Sustainable Investment InitiativeGreen & Climate Neutral Buildings Reduced Risk & Higher Valued CollateralGreen Mortgages Cheaper Cost of Capital / Increased LiquidityGreen Building Securities Green Convertible SecuritiesGreen Building Underwriting Standards

Improves quality of life

FSC Certified Wood Stops Illegal Logging & Irreversible Dangerous Climate Change

Capital Markets Partnership (CMP) - Partial List

City of San Francisco

City of Chicago

City of Dallas

City of Denver

City of Miami

City of New York

City of Oakland

City of San Jose

City of Santa Monica

City of Seattle

Capital Markets Partnership

CMP Officers

Green Building Underwriting Standards Committee

EMERGENCY Consensus Standards Launched in April 2008 at JPMorgan Chase, Wells Fargo Wachovia.

Unanimously Approved Sept. 2, 2008 & Amended Sept. 4, 2009Market Tested by JPMorgan, Jones Lang LaSalle, CB Richard Ellis,

Comerica, Transwestern.

OfficersJohanna Partin, Director, Climate Change Initiatives, San Francisco Mayor Gavin NewsomSteve Hoffmann, President, Hoffmann & AssociatesRich Pietrafesa, Managing Director, Destiny USATomek Rondio, President, Mortgage GreenMichael Schneider, Vice President, Marxa KuboMario Silvestri, Vice President, Wells Fargo Wachovia Ken Willis, Vice President & Director, Federal Home Loan Bank of BostonDan Winters, Managing Principal, Evolution Partners

Develop / Finance / Occupy Green Buildings

US Conference of Mayors Support ResolutionJune 2008

2.8 million green and climate neutral buildings

& 1.2 million certified sustainable products

needed by 2015 to prevent Dangerous

Climate Change From going Irreversible

Green Building Value Summary

National Underwriting Education. Home Depot, Federal Home Loan Banks, Federal Reserve & CMP determined that national education on green affordable housing underwriting is important & needed because:

affordable community benefits the most from green buildings due to operational savings that are a bigger part of their budget, & improved health from clean indoor air including reducing triggers to asthma

Added Value Proposition is Very Clear. Wall Street due diligence released at the NYSE with national statistically valid data. Waste of time & money to try to reinvent the value proposition.

Measuring Green Affordable Value is No Different.

Added Value is From Specific Green Features / Technology. Due diligence also shows increased cash flow & reduced expenses from:

efficiencyproximity to transitonsite renewableintegrative design (capital, O&M, risk: e.g., energy recovery ventilator)commissioningimproved indoor air

Green Building Value Summary

Technology Based Consensus National Approach for Measuring Value is Required to: Avoid market confusionEnsure green building commercializationReduce risk and uncertaintyEffectively deal with complexityConform with how the building industry is regulated by consensus

standards. This is why Phase 1 & PCA are required and LEED took off.Ensure compliance with FTC Guides & differentiate from national

backlash on greenwash which is unlawfulFacilitate much needed large scale national financing Ensure collateral value enhancement

Lack of technology based underwriting standards as part of PACE is why FHFA & OCC are opposed: concerned with more collateral devaluation on the heels of subprime.

For these reasons, Underwriting Standards were created, unanimously approved & market tested

Wall Street due diligence shows large scale national financing need for green building renovations due to: long term rising conventional energy costs based on globally validated data

imminent irreversible unmanageable dangerous climate change /ongoing systemic financial market risks / need to stimulate the economy

Sustainable Investment Initiative

Capital Markets Briefing Paper: Business Case for Commercializing Sustainable Investment©

Summarizes four years of Wall Street due diligence with investors, investment banks & rating agencies concluding that green buildings and SMaRT certified sustainable products are:

• More profitable• Less risky• Preferred by investors in Survey

initiated with S&P covering over $3.3 trillion in assets

• National statistically valid data

Peer Reviewed Briefing Paper was released for top management at CMP New York Stock Exchange Press Conference, Aug. 18, 2009

Sustainable Investment Initiative

Green Building Securities (GBS) are bonds backed by green building mortgages.

GBS & Green Value Score are part of Rebuilding America’s call for 50 million green buildings inthe next 10 years. There is substantial latent investor demand for GBS. Based on successful precedent, investment banks expect GBS Pilots to start a resecuritizationof the building stock providing cheaper cost of capital for green building renovations facilitating:

• Refinancing addressing commercial real estate crisis • Substantial climate pollution reductions• Green jobs / economic stimulus• Capital markets’ increased liquidity & confidence

Sustainable Investment Initiative

Green Building Securities (GBS)

LEED Certified Apartments have been identified as GBS candidates with leadingfinancial institutions for pilot single property / asset securities including Affordable.

Higher ratings path forward has been identified with Moody’s, S&P, Morningstar, Eagen Jones & I Banks with Green Value Score© alignment with rating agency 10 financial factors.

Nine GBS Pilots with investment banks have been identified including $500M funding allocations for GBS pools.

UK – Stern Review – Nov ‘06

• Report analyzes economic global impacts of climate change– “Business as Usual” vs. global innovation and market-based intervention– QUOTE: “Climate change…greatest and widest ranging market failure ever

seen…”

• Relates costs/risks on economic, environmental, and social scales– Floods / Storms– Agriculture Yields– Fresh Water Access– Disease

• Bush White House 2008 Climate Report Concurs with these Impacts

– Mass Human and Species Migration

– Species Extinction– Heat Waves / Cooling / Doughts

PROJECTED GLOBAL WARMING ECONOMIC IMPACT - Up to 20% of Global GDP

Ongoing Systemic Financial Markets Risks

ElectricityTransportation

Heating

Allocation of 6.2 GtC/yr

Electricity: 40%Fuels used directly: 60%

Green Building Securities (GBS) Carbon Reduction in 5-10 yrs Enhances Energy Security & Stops Imminent Irreversible

Dangerous Climate ChangeFossil fuel use in 2000 (IEA) Allocation of 6.2 GtC/yr. (Princeton)

Buildings generate most of world’s climate pollution from electricity and heating. On average, certified green buildings have 40% less conventional energy & climate pollution.

Economic Benefits

Projected* 70% US Commercial Green Building Market Penetration*

Energy Savings & Daylighting:              $36 Billion/yrConstruction Waste Reduction:           $6.7 B/yr Water Pollution Savings from Water Conservation:    $20 B/yrEnergy Savings from appliances & Lighting:               $24 B/yrAdded Value from Increased Occupant Productivity

(5%), IAQ & Reduced Absenteeism:              $632 B/yr

Health Care Savings $75 B/yr

Emission Reductions’ Market Value: $ 1.1 B/yr

Total                                      $795 Billion/yr. value added

* 1. Leonardo Academy / MTS Projections 2003, Surgeon General 2006 (certified bdgs).

2. Green retail buildings will also accrue increased retail sales. 3. Excludes overwhelming benefits from avoided climate damages, & originator

profits. 4. Dollar benefits are $200B/yr. for UK, $200B/yr. for rest of Western Europe, $87B/yr. for Canada & $80B/yr. for Australia. GBS is a $4 trillion market (SEC 2003).

LEED EB CERTIFIED

National Geographic Society

Headquarters, Wash., DC

The Society added $16M in value from this LEED certification from a higher appraised value, raising tenant rents, lower operating costs, increased credit rating from Moody’s, & lower interest rates on large loans secured to the building. Presentation at 2003 Congressional Green Building Luncheon by Chris Liedel, CFO, National Geographic Society.

Occupancy RatesEnergy Star Buildings vs Market Comparables

Occupancy Rates – Office

Source: CoStar Analytics

Occupancy Rates – Office

Source: CoStar Analytics

Down Market – Flight to QualityEnergy Star Buildings vs Market Comparables

Rental RatesEnergy Star vs. Market Comparables

Direct Rental Rates – Office

Source: CoStar Analytics

Difference = $2.32Difference = $3.80

Rental Rate SeparationDoubled in Two Years From $2.30 to $4.60

Direct Rental Rates – Office

Source: CoStar Analytics

LEED Certified Rental Rates vs Peer GroupEarly Returns on Minimal Data Points

Source: CoStar Analytics

Occupancy Rates – Office

Source: CoStar Analytics

Occupancy Rate SuperioritySignificant Outperformance in Down Market

Academic Studies – Similar Results

over 3,000 green buildings compared to their peers - statistically validated

• CoStar Building Peering Study (2007)

• Miller, Spivey, Florance (2008) – EPA Energy Star Partner of the Year

– American Real Estate Society Best Paper 2008

• CoStar Building Peering Study – Update 1 (2008)

• Fuerst and McAllister (2008)

• Eicholtz, Kok & Quigley (2008)

• CoStar Building Peering Study – Update 2 (2009)

• Pivo & Fisher (2009)

Note: CoStar continues to make its data set available to academic researchers for further analysis

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Washington, DC 20007

202-338-3131info@CapitalMarketsPartnership.com