Brian Salyards, vp at DBBM says, in a statement, "reflecting the strength of the borrower, property condition and strong property performance, we were able to approve 10 years of interest only payments in order to preserve the value of the existing tax exempt and taxable bonds. The new loan structure ensure an appropriate amount of leverage while keeping balloon risks at maturity to a minimum."

"Doing interest only is very attractive," explains an anonymous source, unrelated to the companies. "because it puts more money in their pocket immediately, as opposed to waiting until the end to do it. That's attractive." The troubled GSEs have "an internal mandate" to put out as much money as possible for residential real estate. The source continued, "they classify apartments as affordable housing and it really helps them balance their portfolio by doing that."

The property is 14 buildings on 15.3 acres with two swimming pools, tennis courts, fitness room, play area and basketball courts. The project is required to be rented in compliance with Section 142(d)(1)(A) of the Internal Revenue Code of 1986. This states that "a project meets the requirements of section 142(d)(1)(A) if 20% or more of the residential units in the project are occupied by individuals whose income is 50% or less of area median gross income."