Hospitality Fund II, LLC (HF II) will use its NMTC allocation to provide equity, senior debt and subordinated debt products to real estate developments. Two types of projects will be targeted: first, those that convert large functionally obsolete but often historically significant buildings into hotels in urban core neighborhoods; and second, those that develop hotels in communities of exceptionally severe economic distress. The NMTC Allocation will enable HF II to provide both loans and equity investments for its pipeline projects at below market interest rates ranging from 200 to 500 basis points below market. Additionally, HFII to will also be able to provide other more flexible and non-traditional terms such as, longer interest-only periods and amortizations, higher loan to value ratios, lower debt service coverage ratios, and to eliminate origination fees.