Exhibit 10 (aaaaah)

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                            UNITED STATES OF AMERICA

           [LOGO]                [EAGLE SEAL]                  [LOGO]
         [ILLEGIBLE]                                         $5,650,000

                               STATE OF WASHINGTON
                   WASHINGTON STATE HOUSING FINANCE COMMISSION
             MULTIFAMILY HOUSING MORTGAGE REVENUE BOND, SERIES 1986
                       (ORCHARD HILLS APARTMENTS PROJECT)

DATED DATE:       DECEMBER 31, 1986

MATURITY DATE:    AUGUST 31, 2029

REGISTERED OWNER: CHARTERMAC OWNER TRUST I

PRINCIPAL AMOUNT: FIVE MILLION SIX HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS

      The Washington State Housing Finance Commission (the "Issuer"), a public
body corporate and politic and an instrumentality of the State of Washington
(the "State"), created and existing under and by virtue of the laws of the
State, hereby acknowledges itself indebted and for value received promises to
pay to the registered owner hereof stated above, or registered assigns, at the
maturity date stated above, but only from the sources and as hereinafter
provided, upon presentation and surrender of this Bond at the principal office
of Chase Manhattan Trust Company, National Association (the "Trustee") in
Seattle, Washington, as successor in trust to Seattle Trust and Savings Bank
(the "Original Trustee"), or its successor as Trustee, under the Indenture
(described below), the principal amount stated above, and to pay Interest on
said principal amount, from and including the dated date hereof until the
principal amount shall have been paid in accordance with the terms of this Bond,
as and when set forth below, but only from the sources and as hereinafter
provided, by wire transfer if there be one Owner of all of the Bonds or
otherwise by check or draft mailed to the record Owners of Bonds as the same
appear upon the books of registry to be maintained by the Trustee, as registrar.
Payments made on the Mortgage Loan to the Owner of this Bond shall be for the
account of the Issuer, shall constitute payments on this Bond and shall
discharge the Issuer's obligations on this Bond to the extent of such payments,
applying any payments first to Interest payable on the due date of such payment
and thereafter to principal and premium, if any.

      This Bond is one of a series of Bonds (the "Bonds") issued pursuant to the
Multifamily Housing Mortgage Revenue Bond (Orchard Hills Apartments Project)
Trust Indenture between the Original Trustee and the Issuer (the "Original
Indenture") dated as of December 1, 1986, as amended and supplemented by a First
Supplemental Indenture (the "Supplemental Indenture") dated as of September 8,
1999 (the "Amendment Date") between the Issuer and the Trustee (which Original
Indenture, as amended by the Supplemental Indenture and as from time to time
further amended and supplemented, is hereby referred to as the "Indenture"), and
Ch. 161, Laws of Washington 1983, as amended (the "Act"). Reference is made to
the Indenture and the Act for a full statement of their respective terms.
Capitalized terms used herein and not otherwise defined shall have the
respective meanings accorded such terms in the Indenture. The Bonds issued under
the Indenture are expressly limited to $5,650,000 principal amount at any time
Outstanding and are all of like tenor, except as to numbers and denominations,
and are issued for the purpose of providing construction and permanent financing
for qualified multifamily rental housing units in the State and of paying
certain expenses incidental thereto.

      PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND REDEMPTION PREMIUM, IF ANY,
ON THE BONDS, SHALL BE A VALID CLAIM ONLY AS AGAINST THE SPECIAL FUND OR FUNDS
RELATING THERETO, IS NOT AN OBLIGATION OF THE STATE OR ANY MUNICIPAL
CORPORATION, SUBDIVISION OR AGENCY OF THE STATE OTHER THAN THE COMMISSION, AND
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF WASHINGTON OR
ANY MUNICIPAL CORPORATION, SUBDIVISION OR AGENCY OF THE STATE, IS PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF, INTEREST ON AND REDEMPTION PREMIUM, IF ANY, ON THE
BONDS.

Interest on the Bonds.

      (a) General. The Bonds shall bear interest as provided below.

      (b) Base Interest. Until the Conversion Date, the Bonds shall bear base
interest calculated and payable as follows (which interest is referred to herein
as "Base Interest"):

            (1) During the Initial Period, the Bonds shall bear Base Interest at
      a rate equal to 10.0% per annum payable on each payment date specified in
      paragraph (e)(1) below.

            (2) During the Second Period, the Bonds shall bear Base Interest at
      a rate equal to 9.0% per annum payable on each payment date specified in
      paragraph (e)(1) below.

            (3) During the Third Period, the Bonds shall bear Base Interest at a
      rate equal to 8.0% per annum to (but not including) the Amendment Date,
      and 7.25% per annum thereafter, payable on each payment date specified in
      paragraph (c)(1) below.

Base Interest shall be calculated on the basis of a year of 365 days, actual
days elapsed.


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                            UNITED STATES OF AMERICA

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         [ILLEGIBLE]                                         [ILLEGIBLE]

      (c) Contingent Interest, After the Initial Period and until the Conversion
Date, the Bonds also shall bear interest calculated and payable as follows:

            (1) During each year or part thereof of the Third Period, to (but
      not including) the Amendment Date, the Bonds bore Contingent Interest (as
      defined in the Original Indenture) at an annual rate equal to the Primary
      Contingent Interest Rate (as defined in the Original Indenture) payable on
      the basis and to the extent of 100% of Net Cash Flow for each such year,
      or part thereof, or, to the extent not fully paid on or before the
      Amendment Date because 100% of Net Cash Flow was insufficient, on the
      basis and to the extent of 100% of Net Sale or Refinancing Proceeds.

            Contingent Interest equal to Maximum Primary Contingent Interest (as
      defined in the Original Indenture) was payable on the Bonds on each
      payment date specified in paragraph (e)(2) below on the basis and to the
      extent of 100% of Net Cash Flow, measured for purposes of such payment and
      subject to the adjustments and reconciliation as specified in paragraph
      (1) below. If 100% of Net Cash Flow was insufficient to pay the Maximum
      Primary Contingent Interest on such dates, then there was payable the
      maximum amount possible to the extent of 100% of Net Cash Flow (which
      amount was referred to as the "Primary Contingent Interest").

      The difference between the Maximum Primary Contingent Interest and the
      Primary Contingent Interest was deferred with interest thereon at 9.0% per
      annum, compounded annually, with respect to all such interest accrued and
      unpaid to (but not including) the Amendment Date (such difference together
      with the compounded interest thereon was referred to collectively with all
      such amounts previously deferred and unpaid as "Primary Deferred
      Interest").

      All Primary Deferred Interest (in the agreed approximate amount of
      $635,721) which remains accrued and unpaid as of the Amendment Date is
      hereby forgiven, abrogated and discharged. From and after the Amendment
      Date, no further Maximum Primary Contingent Interest shall accrue or be
      due or payable.

            (2) During each year or part thereof, after the Initial Period and
      to (but not including) the Amendment Date, the Bonds bore Contingent
      Interest at an annual rate equal to the Supplemental Contingent Interest
      Rate payable on the basis and to the extent of 25% of so much of Net Cash
      Flow for each such year, or part thereof, as remained after reducing Net
      Cash Flow by the amount of any payments on the basis of Net Cash Flow
      specified above in paragraph (c)(l). As of the Amendment Date, no
      Supplemental Contingent Interest (as defined below) has been paid, and all
      such interest remains accrued and unpaid.

            From and after the Amendment Dare, and to the Conversion Date,
      Contingent Interest equal to Maximum Supplemental Contingent Interest
      shall continue to be payable on the Bonds on each payment date specified
      in paragraph (e)(2) below on the basis and to the extent of 25% of Net
      Cash Flow, measured for purposes of such payment and subject to the
      adjustments and reconciliation as specified in paragraph (f) below. If 25%
      of Net Cash Flow is insufficient to pay the Maximum Supplemental
      Contingent Interest payable on any payment date specified in paragraph
      (e)(2) below, then there shall be payable the maximum amount possible on
      the basis and to the extent of 25% of Net Cash Flow (which amount is
      referred to as the "Supplemental Contingent Interest").

            The difference between the Maximum Supplemental Contingent Interest
      and the Supplemental Contingent Interest shall be deferred without
      interest (such difference is referred to collectively with all such
      amounts previously deferred and unpaid, including amounts deferred and
      unpaid prior to the Amendment Date, as the "Supplemental Deferred
      Interest") and shall thereafter be payable on the earliest possible
      payment dates specified in paragraph (e)(2) below on the basis and to the
      extent of 25% of Net Cash Flow, measured for purposes of such payment and
      subject to the adjustments and reconciliation as specified in paragraph
      (f) below. Supplemental Deferred Interest shall be paid on the basis and
      to the extent of 25% of Net Cash Flow before any Supplemental Contingent
      Interest is paid on such basis.

            To the extent that Maximum Supplemental Contingent Interest and all
      Supplemental Deferred Interest are not fully paid on the basis and to the
      extent of 25% of Net Cash Flow on payment dates specified in paragraph
      (e)(2) below, they shall be payable on the basis and to the extent of 25%
      of Net Sale or Refinancing Proceeds on the earliest possible payment dates
      specified in paragraph (e)(3) below.

      (d) Reserved.

      (e) Payment Dates for Interest. The Interest payable on the Bonds as
provided above shall be payable on the following dates:

            (1) Base Interest shall be payable (i) on each Interest Payment Date
      for Base Interest, (ii) on each redemption date before the Conversion Date
      (but only with respect to the Bonds redeemed), and (iii) on the Conversion
      Date.

            (2) Contingent Interest and Deferred Interest that is payable on the
      basis of Net Cash Flow shall he payable (i) on each Interest Payment Pate
      for Contingent Interest and Deferred Interest to and


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                            UNITED STATES OF AMERICA

           [LOGO]                [EAGLE SEAL]                  [LOGO]
         [ILLEGIBLE]                                         [ILLEGIBLE]

      including the Conversion Date, (ii) on each redemption date during the
      Second Period and the Third Period (but only with respect to the Bonds
      redeemed), (iii) on each date on which Contingent Interest and Deferred
      Interest is payable from Net Sale or Refinancing Proceeds (as provided in
      paragraph (e)(3) below), and (iv) on the Conversion Dame.

            (3) Contingent Interest and Deferred Interest that is payable on the
      basis of Net Sale or Refinancing Proceeds shall be payable on the next
      Interest Payment Date for any interest succeeding by at least thirty (30)
      days the date of the Event of Sale or Refinancing relating to the Sale of
      the Project or Refinancing of the Project, except in the case of (x) a
      Refinancing of the Project described in clause (i) or (iv) of the
      definition thereof, in which case it shall be payable on the redemption
      date or payment date, as the case may be, (y) a Sale of the Project
      described in clause (i) of the definition thereof resulting in a call of
      the Bonds for redemption pursuant to Section 4.01(f) of the Indenture, in
      which case it shall be payable on the redemption date, or (z) a
      Refinancing of the Project described in clause (ii) of the definition
      thereof, in which case it shall be payable on the Initial Remarketing
      Date.

      (f) Calculation of Net Cash Flow.

            (1) (i) No later than thirty (30) days before each payment date for
      Contingent Interest and Deferred Interest specified in paragraph (e) (2)
      above (or such lesser number of days as shall be the maximum number of
      days possible if the payment date was not known until less than forty (40)
      days before the payment date), the Developer shall calculate Net Cash Flow
      for the three-month period ending on the last day of the third preceding
      month before such payment date and shall provide the Trustee (but only
      after the Trustee has accepted the duty to calculate interest pursuant to
      the Indenture) and the Owners (if fewer than three) (i) the analysis of
      such Net Cash Flow, (ii) unaudited financial statements of the Project for
      such three-month period and (iii) a calculation of the amount of
      Contingent Interest and Deferred Interest then payable.

                  (ii) Notwithstanding the foregoing in clause (i), (A) except
      as may result from adjustments and reconciliation provided below in this
      paragraph (f), the period of time for which Net Cash Flow is measured for
      purposes of a payment date for Contingent Interest and Deferred Interest
      on any Bonds specified in paragraph (e)(2) hereof shall not include any
      time for which Net Cash Flow has been measured for purposes of a previous
      payment date for Contingent Interest and Deferred Interest on such Bonds
      specified in paragraph (e)(2) hereof, and (B) the calculation of Net Cash
      Flow and the amount of Contingent Interest and Deferred Interest payable
      therefrom on the Conversion Date shall be reconciled and adjusted to give
      effect to the actual amount of Net Cash Flow for the current calendar year
      (and the preceding calendar year if the Conversion Date falls before
      delivery of the audit referred to in paragraph (f)(2) hereof in the
      current calendar year) up to but not including the Conversion Date (such
      actual amount of Net Cash Flow being measured by the actual amount known
      as of the most recent possible date and an amount reasonably estimated to
      be earned between such date and the Conversion Date) and all Contingent
      Interest and Deferred Interest paid during the current calendar year (and
      the preceding calendar year if the Conversion Date falls before delivery
      of the audit referred to in paragraph (f)(2) hereof in the current
      calendar year) in the manner described in paragraph (f)(3) below, except
      that any underpayments or overpayments of Contingent Interest and Deferred
      Interest shall be paid or refunded, as the case may be, on the Conversion
      Date.

            (iii) The amount of Net Cash Flow reflected in the analysis
      described above, as adjusted in the case of the analysis in connection
      with the Conversion Dare, shall provide the basis for the calculation of
      Contingent Interest and Deferred Interest payable on the basis of Net Cash
      Flow on each payment date therefor specified in paragraph (e)(2) hereof,
      except as provided below. The Trustee, upon direction of the owners of a
      majority in principal amount of the Bonds (if it has accepted the duty to
      calculate interest thereon pursuant to the Indenture), or the Owners of a
      majority in principal amount of Bonds themselves, may request further
      substantiation of the Developer's calculation of Net Cash Flow and may
      verify and correct as necessary the calculations thereof. If the Trustee
      or the Owners of a majority in principal amount of the Bonds do so
      reasonably modify such calculation, the Trustee or such Owners shall
      notify the Developer of such modified calculation no later than ten (10)
      Business Days before such payment date (or such lesser number of days as
      shall be the maximum number of days practicable if the Trustee or such
      Owners received the calculation of Net Cash Flow less than thirty (30)
      days before the payment date) and such modified calculation shall be the
      basis for the calculation of Contingent Interest and Deferred Interest
      payable on the basis of Net Cash Flow on the payment date. Except to the
      extent provided in this paragraph (f)(1) with respect to the Conversion
      Date, the analysis and payment on the basis of Net Cash Flow described in
      this paragraph (f)(1) is intended to provide a preliminary payment of
      Contingent Interest and Deferred Interest on the basis of Net Cash Flow
      prior and subject to the adjustment and reconciliation process described
      in paragraphs (f)(2) and (f)(3) hereof.

            (2) No later than March 15 of each calendar year (up to and, unless
      the Conversion Date falls before delivery of the audit, including the
      calendar year in which the Conversion Date occurs) the Developer shall
      provide to the Issuer, the Trustee and the Owners of the Bonds (if fewer
      than three) an audit of the operations of the Project for the preceding
      calendar year prepared and certified by an Accountant acceptable to the
      Trustee (if it has accepted the duty to calculate interest pursuant to the
      Indenture) and the Owners (if fewer than three) in accordance with
      generally accepted auditing standards. The audit shall state the actual
      amount of


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                            UNITED STATES OF AMERICA

           [LOGO]                [EAGLE SEAL]                  [LOGO]
         [ILLEGIBLE]                                         [ILLEGIBLE]

      Net Cash Flow for that calendar year and shall calculate all Contingent
      Interest and Deferred Interest paid and payable from Net Cash Flow during
      such calendar year pursuant hereto.

            (3) The audit prepared as described in paragraph (f)(2) shall state
      the amount of Contingent Interest and Deferred Interest payable and paid
      during the subject calendar year. If the amounts of Contingent Interest
      and Deferred Interest payable on the basis of Net Cash Flow (measured on
      the basis of actual Net Cash Flow for such calendar year according to the
      audit) exceeded the amount paid, then there shall be payable to the Owners
      of the Bonds any such payable and unpaid amounts on the payment date for
      Contingent Interest and Deferred Interest specified in paragraph (e)(2)
      hereof immediately following the receipt by the Trustee and the said
      Owners of the audit. If the amount of Contingent Interest and Deferred
      Interest payable on the basis of Net Cash Flow (measured on the basis of
      actual Net Cash Flow for such calendar year according to the audit) is
      less than the amount actually paid, such overpaid amount shall be credited
      against any other interest payments (whether Base Interest or Contingent
      Interest and Deferred Interest) or other payments due from the Issuer to
      the Owners of the Bonds on the Bond Payment Date (or Bond Payment Dates)
      immediately following the receipt by the Trustee and the said Owners of
      the audit and the Owners shall not be required to refund any such amount
      unless the crediting does not exhaust the overpayment, in which case the
      balance of the overpayment will be refunded by the Owners on the
      Conversion Date.

      (g) Fair Market Value of the Project for Purposes of Determining
Refinancing Proceeds.

            (1) In order to calculate the fair market value of the Project for
      purposes of determining Sale or Refinancing Proceeds in the event of a
      Refinancing of the Project (other than a Refinancing of the Project
      described in clause (iii) of the definition thereof) the fair market value
      of the Project is required to be determined as set forth below, such
      determination to be completed no later than fifteen (15) days before the
      date on which Contingent Interest and Deferred Interest are payable on the
      basis and to the extent of Net Sale or Refinancing Proceeds or as soon
      thereafter as possible (but not after the said payment date if the notice
      described in the following sentence cannot be given at the time
      specified). The Developer shall give notice to the Trustee and to the
      Owners of the Bonds of the impending Refinancing of the Project at least
      ninety (90) days before the expected date of Refinancing of the Project or
      as much notice as is possible, promptly upon learning of the impending
      Refinancing of the Project. The Owners of all of the Bonds and the
      Developer may jointly determine and agree upon the fair market value of
      the Project but must do so at least sixty (60) days before the proposed
      date of the Refinancing of the Project; failing such agreement the Owners
      of a majority in principal amount of the Bonds shall select an independent
      M.A.I. appraiser and the Developer shall select an independent M.A.I.
      appraiser. The appraisers shall jointly determine and agree upon the fair
      market value of the Project. If the two appraisers are unable to agree
      upon the fair market value of the Project at least thirty (30) days before
      the proposed date of the Refinancing of the Project, the Owners and the
      Developer shall select a third independent M.A.I. appraiser. If such
      Owners and the Developer are unable to agree upon a third appraiser by
      such date, the two appraisers shall select the third appraiser. If the two
      appraisers are unable to agree upon the third appraiser at least
      twenty-five (25) days before the proposed date of the Refinancing of the
      Project, such Owners or Developer may petition any court of competent
      jurisdiction for the appointment of the third independent appraiser. As
      early as practicable, but prior to the expected date of the Refinancing of
      the Project, the third appraiser shall select from between the two
      appraisals the one which the third appraiser believes to assess more
      accurately the fair market value of the Project and the appraisal so
      selected shall be the fair market value of the Project, shall provide the
      basis for the calculation of Contingent Interest and Deferred Interest
      payable on the basis of Net Sale or Refinancing Proceeds in the event of a
      Refinancing of the Project (other than a Refinancing of the Project
      described in clause (iii) of the definition thereof) on each payment date
      therefor specified in paragraph (e)(3) hereof and shall be binding upon
      the Developer and the Owners of the Bonds. The fees and expenses of the
      appraiser selected by each party shall be borne by the party selecting the
      appraiser and the cost of the third appraiser shall be borne equally by
      the Developer and the Owners of the Bonds.

            (2) The fair market value of the Project for purposes of this
      paragraph (g) shall reflect the amount each appraiser believes an informed
      and willing purchaser under no compulsion to purchase the Project would
      pay to an informed and willing seller under no compulsion to sell the
      Project, less those costs of a sale appropriate to the marketplace within
      which the Project would be sold. Such determination shall take into
      consideration such factors as the appraisers may deem relevant. Except as
      provided below, the fair market value of the Project set forth in an
      appraisal shall be determined as of the date of such appraisal.

            (3) If the Refinancing of the Project is based upon a redemption of
      Bonds pursuant to Section 4.01(d) of the Indenture, the fair market value
      of the Project shall be determined as of the day before the occurrence of
      any events requiring the payment of Insurance Proceeds or a Condemnation
      Award, as if such events had not occurred and were not anticipated.

      (h) Interest During a Variable Rate Period. From and after the Initial
Remarketing Date, if all of the Bonds then Outstanding have been remarketed as
provided in the Indenture and in accordance herewith, the Bonds shall bear
interest at a rate determined as follows:


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                            UNITED STATES OF AMERICA

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         [ILLEGIBLE]                                         [ILLEGIBLE]

            (1) On a Business Day not prior to ten (10) Business Days prior to
      the Initial Remarketing Date and each subsequent Remarketing Date, the
      Remarketing Agent, having due regard to prevailing market conditions,
      shall determine the interest rate (the "Variable Rate") which, if borne by
      the Remarketed Bonds on such date, would be the interest rate, but would
      not exceed the interest rate, which would result in the market value of
      the Remarketed Bonds on such day (as if such day were the first day of
      such Remarketing Period) being 100% of the principal amount thereof
      (together with interest if any, accrued thereon; provided, however, that
      in no event shall the Variable Rate exceed 14.5% per annum or the maximum
      lawful rate, whichever is less. If for any reason the Variable Rate so
      determined by the Remarketing Agent shall be held to be invalid or
      unenforceable by a court of competent jurisdiction, the Remarketing Agent
      shall determine the interest rate for such Remarketing Period, which shall
      be a percentage of the 30 Revenue Bond Index (as published in The Bond
      Buyer; or if such Index is not available, an index comparable to such
      Index, in the judgment of the Remarketing Agent) for the most recent
      period for which information is available, computed in accordance with the
      following table:

If the length of the       But the length of the       The applicable percentage
Remarketing Period (in     Remarketing Period (in      of the 30 Revenue Bond
years) is at least:        years) is less than:        Index is:
--------------------------------------------------------------------------------
   5 or greater                    (NA.)                         85%
        1                           5                            80

      The Remarketing Agent shall promptly, upon the determination of the
      Variable Rate, notify the Issuer, the Developer, the Owners and the
      Trustee of the Variable Rate. The determination of the Variable Rate for a
      Remarketing Period shall be conclusive and binding upon the Owners of the
      Bonds, the Issuer, the Trustee and the Developer. The Trustee shall
      immediately give written notice (which may include written notice by
      electronic means) to the Owners of all of the Bonds of the Variable Rate
      for the period between the next succeeding Remarketing Date and the second
      succeeding Remarketing Date.

            (2) No more than sixty (60) days, but at least forty-five (45) days,
      prior to the Initial Remarketing Date, the Developer shall notify the
      Owners (if no more than three), the Trustee and the Remarketing Agent of
      the length of the proposed Remarketing Period commencing on the Initial
      Remarketing Date, which shall extend for one (1) or more years. Subsequent
      to the Initial Remarketing Date, the Developer will establish subsequent
      Remarketing Dates as follows: no more than sixty (60) days, but at least
      forty-five (45) days, prior to each Remarketing Date, the Developer will
      notify the Owners of the Bonds, the Issuer, the Trustee and the
      Remarketing Agent of the proposed subsequent Remarketing Date, which shall
      be one (1) or more years from the next Remarketing Date. The Developer
      shall also specify the interest payment dates if different than January 1
      and July 1; provided that the interest payment dates specified may be no
      more frequent than once each month.

            (3) Notice of the Remarketing Date shall be given by the Trustee not
      later than the twenty-fifth (25th) day preceding such Remarketing Date by
      registered or certified mail to the Owners of all Outstanding Bonds and
      such notice shall state that the Bonds are subject to mandatory tender on
      the Remarketing Date, unless the Owner thereof waives such tender, shall
      indicate the subsequent Remarketing Date, if any, and shall include a form
      to indicate the election not to tender Bonds.

            (4) Interest on the Bonds during the Variable Rate Period shall be
      payable on each Interest Payment Date therefor and shall be calculated, to
      the extent allowed by applicable law, on the basis of a year of 365 days
      and the actual number of days elapsed.

Notwithstanding anything elsewhere contained in this Bond, (a) total Interest
paid on this Bond (including any Interest payable in accordance with Section
7.10 of the Indenture), cumulative from the original date of issuance of the
Bond, shall not exceed the sum of 13.25% per annum, simple and noncompounded for
each year (calculated on the basis of a 365-day year, actual number of days
elapsed) from such date of issuance to the date of calculation; and (b) if the
interest rate on this Bond shall at any time be deemed to be in excess of the
maximum rate allowed by law then the Bond shall instead bear interest at the
maximum rate permitted by such law. Any excess payment of such interest shall be
deemed to be a credit against the unpaid principal amount of this Bond.

      The foregoing interest provisions are a summary of those contained in the
Indenture, and reference is hereby made to the Indenture for a full statement of
their terms, which are incorporated herein by reference.

      Limited Recourse. Pursuant to a Loan Agreement dated as of December 1,
1986, as amended by a First Amendment to Loan Documents dated as of September 8,
1999 (as amended, the "Loan Agreement"), and a Promissory Note dated as of
December 1, 1986, as amended and supplemented by an Allonge to Promissory Note
dated as of September 8, 1999 (as amended and supplemented, the "Note"), and a
Deed of Trust dated as of December 1, 1986, as amended by the First Amendment to
Loan Documents dated as of September 8, 1999 (as amended, the "Deed of Trust")
securing the Note, Orchard Hills Associates, a Washington General Partnership
("Developer"), has agreed to make payments to the Issuer in amounts equal to
amounts of principal of and premium if any and Interest on the Bonds. THE


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                            UNITED STATES OF AMERICA

           [LOGO]                [EAGLE SEAL]                  [LOGO]
         [ILLEGIBLE]                                         [ILLEGIBLE]

OBLIGATIONS OF THE ISSUER ON THIS BOND ARE EXPRESSLY LIMITED TO AND ARE PAYABLE
SOLELY FROM (I) THE PAYMENTS MADE PURSUANT TO THE LOAN AGREEMENT AND THE NOTE BY
THE DEVELOPER, AND THE SECURITY THEREFOR PROVIDED BY THE DEED OF TRUST AND THE
ASSIGNMENT OF LEASES AND RENTS CONTAINED THEREIN, ALL OF WHICH HAVE BEEN
ASSIGNED TO THE TRUSTEE PURSUANT TO THE INDENTURE AND AN ASSIGNMENT AGREEMENT
FROM THE ISSUER DATED OF DECEMBER 1,1986, AND (II) ANY ADDITIONAL SECURITY
PROVIDED IN THE INDENTURE. THE OBLIGATIONS OF THE DEVELOPER UNDER THE LOAN
AGREEMENT, THE NOTE AND THE DEED OF TRUST ARE NON-RECOURSE TO THE DEVELOPER, AND
ARE ENFORCEABLE SOLELY AGAINST THE PROJECT, EXCEPT AS OTHERWISE PROVIDED
THEREIN. ANY PAYMENTS MADE ON THE MORTGAGE LOAN TO THE OWNER OF THIS BOND SHALL
BE FOR THE ACCOUNT OF THE ISSUER AND SHALL DISCHARGE THE ISSUER'S OBLIGATIONS ON
THIS BOND TO THE EXTENT OF SUCH PAYMENT, APPLYING ANY PAYMENT TO INTEREST FIRST.

      Transfer. This Bond is transferable by the registered owner hereof in
person or by his attorney duly authorized in writing at the office of the
Trustee as registrar, but only in the manner, subject to the limitations and
upon payment of the charges provided in the Indenture, and upon surrender and
cancellation of this Bond. Upon such transfer a new registered Bond or Bonds, of
any authorized denomination or denominations, of the same maturity and for the
same aggregate principal amount will be issued to the transferee in exchange
hereto.

      Prior to the Conversion Date a Bond may only be transferred (i) to any
affiliate of the Partnership, to an affiliate with the same or substantially the
same general partners as the Partnership, to any entity arising out of any
merger or consolidation of the Partnership, by operation of law, or to a trustee
in bankruptcy of the Partnership; (ii) by an assignment to a bank or other
financial institution issuing a letter of credit or like instrument in
connection with the Mortgage Loan; or (iii) to one or more Institutional
Investors if, in each instance, the Issuer and the Trustee receive from the
transferee (A) its agreement to the transfer restrictions set forth in this
paragraph in connection with subsequent transfers of the Bond, and (B) evidence
of the assignment by the transferor to the transferee (or if there is to be
thereafter more than one Owner of the Bonds, evidence of the appointment and
acceptance of a Trustee and assignment of the Trustee) of the transferor's
rights in and to the Mortgage Loan and the other rights and interests as
theretofore conveyed to it by the Assignment, or an assignment of the
Assignment.

      The Bonds are issuable as fully registered Bonds in Authorized
Denominations as provided in the Indenture.

      Redemption of Bonds. The Bonds are subject to redemption by the Issuer
prior to maturity as a whole or in part at such time or times, under such
circumstances, at such redemption prices and in such manner as is set forth in
the Indenture.

      Remarketing in Lieu of Redemption of Bonds on Initial Remarketing Date.
Upon an election by the Owner of a redemption in whole of the Bonds pursuant to
Section 4.01(h) of the Indenture, at the direction of the Developer given not
less than sixty (60) days in advance, either (i) the Bonds shall be redeemed on
the date specified in the notice to the Issuer, the Trustee, and the Developer
from the Owners described in Section 4.01(h) of the Indenture or (ii) the Bonds
will be deemed tendered for purchase and remarketed as provided in Article V of
the Indenture on the date specified in the notice to the Issuer, the Trustee,
and the Developer from the Owner described in Section 4.01(h), or on such
earlier Interest Payment Date selected by the Developer in its direction to
remarket the Bonds but in no event before the first Interest Payment Date
following the Reference Month in 2011. The Bonds may only be remarketed if the
conditions specified in the Indenture are met which conditions include
requirements that either the Bonds be rated and that certain disclosures be made
in connection with such remarketing or that the remarketing be limited to
certain institutional investors who shall agree to restrictions on the transfer
thereof. The purchase price of Bonds so remarketed in lieu of redemption shall
be the principal amount thereof together with all accrued and unpaid Interest
(including all Base Interest, Contingent Interest and Deferred Interest then
payable) and shall be payable on the Initial Remarketing Date. If the conditions
to remarketing of the Bonds set forth in Article V of the Indenture are not
satisfied, or if the Bonds are not successfully remarketed, or if the full
purchase price thereof is not paid on the Initial Remarketing Date, or if all
Interest (including Contingent Interest and Deferred Interest then payable) and
principal payable on the Bonds up to and including the Initial Remarketing Date
has not been fully paid, then all Bonds tendered shall be redeemed and not
remarketed pursuant to Section 4.01(e) of the Indenture.

      Mandatory Tender of Bonds. The Bonds shall be subject to mandatory tender
to the Remarketing Agent on each Remarketing Date after the Initial Remarketing
Date for purchase by the Remarketing Agent, at a purchase price equal to the
principal amount thereof plus accrued Interest to the purchase date; provided,
however, that there need not be tendered on such Remarketing Date any Bonds with
respect to which the Remarketing Agent shall have received from the Owners
thereof a written notice at least five (5) Business Days prior to the applicable
Remarketing Date expressly electing not to tender their Bonds for purchase. Any
such election may not relate to a portion of any Bond held by the Owner, such
election may apply only to the entire principal amount of any Bond or Bonds.

      Tendered Bonds. Any Bonds that are the subject of mandatory tender for
purchase but are not the subject of elections to retain the Bonds received by
the Remarketing Agent in a timely fashion shall be conclusively deemed tendered
for purchase on the Remarketing Date. If time Owner selects a redemption date
for redemption of the Bonds in accordance with Section 4.01(h) of the Indenture
and the Developer makes the remarketing election permitted by Section


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                            UNITED STATES OF AMERICA

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4.04 of the Indenture, all Bonds shall be conclusively deemed rendered for
purchase on the Initial Remarketing Date. All Bonds that are actually tendered
for purchase pursuant to the Indenture or are deemed tendered for purchase on a
Remarketing Date, including the Initial Remarketing Date, shall constitute
tendered Bonds for purposes of the Indenture; all tendered Bonds that are not
actually delivered for purchase on a Remarketing Date, including the Initial
Remarketing Date shall constitute "Undelivered Bonds" for purposes of the
Indenture. Undelivered Bonds that have been remarketed in accordance with the
Indenture shall be deemed to have been purchased if the purchase price therefor
shall have been deposited therefor and held by the Remarketing Agent; and the
parties to whom the Remarketing Agent shall have remarketed Undelivered Bonds so
remarketed shall be the owners of such Undelivered Bonds for all purposes under
the Indenture, including without limitation the right to transfer such Bonds.
Interest accruing from and after the Remarketing Date on such Undelivered Bonds
shall no longer be payable to the former Owners thereof but shall be paid to the
new registered owners thereof. Former Owners of Undelivered Bonds so remarketed
shall not be deemed to be Owners of Bonds under the Indenture, and such
Undelivered Bonds shall not be deemed Outstanding for purposes of the Indenture,
except for purposes of payment of the purchase price of such Undelivered Bonds
upon surrender thereof to the Remarketing Agent.

      Enforcement. Only the Acting Party shall have the right to enforce the
provisions of this Bond or the Indenture or to institute any action to enforce
the covenants herein or therein, or to take any action with respect to any Event
of Default under the Indenture, or to institute, appear in or defend any suit or
other proceedings with respect thereto, except as provided in the Indenture. If
an Event of Default occurs and is continuing, the principal of all Bonds then
outstanding (together with all unpaid Interest thereon) may be declared due and
payable by the Acting Party upon the conditions and in the manner and with the
effect provided in the Indenture.

      The Issuer, the Trustee, and any other person may treat the person in
whose name this Bond is registered on the books of registry as the Owner hereof
for the purpose of receiving payment as herein provided and for all other
purposes, whether or not this Bond be overdue, and no person shall be affected
by notice to the contrary.

      Discharge. The Indenture prescribes the manner in which it may be
discharged and after which the Bonds shall be deemed to be paid and no longer be
secured by or entitled to the benefits of the Indenture, except for certain
purposes, including the purposes of registration and exchange of Bonds and of
such payment.

      Modifications. Modifications or alterations of the Indenture, or of any
supplements thereto, may be made only to the extent and in the circumstances
permitted by the Indenture.

      By its acceptance of this Bond, the Owner hereof agrees that it will be
bound by and accepts the provisions of the Indenture and the Loan Documents (as
defined in the Loan Agreement). This Bond shall not be valid or obligatory for
any purpose until it shall have been signed on behalf of the Issuer and such
signature attested, by the officer, and in the manner, provided in the
Indenture, and authenticated by a duly authorized officer of the Trustee, as
Authenticating Agent.

      It is hereby certified and recited that all conditions, acts and things
required by the Constitution or statutes of the State or by the Act or the
Indenture to exist, to have happened or to have been performed precedent to or
in the issuance of this Bond exist, have happened and have been performed and
that the issue of the Bonds together with all other indebtedness of the Issuer,
is within every debt and other limit prescribed by said Constitution or
statutes.

      IN WITNESS WHEREOF, the Washington State Housing Finance Commission has
caused this Bond to be executed in its name with the signature of its Chairman
and attested by the signature of its Secretary, and its corporate seal to be
hereunto impressed, all as of the 8th day of September, 1999.

                                       WASHINGTON STATE HOUSING
[SEAL]                                 FINANCE COMMISSION

                                       By /s/ Bosse Nutley
                                          ------------------------------
                                          Ms. Bosse Nutley
                                          Chair

Attest:

/s/ Michael J. Murphy
----------------------------
Michael J. Murphy
Secretary


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                            UNITED STATES OF AMERICA

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                          CERTIFICATE OF AUTHENTICATION

      This Bond is one of the Bonds described in the within mentioned Indenture
and is one of the Multifamily Housing Mortgage Revenue Bonds, Series 1986
(Orchard Hills Apartments Project) of the Washington State Housing Finance
Commission.

Date of Authentication: September 8, 1999

                                       CHASE MANHATTAN TRUST COMPANY,
                                       NATIONAL ASSOCIATION,
                                       Trustee and Bond Registrar

                                       By: /s/ Cheryl McDonald
                                           --------------------------------
                                           Cheryl McDonald
                                           Authorized Signatory

                               FORM OF ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto _______________________________ the within Multifamily Housing Mortgage
Revenue Bond, Series 1986 (Orchard Hills Apartments Project), of the Washington
State Housing Finance Commission, and hereby authorizes the transfer of this
Bond on the registration books of the Trustee.

                                       Dated ___________________________________

                                       _________________________________________
                                       Authorized Signature

                                       _________________________________________
                                       Name of Transferor

                                       Signature Guaranteed by:
                                       _________________________________________
                                       _________________________________________

                                       Name of Bank

                                       By: _____________________________________

                                       Title: __________________________________


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