40-24B2 1 ahit-4024b2_041320.htm FILING OF SALES LITERATURE

Overview Financing ProductsProperty Types Union Labor PoliciesHousing Finance Overview The HIT specializes in the development, rehabilitation, or preservation of rental housing, particularly affordable housing. The HIT has a long history of working closely with for-profit and non-profit developers, housing agencies, members of the mortgage banking community, labor unions, HUD, government-sponsored enterprises (GSEs) and others to identify and structure the financing needed for their real estate developments. HIT offers: Construction financing Permanent financing Forward commitments Bridge loansTo explore financing opportunities please contact: i nfo@aflcio-hit.comThe HIT offers both credit enhanced executions as well as direct construction and bridge lending. HIT structures its financing with credit enhancements provided by a variety of sources, including the Federal Housing Administration (FHA), Ginnie Mae, government-sponsored enterprises such as Fannie Mae and Freddie Mac, and state and local agencies.

Financing ProductsFHA-Insured Construction and Permanent LoansState Housing Finance Agency BondsGSE Credit Enhanced Forward CommitmentsTax Credit Bridge LoansDirect Construction Loans (Affordable and Market Rate)Property TypesAFFORDABLE HOUSING WORKFORCE HOUSINGMIXED-INCOME MARKET RATEUnion Labor Requirements

The HIT requires 100% union labor on all of the construction- related projects in which it invests. All workers on construction sites receiving Trust financing must be contractors and subcontractors who are represented by unions affi liated with the local Building and Construction Trades Council and/or North America’s Building Trades Unions. This requirement applies to any new construction and/or rehabilitation work financed by the Trust and all levels of subcontractors on the project.The well-paying, family-supporting jobs created by this requirement are an important collateral benefit for the HIT’s investors, generating current wages and benefits for the workforce and increasing contributions to pension and other benefit funds. Union workers add value to HIT-financed projects, assuring that projects are built by highly skilled workers.LABOR RELATIONS SERVICESThe Trust offers developers, contractors and unions a wide variety of services to ensure the success of Trust financed projects. Some of these services include:Contractor Identification Assist in identification of qualified general contractors or construction managers;Labor Relations Service Provide in-depth assistance on labor relations issues by working with local Building and Construction Trades Councils and union representatives;

Pre-Job Meetings Encourage pre-job meetings between unions and contractors to ensure appropriate work assignments and to help isolate potential problems the project manager might encounter;Value Engineering Evaluate cost considerations in order to structure projects within budget; andAssistance with Local Hiring Requirements Facilitate compliance with local regulations regarding hiring requirements by working closely with contractor and unions and often times coordinating with local pre-apprenticeship programs.L egal Disclaimer P rospectus X BRLS tatement of Additional Information©2020 AFL-CIO HIT

FHA-INSURED CONSTRUCTION AND PERMANENT LOANSThe HIT works with most of the major Ginnie Mae purchaser of single asset Ginnie Mae Construction Loan- ---...._.,-. - ---_Seller/Servicers around the country as a significantCertificates/Permanent Loan Certificates. In doing so, the HIT is a creative partner to Seller/Servicers-adding value to the transaction.:lltrw. .:c-:;=== =- - ...··------... 11 Iii I .. .. - :=- "Z' 1-=-1-=-STATE HOUSING FINANCE AGENCY BONDS--= _-,. --=::-==---- ._:Z.,...:._,-The HIT is an active partner with a..._,-_..........._,1,,._N- -------_-number of State Housing Finance...._.:-:., ..........,Agencies around the country. The HIT works side-by-side with agency staff to ensure transaction costs are minimized and value is maximized in the terms and structure._,._......_..._..,f.,.-...---.......-.,h ..., ............... -----'ll'-l-li ---..-- ·- .ii.tr t1 1 4ff ;.;.:=2-= -=:.....:.=...-.......-.....---...----·--...-.......---................Proj-eot Profil-e T-erm ShMtGSE Credit Enhanced Forward CommitmentsGSE CREDIT ENHANCED FORWARD COMMITMENTSThe HIT works with mortgage lenders to invest in fixed interest rate commitments for permanent financing prior to construction or substantial renovation. Forward commitments areilDI1J1I!P'1,ll'Jli -=---I -,--..-,_-,-,.--..-_-..:_:---_-,- ----1.&.- .-.,.-_--....-----··-·---...-.. --._,--.., r--"-!--'- - ·-··---....--..... ·----·---- ,_ -------..-.-.....-..-....-, -·------- -typically made 24-to-36-months in advance for affordable and workforce projects.-.n..ai• -----··--. w----.,...-------r-1- .-...-. - ........._ ._..Proj-eot Profil-e T-erm Sh-e-et

TAX CREDIT BRIDGE LOANSThe HIT offers s1and-alone bridge loans 10 1he pay-in of Low Income Housing Tax Credi1 Equity 1hroughou11he cons1ruc1ion period. Secured by a pledge of 1he general partnership in1erest, such loans are repaid 1hrough 1he equity ins1allmen1s until project completion.------·------- --- --------------·-------------- -- ·---- ._ __. _.,.-·--Term SheetDirect Construction Loans (Affordable and Market Rate)DIRECT CONSTRUCTION LOANS (AFFORDABLE AND MARKET RATE}The HIT offers cons1ruc1ion loans for affordable and market rate projects, wi1h 1erms varying depending on s1ruc1ure and level of affordabili1y. Loans of up to 60% Loan-to-Value, 80%----"""-"'----.,,;;;:;;;;;;;;--..,_.-LTV if 1he projec1 receives Low Income Housing Tax Credi1s. The HIT 1ypically works with an originating lender.""' n !I I --===-- =.i= ...=..- -------------------Project Profile Term SheetsAFFORDABLE HOUSINGThe HIT specializes in bringing all its available resources to bear to finance affordable housing development and preservation projec1s around 1he country. By working wi1h for-profi1 and non-profi1 developers, mortgage bankers, s1a1e housing finance agencies, GSEs and o1her inves1ors, HIT's learn brings i1s expertise and crea1ivi1y 10 bear on even 1he mos1 complica1ed of s1ruc1ures.All of HIT's financing produc1s are available for affordable housing projec1s.APPLICABLE FINANCING: FHA-Insured Construction and Permanen1 Loans GSE Credi1-Enhanced Forward Commi1ment Permanen1 Loan Program for Multifamily Housing S1a1e Housing Finance Agency Programs ■ Tax Credi1 Bridae Loan Proaram. .. .-_. -..-.,-,_.-..-. ._---_-_. -._..-.--------·----·--------·----·