$130,000,000 Florida Affordable Housing Preservation Fund Fully Originated.

Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Dec. 22, 2003

Reliance Housing Foundation, Inc. has announced that $130 million of affordable housing bond proceed funds have been fully utilized for the origination of project loans, including six market rate rental housing properties consisting of 2,733 apartment units in the state of Florida. The properties have been converted to affordable housing stock utilizing Land Use Restrictions Agreements to ensure long-term affordability. The program has also funded approximately $7,500,000 in renovation to these properties.

Capital Trust Agency of Gulfbreeze, Florida issued the $130,000,000 of 501(c)(3) tax exempt bonds for Reliance, a 501(c)(3) non-profit affordable housing provider and its affiliates in January 2000. The bond proceeds were designated for use in funding project acquisition loans to acquire and preserve multi-family affordable housing properties throughout Florida.

AIG/SunAmerica provided credit enhancement for the bonds resulting in a AAA rating. CDR Financial Products served as program advisor to AIG/SunAmerica. JPMorgan/Chase provided placement and remarketing services for the variable rate low floater bonds. A unique feature of the structured transaction was the provision of sub-debt funding, when required, to close a funding gap between primary bond proceeds and total funds needed. Under the sub-debt feature, both CDR and JPMorgan/chase committed to purchase the junior bonds on an as-needed basis.

Bob Jackson, President of Reliance, hailed the program as a significant success for Florida's affordable housing market, enabling the preservation of affordability and the physical upgrading of much-needed affordable rental housing stock in Florida.

"By using the 'fund' structure, the program achieved its goal by reducing the costs of issuance and transaction costs which would have been incurred had these been single issue transactions," Jackson said. "We have found the program to be a well-designed and cost-effective tool for providing affordable housing, without using scarce local resources," he added.

Reliance Housing Foundation, Inc. is headquartered in Fort Lauderdale. In addition to acquiring, preserving and renovating existing housing, Reliance also develops new multi-family properties. They are currently completing the first large-scale development of affordable rental housing in St Thomas, USVI. Reliance owns in excess of 4,000 apartment units throughout the southeast.

For further information or to arrange interviews with the participating institutions, contact Bob Jackson at 954-927-4545, ext. 221, or Scott Regberg at 310-475-5735.