) for a Special Request Application will be sixty-five (65) calendar days. D. Adverse Action by Local Jurisdiction If, following the allocation of MTBA to a proposed development, the local jurisdiction in which the proposed development is located takes action that THDA, in its sole discretion, determines to be for the primary purpose of preventing the proposed development from satisfying applicable program requirements, THDA may lower the amount of MTBA available to that jurisdiction in future Multifamily Tax-Exempt Bond Authority Program Descriptions. Examples include, without limitation, downzoning, action regarding utilities or utility connections, action regarding required public roads, or action to prevent issuance of Certificates of Occupancy. E. Maximum Amount of MTBA per Developer or Related Parties The maximum amount of MTBA that may be committed to a single applicant, developer, owner, or related parties shall not exceed sixty million dollars ($60,000,000). THDA reserves the right, in its sole discretion, to determine whether related parties are involved for the purpose of applying this limitation. F. Limit on Developer s Fee 1. The sum of developer and consultant fees reflected in the development costs worksheet may not exceed twenty five percent (25%) of total development costs (see Part III-F-5 below). If the sum of developer and consultant fees reflected in the development costs worksheet exceeds the amount described in Part III-F-2 or Part III-F-3 below (as applicable), then all developer and consultant fees in excess of the amount described in Part III-F-2 or Part III-F-3 below (as applicable) must be reflected as deferred fees and included in the sources of permanent financing. 2. If the developer and the contractor are unrelated, the non-deferred developer and consultant fees cannot exceed fifteen percent (15%) on the portion of the basis attributable to acquisition (before the addition of the fees), and cannot exceed fifteen percent (15%) of the portion of the basis attributable to new construction or to rehabilitation (before the addition of the fees). Page 7 of 25

3. If the developer and contractor are related parties, then the non-deferred combined fees for contractor's profit, overhead, and general requirements plus the developer's and consultant's fees, cannot exceed fifteen percent (15%) of the portion of the basis attributable to acquisition (before the addition of the fees), and cannot exceed twenty five percent (25%) of the portion of the basis attributable to new construction or to rehabilitation (before the addition of the fees). 4. If the deferred developer and consultant fees are greater than twenty five percent (25%) of total development cost minus the amount described in Part III-F-2 or Part III-F-3 below (as applicable), then the application must include evidence satisfactory to THDA, in its sole discretion, that the deferred developer and consultant fees will be repaid and will not jeopardize the financial feasibility of the development. 5. For purposes of this Part III-F, cash reserves are excluded from total development costs. G. Limits on Costs of Issuance As provided in Section 147 (g), the costs of issuance financed by the proceeds of private activity bonds issued to finance multifamily housing may not exceed two percent (2%) of the proceeds of the issue. Page 8 of 25

A. Electronic Application Process Part IV: Receipt of Applications 1. THDA is utilizing an on-line electronic application process for submission of 2018 MTBA applications. 2. For assistance with the electronic application system, contact THDA as follows: a. Felita Hamilton, Multifamily Programs Allocation Manager Phone (615) 815-2145 Email FHamilton@thda.org 3. If THDA determines that the electronic application system malfunctions to a degree and in a way that renders users unable to submit electronic MTBA applications online, THDA will provide alternative instructions to the users that THDA determines to have been affected. 4. To be considered complete, an electronic Initial Application must meet ALL of the following requirements: a. Be completely and correctly submitted through the electronic application system; and b. All required Attachments and supporting documentation required to be submitted in electronic form within the electronic application system must be organized as required by the electronic application system; and c. Include a wire transfer in the amount of all fees required with the electronic MTBA application as specified in Part IX; and d. Unless otherwise specifically directed by THDA, all electronic MTBA application materials, including Attachments and supporting documentation, must be formatted in accordance with the requirements of the electronic application system. B. Multiple Applications for a Single Development 1. Multiple applications submitted as separate phases of one development will be considered as one development and reviewed as one application. THDA reserves the right to request additional information or documentation, if necessary, to determine if applications submitted will be considered and reviewed as one or more developments. 2. Only one application may be submitted and be considered for a development. THDA reserves the right to request additional information or documentation to determine if applications submitted will be considered and reviewed as one or more developments. 3. A single application may be submitted for up to four developments provided that each of the following conditions applies to each development: a. located in a rural county as defined in Exhibit 3; b. no more than 48 total units; and c. if developments are not all located within the same county, all counties in which the developments are located must be contiguous and within the same Grand Division. An application submitted under this Part IV-B-3 will be treated as an application for a single development for purposes of applying the limits in Part III-A and Part III-B of this Program Description. Page 9 of 25

4. In cases involving a single issuing entity conducting a single bond issuance to provide financing for multiple developments, the following requirements, at minimum, will apply in addition to all other applicable requirements as described herein: a. A separate and full MTBA electronic application must be submitted for each development; and b An application fee as described in Part IX-A must be submitted with the application for each development; and c. If one or more of the developments is outside the jurisdiction of the issuing entity, the application must include documentation satisfactory to THDA certifying that that the issuing entity is permitted to, and the jurisdiction in which the development is located consents to, the issuance of the bonds. C. Multiple Applications Received on the Same Day 1. If THDA receives multiple eligible applications on the same day that, in the aggregate, request more MTBA than is available, the eligible applications will be ranked in descending order by score and priority will be given to the eligible application(s) with the highest score. If two or more eligible applications have the same score, the eligible applications with the same score will be ranked in ascending order by MTBA requested per low-income unit and priority will be given to the eligible application(s) with the lowest MTBA requested per lowincome unit. D. Conditional or Firm MTBA Commitment Letter Request 1. Applications must indicate whether applicant is requesting a Conditional MTBA Commitment Letter or a Firm MTBA Commitment Letter as described in Part VIII of this Program Description. Page 10 of 25

Part V: Application Submission Period No application will be accepted after 11:59 PM Central Time on the earlier of the date upon which the amount of MTBA made available hereunder is fully committed pursuant to Firm MTBA Commitment Letters issued under Part VIII of this Program Description or September 20, 2018. Applications resubmitted under Part II-G will be treated as new applications. No applications submitted under this Program Description will have priority or be considered under any Multifamily Tax-Exempt Bond Authority Program Description THDA may develop for 2019. New applications must be submitted for allocations of 2019 MTBA following the 2019 Effective Date and such new applications will be subject to all requirements of any Multifamily Tax-Exempt Bond Authority Program Description THDA may develop for 2019. Any application received on the 2019 Effective Date will be handled and evaluated under the 2019 Multifamily Tax-Exempt Bond Authority Program Description. Page 11 of 25

Part VI: Review of Applications for Completeness A. Applications must be complete. An application must be complete, as determined by THDA in its sole discretion, based on the requirements in this Program Description and the on-line application. THDA may request additional documentation and/or information for purposes of clarification. An applicant may request a determination from THDA s Executive Director regarding the reasonableness of such a request. B. Market Study Required 1. A market study, performed by an independent third party selected from Exhibit 4 and prepared in accordance with the requirements of Exhibit 1 (the Market Study ), must be submitted with the application for all proposed developments. The Market Study, in a form and with content acceptable to THDA in its sole discretion, must support the need and demand for the proposed development. 2. The Market Study must be less than six months old at the time of submission in order to be acceptable. 3. Based on the information and analysis presented in the Market Study, and based on other information available to THDA, THDA may determine, in its sole discretion, that market demand is not sufficient to support the proposed development. C. Appraisal Required The application must include an appraisal (Exhibit 7) of the proposed development performed in accordance with industry standards, by an appraiser licensed in Tennessee. The appraisal cannot be based solely or largely on a cost approach to value, but must also consider market and income approaches to value. The appraisal must include an assessment of the value of any noncompetitive Low-Income Housing Tax Credit. If the application is proposing acquisition of an existing structure, an as is appraisal must also be included regardless of whether noncompetitive Low-Income Housing Tax Credit for acquisition is sought. D. Physical Needs Assessment Required For applications proposing adaptive reuse, preservation, or rehabilitation, the application must include a Physical Needs Assessment (Exhibit 8) conducted by an independent third party. The Physical Needs Assessment must be in a form and with content acceptable to THDA in its sole discretion, and must include a complete and detailed work plan showing all necessary and contemplated improvements to be completed prior to the rehabilitation placed in service date, the projected cost, and confirmation that the work plan addresses all applicable requirements of Part III-B of this Program Description. Physical Needs Assessments must be less than six months old at the time of submission in order to be acceptable. The Physical Needs Assessment must be based on a physical inspection of the building(s) occurring no more than 6 months prior to the effective date of the Physical Needs Assessment. E. Minimum Score Required The application must receive at least 78 points under Part VII. F. Land Use Restrictive Covenant Required Page 12 of 25

THDA will provide a Land Use Restrictive Covenant with a term of fifteen (15) years for developments using MTBA without noncompetitive Low-Income Housing Tax Credit. THDA will provide a Land Use Restrictive Covenant for developments using MTBA and noncompetitive Low-Income Housing Tax Credit based on the terms of and elections under the 2018 Qualified Allocation Plan. The Land Use Restrictive Covenant must be executed, recorded in the county where the development is located, and the original returned to THDA no later than the date specified in the Firm MTBA Commitment Letter. G. Building Codes Compliance Required The development must meet all applicable local building codes or in the absence of such codes, the development must meet the following, as applicable: new construction of multi-family apartments of three (3) or more units must meet the 2009 International Building Code; new construction or reconstruction of single-family units or duplexes must meet the 2012 International Residential Code for One- and Two- Family Dwellings; and rehabilitation of rental units must meet the 2012 International Existing Building Code and the 2012 International Property Maintenance Code. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. H. Program Requirements and IRS Requirements All program description requirements, application requirements, and IRS requirements must be met. If there is any inconsistency or conflict among the requirements, the most stringent of the requirements will apply, as determined by THDA. I. Information must be current. 1. Appraisal, Physical Needs Assessment, and market information older than six months, as determined by the date prepared and information contained therein will not be considered current or complete. Supplemental documentation, including any commitments, should not have expired if they contain an expiration date, or the application will not be considered complete. Documents indicating approval dates that have passed will not meet application requirements. Applications with such documents will be considered incomplete. 2. A resolution authorizing the issuance of bonds passed by the relevant issuing entity must be current and valid at the time of application. The applicant should coordinate any updates that may be required for the resolution to remain in effect. Information submitted that is not current will not be accepted by THDA and will cause the application to be deemed incomplete. Any information or documentation, which is not current or complete, will impair an applicant's chances of receiving MTBA. J. Responsibility for Complete and Current Information It is the sole responsibility of the applicant to submit a complete application with complete and current information. Page 13 of 25

Part VII: Scoring A. Meeting Housing Needs: Maximum 50 points 1. Developments located in counties with the greatest rental housing need (Exhibit 6): Maximum 46 points 2. Developments located wholly and completely in a Qualified Census Tract or a Difficult to Develop Area as designated by HUD (Exhibit 2): 4 points B. Development Characteristics: Maximum 35 points 1. Developments not involving rehabilitation designed and built to promote energy conservation by meeting the standards of the 2009 International Building Code. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX: 10 points 2. Developments not involving rehabilitation designed and built using brick, stone, cement fiber siding, or vinyl to meet a 15-year maintenance-free exterior standard. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX: 10 points 3. Developments not involving rehabilitation designed and built with a minimum of sixty five percent (65%) of the exterior wall surfaces below the plate line covered with brick, stone, or cement fiber siding. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX: 15 points 4. Rehabilitation Only a. Developments involving major rehabilitation, as described in Part III-B-1 of this Program Description: 35 points b. Developments involving moderate rehabilitation, as described in Part III-B-2 of this Program Description: 30 points c. Developments involving limited rehabilitation, as described in Part III-B-3 of this Program Description: 25 points 5. For developments involving a combination of new construction and rehabilitation, points will be prorated based on the percentage of units in each category. C. Serving Special Populations: Maximum 50 points The Application must propose a development that serves households with special housing needs. Special needs housing is housing that has been constructed or rehabilitated with special features (e.g. location, design, layout, on-site services) to help people live at the highest level of independence in the community. For example, the unit may be adapted to accommodate special physical or medical needs; or provide on-site services such as staff support for the elderly, individuals with mental health issues, developmental, or other social needs. In order to qualify for points, the proposed development must include on-site services for the targeted tenant population. The Application must include a comprehensive service plan that identifies each service to be provided; the anticipated source of funding for each service; the physical space that will be used to provide each service; and the anticipated supportive service provider for each service and their Page 14 of 25

experience in providing service to the targeted population. Verification of tentative agreements with providers of on-site services throughout the first two (2) years following the required placed in service date must be included with the Application. Final agreements with providers of on-site services throughout the first two (2) years following the required placed in service date must be submitted prior to any partial refund of the Commitment Fee pursuant to Part IX. Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. 1. Residency Preference for Households with Children: Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX: 20 points A minimum of twenty percent (20%) of the units in the development, rounded up to the nearest whole unit, must have two (2) or more bedrooms. The development must include a playground with permanent playground equipment and at least one (1) of the following on-site amenities: a. Appropriately sized, dedicated space with appropriate furniture and fixtures for and agreements with providers of after-school tutoring or homework help programs; or b. Appropriately sized computer room containing at least one (1) computer with free internet access for each fifty (50) total units; or c. Ball court separate from all parking areas. OR 2. Residency Preference for Households with Special Housing Needs: Certification from the design architect will be required following the issuance of the Firm MTBA Commitment Letter. Confirmation from the supervising architect will be required prior to any partial refund of the Commitment Fee pursuant to Part IX: 20 points The development must include an appropriately sized, dedicated space with appropriate furniture and fixtures for, and agreements with, providers of services relevant to special housing needs residents and at least one (1) of the following on-site amenities: a. Appropriately sized computer room containing at least one (1) computer with free internet access for each fifty (50) total units; or b. Exercise facility for appropriate group activity for special housing needs residents (space must be at least 900 square feet, if indoor); or c. Gazebo with outdoor shaded sitting area with ornamental flowers and shrubs AND 3. Election to set aside up to twenty percent (20%) of the units (which number shall be rounded up to the next whole unit) for households with incomes no higher than fifty percent (50%) of the area median income with rents maintained at or below the 50% of area median income maximums. Units occupied by households with Section 8 Housing Choice Vouchers count toward this requirement: maximum 30 points Percent of units At least 5% At least 10% Points 5 points 10 points Page 15 of 25

At least 15% At least 20% 20 points 30 points NOTE: Election of points under this Part VII-C-3 shall constitute a corresponding election of points under Part VII-B-4 of the 2018 Low-Income Housing Tax Credit Qualified Allocation Plan with regard to an application for noncompetitive Low-Income Housing Tax Credit. D. Increasing Housing Stock: 5 points Developments which are new construction or are conversions of buildings not being used for housing which make them usable as housing. E. Affirmatively Furthering Fair Housing: 2 points The development must have and be operated in accordance with marketing plans, lease-up plans, and operating policies and procedures which are fully compliant with the THDA Affirmative Marketing Policy and Procedures. F. Enterprise Green Community Certification: 25 points Developments fully certified as compliant with Enterprise Green Community requirements. Certification documentation will be required prior to any partial refund of the Commitment Fee pursuant to Part IX. Page 16 of 25

Part VIII: Commitment of MTBA A. Type of MTBA Commitment Letter 1. Conditional MTBA Commitment Letter a. If THDA, in its sole discretion, determines that an eligible application requesting a Conditional MTBA Commitment Letter has met all applicable requirements of this Program Description, THDA may issue a Conditional MTBA Commitment Letter with an expiration date of December 19, 2018. The limit specified in Part III-E will apply. b. No extension to the Conditional MTBA Commitment Letter expiration date will be granted. c. A Conditional MTBA Commitment Letter IS NOT A GUARANTEE OF AVAILABILITY OF MTBA. THDA may issue Conditional MTBA Commitment Letters that, in aggregate, reflect MTBA in excess of the amount available under this Program Description. d. An applicant with a Conditional MTBA Commitment Letter must notify THDA of its intent to convert a Conditional MTBA Commitment Letter to a Firm MTBA Commitment Letter no less than 45 calendar days prior to the date the applicant wishes to receive the Firm MTBA Commitment Letter. 2. Firm MTBA Commitment Letter a. If THDA, in its sole discretion, determines that an eligible application requesting a Firm MTBA Commitment Letter has met all applicable requirements of this Program Description, THDA may issue a Firm MTBA Commitment Letter. The limit specified in Part III-E will apply. b. Except as specified in Part VIII-A-2-c, a Firm MTBA Commitment Letter will have an expiration date either ninety (90) or one hundred and twenty (120) calendar days from the date of issuance. The expiration date will be determined by THDA, in its sole discretion. c. Any Firm MTBA Commitment Letter issued after July 31, 2018 will have an expiration date of December 19, 2018. d. Any Firm MTBA Commitment Letter issued before August 1, 2018 will be permitted to request a single extension of thirty (30) calendar days to the expiration date. An Extension Fee (as described in Part IX-L-1) must accompany the extension request. The extension request may be approved or denied by THDA, in its sole discretion. e. THDA will not issue Firm MTBA Commitment Letters that, in aggregate, exceed MTBA in excess of the amount available under this Program Description. Page 17 of 25

Part IX: Fees, Partial Refunds of Fees, and Fees Retained by THDA A. THDA LIHTC/MTBA Program Wire Instructions Bank: US Bank ABA: 064000059 BNF: THDA Clearing Account BNF A/C: 151203673398 BNF ADDDRESS: 502 Deaderick Street, Andrew Jackson Bldg. 3 rd Floor Nashville, TN 37243 OBI: Tax Credit/Bond Application Fees + TN ID Number(s) Applicants may send one wire to cover multiple applications as applicants should enter the applicable TN ID Number(s) in the OBI field on the wire. B. Application Fee for Firm Commitment Letter An Application Fee of one thousand five hundred dollars ($1,500) must be submitted to THDA at the time an application is submitted. THIS FEE IS NOT REFUNDABLE. THDA must be able to confirm the receipt of a wire transfer in the amount of the Application Fee within 24 hours of electronic application submission to proceed. C. Special Request Application Fee A Special Request Application Fee of five thousand dollars ($5,000) must be submitted to THDA at the time a Special Request Application is submitted. THIS FEE IS NOT REFUNDABLE. THDA must be able to confirm the receipt of a wire transfer in the amount of the Special Request Application Fee within 24 hours of electronic application submission to proceed. D. Resubmission Fee A Resubmission Fee of seven hundred and fifty dollars ($750) must be submitted to THDA if an application is resubmitted following the resubmission deadline specified in the notice described in Part II-G. THIS FEE IS NOT REFUNDABLE. THDA must be able to confirm the receipt of a wire transfer in the amount of the Resubmission Fee within 24 hours of electronic application submission to proceed. E. Conditional MTBA Commitment Letter Fee A Conditional MTBA Commitment Letter Fee of five thousand dollars ($5,000) must be submitted in order for the Conditional MTBA Commitment Letter to be valid. THIS FEE IS NOT REFUNDABLE. THDA must be able to confirm the receipt of a wire transfer in the amount of the Conditional MTBA Commitment Letter Fee within 24 hours of electronic application submission to proceed. F. Firm MTBA Commitment Letter Fee 1. Applications requesting a Firm MTBA Commitment Letter from THDA for a specific amount of MTBA must submit a Commitment Fee for the term requested as follows: a. For a Firm MTBA Commitment Letter with a ninety (90) day term, the Commitment Fee will be an amount equal to one percent (1%) of the MTBA allocated to the local issuer. Page 18 of 25

b. For a Firm MTBA Commitment Letter with a one hundred and twenty (120) day term, the Commitment Fee will be an amount equal to one and thirty three percent (1.33%) of the MTBA allocated to the local issuer. 2. THDA must be able to confirm the receipt of a wire transfer in the amount of the Firm MTBA Commitment Letter Fee within 24 hours of electronic application submission to proceed. G. Incentive Fee 1. The Incentive Fee will be equal to twenty percent (20%) of the Commitment Fee. 2. THDA will specific the amount and the due date of the Incentive Fee upon issuance of the Firm MTBA Commitment Letter. H. Refund of Commitment Fee and Incentive Fee Following Issuance of MTBA 1. The following documentation, without limitation, must be submitted by the applicable deadlines: a. documentation from the issuing authority's bond counsel (including, without limitation, a Closing Confirmation Letter) must be submitted no later than the expiration of the Firm MTBA Commitment Letter; b. acceptable proof that all units are constructed and the facility is placed in service must be submitted no later than two years after the expiration of the Firm MTBA Commitment Letter; c. all applicable certifications required in Part VII must be submitted no later than two years after the expiration of the Firm MTBA Commitment Letter; and d. acceptable proof that all forms to be filed by the issuing authority have been completed and filed to THDA's satisfaction must be submitted no later than two years after the expiration of the Firm MTBA Commitment Letter. 2. Following satisfaction of all applicable requirements of Part IX-D-1-a above, fifty percent (50%) of the Commitment Fee will be refunded. 3. If all the conditions of Part IX-D-1 have been met and the bonds were issued and sold on or before 11:59 PM Central Time on the date specified in the Firm MTBA Commitment Letter, THDA will refund the Incentive Fee. 4. If the application is withdrawn, THDA will retain the full amount of the Incentive Fee. If the application is resubmitted in substantially the same form and during the same calendar year, in THDA s sole discretion, the retained Incentive Fee from the withdrawn application may be applied toward the Incentive Fee for the resubmitted application. I. Release of Commitments and Partial Refund of Commitment Fee 1. Commitments may be released by notifying THDA, in writing, prior to the expiration of the Firm MTBA Commitment Letter, that the bonds will not be issued. 2. A commitment which is released according to these requirements may receive a refund of seventy-five percent (75%) of the Commitment Fee. THDA will retain twenty-five percent (25%) of the Commitment Fee. J. Release of Commitments and Refund of Incentive Fee 1. Phase 90-day deadline 120-day deadline Phase A days 1-30 days 1-45 Phase B days 31-60 days 46-90 Page 19 of 25

Phase C days 61-89 days 91-119 Phase D* days 90-119 days 120-149 * only applicable if extension to deadline granted by THDA 2. If a Firm MTBA Commitment Letter is released during Phase A, THDA may refund the full Incentive Fee, and the applicant may reapply for 2018 MTBA. 3. If a Firm MTBA Commitment Letter is released during Phase B, THDA may refund fifty percent (50%) of the Incentive Fee, and the applicant may reapply for 2018 MTBA. 4. If a Firm MTBA Commitment Letter is released during Phase C, THDA may retain the full Incentive Fee, and the applicant may reapply for 2018 MTBA. 5. If a Firm MTBA Commitment Letter is released during Phase D, THDA may retain the full Incentive Fee, and the applicant may reapply for 2018 MTBA. K. Commitment Fee and Incentive Fee Retained by THDA 1. If the bonds are not issued by the expiration date of the Firm MTBA Commitment Letter, and the Firm MTBA Commitment Letter has not been released pursuant to Part IX, and no extension has been requested pursuant to Part VIII-A-2-d, THDA will retain the full amount of the Commitment Fee and the full amount of the Incentive Fee. NONE of the Commitment Fee and NONE of the Incentive Fee will be refunded to the applicant. The MTBA application for the development may not be resubmitted in 2018, and all individuals involved in the owner or developer, as determined by THDA, in its sole discretion, will be prohibited from applying for MTBA until January 1, 2021. 2. If the bonds are issued and sold, but the development is not placed in service, THDA will retain the full amount of the Commitment Fee and the full amount of the Incentive Fee. NONE of the Commitment Fee and NONE of the Incentive Fee will be refunded to the applicant. 3. If a request for an extension to the deadline for closing the sale of the bonds beyond 11:59 PM Central Time on the date specified in the Firm MTBA Commitment Letter is approved in accordance with Part VIII-A-2-d, NONE of the Incentive Fee will be refunded to the applicant. The MTBA application for the development may not be resubmitted in 2018, and all individuals involved in the owner or developer, as determined by THDA, in its sole discretion, will be prohibited from applying for MTBA until January 1, 2020 L. Monitoring Fee 1. For Developments that receive MTBA and noncompetitive Low Income Housing Tax Credit, Monitoring Fees shall be as prescribed in the applicable Tax Credit Qualified Allocation Plan. 2. For Developments that receive MTBA, but do not receive Low Income Housing Tax Credit, Monitoring Fees shall be as follows: a. When the development is placed in service, a compliance Monitoring Fee is due to THDA, payable in the form of a certified check (this fee also applies to USDA/RD [formerly FmHA] developments). The Monitoring Fees are six hundred dollars ($600) per low-income unit in the Development. b. Owners seeking to correct non-compliance will be charged additional fees to cover additional costs which may be incurred by staff to correct the noncompliance issue. Page 20 of 25

(i) Reinspection of a file: two hundred dollars ($200) (ii) Reinspection of a property: (iii) Standard mileage rate in effect by the State of Tennessee at the time of the reinspection from Nashville to the property and back to Nashville; (iv) applicable state allowed per-diem for one staff person; (v) Lodging expenses as allowed under State of Tennessee travel regulations; and (vi) Any other expenses incurred by THDA relating to the property reinspection. c. Fees will be due to THDA prior to issuance of reinspection findings. d. At any time following the fifth year of monitoring for each development, THDA will evaluate the need for an additional Monitoring Fee. THDA may, at its sole discretion, charge a single additional Monitoring Fee not greater than the initial Monitoring Fee stated above. THDA will charge this additional Monitoring Fee only if the costs of monitoring for Tax Credit compliance, in the aggregate, appear likely to exceed the aggregate amount of initial Monitoring Fees collected. A decision by THDA to charge any such additional fee shall not constitute an amendment to this Program Description. e. Owners who fail to submit the required Owner s Annual Certification of Compliance forms and supporting documentation by the date required by THDA will be charged a late fee of one hundred dollars ($100) per month, for each month, or portion of a month, until the Certification and supporting documentation is received and considered satisfactory by THDA. This fee will be due upon submission of the forms and/or supporting documentation required. Receipt of Certification without the applicable late fee will be considered incomplete. M. Modification Fee 1. The Modification Fee specified in this Part IX-I shall only apply to proposed developments utilizing MTBA without noncompetitive Tax Credits. Proposed developments utilizing MTBA with noncompetitive Tax Credits are subject to the Modification Fee specified in Part XV-D of the Low-Income Housing Tax Credit 2018 Qualified Allocation Plan. 2. A nonrefundable Modification Fee in an amount equal to the greater of seven hundred and fifty dollars ($750) or thirty five one-thousandths of one percent (0.035%) of the total amount of MTBA specified in the Firm MTBA Commitment Letter must be received by THDA prior to any evaluation of proposed modifications or changes. THDA must be able to confirm the receipt of a wire transfer in the amount of the Modification Fee within 24 hours of the modification or change request to proceed. 3. Payment of this fee does not guarantee approval of proposed changes or modifications. N. Extension Fee 1. An Extension Fee of one thousand five hundred dollars ($1,500) must be submitted to THDA prior to any consideration of a request pursuant to Part VIII-A-2-d. THDA Page 21 of 25

must be able to confirm the receipt of a wire transfer in the amount of the Extension Fee within 24 hours of the extension request to proceed. Page 22 of 25

Part X: Final Application After all units in the development are placed in service, a Final Application must be submitted prior to any refund of the Commitment Fee pursuant to Part IX. Page 23 of 25

Part XI: Application for Low-Income Housing Tax Credits If the development also seeks non-competitive Low-Income Housing Tax Credit ( non-competitive Tax Credit ), a separate application must be submitted to Tennessee Housing Development Agency to request the non-competitive Tax Credit. Receipt of authority to issue tax-exempt bonds does not guarantee receipt of non-competitive Tax Credit. THDA retains the authority to determine eligibility to receive non-competitive Tax Credit and the amount of non-competitive Tax Credit to be allocated to the development, up to the maximum amount eligible with tax-exempt financing. Any development seeking non-competitive Tax Credit must apply for non-competitive Tax Credit under the applicable Tax Credit Qualified Allocation Plan in the same calendar year in which the tax-exempt bonds are issued. THDA will conduct an eligibility and scoring review under the applicable Tax Credit Qualified Allocation Plan with regard to a non-competitive Tax Credit application submitted in conjunction with an application for MTBA within forty-five (45) days of THDA s receipt of such non-competitive Tax Credit application. Any applicant for non-competitive Tax Credit will be subject to all fees and requirements stated in the applicable Tax Credit Qualified Allocation Plan, including monitoring fees. Notwithstanding the provisions of Part XII, the maximum amount of annual noncompetitive Tax Credit that may be allocated to a single development shall not exceed one million three hundred thousand dollars ($1,300,000). In making this determination, THDA will consider the physical location of developments; the relationships among owners, developers, management agents, and other development participants; the structure of financing; and any other information which might clarify whether applications reflect a single development or multiple developments. If a development is the subject of a pending competitive 2018 Tax Credit application and is the subject of an application under the 2018 Multifamily Tax-Exempt Bond Authority Program Description, the issuance of a Firm MTBA Commitment Letter in accordance with Part VIII-A-2 of this Program Description shall constitute the withdrawal of the competitive Tax Credit application. The maximum obtainable rents supported by the market study will be expected to support reasonable operating expenses and maximum mortgage debt service prior to Tax Credits filling any financial gaps. This may require that the development obtain additional financing from other sources over and above the maximum amount of MTBA or non-competitive Tax Credit committed to the development by THDA. Page 24 of 25

Part XII: Controlling Document In the event of a conflict between this 2018 Tax-Exempt Multifamily Bond Authority Program Description and the Low-Income Housing Tax Credit 2018 Qualified Allocation Plan, the Low-Income Housing Tax Credit 2018 Qualified Allocation Plan shall be the controlling document with regard to applications for non-competitive Tax Credit. Page 25 of 25

UPDATED 2018 LIHTC Exhibit 1: Market Study Guidelines All applicants will submit a market study performed by an approved indepemndent third party selected from Exhibit 9. The market study must be prepared in accordance with the Version 3.0 of the Model Content Standards on January 14, 2013 published by NCHMA. Introduction: Members of the National Council of Housing Market Analysts provide the following checklist referencing various components necessary to conduct a comprehensive market study for rental housing. By completing the following checklist, the NCHMA Analyst certifies that he or she has performed all necessary work to support the conclusions included within the comprehensive market study. By completion of this checklist, the analyst asserts that he/she has completed all required items per section. In addition to the Market Study, all applicants must submit Shape Files with the Market Study submission which includes a PMA polygon that is accurate in boundary size and depicts the influence of natural and man made barriers. 1 Executive Summary 2 Scope of Work Executive Summary Scope of Work Project Description 3 Unit mix including bedrooms, bathrooms, square footage, rents, and income targeting 4 Utilities (and utility sources) included in rent 5 Target market/population description 6 Project description including unit features and community amenities 7 Date of construction/preliminary completion 8 If rehabilitation, scope of work, existing rents, and existing vacancies Location 9 Concise description of the site and adjacent parcels 10 Site photos/maps 11 Map of community services 12 Site evaluation/neighborhood including visibility, accessibility, and crime 13 PMA description 14 PMA Map Market Area Employment and Economy 15 At Place employment trends 16 Employment by sector 17 Unemployment rates 18 Area major employers/employment centers and proximity to site 19 Recent or planned employment expansions/reductions Page Number(s)

UPDATED 2018 LIHTC Exhibit 1: Market Study Guidelines Demographic Characteristics 20 Population and household estimates and projections 21 Area building permits 22 Population and household characteristics including income, tenure, and size 23 For senior or special needs projects, provide data specific to target market Competitive Environment 24 Comparable property profiles and photos 25 Map of comparable properties 26 Existing rental housing evaluation including vacancy and rents 27 Comparison of subject property to comparable properties 28 Discussion of availability and cost of other affordable housing options including homeownership, if applicable 29 Rental communities under construction, approved, or proposed 30 For senior or special needs populations, provide data specific to target market Affordability, Demand, and Penetration Rate Analysis 31 Estimate of demand (specify 50% and 60% ami) 32 Affordability analysis with capture rate 33 Penetration rate analysis with capture rate Analysis/Conclusions 34 Absorption rate and estimated stabilized occupancy for subject 35 Evaluation of proposed rent levels including estimate of market/achievable rents. 36 Precise statement of key conclusions 37 Market strengths and weaknesses impacting project 38 Product recommendations and/or suggested modifications to subject 39 Discussion of subject property's impact on existing housing 40 Discussion of risks or other mitigating circumstances impacting subject 41 Interviews with area housing stakeholders Other Requirements 42 Certifications 43 Statement of qualifications 44 Sources of data not otherwise identified Updated 11/8/2017 by FH

2018 LIHTC EXHIBIT 2 QUALIFIED CENSUS TRACTS AND DIFFICULT DEVELOPMENT AREAS This document is available online at the following address: http://www.huduser.gov/portal/datasets/qct.html

2018 LIHTC EXHIBIT 3 URBAN, SUBURBAN, RURAL COUNTIES Urban, Suburban, and Rural definitions using 2010 Census Urban= 0 40% Rural Population; Suburban= 41 65% Rural Population; Rural= 66 100% Rural Population Urban Suburban Rural County % Rural County % Rural County % Rural County % Rural County % Rural Anderson 35% Bedford 56% Benton 78% Hancock 100% Meigs 100% Blount 33% Campbell 55% Bledsoe 100% Hardeman 80% Monroe 76% Bradley 33% Carter 41% Cannon 81% Hardin 68% Moore 100% Davidson 3% Chester 65% Carroll 83% Henderson 76% Morgan 100% Hamblen 22% Coffee 47% Cheatham 83% Henry 67% Overton 84% Hamilton 10% Cumberland 61% Claiborne 72% Hickman 100% Perry 100% Knox 11% Dyer 43% Clay 100% Houston 100% Pickett 100% Madison 26% Gibson 48% Cocke 68% Humphreys 82% Polk 100% Montgomery 20% Greene 65% Crockett 67% Jackson 100% Rhea 68% Putnam 35% Hawkins 58% Decatur 100% Johnson 85% Scott 81% Rutherford 17% Haywood 47% DeKalb 78% Lake 100% Sequatchie 74% Shelby 3% Jefferson 59% Dickson 68% Lawrence 76% Smith 83% Sullivan 26% Lauderdale 59% Fayette 79% Lewis 70% Stewart 100% Sumner 28% Loudon 41% Fentress 100% Lincoln 72% Trousdale 100% Washington 26% Maury 42% Franklin 70% Macon 80% Union 100% Williamson 19% McMinn 60% Giles 74% Marion 77% Van Buren 100% Wilson 38% Obion 62% Grainger 100% Marshall 66% Wayne 100% Roane 51% Grundy 100% McNairy 85% Weakley 67% Robertson 53% White 78% Sevier 57% Tipton 55% Unicoi 45% Warren 61%

Contact Approved Vendor Contact Name Contact Address Contact City Contact State Contact Zip Phone Contact Email or Company Contact Fax Website Grand Division Preference Bowen National Research Patrick Bowen 155 E. Columbus Street, Suite 220 Pickerington Ohio 43147 (615) 833 9300 N/A patrickb@bowennational.com E, M, W Yes Fielder Group Market Research, L.L.C. Elizabeth Rouse Fielder P.O. Box 22698 Lexington Kentucky 40522 2698 (859) 276 0000 (859) 276 2302 erfielder@fieldergroup.com E, M, W Yes Gill Group, Inc. Cash Gill 512 N. One Mile Road P.O. Box 784 Dexter Missouri 63841 (573) 624 6614 (573) 624 2942 cash.gill@gillgroup.com E, M, W Yes Integra Realty Resources Michelle Alexander 1661 International Drive, Suite 330 Memphis Tennessee 38120 (901) 322 1703 (901) 767 4918 malexander@irr.com E, M, W Yes John Wall and Associates John Wall P.O. Box 1169 Anderson South Carolina 29622 (864) 261 3147 (864) 226 5728 john@johnwallandassociates.com E, M, W Yes LBK Appraisal Services Laurie B. Kinzer 1105 Wildtree Lane Knoxville Tennessee 37923 (865) 691 2889 (865) 806 9065 lauriekinzer@lbkappraisals.com E, M, W Yes National Land Advisory Group Richard Barnett 2404 E Main Street Columbus Ohio 43209 (614) 545 3900 (614) 545 4900 rbarnett@landadvisory.biz E, M, W Yes Real Property Research Group Bob Lefenfeld 10400 Little Patuxent Parkway Suite 450 Columbia Maryland 21044 (410) 772 1004 (410) 772 1110 bob@rprg.net E, M, W Yes Value ResearchGroup, LLC Richard Polton 301 Sout Livingston Ave. Suite 104 Livingston New Jersey 07039 (973) 422 9800 (973) 422 9797 rpolton@valueresearch.com E, M, W Yes Vogt Santer Insights Robert Vogt 869 W Goodale Boulevard Columbus Ohio 43212 (614) 224 4300 (614) 225 9505 andrewm@vsinsights.com E, M, W Yes Woods Research, Inc. James M. Woods 5209 Trenholm Road Columbia South Carolina 29206 (803) 782 7700 (803) 782 2007 woodsresearch@aol.com E, M, W Yes Updated 11/8/2017 UPDATED 2018 LIHTC Exhibit 4: Approved Market Study Vendor Listing Special Needs and/or Elderly Experience

2018 LIHTC EXHIBIT 5 FAIR HOUSING ACT REQUIREMENTS See www.fairhousingfirst.org for complete information. The following are HUD recognized safe harbors identified at www.fairhousingfirst.org which, if met, indicate compliance with the Fair Housing Act s design and construction requirements: 1. HUD Fair Housing Accessibility Guidelines published on March 6, 1991 and the Supplemental Notice to Fair Housing Accessibility Guidelines: Questions and Answers about the Guidelines, published on June 28, 1994. 2. HUD Fair Housing Act Design Manual 3. ANSI A117.1 (1986), used with the Fair Housing Act, HUD's regulations, and the Guidelines. 4. CABO/ANSI A117.1 (1992), used with the Fair Housing Act, HUD's regulations, and the Guidelines. 5. ICC/ANSI A117.1 (1998), used with the Fair Housing Act, HUD's regulations, and the Guidelines. 6. Code Requirements for Housing Accessibility 2000 (CRHA). 7. International Building Code 2000 as amended by the 2001 Supplement to the International Codes. 8. International Building Code 2003, with one condition: effective February 28, 2005 HUD determined that the IBC 2003 is a safe harbor, conditioned upon ICC publishing and distributing a statement to jurisdictions and past and future purchasers of the 2003 IBC stating, "ICC interprets Section 1104.1, and specifically, the exception to Section 1104.1, to be read together with Section 1107.4, and that the Code requires an accessible pedestrian route from site arrival points to accessible building entrances, unless site impracticality applies. Exception 1 to Section 1107.4 is not applicable to site arrival points for any Type B dwelling units because site impracticality is addressed under Section 1107.7." 9. ICC/ANSI A117.1 (2003), used with the Fair Housing Act, HUD's regulations, and the Guidelines. 10. 2006 International Building Code (loose leaf). One of these eight must be referenced in the required certificates. Refer to www.fairhousingfirst.org for detailed information regarding the following seven basic design and construction requirements that must be met to ensure Fair Housing Act compliance: 1. An accessible building entrance on an accessible route. 2. Accessible common and public use areas. 3. Usable doors (usable by a person in a wheelchair). 4. Accessible route into and through the dwelling unit. 5. Light switches, electrical outlets, thermostats and other environmental controls in accessible locations. 6. Reinforced walls in bathrooms for later installation of grab bars. 7. Usable kitchens and bathrooms. These requirements are stated in the Fair Housing Act, as amended, 42 U.S.C. 3604 (f)(3)(c). To describe these requirements in more detail, HUD published Fair Housing Accessibility Guidelines (the Guidelines ) on March 6, 1991, and supplemented those Guidelines with a Supplemental Notice: Questions and Answers About the Guidelines published on June 28, 1994. The Guidelines are one of eight safe harbors for compliance that HUD has identified.

URBAN COUNTIES 46 PT ADJUSTED URBAN SCORE Viable COUNTY Exhibit 6: NEW CONSTRUCTION NEEDS SCORE RURAL & SUBURBAN COUNTIES 46 PT ADJUSTED SCORE Viable COUNTY RURAL, SUBURB 46 PT ADJUSTED SCORE Viable COUNTY 46 PT ADJUSTED SCORE Viable COUNTY U,R,S Rehab/Preservation Needs Score 46 PT ADJUSTED SCORE COUNTY U,R,S RURAL, RURAL, COUNTY SUBURB SUBURB Montgomery URBAN 46.00 Y Sevier SUBURBAN 46.00 Y Fentress RURAL 25.69 Y Hancock RURAL 19.85 Y Shelby URBAN 46.00 Stewart RURAL 15.314481 Davidson URBAN 40.51 Y Maury SUBURBAN 40.45 Y Meigs RURAL 25.67 Y Weakley RURAL 18.84 Y Davidson URBAN 27.18 Franklin RURAL 15.266768 Rutherford URBAN 33.68 Y McNairy RURAL 37.95 Y Jackson RURAL 25.07 Y Gibson SUBURBAN 18.80 Y Polk RURAL 23.55 Knox URBAN 15.236502 Knox URBAN 32.64 Y Tipton SUBURBAN 36.51 Y Roane SUBURBAN 25.07 Y Carroll RURAL 16.80 Y Hamilton URBAN 23.35 Marshall RURAL 15.028571 Hamilton URBAN 32.47 Y Marion RURAL 34.94 Y Lincoln RURAL 24.97 Y Cumberland SUBURBAN 16.18 Y Moore RURAL 23.35 Benton RURAL 14.922804 Shelby URBAN 29.26 Y Marshall RURAL 34.16 Y Cocke RURAL 24.95 Y Lawrence RURAL 13.28 Y Johnson RURAL 23.33 Lawrence RURAL 14.812302 Blount URBAN 27.10 Y Bedford SUBURBAN 32.86 Y Cannon RURAL 24.68 Y Grundy RURAL 13.28 Y Pickett RURAL 23.32 Warren SUBURBAN 14.72044 Sumner URBAN 25.92 Y Jefferson SUBURBAN 31.29 Y Giles RURAL 24.37 Y Henry RURAL 12.98 Y Cannon RURAL 23.32 Carroll RURAL 14.658456 Sullivan URBAN 25.17 Y Cheatham RURAL 30.55 Y Hawkins SUBURBAN 24.05 Y Obion SUBURBAN 11.30 Y Meigs RURAL 23.28 Claiborne RURAL 14.536783 Wilson URBAN 23.39 Y Dickson RURAL 29.05 Y Decatur RURAL 23.90 Y Claiborne RURAL 7.14 Y Bledsoe RURAL 23.26 Sullivan URBAN 14.530776 Anderson URBAN 23.00 Y White RURAL 28.53 Y Benton RURAL 23.87 Y Sequatchie RURAL 6.56 Y Trousdale RURAL 23.26 Robertson SUBURBAN 14.480069 Williamson URBAN 19.29 Y Overton RURAL 28.39 Y Monroe RURAL 23.83 Y Trousdale RURAL 6.18 N Dyer SUBURBAN 22.65 Lewis RURAL 14.450691 Washington URBAN 15.72 Y McMinn SUBURBAN 28.34 Y Van Buren RURAL 23.24 Y Moore RURAL 3.98 N Lake RURAL 21.98 DeKalb RURAL 14.422265 Bradley URBAN 15.33 Y Warren SUBURBAN 28.30 Y Clay RURAL 23.23 Y Grainger RURAL 3.92 N Scott RURAL 21.49 Weakley RURAL 14.4203 Madison URBAN 13.28 Y Smith RURAL 27.94 Y Lauderdale SUBURBAN 23.21 Y Hickman RURAL 3.35 N Roane SUBURBAN 21.40 Monroe RURAL 14.397058 Putnam URBAN 3.39 Y Henderson RURAL 27.74 Y Carter SUBURBAN 23.19 Y Perry RURAL 1.84 Y Hickman RURAL 20.32 Rhea RURAL 14.223313 Hamblen URBAN 0.00 Y Coffee SUBURBAN 27.60 Y Wayne RURAL 22.83 Y Stewart RURAL 0.81 N Overton RURAL 19.99 Blount URBAN 14.215834 Campbell SUBURBAN 27.58 Y Unicoi SUBURBAN 22.67 Y Houston RURAL 0.62 N Haywood SUBURBAN 19.69 Madison URBAN 13.636505 Bledsoe RURAL 27.40 Y Hardin RURAL 22.47 Y Hardeman RURAL 0.00 Y Greene SUBURBAN 19.60 Giles RURAL 13.510716 Crockett RURAL 27.36 Y Robertson SUBURBAN 22.41 Y Union RURAL -0.71 N Marion RURAL 19.55 Anderson URBAN 13.389863 DeKalb RURAL 27.33 Y Lake RURAL 22.37 Y Polk RURAL -1.40 N Union RURAL 19.49 White RURAL 13.30492 Greene SUBURBAN 27.05 Y Lewis RURAL 22.34 Y Humphreys RURAL -3.68 N MontgomeryURBAN 19.46 Chester SUBURBAN 13.287025 Scott RURAL 26.88 Y Pickett RURAL 22.09 Y Non viable counties have 23 points Dickson RURAL 19.46 Unicoi SUBURBAN 13.215443 Loudon SUBURBAN 26.41 Y Haywood SUBURBAN 21.74 Y deducted from their 46 point adjusted Jefferson SUBURBAN 19.09 Humphreys RURAL 13.15281 Dyer SUBURBAN 26.21 Y Macon RURAL 21.49 Y needs score. Cocke RURAL 18.83 Decatur RURAL 13.117019 Franklin RURAL 26.09 Y Morgan RURAL 20.84 Y Lauderdale SUBURBAN 18.73 Van Buren RURAL 13.099124 Chester SUBURBAN 25.99 Y Fayette RURAL 20.70 Y Tipton SUBURBAN 18.65 Cheatham RURAL 13.093909 Johnson RURAL 25.75 Y Rhea RURAL 20.22 Y Washington URBAN 17.81 Gibson SUBURBAN 13.017957 Crockett RURAL 17.79 Loudon SUBURBAN 12.831401 McMinn SUBURBAN 17.79 Coffee SUBURBAN 12.786564 Morgan RURAL 17.63 Fayette RURAL 12.574391 Grundy RURAL 17.49 Bedford SUBURBAN 12.186888 Sevier SUBURBAN 17.33 Wilson URBAN 11.997144 Jackson RURAL 17.11 Macon RURAL 11.5243 Wayne RURAL 17.08 Cumberland SUBURBAN 11.47263 Grainger RURAL 17.00 Hamblen URBAN 11.136476 Houston RURAL 16.98 Clay RURAL 10.870948 Smith RURAL 16.88 Henry RURAL 9.4340521 Henderson RURAL 16.60 Hardeman RURAL 9.3118365 Campbell SUBURBAN 16.40 Williamson URBAN 8.464665 Hardin RURAL 16.01 Putnam URBAN 8.4069727 Fentress RURAL 15.86 Hancock RURAL 7.3627078 Bradley URBAN 15.80 Rutherford URBAN 6.8478285 McNairy RURAL 15.67 Sequatchie RURAL 4.7385386 Sumner URBAN 15.51 Obion SUBURBAN 4.6503649 Lincoln RURAL 15.45 Maury SUBURBAN 2.422655 Carter SUBURBAN 15.40 Perry RURAL 0 Hawkins SUBURBAN 15.40 46 PT ADJUSTED SCORE

2018 LIHTC Exhibit 7: Appraisal (Page 1) This form is intended specifically for use in applying for tax credits to be issued by THDA. Depending upon the assignment, the appraiser may need to provide additional data, analysis, or explanation not shown on this form. (a) Property Identification Project Name: Date of Report: Street Address City/State Zip Code County Total Units Non Revenue Units Proposed LIHTC Units Location/Cross St.: Tax Identification Number(s): # Apartment Buildings # Community Buildings Legal Description (optional): Type of Development Targeted Household Type New Construction Acquisition/Rehab Family Elderly Owner of Record: Buyer: Land Size Sale Price: Acres Has the property sold within the past 3 years? If yes, explain Yes No Is the property currently under contract? If yes, provide details of pending sale. Yes No (b) Appraisal Report Information Appraisal Reporting Option: Appraisal Report Restricted Appraisal Report Intended Users (must include client & THDA): Intended Use: Property Interest Appraised: Fee Simple Leasehold Definition of Market Value Source: OCC; 12 CFR, Section 34.42 (Defined below) Other (Attached) The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1) Buyer and seller are typically motivated 2) Both parties are well informed or well advised, and acting in what they consider their own best interests 3) A reasonable time is allowed for exposure in the open market; 4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale 6) The value estimate provided herein is expressed in terms of cash or its equivalent." Describe Appraisal Scope of Work (continue on separate page if necessary): Estimated Exposure Time: Highest & Best Use of Subject Real Estate as Appraised Herein: Was this appraisal prepared using any Extraordinary Assumptions? Current Use of Subject Real Estate: No Yes If yes, explain below Was this appraisal prepared using any Hypothetical Conditions? No Yes If yes, explain below Appraisal Premise Land Value (as if vacant) Hypothetical As Is Market Value (Assuming Market Rate Operations) As Is Restricted Market Value as Affordable Housing (Under Current Condition & Restricted Operations) Prospective Market Value (Upon Renovation & Assuming Market Rate Operations) Prospective Restricted Market Value as Affordable Housing (Upon Renovation & with Restricted Rents) Notes and Comments (continue on separate page if necessary) (c) Value Conclusions & Effective Dates (all categories may not apply amend as necessary) Effective Date Value Conclusion

Neighborhood Information Neighborhood boundaries / accessibility (attach map): 2018 LIHTC Exhibit 7: Appraisal (Page 2) (a) Location & Description of Property Market Description: Urban Suburban Rural Present Land Use: Build up: 75 100% 50 75% 25 50% 0 25% % 1 Family % 2 to 4 Family Growth Rate Rapid Steady Slow Declining % Multifamily % Commercial Property Values: Increasing Stable Declining % Industrial % Vacant Site Information Land Size Shape Topography Flood Map / Panel No. Zone / Hazard Area?: Acres Yes No Zoning: Zoning Compliance: Legal Illegal Legal Non Conforming (Grandfathered) No Zoning Adjacent Land Uses: North: South: East: West: Building Information Year Built: Stories: Elevator Garden Townhouse Construction Type Masonry Frame Gas: Heat Hot Water Cooking Electricity: Heat Hot Water Cooking Other: Heat Hot Water Cold Water Other (Specify) Exterior Walls: Utilities Included in Monthly Rent Cooling, Lights, etc. Sewer Subject Unit Mix: # Units # BR # BA S.F. Remarks On Site Management Fitness Center Tennis Court Ceiling Fans Range/Oven Laundry Facility Walking Trail Carpet Icemaker Car Care Security W/D Appliances Microwave Area Swimming Pool Controlled/Gated Access W/D Connections Balcony Storage Whirlpool/ Covered Parking Fireplace Emergency Pull Cords Spa Utilities Included in Monthly Rent Gas: Heat Hot Water Cooking Electricity: Heat Hot Water Cooking Other: Heat Hot Water Cold Water Comments Project Amenities Playground Business Center Picnic / Gazebo Area Central A/C Subject Amenities & Services Existing (E), Proposed (P), or Both (B) Balcony/Patio Unit Amenities Dishwasher Clubhouse/Mtg. Room Sports Court Window Treatments Disposal Other (Specify) Sewer Cooling, Lights, etc. Refrigerator

Project Name: 2018 LIHTC Exhibit 7: Appraisal (Page 3) (a) Project Identification Project Size: Historical Operating Data Units Category Income Gross Rental Income Vacancy & Collection Loss Bad Debts Other Income Effective Gross Income Expenses Management Advertising Office & Administrative Utilities Electricity Gas Water/Sewer Trash Removal Subtotal Utilities Payroll Payroll & Related Compensation Payroll Taxes Subtotal Payroll Repairs & Maintenance Decorating Repairs Exterminating Ground Expenses Subtotal Repairs & Maintenance Insurance Real Estate Taxes Total Expenses Contractor: 2014 2015 2016 $ Amt. $/Unit $ Amt. $/Unit $ Amt. $/Unit ata Source for Cos TOTAL HARD COSTS (b) Hard Costs (c) Summary of Renovation Highlights Exterior Building(s) & Project Amenities Unit Interiors

Project Name: Contractor: 2018 LIHTC Exhibit 7: Appraisal (Page 4) (a) Project Identification Project Size: Data Source for Costs: Units Division Cost Per Unit Cost Concrete Masonry Metals Wood, Plastics, and Composites Thermal and Moisture Protection Openings Finishes Specialties Furnishings Special Construction Plumbing HVAC Electrical Electronic Safety and Security Earthwork Site Utilities Other: (b) Hard Costs Total Hard Costs TOTAL HARD COSTS (c) Summary of Renovation Highlights Exterior Building(s) & Project Amenities Unit Interiors

2018 LIHTC Exhibit 7: Appraisal (Page 5) Land Value Estimate Project Name: Address or Location: Subject Size: Acres Units (minimum 3 sales) SUBJECT Land Sale No. 1 Land Sale No. 2 Land Sale No. 3 Land Sale No. 4 Land Sale No. 5 Name Location Date of Sale Sales Price Size (Acres) Price per Acre No. Units Price per unit Adjustments (%) Time Location Size Zoning/Density Topo., Access, etc. Other Total Adjustment Factor Adjusted Per Acre Price Adjusted Per Unit Price Adjusted Indications Indicated Land Value Per Acre Per Unit # Units: $ Per Unit, rounded: Maximum: Minimum: # Acres: $ Per Acre, rounded: Mean: Median Final Land Value Estimate Map of Land Sales & Subject Property

2018 LIHTC Exhibit 7: Appraisal (Page 6) COST APPROACH ("As Is" Value Estimate) (vi) Cost Input Data Project Name: Number of Units Number of Stories: Height per Story: Year Built: Number of Buildings: Quality of Construction (per Cost Source) Gross Building Area (Apartments) SF Year BuiExterior Walls: Average Floor Area: SF (vii) Cost Data Cost Source Section/Page Bldg. Type Bldg. Class Base S.F. Cost (viii) Square Foot Refinements Item Unit Cost Unit Type S.F. Cost Total Base Cost Adjusted for Square Foot Refinements (ix) Multipliers & Refinements Item Description Multiplier # Stories Multiplier Story Height Multiplier Floor Area Perimeter Multiplier Current Cost Multiplier Local Multiplier Combined Multipliers: Base Cost Adjusted for Refinements: (x) Building Improvements Item Adj. Base Costs Unit Type Quantity Total Total Building Improvement Cost: (vi) Site Improvements Item Unit Cost Unit Type Quantity Total Total Site Improvement Costs: Subtotal: Building & Site Costs: (vii) Indirect Cost & Profit Item % Cost % Type Total Soft Costs % Bldg & Site Cost Entrepreneurial Profit % Bldg & Site Cost Total Soft Costs: Total Replacement Cost New: (viii) Depreciation Component Effective Age Life % Amount Physical Depreciation: Functional Obsolescence: External Obsolescence: Total Depreciation: Depreciated Value of Improvements: (ix) Land Value Item Unit Cost Unit of Comparison Quantity Land Value (rounded) Per Unit Cost Approach Value Indication: Rounded: Value per S.F.

2018 LIHTC Exhibit 7: Appraisal (Page 7) SALES COMPARISON APPROACH ("As Is" Value Estimate) (x) Subject & Improved Sale Data Subject Name: Sale No. 1 Identification (Name/Address or City) Subject Address or Location: Summary of Comparable Apartment Sales Data Sale Date Year Built No. of Units Sale Price Price Per Unit EGIM OAR 2 3 4 High Low Mean Median Attach map showing subject and sale location; also attach detailed description and photograph of each sale. (xi) Sales Adjustment Grid "As Is" Value Subject Sale 1 Sale 2 Sale 3 Sale 4 Sales Price Bldg Size # of units Unit Price per unit Rights Conveyed Comparison $ Adjustment Financing Comparison $ Adjustment Terms of Sale Comparison $ Adjustment Market Conditions Comparison in Years Adjustment Factor $ Adjustment Adjusted Unit Price per unit Location & Accessibility Rating Comparison % Adjustment $ Adjustment Effective Age in Years Comparison % Comparison $ Adjustment Avg. Size of Unit Mix Comparison % Comparison $ Adjustment Amenities & Quality Comparison % Comparison $ Adjustment Net % Adjustment Net $ Adjustment Adjusted Unit Price (xii) Elements of Comparison (xiii) Property Characteristics Adjusted Per Unit Sale Price Indications Indicated "As Is" Market Value via Sales Comparison Approach Maximum: Mean: Subject Units @ Minimum: Median Per Unit = Round to:

Unit Type 2018 LIHTC Exhibit 7: Appraisal (Page 8) INCOME CAPITALIZATION APPROACH Attach detailed rental profiles, map & data used to support the appraiser's estimated subject rents. Restricted? Subsidy Program (a) Current Monthly Rents No. of Units S.F. Monthly Rent Rent per S.F. Potential Gross Annual Income (b) Hypothetical Market Rents As Is Condition Unit Type No. of Units S.F. Monthly Rent Rent per S.F. Potential Gross Annual Income (c) Prospective Hypothetical Market Rents @ Completion of Construction &/or Rehabilitation Unit Type No. of Units S.F. Monthly Rent Rent per S.F. Potential Gross Annual Income Unit Type (d) Projected Maximum Allowable LIHTC Rents (Net of Tenant Paid Utilities) Tenant Applicable No. of Monthly Rent Paid S.F. AMI Limit Units Rent per S.F. Utilities Potential Gross Annual Income ource for Utility Allowances: Unit Type (e) Prospective Restricted Rents @ Completion of Construction &/or Rehabilitation No. of Units S.F. Monthly Rent Rent per S.F. Potential Gross Annual Income Comments

2018 LIHTC Exhibit 7: Appraisal (Page 9) INCOME CAPITALIZATION APPROACH "As Is" Value Estimates (a) Pro Forma Operating Statement Hypothetical "As Is" Market Value Assuming Market Rate Rents & in Current Condition POTENTIAL GROSS INCOME Units @ rent per month annually: Units @ rent per month annually: Units @ rent per month annually: Total Potential Gross Rental Income: Other Income: Effective Gross Rental Income: Less Vacancy & Credit Loss: Effective Gross Income: Less Operating Expenses: Advertising Office & Administrative Utilities Salaries & Compensation Repairs & Maintenance Managem ent % Insurance Real Estate Taxes Total Operating Expenses: Deducted Operating Expenses: Less Reserve Replacements: Net Operating Income: Capitalized @ % Indicated Hypothetical "As Is" Market Value assuming Market Rate Rents: Rounded: Per Unit Amount (b) Pro Forma Operating Statement "As Is" Market Value as Affordable Housing With Current Restricted Rents & in Current Condition POTENTIAL GROSS INCOME Units @ rent per month annually: Units @ rent per month annually: Units @ rent per month annually: Total Potential Gross Rental Income: Other Income: Effective Gross Rental Income: Less Vacancy & Credit Loss: Effective Gross Income: Less Operating Expenses: Advertising Office & Administrative Utilities Salaries & Compensation Repairs & Maintenance Managem ent % Insurance Real Estate Taxes Total Operating Expenses: Deducted Operating Expenses: Less Reserve Replacements: Net Operating Income: Capitalized @ % Indicated "As Is" Market Value as Affordable Housing with Restricted Rents: Rounded: Per Unit Amount

2018 LIHTC Exhibit 7: Appraisal (Page 10) INCOME CAPITALIZATION APPROACH Prospective (As Renovated) Value Estimates (a) Pro Forma Operating Statement Hypothetical Prospective Market Value Assuming Market Rate Rents & Completed Renovations POTENTIAL GROSS INCOME Units @ Units @ Units @ rent per month annually: rent per month annually: rent per month annually: Total Potential Gross Rental Income: Other Income: Effective Gross Rental Income: Less Vacancy & Credit Loss: Effective Gross Income: Less Operating Expenses: Advertising Office & Administrative Utilities Salaries & Compensation Repairs & Maintenance Management % Insurance Real Estate Taxes Total Operating Expenses: Deducted Operating Expenses: Less Reserve Replacements: Net Operating Income: Capitalized @ % Indicated Hypothetical Prospective Market Value assuming Market Rate Rents: Rounded: Per Unit Amount (b) Pro Forma Operating Statement "As Is" Market Value as Affordable Housing With Current Restricted Rents & in Current Condition POTENTIAL GROSS INCOME Units @ Units @ Units @ rent per month annually: rent per month annually: rent per month annually: Total Potential Gross Rental Income: Other Income: Effective Gross Rental Income: Less Vacancy & Credit Loss: Effective Gross Income: Less Operating Expenses: Advertising Office & Administrative Utilities Salaries & Compensation Repairs & Maintenance Management % Insurance Real Estate Taxes Total Operating Expenses: Deducted Operating Expenses: Less Reserve Replacements: Net Operating Income: Capitalized @ % Indicated Prospective Market Value as Affordable Housing with Restricted Rents: Rounded: Per Unit Amount

2018 LIHTC Exhibit 7: Appraisal (Page 11) COMPARABLE RENTAL DATA Comparable Rental No. Project Name: Market Rate LIHTC Other, specify: Address: County: Cross Street: General Data Management Company: Contact: Phone: Date Polled: Lease Terms: Security Deposit: Insert Photo Application Fee: Pet Policy: Occupancy: Age Restricted: Physical Data No. of Units: Year Built: Renovations: Absorption: Age Restricted: Building Design: Parking: $/mo. Exterior: Garages $/mo. Condition: Project Storage Units: $/mo. No. of. Stories: Security: Utilities included in Rent: Unit Type Rental Data & Unit Breakdown No. S.F. Monthly Rent Rent Per S.F. PROJECT AMENITIES Project / Unit Amenities UNIT AMENITIES On Site Management Clubhouse/Mtg. Room Playground Balcony/Patio Dishwasher Sports Court Window Treatments Disposal Fitness Center Tennis Court Ceiling Fans Range/Oven Business Center Laundry Facility Car Care Area Picnic / Gazebo Area Walking Trail Security Central A/C Carpet W/D Appliances Refrigerator Icemaker Microwave Controlled/Gated Swimming Pool W/D Connections Balcony Storage Access Whirlpool/Spa Covered Parking Fireplace Emergency Pull Cords Concessions: Comments:

2018 LIHTC Exhibit 7: Appraisal (Page 12) CERTIFICATION Project/Property Name: Location or Address: City / State / Zip Code: County: Appraiser's Name: TN Certification Number: Appraiser's Email & Phone Information: Yes No N/A Did the appraisers signing this report personally inspect the interior and exterior of the subject property? Yes No N/A Does the appraiser hold the appropriate state certification for the appraisal assignment and is a copy of this license in the Addenda? Yes No N/A Does the appraisal contain a statement of competency and the qualifications of the person(s) signing the certification? Yes No N/A Does the appraisal contain a signed certification in accordance with USPAP? Yes No N/A Is the date of the appraisal report and its supporting documentation within six months of the submission? Yes No N/A Are any assumptions and/or limiting conditions that may influence the value disclosed and discussed? Yes No N/A Does the appraisal state, summarize, or describe the extent of the process of collecting, confirming and reporting data? Yes No N/A Is a three year ownership history of the property reported and analyzed, including any listing or pending contract? Yes No N/A Does the appraisal follow the format and order specified in the 2016 THDA Multifamily Appraisal Guidelines? To include the following attachments: Yes No N/A Subject Location Map Yes No N/A Neighborhood Map Yes No N/A Subject Tax Map or Site Plan if available Yes No N/A Aerial of Subject Property Yes No N/A Color Photographs of Subject Property and Surrounding Land Uses Yes No N/A Map of Comparable Land Sales (showing location of sales and subject) Yes No N/A Color Photographs of Comparable Apartment Sales & Map (showing locations of subject and sales) Yes No N/A Color Photographs of Comparable Rentals & Map (showing locations of subject and rent comps) Yes No N/A Rental Adjustment Grid(s) or other analysis providing support for appraiser's estimated market and restricted rents IDENTITY OF INTEREST STATEMENT I understand that my/our Appraisal report will be used by (Fill in Client Name) to document to the Tennessee Housing Development Agency (THDA) that the developer s application forlow Income Housing Tax Credits was prepared and reviewed in accordance with THDA requirements. I certify that my Appraisal report was in accordance with the THDA requirements applicable on the date of this appraisal and that /we have no identity of interest with any person or entity involved in this Development, including, without limitation, the ownership entity and any of its partners, any other members of the development team, or any individuals involved in such entities. I am employed under a contract with (Fill in Client Name) for this specific assignment and this contract was entered into with no conditions, including compensation based upon finding market value or need. I have no other side deals, agreements, or financial considerations with (Fill in Client Name) or others in connection with this transaction. CERTIFICATION I/We certify that to the best of my/our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my/our personal, impartial, and unbiased I/we have no present or prospective interest in the property that is the subject of this report, and I/we have no personal interest or bias with respect to the parties involved. I/we have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My/our engagement in this assignment was not contingent upon developing or reporting predetermined results. My/our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My/our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice. Within the three year period immediately preceding the acceptance of this assignment, our firm has not prepared an appraisal of the property that is subject of this report. Nor have we have performed any other services, as an appraiser, or in any other capacity, regarding this property within this time period. The undersigned person(s) made a personal inspection of the interior and exterior of the property that is the subject of this report. I am (we are) fully qualified and competent by training, knowledge and experience to perform this appraisal, and I am (we are) properly certified by the appropriate state agency. Appraiser's Signature Date Appraiser's Signature Date