FLORIDA HOUSING FINANCE CORPORATION Board Meeting October 27, 2017 Information Items COMMUNICATIONS Information I. COMMUNICATIONS A. Florida Hardest-Hit Fund (HHF) Programs 1. Background/Present Situation a) Since the implementation of the statewide launch, Florida Housing has received press on the program in the following media outlets (including print, broadcast and Internet)1: (1) 4Closure Fraud Blog (2) ABC Action News (WFTS) (3) ABC 7 (WWSB) (4) ABC 13 (WMBB.com) (5) ABC 25 (6) Alton Daily News (7) Active Rain Blog (8) American Banker (9) Associated Press (10) Bay News 9 Tampa (11) Before It’s News Blog (12) Boston Today Newspaper (13) Bradenton Herald Newspaper (14) CBS 4 in Miami (15) CBS 12 News (16) Charlotte Sun (17) Chicago Sun Times (18) CitrusDaily.com Online (19) Clay Today Newspaper (20) Coconut Grove Times (21) Conservativedailypost.com (22) Counselor’s Corner (23) Crestview Bulletin (24) The Current (25) Daily Record 1 Bold Italics – Media Hit Bold – New Media Hit July 28, 2017 Florida Housing Finance Corporation 2 COMMUNICATIONS Information (26) Daytona News-Journal (27) DS News (28) eCreditDaily (29) Elder Affairs Newsletter (30) Financialreform.com (31) First Coast News.com (32) Florida Courier (33) Florida Current (34) Florida Housing Coalition Update (35) Florida.newszap.com (36) Florida Times Union Newspaper (37) Florida Today Newspaper (38) Florida Trend (39) Florida Weekly (40) Fox News (41) Free-Press-Release.com (42) Gainesville.com (43) GoToby.com (44) GreenvilleOnline.com (45) Guardian (46) Heartland News (47) Herald Tribune Newspaper (48) Highlandstoday.com Online (49) Hispanic Business (50) Housingwire.com (51) Huffington Post (52) In USA News (53) The Island Packet (54) Judicialwatch.com (55) Kansas City Star (56) KIOW (57) Lake City Journal (58) Lakeland Ledger (59) The Laker (60) Law Firm Newswire July 28, 2017 Florida Housing Finance Corporation 3 COMMUNICATIONS Information (61) Livinglies Garfield Firm (62) The Ledger (63) Lexology.com (64) Loan Modification Key (65) Lobby Tools (66) Madison County Carrier (67) Matt Widner’s Foreclosure News (68) Mearkle, Trueblood, Adam (69) Mtalawyesjacksonville.com (70) Media Advisory – US Senate (71) Meetup (72) Miami Herald Newspaper (73) The Monitor Daily (74) Mortgageorb.com Online (75) MPA (Mortgage Professional America mpamag.com) (76) MTStars.com (77) MyPalmBeachPost Blog (78) Naples News (79) National Mortgage Professional.com (80) NCOA (81) News 13 Online (82) News Channel 5 (online) (83) News Chief (84) News-Press Newspaper in Ft. Myers (85) News Service of Florida (86) Newstalkflorida.com (87) News Vine (88) New York Times (89) NorthEscambia.com Online (90) Ocala.com Online (91) Ocala Star Banner Newspaper (92) Orlando Sentinel (93) Palm Beach Post (94) Panama City News Herald (95) PBS.org July 28, 2017 Florida Housing Finance Corporation 4 COMMUNICATIONS Information (96) Pensacola News Journal Newspaper (97) PR Newswire (98) Ponte Vedra Recorder (99) Radios.ru (100) The Real Deal (101) RealEstateRama.com Online (102) The Record (103) The Republic (104) Reuters Newspaper (105) Reverse Mortgage Daily (106) RiverBender (107) St. Augustine Record Newspaper (108) St. Petersblog Sunburn (109) St. Pete Times Newspaper (110) San Francisco Chronicle (111) South Florida Business Journal (112) Stateline.org Online (113) Sun-Sentinel Newspaper (114) Sunshine State News (115) Tallahassee Democrat (116) Tampa Bay Times (117) Tampa Bay Times Editorial (118) Tampa Tribune (119) Tbo.com (120) TCPalm.com Online (121) The Times (www.nwtimes.com) (122) Tomrollins.com Online (123) Townhall (124) Treasury Notes (125) Tweet - @Framabama (126) Tweet – Troy Kinsey @TroyKinsey (127) Tweet – Peter Schorsch @SaintPetersblog (128) WAND 17 (129) Washington Times (130) Watchdog July 28, 2017 Florida Housing Finance Corporation 5 COMMUNICATIONS Information (131) WBBH Channel 2 Charlotte County (132) WBZT “The Talk Station” (133) WCTV.tv (134) WDEF News Channel 12 Online wdef.com (135) WEAR Channel 3 Pensacola (136) Weidner Law Blog (137) WESH 2 News Orlando (138) Western Orlando News Online (139) WFLA Tampa (140) WFOL Orlando (141) WFSU (142) WFTV News Orlando (143) WGCU (144) WINK Ft. Myers News (145) Winter Haven News Chief (146) WJXT Channel 9 Jacksonville (147) WLRN Miami Herald News (148) WMBB (149) Wn.com (150) WOFL Channel 35 Lake Mary (151) WPEC Palm Beach TV (152) WPTV Channel 5 West Palm Beach (153) WTSP (154) WTVT Channel 13 Fox Tampa (155) WTXL Tallahassee TV (156) WUFT 89 FM Radio Gainesville (157) WZVN ABC Channel 7 Fort Myers b) Communications staff continues to work with HHF program applicants and recipients to triage inquiries and work with their assigned advisors to achieve appropriate resolutions on their behalf. Additionally, staff handles third-party requests in conjunction with HHF programs; this is usually regarding recipients seeking to refinance or modify their mortgage, or when the home is being sold. July 28, 2017 Florida Housing Finance Corporation 6 COMMUNICATIONS Information c) Communications staff made efforts to contact all HHF advisor agencies after Hurricane. Staff created a spreadsheet on the status of each advisor agency if there were any damages and shared with HHF department. Staff will continue to monitor. B. Business Continuity 1. Background/Present Situation a) Business Continuity staff continues to review and revise emergency preparedness and disaster response materials, including the Corporation’s business continuity plan (BCP). Staff met with Senior Managers and other key staff to finalize the business impact analysis (BIA) to adjust the Corporation’s BCP, as determined necessary. b) At the most recent All Staff meeting in August, updated Active Shooter training was conducted by a sworn officer from the Tallahassee Police Department. Additionally, the corporation’s Floor Wardens received their CPR and First Aid certification training in September are now well equipped to handle an emergency with staff. Lastly, refresher emergency preparedness trainings are currently being conducted throughout the remainder of the year. C. Corporate Marketing and Outreach 1. Background/Present Situation a) As the Corporation continues to foster relationships with affordable housing advocates, stakeholders and providers, Communications staff participates in trade shows/exhibitions in conjunction with various annual conferences. Most recently in August, staff was an exhibitor at the Florida League of Cities (FLC) Annual Conference in Orlando. b) The following is the final conference in which Communications staff will participate as an exhibitor this year: (1) October 30-31 – Florida Housing Coalition (FHC) Annual Conference, Orlando. July 28, 2017 Florida Housing Finance Corporation 7 FISCAL Information II. FISCAL A. Operating Budget Analysis for August 31, 2017 1. Background/Present Situation a) The Financial Analysis for August 31, 2017, is attached as Exhibit A. b) The Operating Budget for the period ending August 31, 2017, is attached as Exhibit B. October 27, 2017 Florida Housing Finance Corporation 8 GUARANTEE PROGRAM Information III. GUARANTEE PROGRAM A. Status of the Guarantee Program portfolio 1. Background/Present Situation a) Since the implementation of the Guarantee Program in 1993, it has guaranteed 120 transactions, facilitating the construction of over 28,000 housing units in Florida. In November 1994, the Guarantee Program entered into an agreement with HUD to participate in the Risk-Sharing Program; characterized by a 50/50 sharing of default risk in connection with the mortgage guarantee. As of 9/30/17, three (3) multifamily developments remain in the Guarantee Program portfolio; one (1) is a Risk-Sharing transaction. b) Between November 2008 and April 2010, eight (8) multifamily claims were filed on the Guarantee Program, representing the total (and only) multifamily claims incurred in its 24-year history. Currently, there are no foreclosures in inventory and no developments in monetary default in the portfolio. B. Corpus and Portfolio Risk Exposure 1. Background/Present Situation a) The global liquidity crisis of 2008 collapsed the market for the variable rate bonds capitalizing the Guarantee Program corpus, ultimately leading staff to restructure the debt, paying off approximately $89 million and refinancing the remaining $156.2 million in variable rate bonds to a 5-year term loan with Citibank, closing on December 31, 2009. b) At that time, the Guarantee Program’s total risk exposure was $754.5 million. Since then, in keeping with the Board’s mandate to cede risk from the portfolio, total risk exposure has been reduced over 97%, as reflected below: Portfolio Risk Exposure As of 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 9/30/17 $20.5M $30.9M $59.4M $158.9M $306.5M $468.5M $578.8M $728.3M c) The continued low interest rate environment has prompted many Developers to refinance their properties, paying-off their guaranteed mortgages and removing them from the Guarantee Program portfolio, representing the primary driver behind the reduction in Total Commitments reflected above. Refinancing activity is reflected in the following chart: Refinancing Activity As of 2016 2015 2014 2013 2012 2011 2010 9/30/17 Loans (#): 1 5 17 22 22 9 12 2 Risk ceded $10.2M $27.6M $100M $136.8M $149.4M $84M $117.9M $9.9M ($): October 27, 2017 Florida Housing Finance Corporation 9 GUARANTEE PROGRAM Information d) Contributing to the reduction in Total Commitments was approximately $115 million in partial prepayments (of mortgages) from SAIL ELI proceeds, funded prior to or at the time of closing, helping facilitate refinancing activity. e) Furthermore, Management aggressively reduced the Guarantee Program capitalizing debt, paying off $90.2 million on April 20, 2011, another $15 million on July 29, 2011, and the remaining $51.0 million on December 21, 2012, reducing the Guarantee Fund’s capitalizing debt to zero ($0). f) The Guarantee Fund corpus contains approximately $132 million in capital invested in the Florida Treasury, Special Purpose Investment Account (SPIA), rated “A+f” by Standard & Poor’s as of March 31, 2017. C. Guarantee Program Portfolio (Exhibit A) D.