221(d)(4)

Centennial Mortgage, Inc.

Subject to Davis-Bacon requirements. Audited project financial statements must be filed annually with CMI. Property must remain a rental property for at least 5 years after the loan closing date.

Full escrows for property taxes and mortgage and property insurance are funded at closing and must be maintained throughout the life of the loan. A Replacement Reserve account must be established at closing and is made immediately available for replacement of short-lived depreciable items. The account must be maintained with monthly contributions throughout the life of the loan. Interest earned on the account accrues to the benefit of the property. An Operating Deficit escrow may be required by HUD to cover operating losses until sustaining occupancy is reached and, when required, must be funded by mortgagor with cash or a letter of credit.

This is a non-recourse loan. Mortgagor assumes no personal liability. Long-term—up to 40 years, fully-amortizing. Low, fixed interest rates. Loan-to-value ratio up to 90% for rental assistance; 87% for affordable; and 83.3% for market projects. Most affirmative and negative loan covenants typically found in conventional loan agreements are eliminated. Converts to permanent financing upon completion at no extra cost. No low-income tenancy requirements. Fully assumable. Can be used as a credit enhancement for tax exempt bonds. Debt service coverage ratio of 111% for rental assistance; 115% for affordable; and 120% for market rate projects.