SINGLE FAMILY MORTGAGE REVENUE BOND PROGRAM - Florida Housing

Exhibit A Page 1 of 7

SINGLE FAMILY MORTGAGE REVENUE BOND PROGRAM

Florida Housing continues to honor our commitment to have funds continuously available for qualifying first time homebuyers through our First Time Homebuyer Program. Florida Housing's Program provides assistance to eligible homebuyers offering low cost, 30-year, fixed rate mortgages together with down payment and closing cost assistance. Our current MBS structure provides Program funding with 100% loan guarantees by Ginnie Mae, VA, USDA-RD, Fannie Mae, or Freddie Mac backing. Borrowers must have a 600 FICO or higher and must complete a 6-8 hour face to face homebuyer education class in order to qualify for assistance through our First Time Homebuyer Program.

Florida Housing currently has two open bond issues with lendable proceeds available for first time homebuyers: 2009 Series A1 & A2 and 2010 Series A & B. The 2009 Series A1 & A2 issue offered lendable proceeds totaling $200,000,000 ($1M held for tax compliance) on 11/1/2009. On May 3, 2010, we issued the current 2010 Series A & B totaling $225,000,000 ($3M held for tax compliance).

The 2009 Series A1 & A2 issue is 99.76% reserved. The new 2010 Series A & B issue is currently 83.76% reserved.

Percentage of Funds Used

(Reserved and Purchased Funds)

As of 9/24/2010

100.00% 80.00% 60.00%

99.76%

83.76%

40.00%

20.00%

0.00%

2009 Series A1 & A2

2010 Series A & B

Exhibit A Page 2 of 7

The average loan amount has decreased in the 2010 Series A & B issue when compared with 2009 Series A1 & A2. The decrease in loan amounts also corresponds to a decrease in average purchase price.

The graph below compares the average loan amounts in each series. The average loan amount has decreased from the 2009 Series A1 & A2 issue to the current 2010 Series A & B by approximately 1.85% or $1,897. Even though this decrease is modest, it is the first decrease we have seen over the last two bond issues dating to 11/01/2009.

$102,500 $102,000 $101,500 $101,000 $100,500 $100,000

$99,500 $99,000

Average Loan Amount

(as of 9/24/2010)

$102,269

2009 Series A1 & A2

$100,373 2010 Series A & B

Exhibit A Page 3 of 7

The average purchase price has decreased in the current 2010 Series A & B issue by $2,011 or 1.88% when compared to the 2009 Series A1 & A2 issue. This decrease is consistent with the lower loan amounts that we are seeing in this issue and parallels the reported decreases in home prices in the broader Florida real estate market. This is the first decrease that we have witnessed in program average purchase price dating to 11/01/2009.

$107,200 $107,000 $106,800 $106,600 $106,400 $106,200 $106,000 $105,800 $105,600 $105,400 $105,200 $105,000

Average Purchase Price

(As of 9/24/2010)

$107,073

2009 Series A1 & A2

$105,808 2010 Series A & B

Exhibit A Page 4 of 7

The gap between purchase price and household income has modestly widened in the 2010 Series A & B which reflects an average household income of $39,921 when compared with the previous issue 2009 Series A1 & A2 which has an average income of $41,255. A factor to consider is the federal tax credit that was offered in hopes of stabilizing home prices and decreasing housing inventory. The tax credit expired April 30, 2010, but served as an incentive to first time homebuyers and prompted an increased interest in our First Time Homebuyer Program. The prospect of receiving up to $8000 in downpayment and closing cost assistance may have influenced and enabled many first time homebuyers with lower household incomes to purchase homes. That may have contributed to the decrease in the average household income shown in the graph below.

The graph below compares purchase prices and loan amounts to borrower income over the last two bond issues.

$120,000 $110,000 $100,000

$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000

Average Purchase Price, Loan Amount and Household Income

(As of 9/24/2010) Purchase Price Loan Amount Household Income

2009 Series A1 & A2

2010 Series A & B

Exhibit A Page 5 of 7

Florida Housing offers qualified homebuyers, two down payment and closing cost assistance programs in the form of second mortgage loans. Florida Assist is a 0% deferred payment second mortgage that serves homebuyers with an area median income of up to 100%, adjusted for family size. HAMI, Homeowner Assistance for Moderate Incomes, serves households above 100% AMI, up to Program first mortgage income limits. This product provides a qualified buyer with up to $5000 of assistance in the form of a 10 year amortizing second mortgage, currently at a 5% fixed rate. These products are not stand alone programs and can only be used in conjunction with Florida Housing first mortgage products.

On August 13, 2009, Florida Housing decreased the $10,000 down payment assistance program, Florida Assist, to a maximum of $7,500 in available 0% deferred assistance. This decision was made in an effort to maintain subsidy proportionate to the decreasing home prices throughout the state and to ensure that we have adequate resources available for providing down payment assistance in the future. In the current 2010 Series A & B, the average second loan amount has increased slightly to $7,014 from $6,965 in 2009 Series A1 & A2. While the usage of our second mortgage products remain relatively constant, those borrowers using the Florida Assist product are utilizing a higher percentage of the allowable $7500 amount than in the previous issue.

The graph below shows the average dollar amount of Florida Housing's second mortgage loan amounts.

$7,020 $7,010 $7,000 $6,990 $6,980 $6,970 $6,960 $6,950 $6,940

Average Second Mortgage Loan Amount

(As of 9/24/2010)

$7,014

$6,965 2009 Series A1 & A2

2010 Series A & B

Exhibit A Page 6 of 7

The current 2010 Series A & B reflects that a slightly higher percentage of Florida Housing second mortgages are being used with our first mortgage loans. With the elimination of the federal tax credit for first time homebuyers, more homebuyers may again be opting to use our down payment and closing cost assistance. The graph below reflects the percentage of second mortgages being used in conjunction with our first mortgage loans.

Percentage of Florida Housing's Second Mortgages

(As of 9/24/2010)

100.00%

99.50%

99.00%

98.50%

98.00%

97.50%

97.00% 96.50%

96.89%

96.91%

96.00%

95.50%

95.00%

2009 Series A1 & A2

2010 Series A & B

Exhibit A Page 7 of 7

The chart below reflects the top ten producing counties in terms of loans originated in the Series A1 & A2 and 2010 Series A & B. Duval County is the single largest originating county in the First Time Homebuyer Program. Currently Duval County has originated 22% of total funds, Brevard County has originated 10% and Orange County is third at 7%.

Top Ten Producing Counties

2009 Series A1 & A2and 2010 Series A & B

(As of 9/24/2010)

Hillsborough

Escambia

4%

Leon

4%

5%

Lee

5%

Duval 22%

Orange 7%

Volusia 4%

Clay 3%

Broward 4%

Brevard 10%

Other Counties 32%

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