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Section 11 — Proposed Funding Sources As indicated in the RFP, Indian River County anticipates conveying the parcels to the successful proposer. If awarded, our team has several options to finance the pre - development and construction of the proposed housing units. We will explore alternative financing sources to minimize finance costs. For example, we will consider applying for Florida Housing Finance Corporation's Pre -Development Loan Fund which can be used for pre -development expenses. We will also compare construction loan rates with select lenders that may offer loan products for affordable/workforce housing projects. Certain lending institutions will look favorably upon a project of this type as it will satisfy their CRA credits and result in mortgages for their portfolio. The varying finance options require an actual affordable housing development deal to be in place before loan commitments can be issued. And considering the economic uncertainty ushered in by the Coronavirus Pandemic, underwriting criteria and project considerations are being re -written on a weekly basis. Florida Housing Finance Corporation (PLP) Our organization qualifies (as a NP) for the Predevelopment Loan Program and can utilize the favorable rates offered to cover the costs of entitlement and other pre -development activities. Government Funding Affordable housing is priority initiative nationally. As such, our team is routinely aware that there are several funding sources that may be available to fund part or all this project. For the most part, government funding sources will want to know that a project is "real", will want to understand the target population being served, and will want to review the budget/pro forma to ensure that it meets their local requirements. That said, this is another potential source of funds that can be leveraged by our team. Hard Money Lender Our team has established a relationship with Scott Porten (Porten Companies) to provide immediate funding for the construction of the proposed housing units. Mr. Porten not only serves as a hard money lender, but given his vast experience as a Developer, he provides valuable insight pertaining to the project budget and pro forma. Below is a letter of commitment from Mr. Porten related to this project. Conventional Loan ETWDC & Stuart and Shelby Development, Inc. have existing relationships with several conventional lending institutions. The availability of funds and the related terms vary depending on the location and specific deal terms. We offer that if our team is awarded, we can provide a firm commitment letter during the due diligence period, should it be determined, that conventional financing would be the most favorable. 134