# EDGAR Filing Document

**Accession Number:** 0000225030
**File Stem:** 0001999371-26-009599
**Filing Date:** 2026-4
**Character Count:** 530361
**Document Hash:** 5e491d0c3fe9786a582ca5f5ff6c777e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001999371-26-009599.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001999371-26-009599

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 29

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**EFFECTIVENESS DATE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AFL CIO HOUSING INVESTMENT TRUST
- **CENTRAL INDEX KEY:** 0000225030

**ORGANIZATION NAME:**
- **EIN:** 526220193
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03493
- **FILM NUMBER:** 26927163

**BUSINESS ADDRESS:**
- **STREET 1:** 1227 25TH STREET, NW
- **STREET 2:** SUITE 500
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20037
- **BUSINESS PHONE:** (202) 331-8055

**MAIL ADDRESS:**
- **STREET 1:** 1227 25TH STREET, NW
- **STREET 2:** SUITE 500
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20037
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AFL CIO HOUSING INVESTMENT TRUST
- **CENTRAL INDEX KEY:** 0000225030

**ORGANIZATION NAME:**
- **EIN:** 526220193
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-59762
- **FILM NUMBER:** 26927162

**BUSINESS ADDRESS:**
- **STREET 1:** 1227 25TH STREET, NW
- **STREET 2:** SUITE 500
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20037
- **BUSINESS PHONE:** (202) 331-8055

**MAIL ADDRESS:**
- **STREET 1:** 1227 25TH STREET, NW
- **STREET 2:** SUITE 500
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20037

## Series and Classes Contracts Data

### AFL CIO HOUSING INVESTMENT TRUST (Series ID: S000009768)

| Class ID   | Class Name                       | Ticker Symbol   |
|:---|:---|:---|
| C000026832 | AFL CIO HOUSING INVESTMENT TRUST |  |

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

FORM N-1A

---

| | |
|:---|:---|
| Registration Statement Under The Securities Act of 1933 | ☒ |
| Pre-Effective Amendment No. | ☐ |
| Post-Effective Amendment No. 86 | ☒ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and/or |  |
| Registration Statement Under The Investment Company Act of 1940 |  |
| Amendment No. 89 | ☒ |

---

------

Registrant's Name, Address and Telephone Number:

American Federation of Labor and Congress of Industrial Organizations

**Housing Investment Trust\***

**1227 25<sup>th</sup> Street, N.W., Suite 500**

**Washington, D.C. 20037**

**(202) 331-8055**

Name and Address of Agent for Service:

**Corey F. Rose, Esq.**

**Dechert LLP**

**1900 K Street, N.W.**

**Washington, DC 20006-1110**

------

It is proposed that this filing will become effective:

☒ immediately
upon filing pursuant to paragraph (b)

☐ on (date) pursuant to paragraph (b)

☐ 60 days after filing pursuant to paragraph (a)(1)

☐ on (date) pursuant to paragraph (a)(1)

☐ 75 days after filing pursuant to paragraph (a)(2)

☐ on (date) pursuant to paragraph (a)(2) of rule 485

If appropriate, check the following box:

☐ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

\*This filing relates solely to Series A—AFL-CIO Housing Investment Trust

**AFL-CIO**

**HOUSING INVESTMENT TRUST**

------

**PROSPECTUS**

------

The investment objective of the American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust ("HIT") is to generate competitive risk-adjusted total rates of return for its participants by investing in fixed-income investments, primarily multifamily and single family mortgage-backed securities and mortgage-backed obligations. Other important objectives of the HIT are to encourage the construction of housing and to facilitate employment for union members in the construction trades and related industries.

**THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.**

The date of this Prospectus is April 30, 2026

**TABLE OF CONTENTS**

Page

---

| | |
|:---|:---|
| **[SUMMARY SECTION](#aflcio485bposa001)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[INVESTMENT OBJECTIVES](#aflcio485bposa002)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[EXPENSES OF THE HIT](#aflcio485bposa003)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[PRINCIPAL INVESTMENT STRATEGIES](#aflcio485bposa004)** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[PRINCIPAL INVESTMENT RISKS](#aflcio485bposa005)** | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[HIT PAST PERFORMANCE](#aflcio485bposa006)** | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[PORTFOLIO MANAGEMENT](#aflcio485bposa007)** | **7** |
| **[PURCHASE AND SALE OF UNITS](#aflcio485bposa008)** | **8** |
| **[TAX INFORMATION](#aflcio485bposa009)** | **8** |
| **[OVERVIEW](#aflcio485bposa010)** | **8** |
| **[MORE ON THE HIT'S INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES AND RISKS](#aflcio485bposa011)** | **9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[INVESTMENT OBJECTIVES](#aflcio485bposa012)** | **9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[MORE ON PRINCIPAL INVESTMENT STRATEGIES AND PRINCIPAL INVESTMENTS](#aflcio485bposa013)** | **9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[MORE ON PRINCIPAL INVESTMENT RISKS](#aflcio485bposa014)** | **16** |
| **[BUYING AND SELLING UNITS IN THE HIT](#aflcio485bposa015)** | **26** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[ELIGIBLE INVESTORS](#aflcio485bposa016)** | **26** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[PURCHASING AND PRICING UNITS](#aflcio485bposa017)** | **27** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[SELLING OR REDEEMING UNITS](#aflcio485bposa018)** | **29** |
| **[DISTRIBUTION CHARGES (RULE 12b-1 FEES)](#aflcio485bposa019)** | **30** |
| **[MANAGEMENT AND STRUCTURE](#aflcio485bposa020)** | **31** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[MANAGEMENT](#aflcio485bposa021)** | **31** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[HIT STRUCTURE](#aflcio485bposa022)** | **31** |
| **[DISTRIBUTIONS AND TAXES](#aflcio485bposa023)** | **34** |
| **[FINANCIAL HIGHLIGHTS](#aflcio485bposa024)** | **35** |

---

**AFL-CIO Housing Investment Trust**

**INVESTMENT OBJECTIVES**

The investment objective of the American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust ("HIT") is to generate competitive risk-adjusted total rates of return for its investors ("Participants") by investing in fixed-income investments, primarily multifamily and single family mortgage-backed assets. Other important objectives of the HIT are to encourage the construction of housing and to facilitate employment for union members in the construction trades and related industries. All on-site construction work financed through the HIT's investments is required to be performed by 100% union labor.

**EXPENSES OF THE HIT**

This table describes the expenses that you may pay if you buy and hold units of beneficial interest in the HIT ("Units"). The HIT does not assess any sales charges (loads), redemption fees, exchange fees or any other account fees.

**ANNUAL HIT OPERATING EXPENSES**

(expenses that you pay each year as a percentage of the value of your investment)

---

| | |
|:---|:---|
| Management Fees | 0.00% |
| Distribution (12b-1) Fees | 0.02% |
| Other Expenses | 0.29% |
| Total Annual HIT Operating Expenses | 0.31% |

---

**Example**

This example is intended to help you compare the cost of investing in the HIT with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the HIT for the time periods indicated and then redeem all of your Units at the end of those periods. The example also assumes that your investment has a 5% return each year and that the HIT's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**<u>One Year</u>** | &nbsp;&nbsp;**<u>Three Years</u>** | &nbsp;&nbsp;**<u>Five Years</u>** | &nbsp;&nbsp;**<u>Ten Years</u>** |
| &nbsp;&nbsp;$32 | &nbsp;&nbsp;$101 | &nbsp;&nbsp;$177 | &nbsp;&nbsp;$399 |

---

**Portfolio Turnover**

The HIT generally conducts securities transactions on a principal-to-principal basis and does not pay commissions for trades. The HIT may incur transaction costs when it buys and sells certain securities (or "turns over" parts of its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. During the most recent fiscal year, the HIT's portfolio turnover rate was 23.9% of the average value of its portfolio.

**PRINCIPAL INVESTMENT STRATEGIES**

The HIT's principal investment strategy is to construct and manage a portfolio that is composed primarily of multifamily and single family mortgage-backed assets (collectively, "Mortgage Securities") with higher yield, higher credit quality and similar interest rate risk versus the securities in the Bloomberg U.S. Aggregate Bond Index (the "Bloomberg Aggregate"). As such, the HIT pursues a fundamental policy to concentrate in fixed-income securities in the mortgage and mortgage finance sector of the real estate industry. The HIT holds multifamily mortgage-backed securities ("MBS") that are government and agency issued, guaranteed or insured and that have call (or prepayment) protection, in place of the following types of securities which are held in the Bloomberg Aggregate: (1) corporate debt; (2) some U.S. Treasury securities; and (3) some government-sponsored enterprise debt. Since government/agency multifamily MBS offer higher yields than comparable securities with similar credit and interest rate risk, the HIT expects to offer superior risk-adjusted returns compared to the Bloomberg Aggregate.

All securities in which the HIT invests must meet certain requirements described in detail later in this Prospectus and in the HIT's Statement of Additional Information ("SAI"). Some types of these securities must meet certain standards set by a nationally recognized statistical rating organization ("NRSRO"), among other indicia of creditworthiness. The investment personnel of the HIT monitor the HIT's

investments compared with those in the Bloomberg Aggregate and may adjust holdings by purchasing or selling securities. When deciding whether to buy or sell a specific security, the investment personnel of the HIT compare the security to other similar securities and consider factors such as price, yield, duration and convexity (measures of interest rate sensitivity), servicer, geographic location, call or prepayment protection, as well as liquidity. The HIT may purchase Mortgage Securities by way of forward commitments. The HIT does not invest in Mortgage Securities that contain subprime loans.

The HIT invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) in multifamily or single family housing investments or in other assets that finance, in whole or in part, residential facilities ("HIT's 80% Policy"). Multifamily and single family housing investments include Mortgage Securities. Derivative instruments used by the HIT will be counted toward the HIT's 80% Policy to the extent they have economic characteristics similar to the securities included within that policy. The HIT's 80% Policy may be changed without Participant approval; however, Participants would be provided with written notice at least 60 days before the change takes effect.

The HIT uses a variety of strategies to manage risk. These strategies include, but are not limited to, managing the duration of the HIT portfolio within a range comparable to the Bloomberg Aggregate and managing prepayment risk by negotiating prepayment restrictions for Mortgage Securities backed by multifamily housing or healthcare facility projects. The HIT may use U.S. Treasury futures contracts to manage the duration of the HIT's portfolio (*i.e.,* to manage interest rate risk). The HIT may invest up to 10% of its assets (measured using notional value) in U.S. Treasury futures contracts for duration management purposes. The HIT seeks to minimize the risk of credit and default losses by purchasing securities that are guaranteed, insured, or otherwise credit-enhanced or that meet other criteria intended to manage risk.

**PRINCIPAL INVESTMENT RISKS**

There is no assurance that the HIT will meet its investment objectives. The value of the HIT's investments and the resulting value of the Units may go up or down, and Participants' holdings in the HIT could gain or lose value. As with any investment, you may lose money by investing in the HIT. The HIT's principal risks are:

**<u>Market Risk:</u>** The value of a Participant's investment is based on the values of the HIT's investments. The value of securities held by the HIT may fluctuate, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, inflation, changes in interest rates, adverse investor sentiment and other global market developments and disruptions, including those arising out of domestic political circumstances, geopolitical events (such as war), health emergencies (such as pandemics), natural disasters, terrorism, trade disputes and barriers (including tariffs), supply chain disruptions, sanctions and government or quasi-government actions. It is difficult to predict when events affecting the U.S. or global financial markets may occur.

**<u>Interest Rate Risk:</u>** Changes in interest rates may adversely affect the HIT's fixed-income investments, such as by impacting the value or liquidity of, and income generated by, the investments. Interest rates may change as a result of a variety of factors, and any changes may be sudden and significant, with unpredictable results for the financial markets and the HIT's investments. Fixed-income investments with longer durations are more sensitive to changes in interest rates, and thus, subject to more volatility than similar investments with shorter durations. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Periods of higher inflation could cause such authorities to raise interest rates, which may adversely affect the HIT and its investments. Generally, the values of fixed-income investments will fall when market interest rates rise and rise when market interest rates fall. Rising interest rates may also reduce prepayment rates, causing the average life of certain securities of the HIT to increase, which could in turn further reduce the value of the HIT's portfolio. Other factors that may affect the interest rate risk for debt securities include, but are not limited to, economic, political, public health, and other crises and responses by governments and companies to such crises.

**<u>Prepayment and Extension Risk:</u>** Generally, the market value of the HIT's investments will rise at times when market interest rates fall. However, at times when market interest rates fall below the interest rates on HIT's investments, some borrowers may prepay the HIT's fixed-income securities or their underlying mortgages more quickly than might otherwise be the case. In such an event, the HIT may be required to reinvest the proceeds of such prepayments in other investments bearing lower interest rates than those which were prepaid. When market interest rates rise above the interest rates of the HIT's investments, the prepayment rate of the mortgage loans backing certain HIT securities may decrease, causing the average maturity of the HIT's investments to lengthen and making these investments more

sensitive to interest rate changes. This could, in turn, further reduce the value of the HIT's portfolio and make the HIT's Unit price more volatile.

**<u>Credit Risk:</u>** Credit risk is the risk of loss of principal and interest as a result of a failure of an issuer of the HIT's investments to make timely payments, a failure of a credit enhancement backing the HIT's investments after a default on the underlying mortgage loan or other asset, a downgrading of the credit rating (or a perceived decline in the creditworthiness) of an investment or the provider of the credit enhancement for an investment, or a decline in the value of assets underlying the mortgage loan or other asset.

**<u>Default Risk:</u>** There is a risk that borrowers may default under the mortgage loans or other assets that directly or indirectly secure the HIT's investments. In the event of default, the HIT may experience a loss of principal and interest and any premium value on the related securities. This risk may be lessened to the extent that the securities are guaranteed or insured by a third party, including an agency of the U.S. government.

**<u>Concentration Risk:</u>** The HIT concentrates its investments in fixed-income securities in the mortgage and mortgage finance sectors of the real estate industry. These sectors have experienced price volatility in the past. This concentration subjects the HIT to greater risk of loss as a result of adverse economic, political or regulatory conditions, or other developments than if its investments were diversified across different industries.

**<u>U.S. Government-Related Securities Risk:</u>** There are different types of U.S. government-related securities with different levels of credit risk, including the risk of default, depending on the nature of the government support for that security. For example, a U.S. government-sponsored entity, such as Federal National Mortgage Association ("Fannie Mae") or Federal Home Loan Mortgage Corporation ("Freddie Mac"), although chartered or sponsored by an Act of Congress, may issue securities that are neither insured nor guaranteed by the U.S. Treasury and are therefore riskier than those that are. Federal government policy changes or reductions in federal government workforce could heighten the risks associated with, or the supply of, these securities.

**<u>Liquidity Risk:</u>** Markets for particular types of investments, including futures contracts, may experience issues with liquidity. That is, a lack of buyers at a particular time could negatively impact the value of a security during such period, even though over time the payment obligations under the security may be met. Markets for

some of the types of securities in which the HIT may invest have experienced liquidity issues in the past, and its investments may experience liquidity issues in the future. Liquidity risk may be magnified in a market environment where credit spread and interest rate volatility is rising and where investor redemptions from fixed-income mutual funds may be higher than normal.

**<u>Leverage Risk:</u>** The use of some investments or investing techniques, including futures contracts, may have the effect of magnifying, or leveraging, small changes in an asset, index or market. The HIT does not leverage its portfolio through the use of borrowings, but it may invest in forward commitments and U.S. Treasury futures contracts which may effectively add leverage to its portfolio. Forward commitments generally involve the purchase or sale of securities by the HIT at an established price with payment and delivery/settlement taking place in the future. Forward commitments may add leverage because the HIT would be subject to potential compound losses on the asset that it is committed to purchase and on the assets that it holds pending that purchase. Investments in U.S. Treasury futures contracts may add leverage because, in addition to its total net assets, the HIT would be subject to investment exposure on the notional amount of the futures contracts.

**<u>Derivatives Risk:</u>** In addition to the liquidity and leverage risks discussed above, the use of derivatives (namely U.S. Treasury futures contracts) involves additional risks, such as potential losses if interest rates do not move as expected and the potential for greater losses than if derivatives had not been used. Investments in derivatives can increase the volatility of the HIT's Unit price and may expose it to significant additional costs. Such investments can also create liquidity demands on the portfolio, in the event unexpected losses cause the HIT to sell other assets to meet margin or settlement payments related to its futures trading. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with investments in more traditional securities and instruments. There is no guarantee that the use of derivatives will achieve its intended result.

**HIT PAST PERFORMANCE**

The bar chart below and the following table provide an indication of the risks of investing in the HIT by illustrating how returns can differ from one year to the next. The table also shows how the HIT's average annual total returns for the one-, five-, and ten-year periods compare with those of the Bloomberg Aggregate. The HIT's past performance is not necessarily an indication of how the HIT will perform in the future. Updated performance information is available on the HIT's website at www.aflcio-hit.com.

**ANNUAL TOTAL RETURNS**

**(Calendar Years—Net of Operating Expenses)**

![](aflcio485bpos043026001.jpg)

During the ten-year period identified in the bar chart above, the highest return for a quarter was 6.82% (quarter ended December 31, 2023) and the lowest return for a quarter was -5.94% (quarter ended March 31, 2022).

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**AVERAGE ANNUAL TOTAL RETURNS** <br> **(for the periods ended December 31, 2025)** | &nbsp;&nbsp;**AVERAGE ANNUAL TOTAL RETURNS** <br> **(for the periods ended December 31, 2025)** | &nbsp;&nbsp;**AVERAGE ANNUAL TOTAL RETURNS** <br> **(for the periods ended December 31, 2025)** | &nbsp;&nbsp;**AVERAGE ANNUAL TOTAL RETURNS** <br> **(for the periods ended December 31, 2025)** |
|  | &nbsp;&nbsp;**<u>ONE YEAR</u>** | &nbsp;&nbsp;**<u>FIVE YEARS</u>** | &nbsp;&nbsp;**<u>TEN YEARS</u>** |
| &nbsp;&nbsp;AFL-CIO Housing Investment Trust | &nbsp;&nbsp;7.20% | &nbsp;&nbsp;-0.26% | &nbsp;&nbsp;1.76% |
| &nbsp;&nbsp;Bloomberg U.S. Aggregate Bond Index (reflects no deductions for fees or expenses) | &nbsp;&nbsp;7.30% | &nbsp;&nbsp;-0.36% | &nbsp;&nbsp;2.01% |

---

**PORTFOLIO MANAGEMENT**

The HIT's portfolio is internally managed and has no external investment adviser.

Chang Suh, Chief Executive Officer and Chief Investment Officer, and William K. Pierce, Senior Portfolio Manager, are jointly and primarily responsible for the day-to-day management of the HIT's portfolio. Mr. Suh has been a key member of the HIT's Portfolio Management Team since 1998, including 23 years as Chief Portfolio Manager and Chief Investment Officer. Mr. Pierce, who joined the HIT's Portfolio Management Team as Portfolio Manager in 2020, has 12 years' experience in the financial markets. Both hold the CFA Institute's Chartered Financial Analyst designation. Messrs. Suh and Pierce do not manage other accounts.

**PURCHASE AND SALE OF UNITS**

A minimum initial investment of $50,000 is required. There is no restriction on the amount of subsequent purchases. The HIT accepts subscriptions for the purchase of Units on a monthly basis as of the last business day of each month.

Units of the HIT are redeemable. The HIT currently accepts and satisfies redemption requests on a monthly basis as of the last business day of each month. If you want to sell your Units, you must submit a signed redemption request to the HIT at IR@aflcio-hit.com and care of its transfer agent, BNY Mellon Investment Servicing (US), Inc. ("BNYM"), by first-class mail to P.O. Box 534418, Pittsburgh, PA 15253-4418; by overnight mail to 1350 Penn Avenue Suite 102, Attention 534418, Pittsburgh, PA 15222. All redemption requests must be received by BNYM on a business day at least 15 days before the last business day of the month to be honored as of the last business day of that month. Any redemption request received after such date will be honored as of the last business day of the following month. The HIT may in its sole discretion waive the 15-day notice requirement.

**TAX INFORMATION**

The HIT intends to make distributions that may be taxed as ordinary income or capital gains unless Participants are tax exempt.

**OVERVIEW**

The HIT is an open-end investment company, commonly called a mutual fund. The HIT's Declaration of Trust ("Declaration of Trust") permits the HIT's Board of Trustees (the "Board") to establish one or more additional, separate investment portfolios within the HIT. While the Board may exercise this authority as future market conditions warrant, the HIT currently operates a single portfolio and

offers Units representing shares of that portfolio through this Prospectus. More detailed information about the HIT is contained in the SAI.

**MORE ON THE HIT'S INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES AND RISKS**

**INVESTMENT OBJECTIVES**

The HIT's investment objective is to generate competitive risk-adjusted total rates of return for its Participants by investing in fixed-income investments, primarily Mortgage Securities. Other important objectives of the HIT are to encourage the construction of housing and to facilitate employment for union members in the construction trades and related industries. To accomplish its objectives, the HIT focuses its investments in multifamily Mortgage Securities (including those that directly or indirectly finance new construction or rehabilitation of multifamily housing projects and healthcare facilities). All on-site construction work financed through the HIT's investments is required to be performed by 100% union labor. The Board has the authority to change the HIT's investment objectives without Participant notice or approval, subject to the federal securities laws and other legal requirements. However, the HIT generally expects to provide reasonable advance notice in connection with material changes to its investment objectives.

**MORE ON PRINCIPAL INVESTMENT STRATEGIES AND PRINCIPAL INVESTMENTS**

**Principal Investment Strategies**

The investment strategy of the HIT is to construct and manage a portfolio that is composed primarily of Mortgage Securities, with higher yield, higher credit quality and similar interest rate risk versus the Bloomberg Aggregate. The HIT substitutes government and agency issued, guaranteed or insured multifamily MBS that have call protection for other securities in the Bloomberg Aggregate. Because government/agency multifamily MBS typically offer higher yields than comparable securities with similar credit and interest rate risk, the HIT expects to offer risk-adjusted returns that are superior to the Bloomberg Aggregate. All securities in which the HIT invests must meet certain requirements described in detail in the HIT's SAI. Some types of these securities must meet certain standards set by a NRSRO, among other indicia of creditworthiness, all of which are set out in more detail later in this document and in the HIT's SAI. The investment personnel of the HIT monitor the allocation to various sectors, such as single family MBS or U.S. Treasury issues,

compared to the Bloomberg Aggregate and may adjust allocations by purchasing or selling securities. Relative value is the most important consideration undertaken by the investment personnel of the HIT when deciding whether to buy or sell a specific security. Factors affecting relative value include price, yield, duration, convexity, option adjusted spread, seasoning, issuer, servicer, geographic location, call/prepayment protection, social and environmental impacts, as well as liquidity.

Other principal investment strategies, pursued under normal conditions, are as follows:

● To manage interest rate risk, the HIT's policy is generally to maintain the effective duration of its portfolio within the range of plus or minus one-half year of the effective duration of the Bloomberg Aggregate. The effective duration of the Bloomberg Aggregate has ranged from approximately 5.762 to 6.376 and has averaged approximately 5.974 over the past five calendar years. The HIT regularly compares the effective duration of its portfolio to the effective duration of the Bloomberg Aggregate and may sell or acquire securities or may use U.S. Treasury futures contracts in order to adjust its duration to remain within this range and thus remain effectively market neutral when compared to the Bloomberg Aggregate. The HIT does not employ interest rate anticipation strategies outside the narrow one-year range.

● To mitigate prepayment risk, the HIT typically negotiates prepayment restrictions for its investments in Mortgage Securities backed by multifamily real estate projects. Such prepayment restrictions, also known as "call protection," can take the form of prepayment lockouts, prepayment premiums, yield maintenance premiums or a combination of the foregoing.

As of December 31, 2025, 78.5% of the HIT's portfolio possessed some form of call protection.

● To reduce credit risk, the HIT seeks to maximize the portion of its assets in investments (i) insured by the Federal Housing Administration ("FHA") or guaranteed by the Government National Mortgage Association ("Ginnie Mae"); (ii) issued or guaranteed by Fannie Mae or Freddie Mac, directly or

indirectly; (iii) issued or guaranteed by a state or local government agency or instrumentality; or (iv) having, or being issued by an entity having, a certain rating from a NRSRO, to the extent that market conditions permit and consistent with its overall objectives.

● To reduce the likelihood of non-delivery for HIT investments in Mortgage Securities originated under forward commitments, in which the HIT agrees to purchase an investment in or backed by mortgage loans that have not yet closed, the HIT includes in its commitments provisions related to good faith deposits, damages for non-delivery, rights of first refusal and, in some cases, liens on the properties. For multifamily projects, including market-rate housing, low-income housing, housing for the elderly or handicapped, intermediate care facilities, assisted living facilities, nursing homes and other healthcare facilities (collectively, "Multifamily Projects") to be built, the HIT typically agrees to a fixed interest rate and purchase price for Mortgage Securities to be delivered in the future. It is possible that Mortgage Securities for which the HIT has issued commitments may not be delivered to the HIT, particularly in periods of declining interest rates. These mechanisms help assure delivery of the related Mortgage Securities, but there is no guarantee that all investments the HIT commits to purchase will actually be delivered to it, or that the deposit will cover the lost value of any Mortgage Security not delivered as required.

Many of the Mortgage Securities in which the HIT invests are backed by mortgage loans for Multifamily Projects, which the HIT directly negotiates and structures to meet its requirements. The HIT may also invest in these Mortgage Securities together with other institutional investors. In each case, the HIT may consider a number of factors in addition to its primary goal of generating competitive risk-adjusted total returns in order to enhance the secondary benefits of such Mortgage Securities or otherwise benefit the HIT. For example, the HIT may seek securities that finance projects that will enhance environmental sustainability, job training opportunities, health care delivery or other local community development efforts. It may also engage in targeted investment initiatives designed to increase activity in particular geographic regions or other segments of the housing sector. It may also seek assets with financial or other support from local or state governments, such as tax credits or subsidies.

In times of unusual or adverse market, economic or political conditions or abnormal circumstances (such as large cash inflows or anticipated large redemptions), the HIT may, for temporary defensive purposes or for liquidity purposes and as approved by the Board, not invest in accordance with its investment objectives or principal investment strategies and, as a result, there is no assurance that the HIT will achieve its investment objectives during such times.

**Principal Investments**

The HIT invests principally in the following types of securities:

***Federally Insured or Guaranteed Mortgage Securities; Fannie Mae- or Freddie Mac-Related Investments; and Other High Credit Quality Mortgage-Backed Securities***. These Mortgage Securities include:

● Construction and permanent mortgage loans or MBS that are insured or guaranteed by the federal government or an agency of the federal government, including FHA, Ginnie Mae and the Department of Veterans Affairs, or interests in such mortgage loans or securities;

● Securities that are secured by mortgage loans and/or securities insured or guaranteed by the federal government or an agency of the federal government and that are rated in one of the two highest categories by a NRSRO, *e.g.*, Real Estate Mortgage Investment Conduit Securities ("REMICS");

● Mortgage loans, securities or other obligations that are issued or guaranteed by Fannie Mae or Freddie Mac (including Fannie Mae MBS, Freddie Mac participation certificates, and REMICS);

● Securities that are backed by Fannie Mae or Freddie Mac and are rated in one of the two highest rating categories by a NRSRO; and

● Securities that are secured by single family or multifamily mortgage securities and/or single family or multifamily mortgage loans and are rated in the highest rating category by a NRSRO.

The HIT intends to concentrate its investments in the foregoing types of Mortgage Securities to the extent that market conditions permit, consistent with

the overall objectives of the HIT. The HIT may invest up to 100% of its assets in Mortgage Securities that meet these criteria, notwithstanding the fact that they may also be eligible for investment in categories of securities described below in which the HIT may invest only subject to certain limitations.

***State/Local Government Credit-Enhanced Mortgage Securities; Other Credit-Enhanced Mortgage Securities; Bridge Loans; Direct Mortgage Loans; Loans to Investment Funds That Involve New Markets Tax Credit Transactions; and Early Stage or Structured Financings.*** Subject to certain limitations set out below, the HIT may invest in Mortgage Securities that are insured or guaranteed by state or local governments or are represented by loans made by lenders, which meet or provide certain indicia of credit quality (but which are not insured or guaranteed by state or local governments); bridge loans for tax credit projects; construction and/or permanent mortgage loans (or securities or interests backed by such loans) for projects that have evidence of support from a state or local government (or an agency or instrumentality thereof) or that are undertaken by a private entity with a successful record of real estate development, provided that any such investments meet certain underwriting criteria; and other instruments, interests, loans or assets that provide early-stage or structured financing (i.e., gap financing) related to or for the construction or rehabilitation of multifamily and/or single family housing developments ("Early Stage or Structured Financings"). In addition, certain investments in these categories are subject to caps, expressed as a maximum percentage of the HIT's assets, as set forth below. The caps described in this section do not limit the HIT's ability to invest in any asset that also meets the criteria of a different category of assets for which such cap does not apply.

Investments in the categories described in the immediately preceding paragraph include the following types of loans (as well as interests in and securities backed by these types of loans), provided, however, that the total amount invested in all such categories does not exceed 30% of value of the HIT's assets at the time of acquisition.

● Construction and/or permanent loans that (i) are supported either by the full faith and credit of a state or local government (or an agency or instrumentality thereof); (ii) are issued or guaranteed by a state or local housing finance agency and meet certain rating requirements; (iii) are issued by such an agency that meets certain rating requirements and provide specified recourse in the event of default; or (iv) are made by a lender acceptable to the HIT, including a state or local government entity lender, as long

as the loan (or securities backed by the loan) is secured by cash placed in escrow or trust, a letter of credit, insurance or another form of guaranty issued by an entity that meets certain credit rating requirements. The total principal amount of the investment in this category shall not exceed 15% of the value of the HIT's assets at the time of acquisition.

● Loans described below that, in the aggregate do not exceed 15% of the value of the HIT's assets, at the time of purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Bridge
 loans for multifamily housing development projects which have allocations or other rights
 to receive state or federal tax credits ("Bridge Loans"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Construction
 and/or permanent mortgage loans for projects that (i) have evidence of support from state
 or local governments and/or that are undertaken by a private entity with a successful
 record of real estate development, and that meet specified underwriting criteria or other
 additional requirements; or (ii) meet certain specified underwriting criteria but that
 need not be guaranteed, insured or backed by any other collateral other than the mortgage
 on the project (together Direct Mortgage Loans)

● Loans to certain investment funds which are involved with federal New Markets Tax Credit transactions. The total principal amount of such investments outstanding from time to time shall not exceed 3% of the value of all of the HIT's assets at the time of purchase.

● Early Stage or Structured Financings, including pre-development loans, mezzanine loans, and preferred equity. The total principal amount of such investments outstanding from time to time shall not exceed 2% of the value of all of the HIT's assets at the time of purchase.

For purposes of calculating the value of investments at the time of acquisition on forward commitments in order to meet the thresholds noted for the categories

above, the HIT will not include principal amounts that the HIT has promised to fund but has not yet actually funded.

The HIT may also invest in state and local government credit-enhanced Mortgage Securities or privately credit-enhanced Mortgage Securities that have any combination of the types of credit enhancement required for HIT investments, provided that 100% of the principal portion of the investment has an acceptable form of credit enhancement. Multiple forms of credit enhancement may be combined either concurrently or sequentially.

The Mortgage Securities described in this section will not typically be insured by FHA, guaranteed by Ginnie Mae, or issued or guaranteed by Fannie Mae or Freddie Mac. For more information about these types of investments, including the underwriting and credit enhancement criteria that apply to each, see "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS" in the HIT's SAI.

***Other Securities.*** The HIT may invest up to 20% of its assets in the following categories, in the aggregate: (i) securities issued by the U.S. Treasury and futures contracts on securities issued by the U.S. Treasury, (ii) corporate securities issued or guaranteed by Fannie Mae and Freddie Mac or the Federal Home Loan Banks ("FHLBs"), (iii) securities backed by Fannie Mae, Freddie Mac, or the FHLBs, as long as such securities are rated in one of the two highest rating categories at the time of acquisition by at least one NRSRO, and (iv) Commercial Mortgage Backed Securities ("CMBS"), provided that such securities are rated in the highest rating category by at least one NRSRO at the time of acquisition (collectively, "Other Securities"). The HIT's investments in U.S. Treasury futures contracts are additionally limited to 10% of its assets as measured using notional value. Note that caps described in this section do not limit the HIT's ability to invest in any asset that also meets the criteria of a different category of assets for which no cap applies or for which another cap applies.

CMBS are generally multi-class pass-through securities backed by a mortgage loan or a pool of mortgage loans secured by commercial properties, including multifamily housing, office buildings, shopping centers, retail space, hotel, motel and other hospitality properties, mobile home parks, self-storage facilities and industrial and warehouse properties. The underlying mortgage loans are often balloon loans, rather than loans that fully amortize over their terms and the properties securing the mortgage loans that back the CMBS may also be subject to subordinate debt and/or mezzanine debt.

***Other Liquid Investments.*** Pending investment in Mortgage Securities or Other Securities, the HIT may hold its assets in cash or various cash-like or other liquid instruments, including U.S. Treasury issues, repurchase agreements, federal agency issues, mutual funds that invest in such securities, certificates of deposit and other obligations of domestic banks, commercial paper, collateral loans and warehousing agreements and instruments, which are liquid but which may or may not be secured by real estate or by federal guarantees or insurance (collectively "Other Liquid Investments").

**MORE ON PRINCIPAL INVESTMENT RISKS**

As with any mutual fund, there can be no guarantee that the HIT will meet its objectives, or that the HIT's returns will be positive over any period of time. This section provides additional discussion of the primary risks that can affect the value of an investment in the HIT.

**Market Risk**

The value of a Participant's investment in the HIT is based on the values of the HIT's assets, which will fluctuate and/or may decline due to economic and other events that affect the markets in which the HIT invests. These events may be sudden and unexpected and could adversely affect the liquidity of the HIT's investments, which may in turn impact valuation, the HIT's ability to sell securities and/or its ability to meet redemptions and could cause the HIT to underperform other funds with similar objectives. The risks associated with these developments may be magnified in response to adverse issuer, regulatory, political, economic and other global market developments and disruptions, including those arising out of domestic politics, changes in federal government policies or reductions in the federal government workforce, geopolitical events (such as war), health emergencies (such as pandemics), natural disasters, terrorism, recessions, inflation, rapid interest rate changes, trade disputes and barriers (including tariffs), supply chain disruptions, sanctions, and governmental or quasi-governmental actions. Global economies and financial markets are interconnected, and conditions and events in one country, region, sector or financial market may adversely impact issuers in a different country, region, sector, industry or financial market. Different sectors of the market and different security types may react differently to such developments; however, these events may negatively affect issuers, industries and markets worldwide and adversely affect the HIT. Changes in these markets may be rapid and unpredictable. Fluctuations in the markets generally or in a specific industry or sector may impact the securities in which

the HIT invests. From time to time, markets may experience periods of stress for potentially prolonged periods that may result in: (i) increased market volatility; (ii) reduced market liquidity; and (iii) increased redemptions. Such conditions may add significantly to the risk of volatility in the net asset value ("NAV") of the HIT's Units and adversely affect the HIT and its investments.

**Interest Rate Risk** 

The NAV of each Unit in the HIT reflects such Unit's pro rata portion of the market value of the HIT's portfolio. The value of the HIT's portfolio, and the resulting NAV of the HIT Units, will fluctuate, primarily in response to changing interest rates. Generally, when market interest rates rise, the NAV will fall and conversely, when market interest rates fall, the NAV will rise. If market interest rates rise, the value of the HIT's securities, and therefore the value of a Participant's investment in the HIT, may fall below the principal amount of such an investment. Participants who redeem Units at such times may suffer a loss. The HIT may face a heightened level of interest rate risk in times of monetary policy change and/or uncertainty, such as when the Federal Reserve Board changes the federal funds rate. The risk associated with rising interest rates, which may be higher during periods of high inflation, may lead to declines in the value of fixed-income assets, including those held by the HIT. Because longer-term fixed-income assets may be more sensitive to interest rate changes, rising interest rates may pose additional risk to funds, such as the HIT, whose portfolios include such assets. Other factors that may affect the interest rates for debt securities include, but are not limited to, economic, political, public health, and other crises and responses by governments and companies to such crises. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Periods of higher inflation could cause such authorities to raise interest rates, which may adversely affect the HIT and its investments.

As a risk mitigation strategy, the HIT periodically buys or sells portfolio investments and invests in U.S. Treasury futures contracts in order to address fluctuations in the expected weighted average life of the portfolio, manage the duration of the portfolio and/or maintain a desirable level of portfolio diversification. Weighted average life is the average expected life of a security, taking into account the maturity, amortization and likelihood of prepayment of the security. Duration is a risk measure used to express the price (value) sensitivity of a fixed-income security as it relates to changes in the general level of interest rates. It measures this sensitivity more accurately than maturity because it takes into account the time value of the projected cash flows generated by the security over its life. Duration is calculated by discounting the future interest and principal payments to reflect their present value and then

multiplying such payments by the number of years they are expected to be received to produce a value expressed in years. Effective duration takes into account call features and prepayment expectations that may shorten or extend the expected life of a security. There is no assurance that the HIT's risk mitigation strategy will be effective.

**Prepayment and Extension Risk**

Falling market interest rates generally cause the value of the HIT's investments to rise. However, unlike most other fixed-income investments, falling market interest rate environments may also result in downward pressures on the value of the HIT's investments, including Mortgage Securities and CMBS, if these investments are not subject to prepayment protections, because borrowers tend to refinance in that environment. The reduction of principal on high-yielding investments as a result of refinancing and the reinvestment of proceeds at lower interest rates can reduce the potential increase in the value of investments which might otherwise occur in response to falling interest rates, reduce the yield on investments, and cause values of investments to fall below what the HIT paid for them, resulting in an unrealized loss. Any of these events could cause a decrease in the HIT's income and/or Unit price. As described above, the HIT typically negotiates forms of prepayment restrictions on its Mortgage Securities backed by Multifamily Projects to mitigate this risk. There is no assurance that the HIT's risk mitigation strategy will be effective.

When market interest rates rise above the interest rates of the HIT investments, the prepayment rate of the mortgage loans backing the HIT's investments may decrease, causing the average maturity of HIT investments to lengthen. This may increase the HIT portfolio's sensitivity to rising rates and the potential for the value of the portfolio to decline.

Economic conditions may affect prepayment and extension risk for investments of the HIT and may not be predictable.

**Credit Risk** 

Credit risk is the risk of loss of principal and interest as a result of a failure of an issuer of the HIT's investments (or its underlying debt) to make timely payments, a failure of a credit enhancement backing a HIT investment after a default on the underlying mortgage loan or other asset, a downgrading of the credit rating of an investment (or a perceived decline in creditworthiness) or of the provider of the credit

enhancement for an investment, or a decline in the value of assets underlying the mortgage loan.

The HIT's assets are primarily invested in securities that are issued, guaranteed or insured by the U.S. government, Fannie Mae, or Freddie Mac or the FHLBs. As of December 31, 2025, approximately 92.01% of the HIT's assets (excluding cash) were issued, guaranteed or insured by the U.S. government, Fannie Mae, or Freddie Mac. Fannie Mae, Freddie Mac and the FHLBs are privately-owned government-sponsored enterprises, and their obligations are not directly backed by the U.S. government. It is possible that these entities may not have the funds to meet their payment obligations in the future. The Federal Housing Finance Agency, as conservator, retains broad authority under the Housing and Economic Recovery Act of 2008 to operate Fannie Mae and Freddie Mac and to transfer or dispose of their assets and liabilities without the consent of security holders. While this authority is expansive, the guaranty on agency mortgage-backed securities has historically been treated as a core obligation and is expected to remain intact to preserve market stability. Any changes related to the government guarantees, such as those resulting from a change in federal policies, could negatively affect the credit ratings and/or the value of assets issued, guaranteed or insured by Fannie Mae, Freddie Mac and the FHLBs. For more information on the federal policies with regard to these entities, including information related to becoming a receiver of one of these entities, see the "Risks Related to Fannie Mae and Freddie Mac Investments" section of the SAI.

To the extent credit enhancement for the HIT's investments is provided by private entities, by state or local governments, or by agencies or instrumentalities of state or local governments, there is a risk that, in the event of a default on the underlying mortgage loan (or other asset), the insurer/guarantor will not be able to meet its insurance or guaranty obligations. A significant portion of the HIT's assets may be invested in Mortgage Securities that have credit enhancement provided by such entities, or that have evidence of support by a state or local government or agency or instrumentality thereof. The Declaration of Trust generally imposes certain rating requirements on the entities providing such credit enhancement, but the investments themselves may not have to be rated or ratable.

Credit ratings reflect the opinions of the issuing NRSRO and are not guarantees as to liquidity or creditworthiness. Although credit ratings may not accurately reflect the true credit risk of an instrument, a change in the credit rating of an instrument or an issuer, or the market's perception of the creditworthiness of an instrument or issuer, can have a rapid, adverse effect on the instrument's value and liquidity and make it more difficult for the HIT to sell at an advantageous price or

time. There is no assurance that a rated security or rated credit enhancement provider will retain the required rating level for the life of the investment. Instead, as is the case with any rating, the rating could be revised downward or withdrawn entirely at any time by the issuing NRSRO. A rating downgrade or the withdrawal of a rating may indicate an increase in the risk of default by the credit enhancement provider in the event of a default on the related asset and may also result in a reduction in the value of the investment and/or render it illiquid. Whether an investment or a provider of the credit enhancement meets the required credit rating is determined at the time of purchase. The HIT is not required to dispose of any asset solely because the rating of any investment or any entity providing credit enhancement for an investment has been downgraded or withdrawn, even if the HIT would not have been authorized to acquire such asset had the reduced rating been in effect at the time the HIT acquired such asset. For more information on these rating requirements, see the "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS" section of the SAI.

As noted above, the HIT may invest in securities that are not rated or credit-enhanced. A rating does not provide any assurance of repayment and is subject to revision or withdrawal at any time by the issuing NRSRO, but ratings do provide a prospective investor with some indication that the proposed structure and revenue analysis for the investment satisfy the NRSRO's internal criteria for the applicable rating. Unrated investments may also be less liquid than rated investments. Market events have caused some to question the extent to which one can rely on ratings.

CMBS typically do not have credit enhancement provided by a government agency or instrumentality, by any private mortgage insurer or any other firm or entity. Instead, a CMBS offering will consist of several different classes or "tranches" of securities, which have varying exposure to default. The credit risk with respect to CMBS is the risk that the level of defaults on the underlying mortgage loans may be severe enough to result in shortfalls in the payments due to the particular tranche of the CMBS in which the HIT has invested. The HIT may invest only in CMBS rated in the highest rating category by at least one NRSRO at the time the CMBS is acquired (e.g., AAA or Aaa), which should have the lowest credit risk within the offering. As discussed above, ratings reflect the opinions of the issuing ratings organization and are not guarantees as to quality.

**Default Risk**

There is a risk that borrowers may default on the securities held by the HIT or under the mortgage loans that directly or indirectly secure the HIT's Mortgage Securities, Bridge Loans, Direct Mortgage Loans or other investments. In the event

of default, the HIT may experience a loss of principal and interest on the related investments. The HIT seeks to minimize the risk of default by seeking in most, but not all, cases to invest in credit-enhanced investments. Notwithstanding the credit enhancement protection, the HIT may experience losses in the event of defaults. In addition, credit enhancements extend only to the principal and interest due on the security but not to any premium in the price or value of such securities.

As of December 31, 2025, 92.15% of the HIT's assets were directly or indirectly insured by FHA or guaranteed by Ginnie Mae or issued or guaranteed by Fannie Mae, or Freddie Mac or the FHLBs or were in cash, Other Liquid Investments or U.S. Treasury securities. In addition, almost all of the HIT's other Mortgage Securities have some form of credit enhancement to help protect against losses in the event of default. Notwithstanding the credit enhancement protection, the HIT may experience losses in the event of defaults under the loans that directly or indirectly back the HIT's Mortgage Securities. Some forms of credit enhancement, including Ginnie Mae, Fannie Mae and Freddie Mac guarantees, may limit the risk of loss of principal and interest on the Mortgage Securities if honored in accordance with their terms. Mortgage Securities backed by Ginnie Mae bear the full faith and credit of the U.S. government. As of December 31, 2025, approximately 30.39% of the HIT's portfolio was backed by Ginnie Mae, which guarantees 100% reimbursement of the principal and interest on its Mortgage Securities. Credit enhancement by Ginnie Mae mitigates the risk of loss of principal and interest on the Mortgage Securities. Other forms of credit enhancement, including Fannie Mae and Freddie Mac guarantees, would mitigate the risk of loss of principal and interest on the Mortgage Securities if honored in accordance with their terms. As of December 31, 2025, approximately 51.43% of the HIT's assets were issued or guaranteed by Fannie Mae or Freddie Mac. Mortgage Securities backed by Fannie Mae or Freddie Mac are not explicitly insured or guaranteed by the U.S. government. However, under the Senior Preferred Stock Purchase Agreements, the U.S. Treasury has committed to provide substantial capital support to Fannie Mae and Freddie Mac, which underpins the timely payment of principal and interest on their guaranteed mortgage-backed securities. As a result, these securities are widely viewed by the market as having an implicit government guarantee.

Mortgage Securities insured by FHA are fully insured as to the principal amount of the related mortgage loan, but FHA deducts 1% of the principal amount of the defaulted mortgage loan as an assignment fee on an insurance claim. FHA insures interest on the defaulted mortgage loan through the date of default, but mortgage insurance benefits do not include the accrued interest due on the date of default. FHA

may also deduct certain other amounts or make other adjustments in the mortgage insurance benefits payable in accordance with its mortgage insurance program.

If guarantees, insurance or other credit enhancements cover any resulting losses of principal and interest, the impact on the HIT's portfolio of any default on a mortgage loan or other asset securing an investment will be the premature liquidation of the relevant loan or other asset and the loss of any premium in the value of such investment. An investment in the HIT is not insured by the federal government, any government agency, Fannie Mae, Freddie Mac, the FHLBs or any other firm or entity.

If a state or local government entity or private entity providing credit enhancement for an investment fails to meet its obligations under the credit enhancement in the event of a default of the underlying mortgage loan (including because of policy changes or budgetary constraints), the HIT would be subject to the risks that apply to real estate investments generally with respect to that investment. In the case of investments backed by affordable housing, nursing homes, assisted living or other healthcare facilities or other investments directly impacted by government policies, economic performance may also be affected by state and federal laws and regulations affecting the operation of the underlying facility, state and federal reimbursement programs, grant funding and government guarantees, among other things. The portion of the HIT's portfolio holdings with no form of credit enhancement, such as Bridge Loans and Direct Mortgage Loans, will be subject to all the risks inherent in investing in loans or other assets secured by real estate or other collateral.

During the five years ended on December 31, 2025, the HIT realized no losses because of defaults. However, there is no guarantee that defaults will not result in losses in the future, and the risk of default is increased under current market and political conditions (for example, because of elevated interest rates and higher costs of building materials), among other reasons.

The HIT seeks to minimize the risk of default with respect to mortgage loans securing CMBS by investing only in CMBS rated in the highest rating category by at least one NRSRO at the time of acquisition. However, ratings are only the opinions of the NRSRO issuing them and are not guarantees as to quality. For more information about real estate-related risks and potential losses, see the "Defaults on Loans" and "Real Estate-Related Risks" sections of the SAI.

**Mortgage-Backed Securities Risk** 

As in the case with other fixed-income securities, when interest rates rise, the value of MBS generally will decline; however, when interest rates decline, the value of MBS with prepayment features may not increase as much as other fixed-income securities. The value of some MBS in which the HIT may invest may be particularly sensitive to changes in prevailing interest rates, and, like the other investments of the HIT, the ability of the HIT to successfully utilize these instruments may depend in part upon the ability of the portfolio managers to forecast interest rates and other economic factors correctly. If the portfolio managers incorrectly forecast such factors and have taken a position in MBS that is or becomes contrary to prevailing market trends, the HIT could be exposed to the risk of a loss. Investments in MBS pose several risks associated with the performance of the underlying mortgage properties, including prepayment, extension, market, default, interest rate and credit risk, each of which is discussed in this Prospectus. Besides the effect of prevailing interest rates, factors such as changes in federal government housing policy, home values, consumer spending habits, tenant occupancy rates, regulatory or zoning restrictions, ease of the refinancing process and local economic conditions may adversely affect the economic viability of the mortgaged property.

**U.S. Government-Related Securities Risk** 

Some of the U.S. government-related securities in which the HIT invests are not backed by the full faith and credit of the United States government, which means they are neither issued nor guaranteed by the U.S. Treasury, and, thus, may be subject to greater credit risk than other types of U.S. government securities. Issuers such as the FHLBs maintain limited access to credit lines from the U.S. Treasury. Others are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. U.S. government securities are also subject to interest rate risks and can exhibit price fluctuations resulting from increases or decreases in interest rates. Risks posed to such assets may be heightened in times of political uncertainty, federal government policy changes (such as the elimination of subsidies or changes to the structure of Fannie Mae or Freddie Mac), or as a result of a reduction in federal government workforce. Also, any government guarantees on securities the HIT owns do not extend to Units of the HIT themselves.

**Liquidity Risk**

Markets for particular types of securities may experience liquidity issues. That is, a lack of buyers at a particular time could negatively impact the value of a security during such period, even though over time the payment obligations under the security may be met. This is sometimes referred to as liquidity risk. If the HIT is forced to sell an illiquid asset to meet redemption or other cash needs, the HIT may be forced to sell at a loss. In addition, liquidity risks may be heightened in periods of increased market volatility and redemptions, although these risks may be lower with regard to portfolio holdings with higher credit quality.

The lack of an active trading market may also make it difficult to sell or obtain an accurate price for a security. Liquidity risk may also refer to the risk that the HIT may not be able to meet redemption requests without significant dilution of the remaining Participants' interests in the HIT because of unusual market conditions, an unusually high volume of redemption requests, redemption requests from one or more large Participants or other reasons. To meet redemption requests or to raise cash to pursue other investment opportunities, the HIT may be forced to sell securities at an unfavorable time and/or under unfavorable conditions, which may adversely affect the HIT.

**Leverage Risk**

Leverage risk can occur when securities or investing techniques magnify the effect of small changes in an index or a market. As noted above, the HIT may invest in forward commitments and U.S. Treasury futures contracts (and is permitted to invest in Total Return Swap ("TRS") contracts), which may effectively add leverage to the HIT's portfolio. Forward commitments may add leverage because the HIT would be subject to potential compound losses on the asset that it is committed to purchase and on the assets that it holds pending that purchase. Investments in U.S. Treasury futures contracts may add leverage because, in addition to its total net assets, the HIT would be subject to investment exposure on the notional amount of the futures contracts. TRS contracts are not a principal investment strategy, but if entered into, they may add similar leverage to the HIT's portfolio. Leverage risk may impact the HIT to the extent that losses taken on both a TRS contract and the investments made with proceeds from the associated sale of the tax-exempt bonds could compound one another.

**Large Participant Transaction Risk**

The HIT may experience adverse effects if large Participants, or a number of

Participants collectively, purchase or redeem large amounts of Units of the HIT. Such large Participant redemptions, which may occur rapidly or unexpectedly, may cause the HIT to sell portfolio securities at times when it would not otherwise do so, which may negatively impact the HIT's NAV and liquidity. Similarly, large Unit purchases may adversely affect performance to the extent that the HIT is delayed in investing new cash or otherwise maintains a larger cash position than it ordinarily would. In addition, a large redemption could result in the HIT's current expenses being allocated over a smaller asset base, leading to an increase in the HIT's expense ratio. A number of circumstances may cause the HIT to experience large redemptions, including, but not limited to the occurrence of significant events affecting investor demand for securities or asset classes in which the HIT invests; changes in the eligibility criteria for the HIT; reorganization, repositioning, or other announced HIT event; or changes in investment objectives, strategies, policies, risks, or investment personnel. Although large Participant redemptions may be more frequent under certain circumstances, the HIT is generally subject to the risk that Participants can purchase or redeem a significant percentage of Units at any time.

**Derivatives Risk** 

In addition to the liquidity and leverage risk discussed above, the use of derivatives (such as U.S. Treasury futures and TRS contracts) can involve additional risks, such as potential losses if interest rates do not move as expected and the potential for greater losses than if derivatives had not been used. Derivatives, including U.S. Treasury futures and TRS contracts, may pose risks in addition to and greater than those associated with investing directly in securities. Investments in derivatives can increase the volatility of the HIT's Unit price and may expose it to significant additional costs. The use of derivatives can also create liquidity demands on the portfolio, in the event unexpected losses cause the HIT to sell other assets to meet margin or settlement payments related to its futures trading. Derivatives may be less liquid and more difficult to sell or value. TRS contracts are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligations. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with investments in more traditional securities and instruments. There is no guarantee that the use of derivatives will achieve their intended result.

For more information about the risks of an investment in the HIT, please see the "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS – RISK FACTORS" section of the SAI.

**PORTFOLIO HOLDINGS**

A description of the HIT's policies and procedures with respect to the disclosure of the HIT's portfolio securities is set forth in the "Disclosure of Portfolio Holdings" section of the SAI available on the HIT's website at www.aflcio-hit.com. A full list of portfolio holdings is also available on the HIT's website generally within 10 business days after month-end.

**BUYING AND SELLING UNITS IN THE HIT**

**ELIGIBLE INVESTORS**

Only "Labor Organizations," "Eligible Pension Plans" and "State Public Funds" may purchase Units in the HIT. Pursuant to the Declaration of Trust, a "Labor Organization" is an organization in which employees participate, directly or through affiliated organizations, and which exists for the purpose, in whole or in part, of dealing directly or through affiliated organizations with employers concerning terms or conditions of employment. The term also includes any employee benefit plan (such as a voluntary employee beneficiary association (VEBA) and health and welfare funds) that benefits the members of such a Labor Organization or any other organization that is, in the discretion of the Board, affiliated with or sponsored by such a Labor Organization.

Pursuant to the Declaration of Trust, "Eligible Pension Plans" means certain plans which have beneficiaries who are represented by a Labor Organization, and which are managed without the direct intervention of the beneficiaries, including trustee-directed annuity or supplemental plans. These include pension plans constituting qualified trusts under Section 401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), governmental plans within the meaning of Section 414(d) of the Code, and master trusts (such as collective investment trusts (CITs)) that hold assets of at least one such pension plan or governmental plan. These also include non-United States pension or retirement programs, including those in Canada and the European Union, that are similar to U.S. state or local governmental plans or that are subject to regulations that are similar in purpose and intent to the Employees Retirement Income Security Act of 1974, as amended.

Pursuant to the Declaration of Trust, "State Public Funds" mean treasury or public funds held for investment and administered under the authority of a State (including a Commonwealth of the United States of America and the District of Columbia) or Municipal Treasurer (or similar position, including but not limited to, a State Controller) pursuant to state or local statutes governing the investment of public

funds or any other public fund that is, in the discretion of the Board, deemed to be similar in purpose and intent to an investment fund described above.

For more information about the HIT's eligible investors, please see the "Eligible Participants" section of the SAI.

To inquire about the purchase or sale of Units in the HIT, contact the HIT at the address and telephone number on the back cover of this Prospectus.

**PURCHASING AND PRICING UNITS**

Units in the HIT may be purchased only from the HIT. A minimum initial investment of $50,000 is required. Whole or fractional Units may be purchased. Units may only be purchased as of the last business day of each month (each a "Purchase Date"). The HIT defines "business day" as a day on which the New York Stock Exchange ("NYSE") is open. Each purchase request, if received in good order, will be processed and priced as of the last business day of the month in which it is received. "Good order" generally means that any applicable participation form is fully completed, your instructions are provided by the person(s) authorized to request transactions in the account and are received by the HIT's transfer agent before 4:00 p.m. Eastern Time on the last business day of the month, i.e., the Purchase Date. You must remit the required payment for your Units to the HIT's transfer agent by check or wire transfer for receipt by the transfer agent generally no later than 8:00 p.m. Eastern Time (under normal conditions) on the Purchase Date. All purchase payments received prior to the Purchase Date (e.g., mid-month) will be held in the HIT's non-interest-bearing demand deposit account by its transfer agent, as directed by the Participant, until the Purchase Date. A copy of the participation form that must accompany your initial purchase order is available from the HIT at no charge upon request. All Units are sold without any sales charge (load) or commission. Units are issued and redeemed by book entry and without physical delivery of any securities. The HIT has the right to reject any purchase order, or to suspend or modify the sale of Units.

The price of any Unit purchased will be equal to its NAV as of the close of regular trading (normally 4:00 p.m. Eastern Time) of the NYSE on the last business day of each month ("NYSE Close"). Information that becomes known to the HIT or its agents after the NYSE Close will not generally be used to retroactively adjust the price of a security or the NAV determined as of the applicable month end. The HIT reserves the right to change the time of which its NAV is calculated if the HIT closes earlier or as permitted by the U.S. Securities and Exchange Commission ("SEC"). The NYSE is typically closed on New Year's Day, Martin Luther King Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National

Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, and on the preceding Friday or subsequent Monday when one of these holidays falls on a Saturday or Sunday, respectively. The NAV is calculated by dividing the total value of the HIT (the value of all of the HIT's assets minus all of the HIT's liabilities) by the total number of Units outstanding on the date of calculation. The HIT calculates the NAV of the Units only as of the last business day of each month.

The Board has ultimate responsibility for valuation but has delegated day-to-day valuation responsibilities to officers of the HIT who comprise the valuation committee ("Valuation Committee") as the "valuation designee". For the bulk of its investments, the HIT uses evaluated prices, generally furnished by independent pricing services through its fund accountant, to value the HIT's assets for which such prices are readily available and deemed reliable. These pricing services have been approved by the Board. For certain other investments, the HIT uses price quotes from exchanges or mutual funds, as appropriate.

The HIT's assets for which third-party evaluated prices are not readily available or are deemed unreliable are valued at fair value determined in good faith under consistently applied procedures approved by the Board and implemented by the Valuation Committee. In these cases, the fair value of an asset is the amount, as determined in good faith, that the HIT reasonably expects to receive upon a current sale of the asset. Fair value determinations are made using the methodologies deemed most appropriate under the circumstances and considering all available, relevant factors and indications of value. The HIT has retained an independent firm to determine the fair value of portfolio assets when necessary and appropriate, in accordance with the policies and procedures established and approved by the Board. Securities purchased with a stated maturity of less than 60 days are valued at amortized cost, which constitutes fair value under the policies and procedures adopted by the Board. Valuing assets using fair value methodologies involves greater reliance on judgment than valuing assets based on market quotations. A fund that uses fair value methodologies may value those assets higher or lower than another fund using its own fair value methodologies to price the same securities. Because of the judgment involved in fair valuation decisions, there can be no assurance that the value ascribed to a particular asset is accurate or that the HIT could sell the asset at the value assigned to the asset by the HIT.

The HIT's fund accountant calculates an estimated value of the HIT's portfolio on a daily basis based on pricing inputs and fair value modeling from various sources, which it combines with expense and Unit holdings information from the HIT to produce an estimated daily value ("EDV") for the HIT. The HIT posts the EDV on

its website after the close of business on each business day. There can be no assurance that the EDV thus generated is the same as or will accurately predict the NAV calculated by the HIT as described above as part of its monthly valuation process, and the value of a Participant's Units and the price at which a Unit may be redeemed is determined solely through the HIT's monthly valuation process. The EDV is not binding in any way on the HIT and should not be relied upon by Participants as an indication of the value of their Units.

For more information on the valuation methodology that the HIT uses, see the "VALUATION OF UNITS" section of the SAI.

**SELLING OR REDEEMING UNITS**

The HIT has been granted an exemption by the SEC permitting it to value its assets and accept redemption requests on a quarterly basis. However, the HIT currently accepts and satisfies redemption requests on a monthly basis as of the last business day of each month. You may not sell or transfer your Units to anyone other than the HIT and you may not pledge your Units. You may redeem whole or fractional Units. If you want to sell your Units, you must submit a signed written redemption request to the HIT's transfer agent and it must be received on a business day at least 15 days before the last business day of the month, although the HIT may in its sole discretion waive the 15-day notice requirement. Absent a waiver, redemption requests received less than 15 days before the last business day of the month will be processed as of the last business day of the following month. You must send a signed redemption request to the HIT at IR@aflcio-hit.com and care of its transfer agent by first-class mail to P.O. Box 534418, Pittsburgh, PA 15253-4418; by overnight mail to 1350 Penn Avenue Suite 102, Attention: PO Box 534418, Pittsburgh, PA 15222.

The HIT will redeem Units, without charge, at their NAV calculated as of the last business day of the applicable month. It usually takes five business days to calculate the Units' NAV after the last business day of the month. The proceeds of any redemption request will be paid to redeeming Participants by check or wire transfer as soon as practicable beginning on the first day after the last business day of the month, but no later than seven business days after the last business day of the month.

The HIT generally expects that the 15-day redemption period notice requirement and the nature of the portfolio assets would permit the HIT to manage its redemption requests from cash or cash-equivalent assets on hand. In the event that market conditions make such redemptions impractical, the HIT would be able to sell portfolio assets and borrow money against a line of credit to help meet redemptions.

In addition, if the redeeming Participant agrees, the HIT may deliver securities, mortgages or other assets in full or partial satisfaction of a redemption request. A Participant that receives such assets may incur expenses in selling or disposing of such assets for cash. Such a Participant would also bear the investment risk until it is able to dispose of the asset.

As described above, pursuant to an exemption granted by the SEC, the HIT prices its portfolio and accepts purchase and redemption requests monthly. Accordingly, there is minimal risk that Participants can engage in frequent purchases and redemptions of Units in a manner that would affect the interests of other Participants. Because of this very low risk, the Board has not found it necessary to adopt policies and procedures with respect to frequent purchases and redemptions of Units by Participants.

**DISTRIBUTION CHARGES (RULE 12b-1 FEES)**

The HIT has adopted a Distribution Plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the "1940 Act") that allows it to pay for the sale and distribution of its Units in an amount per fiscal year up to the greater of $600,000 or 0.05% of the HIT's average net assets on an annualized basis, which equaled approximately $3,593,000 for 2025. For the year ended December 31, 2025, the actual distribution fees paid by the HIT were $1,658,000 representing roughly 0.02% of the HIT's average net assets. The expenses covered by the HIT's distribution fees primarily include, without limitation, the costs associated with the printing and mailing of prospectuses to prospective investors, compensation of sales personnel (salaries plus fringe benefits), travel and meeting expenses, office supplies, consulting fees and expenses, and expenses for printing and mailing of sales literature. Any change in the Rule 12b-1 Distribution Plan that materially increases the amount of distribution fees to be paid by the HIT requires the approval of the holders of a majority of the HIT's outstanding Units.

Because distribution fees are paid out of the HIT's net assets on an on-going basis, over time, these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.

From time to time, the HIT makes contributions or other payments to organizations that promote, among other things, the production of housing, the labor movement or charitable activities. Some of these payments, such as the purchase of an advertisement at a sponsored event, are included in the expenses covered under the HIT's Rule 12b-1 Distribution Plan. In the fiscal year ended December 31, 2025, these

contributions and payments totaled approximately $449,000 of which approximately $155,000 was included as Rule 12b-1 expenses.

**MANAGEMENT AND STRUCTURE**

**MANAGEMENT**

The HIT's portfolio is internally managed and has no advisory contract with an investment adviser. Management of the HIT's portfolio is conducted by the Portfolio Management Team and by the Portfolio Management Committee, comprised of senior executive managers. The Portfolio Management Team is responsible for the day-to-day operations of the HIT's portfolio, including managing the portfolio to maintain a risk profile similar to the Bloomberg Aggregate. The Portfolio Management Committee sets the HIT's portfolio management strategy and oversees the work of the Portfolio Management Team.

Chang Suh, Chief Executive Officer and Chief Investment Officer, and William K. Pierce, Senior Portfolio Manager, are jointly and primarily responsible for day-to-day management of the HIT's portfolio. Mr. Suh has been a key member of the HIT's Portfolio Management Team since 1998, including 23 years as Chief Portfolio Manager and Chief Investment Officer. Mr. Pierce, who joined the HIT's Portfolio Management Team as Portfolio Manager in 2020, has 12 years' experience in the financial markets. Both hold the CFA Institute's Chartered Financial Analyst designation.

The SAI provides information about the structure of Messrs. Suh's and Pierce's compensation and their potential ownership of an indirect interest in the HIT through the HIT's 401(k) Plan. Messrs. Suh and Pierce do not manage other accounts.

The Investment Committee reviews and approves proposed investments in Mortgage Securities for transactions negotiated and structured by HIT staff to ensure that they meet the risk and return requirements of the HIT. The Investment Committee is comprised of senior HIT staff. Any proposed investment or transaction in any single newly originated mortgage investment that exceeds $75 million or in any other single asset that exceeds two percent (2%) of net assets of the HIT requires the approval of the Executive Committee of the Board.

**HIT STRUCTURE**

The HIT is organized in the District of Columbia as a common law business

trust and is registered under the 1940 Act as an open-end investment company (or mutual fund). Because the HIT is internally managed, all of the officers and employees who oversee the management of the HIT are employees of the HIT.

The majority of jurisdictions in the United States recognize a trust such as the HIT as a separate legal entity, wholly distinct from its beneficiaries. In these jurisdictions, the beneficiaries are not liable for the debts or other obligations of a business trust. Certain jurisdictions do not recognize "business trusts" as separate legal entities and instead hold the beneficiaries of such trusts personally liable for actions of the business trusts. The HIT will not exclude otherwise eligible investors in jurisdictions that take this position from investing in Units.

It is the practice of the HIT to seek to include in its written contracts a provision stating that the contract is not binding upon any of the Trustees, officers or Participants personally, but is solely an obligation of the HIT. In most jurisdictions, Participants will have no personal liability under any contract which contains this provision. However, in jurisdictions that do not recognize the separate legal status of a trust such as the HIT, Participants could be held personally liable for claims against the HIT. These claims could include contract claims where the contract does not limit personal liability, tort claims, tax claims and certain other statutory liabilities. If such liability were ever imposed upon Participants, Participants would be liable only to the extent that the HIT's assets and insurance were not adequate to satisfy the claims.

**HIT's Wholly Owned Investment Adviser**

As authorized by the HIT's Participants and in accordance with no action relief granted by the SEC under Section 12(d)(3) of the 1940 Act, the HIT wholly owns a subsidiary investment adviser, HIT Advisers LLC ("HIT Advisers"), a Delaware limited liability company, which can provide investment advisory services to external parties. More specifically, the HIT holds a 99.9% direct membership interest in HIT Advisers and indirectly holds the remaining membership interest through its 100% ownership of HIT Adviser's managing member, HIT Advisers Managing Member LLC ("Managing Member"), a Delaware limited liability company. This structure is intended to mitigate any risk of liability for the HIT associated with any claims that may arise from the operations of HIT Advisers.

HIT Advisers anticipates providing advisory services to one or more external parties, for which it expects to earn advisory fee revenue based on assets under management ("AUMs"). In addition, HIT Advisers owns Building America CDE, Inc. ("BACDE"), a community development entity that facilitates transactions that use

New Markets Tax Credits, from which activity it earns fees, and AFL-CIO Labor Capital Partners ("LCP"), a Delaware LLC that provides investor and labor relations services to a collective investment fund, from which activity it earns fees. HIT Advisers may earn income from BACDE and/or LCP in the form of dividends. The HIT and HIT Advisers have entered into an agreement whereby HIT will provide personnel to share infrastructure with and pay for direct costs on behalf of HIT Advisers, and for which HIT Advisers will reimburse the HIT, as provided under the agreement. The HIT has similar agreements with BACDE and LCP.

HIT Advisers does not currently provide advisory services. After commencing such operations, HIT Advisers may advise clients that are invested in the same types of assets as the HIT. In anticipation of such circumstances, however, the HIT and HIT Advisers have policies and procedures intended to mitigate any conflicts related to cross-trading or allocation of investment opportunities. The Board will review the operation of HIT Advisers no less frequently than on an annual basis once it commences advisory services.

The HIT accounts for HIT Advisers as a portfolio investment that meets the definition of a controlled affiliate. Currently, the overall value of HIT Advisers is not material to the value of HIT's portfolio investments. However, the HIT is not able to predict precisely what type of or how many clients HIT Advisers may serve; the amount of AUMs, if any, it may attract; the level of client investment activity it may perform; or the investment performance it may generate. HIT Advisers' profits are, therefore, difficult to predict and may fluctuate, which, in turn, may impact HIT's valuation of its investment in HIT Advisers. If HIT Advisers' operating costs exceed its revenue, the HIT and the Board may determine that providing additional capital to HIT Advisers is warranted.

**Cybersecurity and Technology**

The HIT and its service providers have established business continuity/disaster recovery plans and systems designed to prevent or mitigate the effects of systems failures and cybersecurity incidents. However, the HIT and its service providers, as well as exchanges and market participants through or with which the HIT trades and other infrastructures and services on which the HIT or its service providers rely, are susceptible to ongoing risks and threats resulting from and related to cybersecurity incidents. Cybersecurity incidents, which can be perpetrated by a variety of means, may result in actual or potential adverse consequences for critical information and communications technology, systems and networks that are vital to the HIT or its service providers' operations. A cybersecurity incident could adversely

impact the HIT, its service providers or its Participants by, among other things, interfering with the processing of transactions or other operational functionality, impacting the HIT's ability to calculate its net asset value or other data, causing the release of private or confidential information, impeding trading, causing reputational damage, and subjecting the HIT to fines, penalties or financial losses. Additionally, the HIT's service providers may use artificial intelligence ("AI"). The use of AI introduces distinct and evolving operational risks that could have an adverse effect on the HIT, its operations, or its Participants. For more information with regard to risks related to cybersecurity, technology, and AI, see the "Risks of Technology Systems Failures and Related Cybersecurity Incidents" section of the SAI.

**DISTRIBUTIONS AND TAXES**

The HIT distributes net income monthly and any capital gains at the end of each fiscal year. Participants may elect to receive these distributions in cash or reinvest in additional Units.

The HIT has elected to qualify and intends to remain qualified as a regulated investment company under Subchapter M of the Code. As a result, the HIT is not required to pay federal income tax on income and net capital gains timely distributed to Participants. Participation in the HIT is limited to certain Labor Organizations, Eligible Pension Plans and State Public Funds that provide evidence to the HIT that they are exempt from federal income taxation. Tax-exempt organizations are subject to tax on unrelated business income.

*The foregoing is a summary of some of the important federal income tax considerations affecting Participants and is not a complete analysis of all relevant tax considerations, nor is it a complete listing of all potential tax risks involved in purchasing or holding Units. Participants should consult their own tax advisors regarding specific questions of federal, state, local or foreign tax considerations, including the application of the unrelated business income tax. The HIT has not and will not make any determination as to the tax-exempt status of any Participant.* 

**FINANCIAL HIGHLIGHTS**

The financial highlights table is intended to help you understand the HIT's financial performance for the past five years. Certain information reflects financial results for a single Unit. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the HIT (assuming reinvestment of all income and distributions). The information provided below has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the financial statements and related notes (which are incorporated by reference into this Prospectus), appears in the HIT's Form N-CSR for the fiscal year ended December 31, 2025, which is available upon request and on the HIT's website at www.aflcio-hit.com.

**Financial Highlights**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Year Ended <br>12/31/25 | Year Ended <br>12/31/24 | Year Ended <br>12/31/23 | Year Ended <br>12/31/22 | Year Ended <br>12/31/21 |
| Net Asset Value Per Share, Beginning of Period | $960.68 | $973.69 | $958.52 | $1137.06 | $1176.64 |
| Net Investment Income\* | 35.97 | 35.06 | 32.45 | 23.21 | 20.20 |
| Net Realized & Unrealized Gains (Losses) on Investments | 32.14 | (12.47) | 15.84 | (176.26) | (32.43) |
| Total Income (Loss) from Investment Operations | 68.11 | 22.59 | 48.29 | (153.05) | (12.23) |
| *Less distributions from:* |  |  |  |  |  |
| Net Investment Income | (36.42) | (35.60) | (33.12) | (25.49) | (24.29) |
| Net Realized Gains on Investments |  |  |  |  | (3.06) |
| Total Distributions | (36.42) | (35.60) | (33.12) | (25.49) | (27.35) |
| Net Asset Value Per Share, End of Period | $992.37 | $960.68 | $973.69 | $958.52 | $1137.06 |
| Total Return | 7.20% | 2.36% | 5.17% | -13.55% | -1.04% |
| Net Assets, End of Period (in thousands) | $7319573 | $6890214 | $6558831 | $6025063 | $7106556 |

---

**Ratios/Supplemental Data**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Year Ended <br>12/31/25 | Year Ended <br>12/31/24 | Year Ended <br>12/31/23 | Year Ended <br>12/31/22 | Year Ended <br>12/31/21 |
| Ratio of Expenses to Average Net Assets | 0.31% | 0.32% | 0.33% | 0.32% | 0.31% |
| Ratio of Net Investment Income to Average Net Assets | 3.7% | 3.6% | 3.4% | 2.3% | 1.7% |
| Portfolio Turnover Rate | 23.9% | 20.7% | 14.5% | 25.3% | 30.4% |

---

\* The average shares outstanding method has been applied for this per share information.

**AFL-CIO**

**HOUSING INVESTMENT TRUST**

**Please read this Prospectus before you invest in the HIT and keep it for future reference. For further information, please refer to the following:**

**STATEMENT OF ADDITIONAL INFORMATION**

A Statement of Additional Information ("SAI") that includes additional information about the HIT has been filed with the SEC. The SAI is incorporated by reference into and is legally considered to be part of this prospectus. No other information is incorporated by reference into this Prospectus. The SAI may be obtained as provided below.

**ANNUAL AND SEMI-ANNUAL REPORTS TO PARTICIPANTS**

Additional information about the HIT's investments is available in the HIT's Annual and Semi-Annual Reports to Participants and in Form N-CSR. In the HIT's Annual Report, you will find a discussion of the market conditions and investment strategies that significantly affected the HIT's performance during its last fiscal year. In Form N-CSR, you will find the HIT's annual and semi-annual financial statements. A copy of the most recent Annual and Semi-Annual Report may be obtained as provided below.

**CONTACT THE HIT**

The SAI, the HIT's Annual and Semi-Annual Reports, and other information such as the HIT's financial statements are available upon request, without charge, from our headquarters and are also posted on the HIT website. Please contact the HIT to request the SAI, the Annual or Semi-Annual Reports to Participants, the financial statements, or other information about the HIT or to make inquiries about the HIT as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**By telephone**: | 202-331-8055 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**In writing:** | AFL-CIO Housing Investment Trust |
|  | 1227 25<sup>th</sup> Street, N.W., Suite 500 |
|  | Washington, D.C. 20037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Website address: <u>www.aflcio-hit.com</u>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Website address: <u>www.aflcio-hit.com</u>** |

---

**SECURITIES AND EXCHANGE COMMISSION**

The SAI, Annual and Semi-Annual Reports to Participants and other information about the HIT are available on the EDGAR Database on the SEC's website at http://www.sec.gov and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request to publicinfo@sec.gov.

Investment Company Act File #811-03493.

PART B. STATEMENT OF ADDITIONAL INFORMATION

**AFL-CIO**

**HOUSING INVESTMENT TRUST\***

1227 25<sup>th</sup> Street, N.W., Suite 500

Washington, D.C. 20037

(202) 331-8055

-----------------------------------

**STATEMENT OF ADDITIONAL INFORMATION**

-----------------------------------

This Statement of Additional Information ("SAI") is not a prospectus and should be read in conjunction with the prospectus of the American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust ("HIT"), dated April 30, 2026 ("Prospectus"). The HIT's audited financial statements and related report of Ernst & Young LLP, the HIT's independent registered public accounting firm, contained in the HIT's report filed on Form N-CSR for the most recent fiscal year end, are incorporated by reference herein. No other portions of the HIT's Form N-CSR are incorporated by reference herein. The HIT's prospectus and audited financial statements have been filed with the Securities and Exchange Commission ("SEC") and can be obtained, without charge, from the HIT by calling 202-331-8055, by visiting www.aflcio-hit.com or by writing to 1227 25<sup>th</sup> Street, N.W., Suite 500, Washington, D.C. 20037.

The date of this SAI is April 30, 2026.

\*This filing relates solely to Series A—AFL-CIO Housing Investment Trust

i

**TABLE OF CONTENTS**

---

| | | | |
|:---|:---|:---|:---|
| [HISTORY](#aflcio485bposb001) |  |  | 1 |
|  | [**General**](#aflcio485bposb002) | [**General**](#aflcio485bposb002) | 1 |
| [DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS](#aflcio485bposb003) | [DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS](#aflcio485bposb003) | [DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS](#aflcio485bposb003) | 1 |
|  | [**General**](#aflcio485bposb004) | [**General**](#aflcio485bposb004) | 1 |
| [THE HIT'S INVESTMENTS AND STRATEGIES](#aflcio485bposb005) | [THE HIT'S INVESTMENTS AND STRATEGIES](#aflcio485bposb005) | [THE HIT'S INVESTMENTS AND STRATEGIES](#aflcio485bposb005) | 1 |
|  | [**High Credit Quality Mortgage-Related Investments**](#aflcio485bposb006) | [**High Credit Quality Mortgage-Related Investments**](#aflcio485bposb006) | 2 |
|  | [1.](#aflcio485bposb007) | &nbsp;&nbsp;&nbsp;[Federally Insured or Guaranteed Mortgage Securities](#aflcio485bposb007) | 2 |
|  | [2.](#aflcio485bposb008) | &nbsp;&nbsp;&nbsp;[Fannie Mae and Freddie Mac Investments](#aflcio485bposb008) | 3 |
|  | [3.](#aflcio485bposb009) | &nbsp;&nbsp;&nbsp;[Other High Quality Mortgage Securities](#aflcio485bposb009) | 4 |
|  | [4.](#aflcio485bposb010) | &nbsp;&nbsp;&nbsp;[Additional Information on Certain Securities with GSE and Federal Backing](#aflcio485bposb010) | 4 |
|  | [**State and Local Government Credit-Enhanced Mortgage Securities; Other Credit- Enhanced Mortgage Securities ("Credit Enhanced Mortgage Investments")**](#aflcio485bposb011) | [**State and Local Government Credit-Enhanced Mortgage Securities; Other Credit- Enhanced Mortgage Securities ("Credit Enhanced Mortgage Investments")**](#aflcio485bposb011) | 5 |
|  | [1.](#aflcio485bposb012) | &nbsp;&nbsp;&nbsp;[State and Local Government Credit-Enhanced Mortgage Investments](#aflcio485bposb012) | 5 |
|  | [2.](#aflcio485bposb013) | &nbsp;&nbsp;&nbsp;[Other Credit-Enhanced Mortgage Securities](#aflcio485bposb013) | 6 |
|  | [**Direct Lending**](#aflcio485bposb014) | [**Direct Lending**](#aflcio485bposb014) | 7 |
|  | [1.](#aflcio485bposb015) | &nbsp;&nbsp;&nbsp;[Bridge Loans](#aflcio485bposb015) | 7 |
|  | [2.](#aflcio485bposb016) | &nbsp;&nbsp;&nbsp;[Direct Mortgage Loans](#aflcio485bposb016) | 8 |
|  | [3.](#aflcio485bposb017) | &nbsp;&nbsp;&nbsp;[Early Stage or Structured Financings](#aflcio485bposb017) | 9 |
|  | [**New Markets Tax Credits Loans**](#aflcio485bposb018) | [**New Markets Tax Credits Loans**](#aflcio485bposb018) | 10 |
|  | [**Other Securities**](#aflcio485bposb019) | [**Other Securities**](#aflcio485bposb019) | 11 |
|  | [1.](#aflcio485bposb020) | &nbsp;&nbsp;&nbsp;[United States Treasury Obligations](#aflcio485bposb020) | 11 |
|  | [2.](#aflcio485bposb021) | &nbsp;&nbsp;&nbsp;[United States Treasury Futures Contracts](#aflcio485bposb021) | 11 |
|  | [3.](#aflcio485bposb022) | &nbsp;&nbsp;&nbsp;[Federal Home Loan Bank Obligations](#aflcio485bposb022) | 11 |
|  | [4.](#aflcio485bposb023) | &nbsp;&nbsp;&nbsp;[Commercial Mortgage-Backed Securities](#aflcio485bposb023) | 12 |
|  | [Mortgage Securities Supported by More Than One Form of Credit Enhancement](#aflcio485bposb024) | [Mortgage Securities Supported by More Than One Form of Credit Enhancement](#aflcio485bposb024) | 12 |
|  | [Pre-Construction Commitments](#aflcio485bposb025) | [Pre-Construction Commitments](#aflcio485bposb025) | 12 |
|  | [Forward Commitments](#aflcio485bposb026) | [Forward Commitments](#aflcio485bposb026) | 13 |
|  | [Other Liquid Investments](#aflcio485bposb027) | [Other Liquid Investments](#aflcio485bposb027) | 13 |
|  | [Total Return Swap Agreements in Connection with Tax-Exempt Bonds](#aflcio485bposb028) | [Total Return Swap Agreements in Connection with Tax-Exempt Bonds](#aflcio485bposb028) | 14 |
|  | [Investment in Complementary Entities](#aflcio485bposb029) | [Investment in Complementary Entities](#aflcio485bposb029) | 14 |
|  | [Portfolio Turnover](#aflcio485bposb030) | [Portfolio Turnover](#aflcio485bposb030) | 14 |
|  | [Proxy Voting](#aflcio485bposb031) | [Proxy Voting](#aflcio485bposb031) | 14 |
|  | [Disclosure of Portfolio Holdings](#aflcio485bposb032) | [Disclosure of Portfolio Holdings](#aflcio485bposb032) | 14 |
|  | [Other HIT Policies](#aflcio485bposb033) | [Other HIT Policies](#aflcio485bposb033) | 15 |
| [INVESTMENT RESTRICTIONS](#aflcio485bposb034) | [INVESTMENT RESTRICTIONS](#aflcio485bposb034) | [INVESTMENT RESTRICTIONS](#aflcio485bposb034) | 16 |
| [RISK FACTORS](#aflcio485bposb035) | [RISK FACTORS](#aflcio485bposb035) | [RISK FACTORS](#aflcio485bposb035) | 17 |
|  | [1.](#aflcio485bposb036) | [Market Risk](#aflcio485bposb036) | 17 |
|  | [2.](#aflcio485bposb037) | [Fluctuating Interest Rates](#aflcio485bposb037) | 17 |
|  | [3.](#aflcio485bposb038) | [Redemption](#aflcio485bposb038) | 18 |
|  | [4.](#aflcio485bposb039) | [Limited Resale Market for Certain Types of Investments](#aflcio485bposb039) | 18 |
|  | [5.](#aflcio485bposb040) | [Defaults on Loans](#aflcio485bposb040) | 19 |
|  | [6.](#aflcio485bposb041) | [Ratings](#aflcio485bposb041) | 20 |
|  | [7.](#aflcio485bposb042) | [Diversification](#aflcio485bposb042) | 20 |
|  | [8.](#aflcio485bposb043) | [Real Estate-Related Risks](#aflcio485bposb043) | 21 |
|  | [9.](#aflcio485bposb044) | [Defaults on Bridge Loans](#aflcio485bposb044) | 23 |

---

i

---

| | | |
|:---|:---|:---|
| [10.](#aflcio485bposb045) | [Risks of CMBS](#aflcio485bposb045) | 24 |
| [11.](#aflcio485bposb046) | [Risks of U.S. Treasury Futures Contracts](#aflcio485bposb046) | 24 |
| [12.](#aflcio485bposb047) | [Risks of Total Return Swap Contracts](#aflcio485bposb047) | 24 |
| [13.](#aflcio485bposb048) | [Risks of Forward Commitments](#aflcio485bposb048) | 25 |
|  | [Risks Related to Fannie Mae and Freddie Mac Investments](#aflcio485bposb049) | 25 |
| [15.](#aflcio485bposb050) | [Risks Related to Investments in Special Purpose Investment Funds to Facilitate the Utilization of New Markets Tax Credits](#aflcio485bposb050) | 26 |
| [16.](#aflcio485bposb051) | [Valuation Risk](#aflcio485bposb051) | 26 |
| [17.](#aflcio485bposb052) | [Risk Related to Internal Management](#aflcio485bposb052) | 26 |
| [18.](#aflcio485bposb053) | [Risks of Technology Systems Failure and Cybersecurity Incidents](#aflcio485bposb053) | 27 |
| [19.](#aflcio485bposb054) | [Inflation Risk](#aflcio485bposb054) | 28 |
| [20.](#aflcio485bposb055) | [Risk Related to Early Stage or Structured Financing](#aflcio485bposb055) | 28 |
| [MANAGEMENT OF THE HIT](#aflcio485bposb056) | [MANAGEMENT OF THE HIT](#aflcio485bposb056) | 28 |
| [TRUSTEES OF THE HIT](#aflcio485bposb057) | [TRUSTEES OF THE HIT](#aflcio485bposb057) | 30 |
| [EXECUTIVE OFFICERS](#aflcio485bposb058) | [EXECUTIVE OFFICERS](#aflcio485bposb058) | 34 |
| [RETIREMENT PLANS](#aflcio485bposb059) | [RETIREMENT PLANS](#aflcio485bposb059) | 38 |
| [THE 401(K) PLAN](#aflcio485bposb060) | [THE 401(K) PLAN](#aflcio485bposb060) | 39 |
| [CODE OF ETHICS](#aflcio485bposb061) | [CODE OF ETHICS](#aflcio485bposb061) | 39 |
| [PORTFOLIO MANAGERS](#aflcio485bposb062) | [PORTFOLIO MANAGERS](#aflcio485bposb062) | 39 |
| [PRINCIPAL HOLDERS AND MANAGEMENT OWNERSHIP](#aflcio485bposb063) | [PRINCIPAL HOLDERS AND MANAGEMENT OWNERSHIP](#aflcio485bposb063) | 40 |
| [SALES AND DISTRIBUTION ACTIVITIES](#aflcio485bposb064) | [SALES AND DISTRIBUTION ACTIVITIES](#aflcio485bposb064) | 40 |
| [PARTICIPANT UNITS](#aflcio485bposb065) | [PARTICIPANT UNITS](#aflcio485bposb065) | 41 |
| [Securities Offered](#aflcio485bposb066) | [Securities Offered](#aflcio485bposb066) | 41 |
| [Eligible Participants](#aflcio485bposb067) | [Eligible Participants](#aflcio485bposb067) | 42 |
| [PRICING, PURCHASE AND REDEMPTION OF UNITS](#aflcio485bposb068) | [PRICING, PURCHASE AND REDEMPTION OF UNITS](#aflcio485bposb068) | 42 |
| [PRINCIPAL UNDERWRITER AND DISTRIBUTOR](#aflcio485bposb069) | [PRINCIPAL UNDERWRITER AND DISTRIBUTOR](#aflcio485bposb069) | 43 |
| [SECURITIES LENDING](#aflcio485bposb070) | [SECURITIES LENDING](#aflcio485bposb070) | 43 |
| [BROKERAGE FEES](#aflcio485bposb071) | [BROKERAGE FEES](#aflcio485bposb071) | 43 |
| [VALUATION OF UNITS](#aflcio485bposb072) | [VALUATION OF UNITS](#aflcio485bposb072) | 43 |
| [DISTRIBUTIONS AND TAX ISSUES](#aflcio485bposb073) | [DISTRIBUTIONS AND TAX ISSUES](#aflcio485bposb073) | 44 |
| &nbsp;&nbsp;&nbsp;[Distributions](#aflcio485bposb074) | &nbsp;&nbsp;&nbsp;[Distributions](#aflcio485bposb074) | 44 |
| &nbsp;&nbsp;&nbsp;[Tax Issues](#aflcio485bposb075) | &nbsp;&nbsp;&nbsp;[Tax Issues](#aflcio485bposb075) | 45 |
| [GENERAL INFORMATION](#aflcio485bposb076) | [GENERAL INFORMATION](#aflcio485bposb076) | 45 |
| &nbsp;&nbsp;&nbsp;[INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#aflcio485bposb077) | &nbsp;&nbsp;&nbsp;[INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#aflcio485bposb077) | 46 |
| &nbsp;&nbsp;&nbsp;[Custodian and Transfer Agent](#aflcio485bposb078) | &nbsp;&nbsp;&nbsp;[Custodian and Transfer Agent](#aflcio485bposb078) | 46 |
| &nbsp;&nbsp;&nbsp;[Legal Matters](#aflcio485bposb079) | &nbsp;&nbsp;&nbsp;[Legal Matters](#aflcio485bposb079) | 46 |
| &nbsp;&nbsp;&nbsp;[USE OF UNION LABOR](#aflcio485bposb080) | &nbsp;&nbsp;&nbsp;[USE OF UNION LABOR](#aflcio485bposb080) | 46 |
| &nbsp;&nbsp;&nbsp;[INSURANCE AND BONDING](#aflcio485bposb081) | &nbsp;&nbsp;&nbsp;[INSURANCE AND BONDING](#aflcio485bposb081) | 46 |
| &nbsp;&nbsp;&nbsp;[INTERNET POSTINGS, Press Releases, Reports and Other Communications](#aflcio485bposb082) | &nbsp;&nbsp;&nbsp;[INTERNET POSTINGS, Press Releases, Reports and Other Communications](#aflcio485bposb082) | 46 |
| [FINANCIAL STATEMENTS](#aflcio485bposb083) | [FINANCIAL STATEMENTS](#aflcio485bposb083) | 47 |

---

ii

**HISTORY**

**GENERAL**

The American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust ("HIT") is a common law trust created under the laws of the District of Columbia pursuant to a Declaration of Trust originally executed September 19, 1981, as amended from time to time (the "Declaration of Trust"). The name of the HIT was changed from "AFL-CIO Pooled Investment Trust" on May 27, 1982.

The HIT acquired all the assets of the AFL-CIO Mortgage Investment Trust ("Mortgage Trust") in exchange for units of the HIT ("Units") on the basis of relative net asset values ("NAV") as of September 30, 1984. The exchange was approved by order of the Securities and Exchange Commission ("SEC") dated October 1, 1984. HIT Units received in the exchange were distributed on a pro rata basis to Mortgage Trust participants as of September 30, 1984 and the Mortgage Trust was thereupon liquidated.

The HIT is registered with the SEC as an open-end investment company under the Investment Company Act of 1940, as amended ("Investment Company Act"), and, accordingly, is subject to the regulatory authority of the SEC. The HIT claims an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act, as amended ("CEA"), and, therefore, is not subject to the registration or regulation as a commodity pool under the CEA.

**DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS**

**GENERAL**

The HIT's investment objective is to generate competitive risk-adjusted total rates of return for the participants in the HIT ("Participants") by investing in fixed-income investments, consisting primarily of multifamily and single family mortgage-backed assets (collectively "Mortgage Securities"). Other important objectives of the HIT are to encourage the construction of housing and to facilitate employment for union members in the construction trades and related industries. To accomplish its objectives, the HIT focuses its investments in Mortgage Securities, including those that directly or indirectly finance new construction or rehabilitation of multifamily housing projects and healthcare facilities. All on-site construction work financed through HIT investments is required to be performed by 100% union labor.

**THE HIT'S INVESTMENTS AND STRATEGIES**

The following discussion supplements the information regarding the investment objectives, strategies and policies of the HIT, as set forth in the Prospectus, and describes types of investments and investment practices that the HIT is generally permitted (but not required) to make or engage in, subject to the HIT's investment objectives. Please see "MORE ON THE HIT'S INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES AND RISKS" in the Prospectus for a summary of the investment objectives, principal investment strategies and principal investment risks of the HIT.

Types of securities in which the HIT is permitted to invest are set forth in the HIT's Declaration of Trust and are summarized in significant part below. In addition, the Declaration of Trust grants the Board of Trustees broad authority to permit the HIT to make investments other than those specifically enumerated in the Declaration of Trust or described below.

The HIT invests primarily in Mortgage Securities that are either insured or guaranteed by the federal government or an agency thereof, including the Federal Housing Administration ("FHA") or Government National Mortgage Association ("Ginnie Mae"), both part of the United States Department of Housing and Urban Development ("HUD"), or are issued, guaranteed or backed by the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac"). As such, the HIT pursues a fundamental policy to concentrate in fixed income securities in the mortgage and mortgage finance sector of the real estate industry.

Examples of the types of Mortgage Securities that the HIT is authorized to purchase include contingent interest mortgage loans, early repayment loans, pass-through and pay-through securities, construction and/or permanent mortgage loans secured by a bank letter of credit, insurance or other guaranty, state and local government credit-enhanced investments, and certain pre-construction commitments.

The HIT seeks to acquire securities with expected returns competitive with those then generally prevailing on similar investments having comparable terms and conditions, taking into account differences in risk, including those resulting from differences in properties, borrowers and loan terms.

The HIT is permitted to invest in certain categories of securities subject to caps, expressed as a maximum percentage of the HIT's assets. In some circumstances, a particular security could meet the criteria of two or more of these categories simultaneously. In those cases, the HIT may classify a security into any category for which it qualifies in determining whether the HIT has remained within the caps. The caps for some of the categories are measured only at the time of acquisition of the security, and as a result, in those cases, the HIT would not be forced to sell securities to meet the cap in the event market movements cause the holdings in these categories to exceed the cap. The HIT is also permitted to enter into commitments to purchase or fund advances with regard to certain assets on a forward basis. In these cases, the amount that such assets contribute towards the caps do not include the principal amounts that have not yet been funded.

The HIT invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) in multifamily or single family housing investments or in other assets that finance, in whole or in part, residential facilities ("HIT's 80% Policy"). For this purpose, multifamily and single family housing investments include Mortgage Securities and other real estate investments with residential components, including certain long-term healthcare facilities. Derivative instruments used by the HIT will be counted toward the HIT's 80% Policy to the extent they have economic characteristics similar to the securities included within that policy. The HIT's 80% Policy may be changed without Participant approval; however, Participants would be provided with written notice at least 60 days before the change takes effect.

In times of unusual or adverse market, economic or political conditions or abnormal circumstances (such as large cash inflows or anticipated large redemptions), the HIT may, for temporary defensive purposes or for liquidity purposes and as approved by the Board of Trustees, not invest in accordance with its investment objectives or principal investment strategies. At these times, the HIT may invest in obligations of the United States Department of the Treasury ("U.S. Treasury"), cash or cash-like investments in lieu of other permitted investments and in excess of amounts that it normally would maintain. In addition, the HIT may adjust its duration outside the normal permitted range and take such other steps as may be prudent and authorized by the Board of Trustees.

**HIGH CREDIT QUALITY MORTGAGE-RELATED INVESTMENTS**

**Federally Insured or Guaranteed Mortgage Securities**

The HIT may invest up to 100% of its assets in Mortgage Securities that are federally insured or guaranteed, some of which are described below. In this context, the term "assets" as used in this SAI means funds invested or available for investment by the HIT. The federally insured or guaranteed mortgage loans eligible for direct purchase by the HIT include mortgage loans insured by HUD acting by and through FHA to provide construction and/or permanent financing for multifamily housing projects, intermediate care facilities, assisted living facilities, nursing homes and other health care facilities, or to finance the purchase and ownership of completed single family dwellings and, in some circumstances, the construction or renovation of single family dwellings. FHA-insured multifamily mortgage loans typically have maturities that range from 10 to 40 years from project completion and commencement of principal repayments. FHA-insured single family mortgage loans typically have a 30-year term. The HIT may also purchase mortgage loans guaranteed by the U.S. Department of Veterans Affairs ("VA") to finance the purchase of single family dwellings. Obligations of FHA are backed by the General Insurance Fund established pursuant to the National Housing Act of 1934, as amended. VA obligations are backed by the Loan Guaranty Revolving Fund.

The HIT may also purchase notes or other obligations guaranteed under Section 108 of the Housing and Community Development Act of 1974, as amended ("Section 108"). Under Section 108, HUD is authorized to guarantee notes or other obligations issued by eligible public entities; the proceeds from the sale of the notes are used

by such public entities for eligible community development and economic development activities, including rehabilitation of privately owned or publicly owned housing. The HIT may purchase such notes in cases where the proceeds will be used to finance the construction or rehabilitation of housing, and may invest in mortgage loans for the construction or rehabilitation of housing if such mortgage loans are guaranteed under Section 108. Section 108-guaranteed notes have terms not exceeding 20 years and bear interest rates that are generally slightly higher than rates on Treasury obligations of comparable maturity. Under Section 108, the timely payment of all principal of and interest on the guaranteed note is guaranteed by the full faith and credit of the United States Government.

The HIT may also purchase federally guaranteed mortgage-backed certificates known as "Ginnie Mae securities." Such certificates are issued by a mortgage banker or other lender and carry the right to receive principal and interest payments related to scheduled payments of principal and interest under one or more identified mortgages. These underlying mortgage loans are typically backed by FHA insurance. In the case of single family securities, they may also be backed by a VA guaranty. Full and timely payment under these mortgage-backed securities is guaranteed by Ginnie Mae and backed by the full faith and credit of the United States Government. These Ginnie Mae securities are readily marketable, generally at publicly quoted prices. Such Ginnie Mae securities generally bear interest at rates ranging from 0.25% to 0.50% less than the interest rates on the whole loans backing such securities, reflecting the cost of the servicing and Ginnie Mae guaranty of the mortgages in the pool. Further, the HIT may purchase Real Estate Mortgage Investment Conduit Securities ("REMICS") collateralized by or representing an interest in a pool of Ginnie Mae securities.

**Fannie Mae and Freddie Mac Investments** 

The HIT may invest up to 100% of its assets in investments related to Fannie Mae and Freddie Mac, which consist of (i) obligations issued or guaranteed by Fannie Mae or Freddie Mac, including Fannie Mae and Freddie Mac mortgage-backed securities backed by pooled mortgages, (ii) securities that are backed by Fannie Mae or Freddie Mac and are, at the time of their acquisition by the HIT, rated in one of the two highest categories by at least one nationally recognized statistical rating organization ("NRSRO"), and (iii) securities, including REMICS, that are collateralized by or representing an interest in a pool of Fannie Mae and Freddie Mac mortgage-backed securities. The backing referred to in clause (ii) may take the form of Fannie Mae mortgage-backed securities and Freddie Mac participation certificates. As of December 31, 2025, approximately 51.43% of the HIT's assets were issued or guaranteed by Fannie Mae or Freddie Mac.

Fannie Mae and Freddie Mac are federally chartered corporations engaged principally in providing a secondary market for mortgage obligations. Neither Fannie Mae mortgage-backed securities nor Freddie Mac participation certificates, nor any other Fannie Mae or Freddie Mac securities, are federally insured or guaranteed. Fannie Mae and Freddie Mac are under U.S. government conservatorship. For more information regarding certain risks with respect to Mortgage Securities guaranteed by Fannie Mae or Freddie Mac, see "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS -- Risk Factors –14. Risks related to Fannie Mae and Freddie Mac Investments" below.

The mortgages backing Fannie Mae and Freddie Mac multifamily mortgage-related investments in which the HIT invests will (i) meet Fannie Mae or Freddie Mac standards, as applicable, (ii) carry competitive market yields at the time the HIT commits to acquire them, and (iii) with respect to securities originally sourced by the HIT staff, be secured by real estate, on which any structures to be built or rehabilitated will be built or rehabilitated with 100% union labor.

Most of the single family Fannie Mae and Freddie Mac mortgage-backed securities currently in the HIT portfolio are backed by fixed-rate mortgage loans, although the HIT can acquire single family Fannie Mae and Freddie Mac securities that are backed by adjustable rate mortgage loans. The HIT anticipates that if prevailing interest rates for adjustable-rate mortgage loans are more favorable to mortgagors than fixed rates, a larger portion of the single family Fannie Mae and Freddie Mac securities it purchases may be backed by adjustable rate mortgage loans. There are a wide variety of adjustable-rate mortgage loans that may be used to back the single family Fannie Mae and Freddie Mac securities. These range from loans on which the interest rate is adjusted periodically (with adjustments occurring from every 6 months to annually to every 3 or 5 years) based upon a specified market index at the time of each adjustment, to loans which carry a fixed interest rate for a specified period of time (*e.g*., 3, 5, 7 or 10 years) after which the interest rate on the loan is adjusted annually based on a specified market index. Some types of the adjustable-rate

mortgage loans that back single family Fannie Mae and Freddie Mac securities also have provisions under which they may be converted into fixed rate mortgage loans at the option of the mortgagor at specified times. With respect to the single family Fannie Mae and Freddie Mac securities backed by adjustable rate mortgage loans, Fannie Mae or Freddie Mac, as applicable, guaranties the timely payment of interest, based upon the interest rates borne by the underlying mortgage loans, as the same are adjusted from time to time, less applicable servicing and guaranty fees.

The HIT may also invest up to 20% of its assets in, among other things, (i) obligations, including corporate securities, issued or guaranteed by Fannie Mae and Freddie Mac, and (ii) securities backed by Fannie Mae or Freddie Mac, as long as such securities are rated in one of the two highest rating categories at the time of acquisition by at least one NRSRO. Both Fannie Mae and Freddie Mac issue a variety of debt securities in a wide range of maturities in the domestic and global capital markets to support their operations.

**Other High Credit Quality Mortgage Securities**

The HIT is permitted to invest up to 100% of its assets in any securities that are secured by single family or multifamily mortgage loans and that are rated at the highest rating available by S&P Global Ratings ("S&P") (or a comparable rating by another NRSRO such as Moody's Investors Service, Inc. ("Moody's") or Fitch Ratings, Inc.) at the time of acquisition by the HIT. There can be no assurance that the rating by a rating agency would continue for any given period of time after the investment's acquisition or that the rating will not be revised downward or withdrawn entirely by the rating agency if, in its judgment, circumstances so warrant. A downgrade in or withdrawal of the rating by an agency may signify an increase in the risk that the obligations issued or guaranteed by that entity would not be paid in accordance with their terms and would be likely to result in a reduction in the value of the related obligations, except to the extent that the HIT has obtained other forms of credit enhancement for the investment. The HIT is not required to dispose of any asset because of a downgrade in credit rating. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Investment Restrictions" below.

**Additional Information on Certain Securities with Government-Sponsored Entity and Federal Backing**

The securities with Government-Sponsored Entity ("GSE") or federal backing in which the HIT is authorized to invest can take many forms and have various features. For example, these securities can include contingent interest mortgage loans, which are mortgage loans on rental projects that provide for repayment of principal and base interest at a fixed rate, with such principal and base interest either insured by FHA or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac, and which also include separate contractual provisions obligating the borrower to pay additional interest based entirely on net or gross cash flow and/or net or gross proceeds upon sale, refinancing or disposition of the projects. This additional interest is not insured or guaranteed and is sometimes referred to as "contingent interest."

Similarly, securities with GSE or federal backing may include early repayment loans, which are Mortgage Securities that are insured by FHA or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac and that include a right to require the borrower to repay a mortgage loan prior to the regular maturity date of the mortgage loan after an initial period during which the loan cannot be called. In the case of such "early repayment" loans that are federally insured or guaranteed, while all principal and base interest would be insured or guaranteed by FHA or Ginnie Mae, the balloon repayment obligation would not be secured by the mortgaged real property or by any government insurance or guaranty.

Mortgage-backed pass-through or pay-through securities comprise another type of security with GSE or federal backing in which the HIT may invest if the securities are rated in one of the two highest rating categories of a NRSRO, such as S&P, at the time of acquisition, and are also backed by certain Mortgage Securities in which the HIT is otherwise authorized to invest. Mortgage-backed pass-through or pay-through securities are securities which may be issued by privately owned entities or public issuers and secured by mortgages or mortgage-related instruments such as FHA-insured or VA-guaranteed loans, Ginnie Mae securities or securities which are guaranteed by Fannie Mae or Freddie Mac, and provide certain characteristics and features that federally insured loans or guaranteed certificates do not. Although payment of the principal of, and interest on, such mortgage-backed securities may be secured by Ginnie Mae securities, FHA-insured loans, VA-guaranteed loans or securities which are guaranteed by Fannie Mae or Freddie Mac, such mortgage-backed pass-through or pay-through securities represent obligations solely of the issuer and will not themselves be guaranteed or insured by any governmental entity or instrumentality or any other entity.

**State and Local Government Credit-Enhanced Mortgage Securities and Other Credit-Enhanced Mortgage Securities ("Credit-Enhanced Mortgage Securities")**

The HIT is authorized to invest up to 15% of the value of its assets at the time of acquisition in the following categories of investments combined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **State and Local Government Credit-Enhanced Mortgage Investments** 

The HIT may invest in the types of state and local government credit-enhanced mortgage investments described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; <u>Full Faith and Credit</u>. The HIT may invest in construction and/or permanent loans, or securities backed by construction and/or permanent loans or interests in such loans or securities, if such loans or securities are supported by a full faith and credit guaranty of a state or local government or agency or instrumentality thereof that has general taxing authority, without regard to the credit rating of such entity or the obligations acquired. There is no requirement that obligations acquired under this category be rated or ratable. If the state or local government or agency or instrumentality which provided such guaranty fails or is unable to meet its obligations thereunder, the HIT would be subject to the same real estate-related risks and uncertainties that apply to real estate investments generally, which could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--8. Real Estate-Related Risks" below. In addition, there can be no assurance that current or future economic difficulties facing certain local and state governments will not adversely affect the ability of state or local governments or agency or instrumentality thereof to meet their obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; <u>Agencies or Issues Rated "A" or Higher</u>. The HIT is permitted to invest in construction and/or permanent mortgage loans, or securities backed by construction and/or permanent mortgage loans, or interests in such loans or securities, provided that such loans or securities are issued or guaranteed, as the case may be, by a state or local housing finance agency with a general obligation rating of "A" or better by S&P (or a comparable rating by another NRSRO) at the time of the acquisition of the investment by the HIT and are (i) with full recourse (directly or by way of full indemnity or guaranty) to such agency's general credit and assets, (ii) secured by recourse to such assets of the agency or by third-party credit enhancement as to provide, in the judgment of management, protection comparable to a pledge of the agency's general credit, or (iii) backed by the "moral obligation" of the state in which such agency is located, in the form of the state's commitment to replenish any insufficiencies in the funds pledged to debt service on the obligations or similar commitment. The HIT is also permitted to invest in such loans or securities issued or guaranteed by a state or local housing finance agency provided that the loans or securities have a rating of "A" or better by S&P (or a comparable rating by another NRSRO) at the time of the acquisition.

As indicated above, the HIT may acquire obligations that are backed by the "moral obligation" of the state in which the agency is located (without regard to the credit rating of such state), in lieu of recourse against the state or local agency. Obligations which are backed by the "moral obligation" of the applicable state could include loans from the HIT to the agency, securities issued by the agency or loans or participation interests in loans made by the HIT or the agency to the underlying borrower (or securities backed by a loan made by the agency to the borrower). These obligations would be secured by the state's "moral obligation," rather than by recourse against the agency or through third-party credit enhancement. However, the state's "moral obligation" would not be a binding, legal obligation of the state to pay amounts due under the obligations acquired by the HIT and could not be enforced against the state or its general credit and assets.

There can be no assurance that the rating of an agency or of an issuance of "A" or better by S&P (or a comparable rating by another NRSRO) would continue for any given period of time after the HIT acquires an obligation issued or guaranteed by that agency, or that the rating would not be revised downward or withdrawn entirely by the rating entity if, in its judgment, circumstances so warrant. A downgrade in or withdrawal of the rating of an agency may signify an increase in the risk that the obligations issued or guaranteed by that agency would not be paid in accordance with their terms and would be likely to result in a reduction in the value of the related obligations, except to the extent that the HIT has obtained other forms of credit enhancement for the investment. The HIT would not be required to dispose of any asset that loses the relevant rating. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Investment Restrictions" below.

While a rating on an obligation is only the opinion of the NRSRO issuing it, such rating does not provide any assurance of repayment and is subject to revision or withdrawal at any time by the assigning NRSRO, such ratings do provide the prospective investor with some indication that the proposed structure and revenue analysis for the obligation satisfy the NRSRO's internal criteria for the applicable rating. However, the HIT intends to undertake transactions under this authority selectively, and only after having made its own independent evaluation with respect to the experience, credit history and underwriting and management expertise of the NRSRO issuing or guaranteeing the obligations to be acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; <u>State Insurance Funds/Programs</u>. The HIT may invest in construction and/or permanent loans, or securities backed by construction and/or permanent loans, or interests in such loans or securities, if at least the first 75% of such loans or securities is supported under a state insurance or guaranty program by a state-related agency with a record of creditworthiness, as evidenced by a rating of the agency or the obligations issued or guaranteed by such agency, of at least "A" by S&P (or a comparable rating of another NRSRO) at the time of the acquisition of such investment by the HIT. Ratings reflect only the opinion of the issuing NRSRO, and there can be no assurance that any such rating would continue for any given period of time after the insurance or guaranty is issued, or that it would not be revised downward or withdrawn entirely by the NRSRO if, in its judgment, circumstances so warrant. A downgrade in or withdrawal of the rating may signify an increase in the risk to the HIT associated with the related investments and would be likely to result in a reduction in the value of the related obligations. The HIT is not required to dispose of these investments if the rating of an agency or the obligations issued or guaranteed by such agency is downgraded or withdrawn. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Investment Restrictions" below.

There is no requirement that obligations acquired under this category be rated or ratable.

If the state-related agency providing the guaranty for obligations acquired under this investment authority fails or is unable to meet its obligations thereunder, or if the guaranty or other credit enhancement is insufficient to cover all losses in the event of a default on a construction or permanent loan in which the HIT invests or which backs securities or interests in which the HIT invests, the HIT would be subject to the same real estate-related risks and uncertainties that apply to real estate investments generally, which could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--8. Real Estate-Related Risks" below.

In addition to the issues outlined above, the investments can involve certain risks that are not present with other authorized investments. Without requirements for ratings or access to taxing power, the credit determinations with respect to the proposed state and local government credit-enhanced investments could be more difficult to make, and their credit quality could be lower than that of other investments the HIT is permitted to make. The state and local government credit-enhanced investments may also be less liquid than most other investments authorized for the HIT. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Investment Restrictions" and "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--3. Redemption" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Other Credit-Enhanced Mortgage Investments** 

The HIT may invest in other construction and/or permanent mortgage loans, or securities backed by construction and/or permanent mortgage loans or interests in such loans or securities, if the loans are made by any lender acceptable to the HIT and such loans or the securities backed by such loans are fully credit-enhanced or secured in a manner satisfactory to the HIT by: (i) cash placed in trust or in escrow with an independent third party satisfactory to the HIT on terms and conditions satisfactory to the HIT; or (ii) a letter of credit, insurance or other guaranty from an entity satisfactory to the HIT which has a rating (at the time of the HIT's acquisition of the related loan, securities or interests in such loans or securities) which is at least "A" or better from S&P (or a comparable rating by another NRSRO).

A rating is only the opinion of the NRSRO issuing such rating and there is no assurance that the rating of the issuer of any letter of credit, insurance or other form of guaranty which collateralizes a construction and/or permanent loan investment acquired by the HIT will continue for any given period of time or that it will not be revised downward or withdrawn entirely by the NRSRO if, in the NRSRO's judgment, circumstances so warrant. Any such downward revision or withdrawal of such rating may signify an increase in the risk to the HIT associated with the related

investment and would be likely to result in a reduction in the value of the related obligation. The HIT is not required to dispose of privately credit-enhanced investments if the rating of the issuer of the related letter of credit, insurance or guaranty is downgraded or withdrawn. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Investment Restrictions" below. Notwithstanding any of the above, such a downward revision or withdrawal of a rating would not itself have any impact upon the flow of income from the project to the HIT.

If the issuer of any letter of credit, insurance or other form of guaranty which secures a credit-enhanced investment fails or is unable to meet its obligations under such letter of credit or other guaranty, the HIT would be subject to the same real estate-related risks and uncertainties that apply to real estate investments generally, which could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--8. Real Estate-Related Risks" below.

**Direct Lending**

The HIT is permitted to invest up to 15% of the value of its assets at the time of purchase in the following categories of investments combined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Bridge Loans** 

Bridge loans are short-term loans that provide interim financing until a borrower receives funds from other sources. The HIT is permitted to invest in certain bridge loans or interests in bridge loans related to multifamily developments that have allocations or other rights to receive state or federal tax credits ("Bridge Loans"). The state or federal tax credits may be of any type, however, the HIT expects that its investments will primarily involve Low Income Housing Tax Credits ("LIHTCs") under Section 42 of the Internal Revenue Code of 1986, as amended (the "IRC") or Rehabilitation Tax Credits ("RTCs") under Section 47 of the IRC.

Borrowers on LIHTC projects are eligible to receive tax credits which may be used dollar-for-dollar to offset federal taxes otherwise due, subject to certain limitations. LIHTCs are provided in substantially equal annual amounts to owners of the development over a ten-year period, generally commencing in the year in which the units of each building are placed in service, or at the election of the owner of the development in the year following the year the building is placed in service. RTCs are generally credits against federal income tax liability for costs incurred for the rehabilitation of certain qualified buildings. Rehabilitation includes renovation, restoration and reconstruction. In general, the RTC is equal to 10% of the amount of qualified rehabilitation expenditures for certain non-residential buildings placed in service before 1936 and 20% of the amount of qualified rehabilitation expenditures for certified historic structures subject to certain limitations. The full amount of the RTC may be claimed in the year in which the property is placed in service. RTCs are often used by developers to complete the adaptive reuse of schools, office buildings and factory buildings for use as multifamily rental housing in urban markets.

Sponsors of tax credit projects frequently sell ownership interests in their projects to investors who want to receive the benefits of the tax credits. The tax credits, as applicable, are available to owners in proportion to their ownership interests in the development. Investors generally agree to pay for their ownership interests in the development (and, consequently, for the benefit of owners of developments which receive the tax credits) in installments over the construction, rent-up and later periods, as negotiated on a case-by-case basis.

The investor generally makes an initial payment upon admission to the ownership entity and pays subsequent installments as various milestones are achieved. Such milestones may include lien-free completion of construction and achievement of stabilized occupancy for an agreed period of time. Payment obligations are generally evidenced by notes or contractual agreements.

Because all of the proceeds of the sale of tax credits are not available at or before the time construction commences, development sponsors generally need funds to make up the difference between the construction financing and other sources of funds available and the total development cost of the development. Accordingly, it is customary for sponsors to obtain bridge loan financing at or prior to the closing on the construction loan financing to close this gap. It is generally contemplated that the bridge loan financing will be repaid from the payments due from the tax credit investors as the development is constructed and reaches the achievement milestones required by the tax credit investors. Unlike other construction financing, Bridge Loans are not usually secured by a mortgage or other lien on

real property. Instead, such Bridge Loans are normally backed by the maker of the obligation, guaranteed by the development sponsor or other party and secured by the ownership interests in the development owner. The HIT will look to structure any Bridge Loans to help minimize the HIT's risks on such loans and will invest in Bridge Loans only in cases where such loans have been approved by the HIT in accordance with the HIT's underwriting guidelines. This may include an investment in a loan that combines bridge lending with another transaction type, such as other direct mortgage lending (described below), provided that the HIT would be permitted to invest in each component were they offered as separate loans.

There is no requirement that a Bridge Loan be rated or ratable.

Any Bridge Loan will be paid down in a manner approved by the HIT as capital contributions are made by the tax credit investors, although not all of the proceeds of investor payments will be required to reduce the HIT's loan if the HIT so approves. Other sources of financing may also be used to pay down Bridge Loans.

Unlike most other assets in which the HIT invests, Bridge Loans may not be secured by mortgages on real property, are not directly related to payments on first-lien mortgage loans and are not insured or guaranteed by the federal government or any other entity such as Fannie Mae or Freddie Mac. However, as described above, Bridge Loans will normally be backed by the maker of the obligation, guaranteed by the development sponsor or other party, and secured by the ownership interest in the development owner.

The borrower's obligation to make principal and interest payments on a Bridge Loan will not be contingent on the borrower's receipt of investor payments. However, the development owner may depend on investor payments to obtain the funds with which to make payments on a Bridge Loan. Payments to the development owner from its investors in turn may be dependent on certain factors relating to completion, rent-up, other matters relating to the tax credits and otherwise. The HIT expects that on such investments it will consider the credit of the guarantor or obligor, as well as the tax credit investors' ownership interests in the development owner. More broadly, however, the HIT will only enter into Bridge Loan transactions that have been approved in accordance with the HIT's underwriting guidelines, which have been designed to enhance the likelihood that the HIT will invest only in credit-worthy Bridge Loans. Such underwriting guidelines will address the viability of the project in its market, the availability of subsidies, the degree of local governmental support, and the experience of the tax credit investors and other parties, among other factors. The HIT also believes that any additional risk associated with Bridge Loans, as compared to the HIT's other authorized investments, will be offset by the higher interest rates payable on Bridge Loans.

The investments in this category are subject to real-estate related risks that could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--8. Real Estate-Related Risks" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Direct Mortgage Loans** 

The HIT may invest in certain construction and/or permanent mortgage loans or securities backed by such loans (or interests in such loans or such securities) that meet specified underwriting criteria but which are not necessarily guaranteed, insured or backed by any collateral other than the mortgage on the project ("Direct Mortgage Loans"). The total amount of such investments in Direct Mortgage Loans, together with Bridge Loans described above, shall not exceed 15% of the value of all of the HIT's assets at the time of purchase. Such investments must meet underwriting criteria or other requirements specified in the Declaration of Trust including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 the case of construction and/or permanent mortgage loans related to projects that have
 evidence of support from a state or local government (or an agency or instrumentality
 thereof), that the loan-to-value ratio not exceed 65% (or, 80% if the HIT receives
 mortgage insurance or another form of guaranty or credit support of the HIT's investment
 in an amount which will cover all losses down to a 65% loan-to-value level, or the project
 receives the benefits of LIHTCs), that the state or local government (or an agency or
 instrumentality thereof) or a tax-exempt foundation make or facilitate a financial contribution
 in the project and that the minimum debt service coverage for these projects at stabilization
 be at least 1.15, based upon the HIT's projections of future income and expenses;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of construction and/or permanent mortgage loans financing of market rate projects,
 that the loan-to-value ratio not exceed 65% (or 80% if the HIT receives mortgage
 insurance or another form of guaranty or credit support of the HIT's investment
 in an amount which will cover all losses down to a 65% loan-to-value level) and that
 the minimum debt service coverage be at least 1.25 at stabilization, based upon the HIT's
 projections of future income and expenses.

There is no requirement that the obligations acquired by the HIT under this category be rated or ratable.

The investments in this category are subject to real-estate related risks that could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Risk Factors--8. Real Estate-Related Risks" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Early Stage or Structured Financings** 

The HIT is permitted to invest up to 2% of the value of its assets at the time of purchase in instruments, interests, loans or assets that provide early-stage or structured financing (i.e., gap financing) related to or for the construction or rehabilitation of multifamily and/or single family housing developments, including the below sub-categories of such investments (collectively, "Early Stage or Structured Financings").

The HIT will look to structure Early Stage or Structured Financings to help minimize the HIT's risks on such investments and will invest in such assets only in cases where they have been approved by the HIT in accordance with the HIT's underwriting guidelines. Such underwriting guidelines will address, among other things, the viability of the project in its market, the availability of subsidies, the degree of local governmental support (if any) and the experience of the development sponsor and other parties, among other factors. The HIT also believes that any additional risk associated with Early Stage or Structured Financings, as compared to the HIT's other authorized investments, will be offset by the higher interest rates or other returns on investment.

The investments in this category are subject to real-estate related risks that could have a material adverse effect on the value and performance of the investments. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS – Risk Factors – 8. Real Estate-Related Risks" and "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS – Risk Factors – 20. Risks Related to Early Stage or Structured Financings" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pre-Development Loans</u>. The HIT may invest in certain early-stage construction-related loans to finance
 multifamily housing and other real estate projects. These loans are sometimes referred
 to as pre-development loans. Pre-development loans are short-term financings that pay
 a fixed or floating rate of interest. Sponsors and developers of multifamily housing
 and other real estate projects typically seek financing to cover a wide range of expenses
 during the pre-development phase of these projects, including architectural and engineering
 fees, land acquisition costs, environmental surveys and assessments, legal fees, demolition,
 regulatory licenses and permits, and various third-party reports. This financing enables
 multifamily housing or other real estate projects to move from concept to "shovel-ready"
 construction, although there is no guarantee that a project will be viable or that construction
 of the project will ultimately commence.

Unlike most other assets in which the HIT invests, pre-development loans may not be secured by mortgages or liens on real property, are not in any event directly related to payments on first-lien mortgage loans and are not insured or guaranteed by the federal government or any other entity such as Fannie Mae or Freddie Mac. Pre-development loans may be secured or unsecured. However, pre-development loans will normally be backed by the maker of the obligation or guaranteed by the development sponsor or other party. There is no requirement that a pre-development loan be rated or ratable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mezzanine Loans</u>. The HIT may invest in mezzanine loans to finance multifamily housing and other
 real estate projects. Mezzanine loans are a form of subordinated financing and are frequently
 used by sponsors and developers as a financing alternative to first-lien mortgage loans
 and other forms of financing. Mezzanine loans have fixed or floating interest rates and
 set maturity dates.

Unlike most other assets in which the HIT invests, mezzanine loans may not be secured by mortgages or liens on real property, are not in any event directly related to payments on first-lien mortgage loans and are not insured or guaranteed by the federal government or any other entity such as Fannie Mae or Freddie Mac. Mezzanine loans may be secured or unsecured. However, mezzanine loans will normally be backed by the maker of the obligation or guaranteed by the development sponsor or other party. There is no requirement that a mezzanine loan be rated or ratable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Preferred Equity</u>. The HIT may invest in preferred equity to finance multifamily housing and
 other real estate projects. Preferred equity is a form of subordinated financing and
 is frequently used by sponsors and developers as a financing alternative to first-lien
 mortgage loans, mezzanine loans and other forms of financing (including common equity).
 In preferred equity financing, the investor receives an ownership interest in a special
 purpose investment fund (typically a limited liability company or a limited partnership)
 and, typically, a fixed interest rate. Investors may also be able to participate in the
 profit that the sponsor or developer receives from the multifamily housing or other real
 estate project (known as an "equity kicker").

Unlike most other assets in which the HIT invests, preferred equity is not typically secured by mortgages or liens on real property, is not in any event directly related to payments on first-lien mortgage loans and mezzanine loans and is not insured or guaranteed by the federal government or any other entity such as Fannie Mae or Freddie Mac. However, even if the preferred equity in which the HIT invests is secured, the rights of the HIT will be subordinate to the rights of the first and subordinate priority lien holders (although they would be senior to the rights of common equity holders). Preferred equity will normally be guaranteed by the development sponsor or other party. There is no requirement that preferred equity be rated or ratable.

In evaluating investments in all categories of credit-enhanced Mortgage Securities, including Bridge Loans, Direct Mortgage Loans, and Early Stage or Structured Financings, the HIT staff may consider, among other factors: (i) the experience, past performance, credit rating, competence and managerial and marketing ability of prospective project developers; (ii) the geographic area; (iii) the location, construction quality, condition and design of the project; (iv) the projected loan-to-appraised value ratio and underlying assumptions on which such projections are based; (v) the current and projected cash flow; (vi) the potential for capital appreciation; (vii) the occupancy, supply of and demand for properties of similar type in the vicinity; (viii) the prospects for liquidity through sale, financing or refinancing of the project; and (ix) such other relevant factors that may arise in the course of the evaluation process. In evaluating such underwriting criteria, the HIT may retain consultants to assist HIT staff.

**New Markets Tax Credits Loans ("NMTC Loans")**

The HIT may also invest up to 3% of its assets, determined at the time of purchase, in loans to certain special purpose investment funds to facilitate the utilization of New Markets Tax Credits ("NMTCs"). The NMTC Program is a federal program run by the Community Development Financial Institutions Fund of the U.S. Department of Treasury which provides tax credits to equity investors who invest in businesses operating in low-income areas, including those businesses that engage in creation of housing and other construction activities. The purpose of the NMTC program is to provide persons and/or entities in identified low-income areas access to capital by providing NMTCs that provide capital at lower a cost and on better terms than would be otherwise available in the market.

NMTC Loans made by the HIT must meet certain underwriting criteria and other requirements. NMTC Loans made by the HIT must be to special purpose investment funds (either directly or indirectly through Building America CDE, Inc., the HIT's wholly owned Community Development Entity ("Building America" or the "CDE")). The special purpose investment fund facilitates the utilization of NMTCs, participates with the CDE (or its designated subsidiary) in the NMTC transaction, and uses a portion of the loan for the acquisition and construction and/or rehabilitation of housing or mixed-use projects or healthcare facilities. In addition, the CDE must hold bare legal title to an investment security (the "Investment Security") in the form of (i) an interest in mortgage-backed securities guaranteed by Ginnie Mae or (ii) certain mortgages or interests in mortgages in which the HIT is otherwise authorized to invest, and the principal amount of such Investment Security must be at least equal to the amount loaned to the investment fund. Further, the CDE (or its designated subsidiary) must be expected to hold bare legal title to the Investment Security throughout the holding period required by NMTC rules and the HIT or the CDE (or its designated

subsidiary) must have the right to receive the Investment Security at the end of such holding period. Additionally, in the event of default on the mortgage comprising or securing the Investment Security, the HIT (or the CDE) shall have the right to direct the reinvestment of the proceeds from the liquidation of the Investment Security to the extent permitted by the NMTC regulations under generally the same requirements as those listed in this section.

**Other Securities**

The HIT may invest 20% of its assets in the following categories, taken together: (i) securities issued by the U.S. Treasury and futures contracts on securities issued by the U.S. Treasury, (ii) obligations, including corporate securities, issued or guaranteed by Fannie Mae and Freddie Mac or any of the Federal Home Loan Banks ("FHLBs"), (iii) securities backed by Fannie Mae, Freddie Mac, or the FHLBs, as long as such securities are rated in one of the two highest rating categories at the time of acquisition by at least one NRSRO, and (iv) Commercial Mortgage-Backed Securities ("CMBS"), as long as such securities are rated in the highest rating category by at least one NRSRO (collectively "Other Securities"). The HIT may invest up to 10% of its assets (measured in notional value) in U.S. Treasury futures contracts. U.S. Treasury and FHLB obligations, U.S. Treasury futures contracts and CMBS are described below, and Fannie Mae and Freddie Mac obligations are described above under the captions "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS--Fannie Mae And Freddie Mac Securities".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **United States Treasury Obligations** 

The U.S. Treasury sells marketable bills, fixed-principal notes and bonds, inflation-indexed notes and bonds, and other similar instruments in regularly scheduled auctions. The full faith and credit of the United States guarantees the timely payment of principal and interest on Treasury securities. Marketable bills, fixed-principal notes and bonds and inflation-indexed notes and bonds are freely transferable and are traded in the capital markets. They are issued in book-entry form and may be purchased through financial intermediaries or directly from the Treasury. Treasury obligations purchased until investments can be placed in Mortgage Securities or other investments as an "Other Liquid Investment" explained below, do not count towards the investment cap imposed on this "Other Securities" category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **United States Treasury Futures Contracts** 

A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset at a specified price on a specified day or days in the future. U.S. Treasury futures contracts are futures contracts where the underlying asset is a security issued by the U.S. Treasury. The HIT may use U.S. Treasury futures contracts to manage the duration of the HIT portfolio. Positions taken in the futures market are not normally held to maturity but are instead liquidated through offsetting transactions which may result in a profit or a loss. While the HIT will usually liquidate futures contracts in this manner, the HIT may instead make or take delivery of the underlying asset whenever it appears economically advantageous for the HIT to do so. A clearing corporation associated with the exchange on which futures are traded guarantees that, if still open, the sale or purchase will be performed on the settlement date.

As an investment company registered with the SEC, the HIT is subject to certain derivatives risk management program and reporting requirements if the HIT fails to qualify as a "limited derivatives user" pursuant to Rule 18f-4 under the Investment Company Act. The HIT currently avails itself of this exception, but, in the event this is no longer the case, the above-mentioned requirements may limit the ability of the HIT to use derivatives as part of its investment strategies and may increase the cost of the HIT's investments and cost of doing business, which could adversely affect Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Federal Home Loan Bank Obligations** 

Since January 2, 2001, the FHLBs have issued debt securities through the Office of Finance as their agent. FHLBs debt securities include discount notes, bonds with fixed rates and fixed maturities, callable bonds, puttable bonds, variable rate bonds and global bonds. Discount notes generally have maturities ranging from 1 to 360 days and bonds generally have maturities ranging from 1 year to 10 years, but the bonds are not subject to any statutory or regulatory limits on maturity. These securities are sold through a dealer network or as direct placements. These securities are joint and several obligations of the eleven FHLBs and are backed solely by the resources of the FHLBs. As of March 31, 2025, all long-term debt securities issued by the Federal Home Loan Bank System carried "AA+" ratings from S&P and "Aaa" ratings from Moody's. Each FHLB is required to operate in such a manner and to take whatever actions are necessary to ensure that the FHLBs' debt securities receive and maintain the highest credit rating from any NRSRO that currently rates such securities. FHLBs debt securities are not obligations of the United States and are not guaranteed by the United States.

Each of the eleven regional FHLBs is an instrumentality of the United States organized under the authority of the Federal Home Loan Bank Act of 1932, as amended. Each is a privately capitalized, separate corporate entity and has its own management, employees and board of directors. Each FHLB is a cooperative in that only member institutions own the capital stock of the FHLB and receive dividends on their investment. Each FHLB conducts business almost exclusively with member institutions and the majority of directors of each FHLB is elected by and from its membership. Additional information about the FHLBs can be found in the FHLBs' Combined Financial Report and on its website at www.fhlbanks.com or at www.fhfa.gov.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Commercial Mortgage-Backed Securities** 

CMBS are generally multi-class pass-through securities backed by a mortgage loan or a pool of mortgage loans secured by commercial properties, including multifamily housing, office buildings, shopping centers, retail space, hotel/motel and other hospitality properties, mobile home parks, self-storage facilities, and industrial and warehouse properties. The underlying mortgage loans are often balloon loans, rather than loans that amortize over their terms, and the properties securing the mortgage loans which back the CMBS may also be subject to subordinate debt and/or mezzanine debt. As with the bulk of the HIT's current housing-related investments, principal and interest payments from the underlying mortgage loans are passed through from the borrowers to the holders of the CMBS by the servicer. Typically, a CMBS transaction contains several different classes or "tranches" with varying exposure to default, prepayment and interest rate risk. A CMBS issue is often structured by "credit-tranching" (*i.e*., creating bonds with ratings from AAA to unrated by the use of subordination). Each CMBS tranche typically receives an interest payment with principal distributed in a sequential manner beginning with the highest rated tranche. Typically, all principal and prepayments are first allocated to the current amortizing tranche, and when that tranche is paid off, principal and prepayments flow to the next tranche in a "waterfall." The most senior tranche has the best credit quality and the lowest yield compared to the other tranches. The most subordinated tranche has the highest potential yield but also has the greatest risk relative to other tranches, as default on the underlying loans are borne first by the most subordinated tranche, thus providing the more senior tranches a cushion from losses. However, despite the cushion from the more junior tranches, more senior tranches can experience substantial losses due to defaults or other losses on the assets which exceed those of the more junior tranches. In credit-tranched CMBS issues, the loss and paydown tranches are typically reversed, and the highest rated classes are therefore the last to be affected by losses and usually the first to receive the early payment of principal.

**Mortgage Securities Supported by More Than One Form of Credit Enhancement** 

The HIT may also invest in construction and/or permanent loans or securities or obligations backed by construction and/or permanent loans or interests in such loans, securities and obligations which are supported by any combination of two or more of the types of credit enhancement supporting Mortgage Securities in which the HIT is otherwise authorized to invest, as described above, as long as all of the principal component of such loans, or securities or obligations backed by such loans or interests therein are fully collateralized by one or more of such types of credit enhancement. The multiple forms of credit enhancement may be combined either concurrently or sequentially.

**Pre-Construction Commitments**

The HIT may enter into pre-construction commitments to provide permanent financing upon satisfactory completion of a specified project. Such commitments, commonly known as permanent financing or take-out

commitments, are often a precondition to the ability of a developer to obtain a construction loan. The HIT may receive good-faith deposits for such permanent financing commitments, but such deposits are not expected to be a major source of HIT income. In contrast to a company hoping to earn a standby commitment fee without investment, the HIT will make permanent financing commitments with the purpose and ability to acquire the Mortgage Security.

Because complete funding of construction and permanent mortgage loans can require more than three years after making a financing commitment, the HIT continually estimates the amount of funds it expects to have available for investment from principal payments and prepayments on existing Mortgage Securities, dividend reinvestment and sales of additional Units to new or existing Participants. Loan commitments are made after considering reasonable projections of available funds. While the HIT's short-term cash balances will generally be less than its outstanding financing commitments, this commitment policy reduces the amount of assets the HIT would otherwise invest in lower yielding, short-term investments. In addition to short-term liquid assets and expected cash flow amounts, the HIT also monitors its inventory of highly liquid government securities to help ensure that it will be able to meet its outstanding financing commitments. If, however, a substantial amount of the funds projected to be available are not in fact received and it is not possible or not prudent to liquidate the identified securities, the HIT would either borrow funds pursuant to lines of credit previously established with commercial banks (in accordance with applicable asset coverage requirements) or sell long-term assets to raise the cash necessary to fund the financing commitments.

**Forward Commitments**

The HIT invests in Mortgage Securities originated under forward commitments, in which the HIT agrees to purchase an investment either in or backed by mortgage loans that have not yet closed. For Mortgage Securities backed by multifamily projects to be built, the HIT typically agrees to a fixed interest rate and purchase price for Mortgage Securities to be delivered in the future. It is possible that Mortgage Securities for which the HIT has issued commitments may not be delivered, particularly in periods of declining interest rates.

The HIT typically seeks to reduce the likelihood of non-delivery of Mortgage Securities backed by multifamily projects and certain single family loans by including in its commitments provisions related to good faith deposits, damages for non-delivery, rights of first refusal and, in some cases, liens on the properties. These mechanisms help ensure delivery of the related Mortgage Securities, but there is no guarantee that all investments the HIT commits to purchase will actually be delivered to the HIT, or that such steps will cover all of the lost value of any Mortgage Security not delivered as agreed upon. As with Pre-Construction Commitments, the HIT monitors its highly liquid government securities to help ensure that it will meet these outstanding forward commitments. To the extent the HIT engages in forward commitment transactions, it will do so for the purpose of Mortgage Securities consistent with its investment objective and policies and not for the purpose of investment leverage.

**Other Liquid Investments**

The HIT may invest funds in liquid instruments until they can be placed in Mortgage Securities or other investments meeting HIT investment objectives. Such liquid investments, which may be added to the portfolio in addition to similar or identical securities that may be classified under other categories that have caps, include: U.S. Treasury issues; federal agency issues; commercial bank time certificates of deposit and savings bank deposits in banks insured by the Federal Deposit Insurance Corporation (through the Bank Insurance Fund); savings and loan association deposits insured by the Federal Deposit Insurance Corporation (through the Savings Association Insurance Fund); bankers acceptances (drafts or bills of exchange accepted by a bank or trust company that guaranties payment thereof); commercial paper rated as category A-1 by S&P (or a comparable rating by another NRSRO); collateral loans and warehousing agreements (temporary assignments of mortgage notes or mortgage-backed securities) secured by mortgages on FHA-insured or VA-guaranteed single family homes or FHA-insured multifamily projects; and interests (including repurchase agreements, that is, purchase of securities accompanied by an agreement to resell the securities at a later date) in United States Government securities pledged by a bank or other borrower to secure short-term loans from the HIT.

The HIT also may invest funds temporarily in registered investment companies investing predominantly in U.S. Treasury issues or federal agency issues. Investments in other registered investment companies are restricted as follows (subject to certain exemptions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such
 securities acquired by the HIT shall not exceed 3% of the total outstanding voting stock
 of any investment company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 total value of such securities acquired by the HIT in any one investment company shall
 not exceed 5% of the HIT's assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 total value of such securities acquired by the HIT in all investment companies shall
 not exceed 10% of the HIT's assets.

**Total Return Swap Agreements in Connection with Tax-Exempt Bonds**

The HIT is permitted to sell its investments in tax-exempt bonds to a counterparty and simultaneously enter into a total return swap contract ("TRS Contract") under which the HIT retains the mark-to-market risk of the bonds and agrees to pay a variable interest rate in exchange for interest payments equal to the bond coupon. The HIT may only enter into such TRS Contracts with counterparties that are rated in one of the two highest rating categories by at least two NRSROs. A TRS Contract is a contract in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of a reference asset (in this case a tax-exempt bond backed by a mortgage securing a multifamily property), which includes both the income it generates and gains or losses related to price change of the bonds. The total notional value of the tax-exempt bonds involved in such TRS Contracts that are outstanding from time to time may not exceed 10% of the value of all the HIT's assets.

**Investment in Complementary Entities** 

The HIT's Declaration of Trust permits the HIT to form and own business entities that may help it generate potential investments in which the HIT is otherwise permitted to invest, including those that facilitate or promote housing construction utilizing union labor, the construction of housing or the availability of mortgage loans for union members. The HIT currently wholly owns HIT Advisers LLC ("HIT Advisers"), a Delaware limited liability company, directly (99.9%) and indirectly through HIT Advisers Managing Member (0.1%), which is also a wholly owned subsidiary of the HIT. HIT Advisers was formed by the HIT to provide investment advisory services to external parties and has two wholly owned subsidiaries, Building America, a community development entity that facilitates transactions that use New Markets Tax Credits, and AFL-CIO Labor Capital Partners, a Delaware LLC that provides investor and labor relations services to a collective investment trust.

**Portfolio Turnover**

The HIT's portfolio turnover rate increased from 20.7% in 2024 to 23.9% in 2025. Turnover is mainly impacted by trading for relative value and for interest rate risk management. It may also be affected by the need to invest cash received as new subscriptions, interest income and prepayments or the need to meet redemption requests.

**Proxy Voting**

The HIT invests exclusively in non-voting securities (except for its interest in wholly owned subsidiary, HIT Advisers LLC, and shares in mutual funds holding short-term or overnight cash, if applicable) and has not deemed it necessary to adopt policies and procedures for the voting of portfolio securities. The HIT has reported information regarding how it voted in matters for which it was entitled to vote during the most recent twelve-month period ended June 30, 2025 in its most recent filing with the SEC on Form N-PX, which is available on the SEC's website at http://www.sec.gov. Participants may also obtain a copy of the HIT's report on Form N-PX, without charge, by visiting www.aflcio-hit.com or upon request, by calling the HIT collect at 202-331-8055.

**Disclosure of Portfolio Holdings**

The HIT endeavors to make its portfolio holdings available each month on its website approximately eight business days after month-end. The HIT may provide earlier or different disclosure with respect to the HIT's portfolio securities, upon request, to its Participants, their advisers or consultants, and to certain consultants and third-party service providers engaged by the HIT. In accordance with HIT policies and procedures, all such disclosures made on request are subject to the requirement that such information be kept confidential and are subject to such prohibitions on trading or other misappropriation of the information as deemed appropriate by the HIT's legal department. In

addition, such disclosure of the HIT's portfolio securities to any parties must be pre-approved by an officer of the HIT and the HIT's legal department, and notice must be given to the HIT's Chief Compliance Officer. This clearance process is designed to ensure that the disclosure of any information about portfolio securities is in the best interests of the Participants, and the policy has been approved by the Board of Trustees. No compensation or other consideration is received by the HIT or any other party in connection with the disclosure of information about portfolio securities. Pursuant to the HIT's Declaration of Trust and By-Laws, the Board of Trustees has delegated authority to the officers of the HIT to manage the business of the HIT, which includes disclosure about portfolio securities.

The HIT has entered into a non-disclosure agreement with a valuation firm to provide it with certain portfolio holdings information on a daily basis for the purpose of assisting the custodian in producing an estimated daily valuation of HIT's assets. This estimated daily valuation may be used by a HIT Participant that calculates its own NAV on a daily basis and, if so, will be disclosed on the HIT's website at the close of each business day. (See "VALUATION OF UNITS" in this SAI for additional information.) The HIT has also entered agreements under which it provides securities holdings information to its custodian, fund accounting service provider, independent auditor, valuation consultant and valuation validation service provider. This disclosure is subject to the procedures and limitations as described above. None of these third parties is authorized to disclose holding information to any person.

Senior HIT management has determined that due to the nature of the HIT's portfolio holdings, there is no material risk that the disclosure of such holdings would lead to front-running or other predatory trading practices (such as trading ahead) that could adversely impact the HIT's performance. In addition, senior HIT management has determined that because the HIT values its portfolio monthly and permits purchases and redemptions only on a monthly basis, there is no material risk that an investor could engage in market timing to the detriment of other HIT participants.

**Other HIT Policies**

Generally, the Mortgage Securities in which the HIT proposes to invest will ordinarily be serviced by mortgage banks or other mortgage servicing institutions, such as commercial banks, located throughout the United States. Such institutions are generally compensated for their services at rates that vary from 0.05% to 0.75% per annum, calculated monthly, on the then current outstanding principal balance in the case of permanent first mortgage loans, and at rates of 0.125% to 0.50% per annum or more of the outstanding balance in the case of construction loans.

The HIT is authorized to invest in Mortgage Securities backed by projects anywhere in the United States. The HIT will invest only in Mortgage Securities which, at the time of acquisition, provide yields competitive with those then generally prevailing in the market taking into consideration all factors relevant to an appropriate evaluation of risk and return and the overall objectives of the HIT. Among Mortgage Securities, the HIT will, if possible, invest in projects in geographic areas in which Participants or their members are located.

The HIT will seek to invest in Mortgage Securities that, all other things equal, will contribute towards building healthy, productive and diverse communities for working people. As such, the HIT will seek to focus its housing-related efforts on those assets that promote affordable and workforce housing units when available. Similarly, the HIT may favor investments in projects that seek to contribute to local economic development by generating additional employment in sectors beyond the construction industry, economic impacts to local businesses, job training opportunities for neighborhood residents, and tax revenue for local governments, for example. The HIT also seeks to promote those real estate projects that contribute to environmentally sustainability through low-carbon building practices, transit-friendly development, creative land use and effective water resource management, among other goals. Other community-oriented goals that HIT may pursue include supporting minority and women owned businesses and providing critical services (such as healthcare and childcare) to low-income neighborhoods.

The HIT may invest in Mortgage Securities backed by projects in which one or more Participants or one of more organizations associated with a Trustee may also have an interest. Such an interest may be related to the portion of the underlying real estate transaction in which the HIT directly participates or to a different part of the transaction. In these circumstances, a potential conflict of interest can exist. In accordance with the HIT's policy, the Investment Committee, in consultation with the HIT's legal and compliance groups and the HIT's legal counsel, will review and approve any proposed investments in which a Participant or a Trustee-associated organization also holds an interest.

In its review, the Investment Committee will consider any potential conflicts of interest that may arise in connection with the proposed investment and the process by which such conflicts of interest would be addressed and will approve such investments only if it determines it to be in the interest of HIT to do so.

As a portfolio management and risk mitigation strategy, the HIT may from time to time buy or sell Mortgage Securities and Other Securities (including U.S. Treasury futures contracts) in order to prevent fluctuations in the weighted average maturity of its portfolio, to manage the duration of the portfolio or to maintain a desirable level of portfolio diversification. Moreover, the HIT remains free to dispose of Mortgage Securities and Other Securities at any time to meet objectives of the HIT, generally on the basis of changed circumstances or market conditions. The short-term liquid assets in which the HIT may temporarily invest are subject to a very high turnover rate. Fees associated with the purchase, sale or redemption of such liquid assets are nominal. The HIT does not currently pay service fees on amounts that it invests in overnight cash through its custodian, however, it may be required to pay such fees in the future. In addition, it may indirectly pay Acquired Fund Fees and Expenses to the extent that the HIT sweeps its short-term liquid assets into mutual fund vehicles.

The HIT's Mortgage Securities are directly or indirectly secured by mortgages or liens on real estate, resulting in a concentration of investments in the mortgage and mortgage finance sector of the real estate industry. For purposes of the Investment Company Act, "concentration" means a fund having more than 25% of its net assets invested in any one industry.

**INVESTMENT RESTRICTIONS**

The HIT has adopted the restrictions listed below as fundamental policies. Under the Investment Company Act, a fundamental policy is one which cannot be changed without the approval of the holders of a majority of the HIT's outstanding Units, which is defined under the Investment Company Act as the lesser of (a) 67% of the HIT's Units present or represented if the holders of more than 50% of the Units are present or represented at the Participants' meeting, or (b) more than 50% of the HIT's Units.

The HIT will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) concentrate
 its investments in any industry except the real estate industry as set forth above (*i.e.*,
 in fixed income securities in the mortgage and mortgage finance sector of the real estate
 industry);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit
 less than 55% of the mortgages and mortgage-backed securities acquired by the HIT
 or backing Mortgage Securities acquired by the HIT to be federally insured or guaranteed
 or issued or guaranteed by Fannie Mae or Freddie Mac with respect to the payment of principal
 and interest or in cash or short-term investments including U.S. Treasury issues, repurchase
 agreements, federal agency issues, mutual funds that invest in such securities, certificates
 of deposit and other obligations of domestic banks, commercial paper, collateral loans
 and warehousing agreements and instruments which are liquid but which may or may not
 be secured by real estate or by federal guarantees or insurance ("Short-Term Investments");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) originate
 or purchase any Mortgage Security secured by a project involving new construction or
 rehabilitation unless the buildings, structures or other improvements to be built on
 the real estate subject to such mortgage will be built or rehabilitated by 100% union
 labor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue
 senior securities, except as permitted by (i) the Investment Company Act and the rules
 and regulations thereunder, or interpretations or modifications by the SEC, SEC staff
 or other authority with appropriate jurisdiction, or (ii) exemptive or other relief from
 the SEC, SEC staff, or other authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money, except as permitted by (i) the Investment Company Act and the rules and regulations
 thereunder, or interpretations or modifications by the SEC, SEC staff or other authority
 with appropriate jurisdiction, or (ii) exemptive or other relief from the SEC, SEC staff,
 or other authority, provided that not more than 50% of the HIT's assets will be
 used as security for such borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) sell
 any securities short;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) write
 put and call options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) underwrite
 the securities of other issuers, except that the HIT may resell to other financing institutions
 all or a portion of the Mortgage Securities acquired by the HIT in transactions exempt
 from registration under the Securities Act of 1933, as amended (the "1933 Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) purchase
 or sell real estate (other than real estate mortgage loans and construction loans) except
 for real estate acquired through the foreclosure of mortgage loans and construction loans
 held by the HIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) purchase
 or sell commodities or commodities futures contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) lend
 any assets of the HIT except as permitted (i) the Investment Company Act and the rules
 and regulations thereunder, or interpretations or modifications by the SEC, SEC staff
 or other authority with appropriate jurisdiction, or (ii) exemptive or other relief from
 the SEC, SEC staff; or other authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) invest
 more than 15% of assets in securities that cannot be sold or disposed of in the ordinary
 course of business within seven days at approximately the value at which the asset is
 valued by HIT.

**RISK FACTORS**

The primary risks in investing in Units of the HIT are summarized in the Prospectus under the caption "MORE ON PRINCIPAL INVESTMENT RISKS." The following section contains a fuller discussion of the risks associated with investing in Units of the HIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Market Risk** 

The value of investments owned by the HIT may go up or down, sometimes rapidly or unpredictably. If the value of investments owned by the HIT falls, the value of a Participant's investment in the HIT will decline. The value of investments held by the HIT may fluctuate due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, inflation, changes in interest rates, adverse investor sentiment or other global market developments and disruptions, including those arising out of domestic political circumstances, geopolitical events, health emergencies (such as pandemics), natural disasters, terrorism, trade disputes and barriers (including tariffs), supply chain disruptions, sanctions and governmental or quasi-governmental actions. Periods of economic downturn may cause a significant decline in the value and liquidity of some investments and the disruption of markets. Adverse market conditions may be prolonged and may not have the same effect on all types of investments. Certain of these general risks are discussed in more detail in the more specific categories below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Fluctuating Interest Rates** 

The market value of the HIT's investments and the resulting NAV of the HIT portfolio will fluctuate with changes in market interest rates. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Periods of higher inflation or economic disruption could cause such authorities to raise interest rates, which may adversely affect the HIT and its investments. Generally, when market interest rates rise, the NAV of the HIT will decline, and Participants who redeem Units in such circumstances will suffer the resulting loss in value of HIT assets. In periods of higher inflation, interest rates may be more likely to rise. Conversely, in periods of declining interest rates, investments held by the HIT will generally increase in market value but some investments may be prepaid by the various borrowers or other obligors so that anticipated yields on such investments may not be realized. In a low or negative interest rate environment, fixed-income assets may trade at low or negative yields, which means the purchaser of the instrument will receive relatively low interest income and, in the case of negative yields, may receive at maturity less than the total amount invested. To the extent the HIT holds a fixed-income asset with a low or negative interest rate, the HIT may generate a low, and potentially negative, return on that investment.

Scheduled payments of principal and any prepayments as reinvested will earn returns at prevailing interest rates, which may be less than the rate of interest for the investments on which such payments are made. In addition, to the extent the HIT purchases investments at a premium (i.e., an amount in excess of the principal amount of the asset purchased), partial prepayments of principal would reduce the yield to the HIT and, in the event of complete prepayment, the HIT would be unable to recover or recoup the premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Redemption** 

Although registered investment companies generally must value their assets and accept redemption requests daily, the HIT is permitted to value its assets and accept redemption requests no more often than quarterly, by virtue of an exemptive order received from the SEC. See "BUYING AND SELLING UNITS IN THE HIT—Selling or Redeeming Units" in the Prospectus. The HIT has obtained an exemption from generally applicable redemption requirements on the grounds that the interests of its participants will make investment and redemption other than on a quarterly basis unnecessary and that daily valuation of the portfolio investments would be unduly burdensome. The Board of Trustees has, however, authorized investments and redemptions for the HIT on a monthly basis instead of a quarterly basis.

For the fiscal year ended December 31, 2025, total redemptions came to $298.5 million, or 4% of the HIT's average net assets. Frequent redemptions could interfere with the efficient management of the HIT's portfolio, increase portfolio transaction costs and have a negative effect on the HIT's long-term Participants. Additionally, unusual or adverse market conditions, an unusually high volume of redemption requests or redemption requests from one or more large Participants, among other things, could diminish the HIT's ability to meet redemption requests without significant dilution of the remaining Participants' interests in the HIT. In addition, a large redemption could result in the HIT's current expenses being allocated over a smaller asset base, leading to an increase in the HIT's expense ratio. These risks may be heightened for funds like the HIT, that have several Participants that hold significant shares of the units in the HIT. Pursuant to Rule 22e-4 under the Investment Company Act, the HIT may not acquire any illiquid investment if, immediately after the acquisition, the HIT would have invested more than 15% of its net assets in illiquid investments that are assets. Illiquid investment is defined as any investment that the HIT reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Limited Resale Market for Certain Types of Investments** 

Securities that are federally insured or guaranteed or are issued or guaranteed by Fannie Mae or Freddie Mac have been very liquid historically, and an active secondary market for such investments exists. Prices for these investments are often publicly quoted. If federal assistance to Fannie Mae or Freddie Mac is ended at a time when they do not generate enough income to pay all of their obligations or if federal assistance is insufficient to satisfy all of guaranty obligations of Fannie Mae and Freddie Mac, the liquidity of the related securities would be adversely affected. There is no similar secondary market for other investments that are not federally insured or guaranteed, that are not issued or guaranteed by Fannie Mae or Freddie Mac, or that are backed by loans or securities that are not federally insured or guaranteed or not issued or guaranteed by Fannie Mae or Freddie Mac. Such investments may be difficult to sell, or illiquid, particularly during times of market turmoil. A number of factors constrain the marketability of investments that are not federally insured or guaranteed, that are not issued or guaranteed by Fannie Mae or Freddie Mac, or that are backed by loans or securities that are not federally insured or guaranteed or not issued or guaranteed by Fannie Mae or Freddie Mac. These include the fact that many of these investments are structured in a "one-off," rather than standardized, manner because they are tailored to the specific needs of the project to be financed. Since these investments are tailored in such a fashion, published quotes do not exist and potential purchasers must be contacted individually. Administrative loan servicing requirements and costs and other factors restrict the resale market for single family mortgage loans to some extent. The large denominations of investments related to multifamily projects, intermediate care facilities, assisted living facilities and nursing homes restrict the number of buyers interested in them. In the case of any investment with a long-term maturity, the market is apt to be more limited than for investments of shorter maturity. Required liquidation of long-term investments in an unfavorable market could result in significant losses. Should dealers reduce their market making capacity in fixed-income assets, the potential for lower liquidity for the affected assets would increase.

The market for construction period investments is affected by the uncertainties inherent in building construction. If an investment is sold during the construction period, the purchaser customarily will seek assurances as to the status of construction, the nature of the permanent financing commitment and other matters relating to the underlying project. These and other factors may cause delays in the event a decision is made to sell construction period investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Defaults on Loans** 

Defaults on loans can occur for a variety of reasons, including those described below under the caption "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS—Risk Factors—8. Real Estate-Related Risks." The HIT may experience certain losses in the event of default on the loans, which either comprise or directly or indirectly back the HIT's investments. To a limited extent, this is true even for federally insured or guaranteed loans. Losses on federally insured or guaranteed loans can occur as a result of: (i) the requirement in some cases that the holder of a mortgage loan in default generally pay an assignment fee of 1% when receiving an insurance settlement; (ii) the requirement in some cases that the holder of the mortgage loan obtain title to the property, through foreclosure or otherwise, in order to obtain an insurance settlement; (iii) the fact that federal agencies can, in some cases, settle insurance obligations by payment in debentures rather than in cash; (iv) possible offsets of insurance proceeds against amounts held by the HIT or mortgage banker; (v) loss of certain interest payments upon default that are not covered by certain FHA insurance programs; (vi) costs of foreclosure and related costs; (vii) errors or omissions by the mortgage banker or fraud or material misstatements by a borrower which result in a reduction in the insurance proceeds, including in cases where the HIT has acted as an originator; (viii) loss of premiums even if principal and interest is repaid; and (ix) other reasons.

For VA-guaranteed loans not included in Ginnie Mae pools, it is possible that the amount of the loss will exceed VA's maximum loss exposure under its guaranty. If this were to occur, the HIT would bear the portion of the loss not covered by VA's guaranty.

The HIT may invest in certain loans or securities, which, in addition to principal and base interest insured or guaranteed by FHA, VA or Ginnie Mae, or guaranteed by Fannie Mae or Freddie Mac, include separate uninsured obligations. These investments may consist of (i) federal government-related, Fannie Mae and Freddie Mac contingent interest mortgage loans which include separate contractual provisions obligating the borrower to pay additional interest based entirely on net or gross cash flow and/or net or gross proceeds upon sale, refinancing or disposition of the project (the contingent interest) and (ii) mortgage loans that include a right to require the borrower to repay a mortgage loan prior to the regular maturity date of the insured mortgage loan. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS—Fannie Mae and Freddie Mac Securities" above.

Contingent interest obligations in excess of principal and base interest are not secured by the mortgage loan, by any government insurance or guaranty or by any obligation or guaranty of Fannie Mae or Freddie Mac. Moreover, in the event of a default under the mortgage loan which results in a claim under the federal government's insurance or guaranty, or against Fannie Mae or Freddie Mac's obligation or guaranty, the right to receive the contingent interest would either be assigned to the federal government agency, Fannie Mae or Freddie Mac, as the case may be, or would terminate. In addition, the obligation of the principals of a project owner to pay contingent interest is generally not a personal obligation of such parties. There can be no assurance that any project owner or principals thereof will have sufficient financial resources to pay any contingent interest that may be due. The HIT expects that it will attempt to secure a contingent interest obligation by obtaining, where possible, a subordinate mortgage and/or a security interest in the ownership interest of the principals of the borrower or other security.

State usury laws establish restrictions, in certain circumstances, on the maximum rate of interest that may be charged and impose penalties on the making of usurious loans, including monetary penalties, forfeiture of interest and unenforceability of the debt. Although the HIT does not intend to make or invest in mortgage loans charging contingent interest rates in excess of those permitted by law, there is a risk that interest on contingent interest mortgage loans could be found to exceed legal limits as a result of uncertainties in determining the maximum legal rate of interest in certain jurisdictions, especially with respect to contingent interest. To address this risk, in circumstances where the HIT invests in contingent interest mortgage loans, the HIT intends to obtain (i) an opinion of counsel from the jurisdiction in which the mortgaged property is located stating that, in the opinion of counsel, the rate of contingent interest does not and will not exceed the maximum rate of interest allowed by law, and/or (ii) a special endorsement to the title insurance policy, in jurisdictions where obtainable, insuring the HIT against penalties that may arise from the charging of interest in excess of the maximum rate of interest allowed by law.

If the HIT obtains a subordinate mortgage or other security to secure the payment of contingent interest, there can be no assurance that such subordinate mortgage or other security will provide meaningful protection to the HIT with respect to any payments due, because rights under such subordinate mortgage or other security and to the revenues

of the project will be subordinate to the rights of the first priority lien holder. However, in the majority of these cases, the HIT will be the holder or beneficiary of the first priority lien.

The HIT's ability to collect contingent interest in excess of insured base interest will be dependent also on the economic performance of the project and will be subject to the risks inherent in investing in real estate. The economic performance of a project may be affected by a number of factors, including but not limited to, occupancy levels, defaults by tenants in the payment of rent, increases in project operating expenses and acts of God, such as earthquakes and floods.

With respect to federally insured or guaranteed mortgage loans that include a right to require the borrower to repay the indebtedness prior to the regular maturity date of a mortgage loan, the balloon repayment obligation would not be secured by the federally insured note or mortgage or by any government insurance or guaranty. It is anticipated instead that such obligation would be secured by a security interest in the ownership interests of the principals of the borrower or other security, including, where obtainable, a subordinate mortgage. Because the obligation to repay the loan prior to its stated maturity would not be included in the federally insured or guaranteed note and mortgage, the HIT would not be entitled to obtain insurance proceeds in the event of non-compliance with a demand for repayment at such earlier date. If the HIT has obtained a subordinate mortgage to secure the early repayment of the mortgage loan, the HIT would be able, subject to compliance with certain conditions, to foreclose on the mortgaged property, and obtain title (either directly or through an agent or nominee) to the underlying real property subject to the federally insured first mortgage. However, even if the HIT obtains a subordinate mortgage or other security, there can be no assurance that such subordinate mortgage or other security will provide meaningful protection to the HIT with respect to the early repayment of the loan, because the rights under such subordinate mortgage or other security and to the revenues of the project will be subordinate to the rights of the holder of the first mortgage. The HIT expects that if it is unable to enforce its right to early repayment, it would continue to hold its interests in the mortgage loan or the securities backed by such mortgage loan, the principal and interest of which mortgage loan or securities would remain federally insured or guaranteed. In such event, a loss could be incurred because the HIT would have required a higher rate for an investment in a mortgage loan or mortgage-backed security that was not accompanied by the right to demand repayment at an earlier date. The risk described in this paragraph does not apply to "balloon" loans, or securities backed thereby, that are guaranteed by Fannie Mae or Freddie Mac, because payments on such loans and securities are guaranteed at the stated maturity date.

In addition, some investments, such as Direct Mortgage Loans, in which the HIT may invest are not federally insured or guaranteed or guaranteed by Fannie Mae or Freddie Mac and some investments, such as Bridge Loans, are not secured by a mortgage. Such investments will be subject to all the risks inherent in investing in real estate. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS—Risk Factors—8. Real Estate-Related Risks" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Ratings** 

There can be no assurance that a rating of a HIT investment at the time of purchase will continue for any given period of time, or that it will not be revised downward or withdrawn entirely by the issuing NRSRO if, in the judgment of the NRSRO, circumstances so warrant. A downgrade in the rating or withdrawal of the rating may signify an increase in the risk of default on the related investment and would be likely to result in a reduction in the value of the investment. Ratings are only the opinions of the issuing NRSRO and are not guarantees as to quality of or an assurance of the performance of any such investment. There is no guarantee that a highly rated debt investment will not default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Diversification** 

The Investment Company Act provides that no registered investment company shall change its sub-classification from diversified to non-diversified without the shareholders' authorization. Under Section 5(b) of the Investment Company Act:

● A "diversified company" is a management company which meets the following requirements: At least 75 per centum of the value of its total assets is represented by cash and cash items (including receivables), government securities, securities of other investment companies and

other securities for the purposes of this calculation limited in respect of any one issuer to an amount not greater in value than five per centum of the value of the total assets of such management company and to not more than 10 per centum of the outstanding voting securities of such issuer.

● A "non-diversified company" means any management company other than a diversified company.

The HIT will seek to remain as diversified as practicable. However, the Declaration of Trust does not specify the proportion of the HIT's assets that may be committed to a single Mortgage Security or Mortgage Securities issued, insured or guaranteed by any firm or entity. The HIT plans to follow a policy of investing no more than 15% of its assets in any single Mortgage Security as of the time of investment. Given the foregoing definition of a diversified company, the HIT's ability to invest up to 15% of its assets in a single Mortgage Security under this policy could result in the HIT's portfolio shifting from non-diversified to diversified and back again, without prior investor approval. This shift would under normal circumstances be contrary to Section 13(a)(1) of the Investment Company Act, absent prior security holder approval. However, the HIT has obtained from the SEC an exemption from this requirement insofar as the exemption might be necessary for the HIT to conduct its investment practices as described above. To the extent the HIT operates as a non-diversified company, the risk of loss on its investments will be increased. To the extent the HIT invests in the assets of fewer issuers, the HIT will be more susceptible to negative events affecting those issuers. As the HIT's assets have grown over time, this risk has diminished.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Real Estate-Related Risks** 

The HIT is required to invest primarily in Mortgage Securities that are (i) federally insured or guaranteed or are issued or guaranteed by Fannie Mae or Freddie Mac, or (ii) backed by securities, obligations or loans which are federally insured or guaranteed or are issued or guaranteed by Fannie Mae or Freddie Mac. In addition, many of the HIT's other investments have some form of credit enhancement to protect against losses in the event of a default. However, to the extent that an investment does not have credit enhancement or that an entity providing credit enhancement for an investment fails to meet its obligations under the credit enhancement, in the event of a default under the underlying mortgage loan, the HIT would be subject to the risks that apply to real estate investments generally with respect to that investment. The same consequence would apply to an investment in a defaulting loan (or a security or interest backed by such loan) that is not secured by a mortgage, such as a Bridge Loan. The real estate market and the equity and debt capital markets can experience economic difficulties during some business cycles, which may increase these risks. Some of these risks are described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Construction Risks.* The construction period is a risky phase of any project development for a
 variety of reasons. For example, it is sometimes difficult accurately to estimate prior
 to the commencement of construction the total costs of construction and related carrying
 costs that will be required in order to complete a project and to pay operating expenses,
 leasing costs and debt service until the project reaches sustaining occupancy. In addition,
 the construction period may be subject to unforeseeable delays and difficulties that
 may adversely affect the project and the related construction loan.

The total development costs of a project and its scheduled completion date are subject to change as construction and operation of a project progresses. During all stages of development and construction, a developer is subject to extensive environmental, building, land use, zoning and other statutes and regulations administered by various federal, state, county and local authorities. Such statutory and regulatory requirements (and any changes in such requirements during construction) may result in increased costs, delays in construction and/or an inability to complete a project on schedule and in accordance with development plans. For example, changes in environmental or other laws may impose or increase restrictions on the use or operation of a project, may increase certain expenses of a project or may necessitate potentially expensive changes in the physical configuration of the property. Changes in federal tax laws may make investment in real estate less attractive economically and thereby adversely affect real estate values.

Other factors that may result in increased costs, delays in construction and/or an inability to complete a project on schedule and in accordance with development plans include, without limitation, cost increases or shortages in, or the unavailability when needed of, materials, labor and/or services; construction or

labor disputes; delays in construction caused by adverse weather, casualty and other factors; poor management; delays, unanticipated costs and difficulties in obtaining lease-up of a project; health emergencies (such as pandemics and epidemics) and other unforeseen occurrences. Such cost overruns and delays may adversely affect the developer's ability to complete the construction of a project, as well as the economic viability of a project. This risk is particularly relevant with regard to investments, such as Bridge Loans, which assume repayment using tax credit and other proceeds that may become available only with the completion of construction milestones.

Although the project and the sponsor will be carefully reviewed and underwritten, there is no assurance that a borrower will have the resources available to fund the total construction and marketing costs of a project or will be able to secure secondary or alternative financing of cost overruns or unanticipated costs. In the event that construction loan proceeds and other funds available to a borrower are insufficient to pay all such costs, the project may not reach completion, satisfy any requirements for permanent financing and/or reach sustaining occupancy, in which event the borrower is unlikely to be able to repay the loan. Any failure to complete the construction or lease-up of a project on schedule and in accordance with development plans may result in loss of rental income, loss of permanent financing (if the HIT is providing only construction financing) or other financial assistance for the project.

Market conditions also may change between the time at which a commitment is issued or the construction loan is made and the completion of a project, rendering the project economically unfeasible or anticipated rents unattainable. Changed market conditions that adversely affect real estate project may be more likely during times of increasing interest rates and high inflation. In the event that any of the foregoing or other difficulties occur during the construction period, a borrower may not repay all amounts advanced under or with respect to a construction loan on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Risks Affecting the Operation of Projects and Repayment of Loans*. A borrower's ability
 to make required payments on any loan after the completion of construction of a project
 will be affected by a variety of factors. These include, but are not limited to, the
 achievement and maintenance of a sufficient level of occupancy; sound management of the
 project; timely receipt of rental income; increases in operating expenses (including
 taxes, utility rates and maintenance costs) and the costs of required repairs resulting
 from reasonable wear and tear and casualties; and changes in applicable laws and governmental
 regulations. In addition, the continued feasibility of a project may depend in part upon
 general and local economic factors, the supply and demand for rental housing in the area
 in which the project is located, competition from other rental housing projects, high
 unemployment rates, rent controls and profit controls. There are no assurances that a
 project owner will be able to achieve and maintain sufficient rental income in order
 to pay all operating expenses and maintenance and repair costs of a project and the debt
 service on the related loan on a timely basis. In the event that a project owner is unable
 to pay all such costs, expenses and debt service, a default on the related loan is likely
 to occur.

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|:---|:---|
| (c) | *Environmental and Litigation Risks*. Certain states impose a statutory lien for associated costs on property that is the subject of a cleanup action by the state on account of hazardous wastes or hazardous substances released or disposed of on the property. Such a lien generally will have priority over all subsequent liens on the property and, in certain states, will have priority over prior recorded liens, including the lien of a mortgage. In addition, under federal environmental law and possibly under state law in a number of states, a secured party which takes a deed in lieu of foreclosure or acquires a mortgaged property at a foreclosure sale, may be liable for the costs of cleaning up a contaminated site. Such costs could be substantial. The imposition of such costs on a project owner may adversely affect such owner's ability to pay the debt service on a mortgage or other loan. It is unclear whether such costs would be imposed on a secured lender such as the HIT or any secured lender acting on behalf of the HIT in the event that the secured lender did not actually acquire title to the project. In the event that title to a project securing a mortgage loan was acquired by the HIT or any lender acting on behalf of the HIT and cleanup costs were incurred in respect of the project (or such cleanup costs were imposed upon the HIT as a secured lender or any secured lender acting on behalf of the HIT even if the HIT or such other lender did not acquire title to the project), the HIT could realize a loss. |
|  | Any project owner may be vulnerable to potential litigation arising from public or private disputes about the conduct of its business or the operation of its project. A project owner may become involved in disputes or litigation, during construction or in the course of continuing operations, as to violations of |

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federal, state or local laws, property tax valuations and assessments, rent or profit controls, the terms of lease agreements with tenants or any other contract or agreement as to which it is a party or will become a party in the course of its business operations. Litigation arising from such disputes could be resolved adversely to the project owner and the existence of such a dispute or an unfavorable resolution of such a dispute could adversely affect the ability of a project owner to pay the debt service on its mortgage loan and, in any event, may slow down the construction and operation of the building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Foreclosure Risks*. In those limited instances in which the HIT invests directly in mortgage loans
 rather than in Mortgage Securities backed by mortgage loans, it is anticipated that the
 mortgage loan will be secured by a deed of trust or mortgage, depending upon the prevailing
 practice in the state in which the subject property is located. Foreclosure of a deed
 of trust may be accomplished in certain jurisdictions by a non-judicial trustee's
 sale under a specific provision in the deed of trust that authorizes the trustee to sell
 the property upon any default by the borrower under the terms of the note or deed of
 trust. Foreclosure of a mortgage generally is accomplished by judicial action. The action
 is initiated by the service of legal pleadings upon all parties having an interest in
 the real property. Delays in completion of the foreclosure occasionally may result from
 difficulties in locating necessary party defendants. The borrower may seek bankruptcy
 protection in an attempt to delay or avert a foreclosure and/or assert other defenses
 to the proceedings. Any bankruptcy filing will, and the assertion of other defenses may,
 significantly delay the proceedings and increase the expenses incurred by the lender
 in prosecuting the proceedings and could result in a reduction of the secured debt in
 the event of a "cramdown" by a bankruptcy court. Depending upon market conditions,
 the net proceeds of the sale of the property after foreclosure, fix-up and selling
 expenses may be less than the HIT's investment.

In some states, after foreclosure and sale, the borrower and foreclosed junior lienholders are given a statutory period in which to redeem the property from the foreclosure sale. In some states, redemption may occur only upon payment of the entire principal balance of the loan, accrued interest and expenses of foreclosure. In other states, redemption may be authorized if the former borrower pays only a portion of the sums due. The effect of a statutory right of redemption is to diminish the ability of the lender to sell the foreclosed property. Consequently, the practical effect of the redemption right is often to force the lender to retain the property and pay the expenses of ownership until the redemption period has run.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Operational Risks.* In those instances in which the HIT invests directly in mortgage loans or
 in a Bridge Loan secured by the ownership interest of the owner developer, the HIT may
 be compelled to participate in the completion of construction or in the operation of
 a project, if there is a default on the loan. In such circumstances, the recovery of
 amounts owed to the HIT may be partially dependent on the HIT's, or its agent's,
 ability to successfully navigate operational matters connected with the project, including
 the difficulties that caused or have arisen from the default.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Defaults on Bridge Loans** 

The HIT is subject to the risk that tax credit investors may not make required payments on their obligations to a borrower on a Bridge Loan as scheduled and, as explained above, also to certain real estate risks relating to the underlying development. Tax credit investors may not make the payments for reasons relating to the performance of the development, *i.e*., because the agreed upon circumstances under which the payments would become due do not occur, in which event, the HIT may not have any remedy. In addition, however, the tax credit investors may not make the payments as a result of changes in the financial capacity of the tax credit investors themselves or for other reasons. This may be more likely during periods of economic downturn. In the event that the tax credit investors do not make required payments, the HIT may be required to enforce the obligations of the tax credit investors under their notes or other payment agreements with the development owner. Enforcement actions may include foreclosing upon or otherwise acquiring the defaulting investors' ownership interests, but will not include foreclosing on a mortgage, because such collateral is generally not available to protect Bridge Loan lenders. As the holder of such interests in the development owner, the HIT would be subject to the real estate risks that any development owner would face. Certain of these risks are described above under the caption "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISKS—Risk Factors—8. Real Estate-Related Risks".

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Risks of CMBS** 

As described above, CMBS are generally multi-class pass-through securities backed by a mortgage loan or a pool of mortgage loans secured by commercial properties, including multifamily housing, office buildings, shopping centers, retail space, hotel, motel and other hospitality properties, mobile home parks, self-storage facilities and industrial and warehouse properties. In general, the risks of investing in CMBS reflect the risks of investing in the real estate securing the underlying mortgage loans, since payments and the timing of payments made in respect of the CMBS depend on payments received on and other recoveries with respect to the underlying mortgage loans. These risks reflect, among other things, the effects of local and other economic conditions on real estate markets, the ability of tenants to make rent payments, and the ability of a property to attract and retain tenants. Economic difficulties in the real estate market and capital markets, such as population shifts and other demographic changes, increasing vacancies (potentially for extended periods) and reduced demand for commercial and office space as well as maintenance or tenant improved costs and costs to convert properties for other uses, may increase these risks. These developments could result from, among other things, changing tastes and preferences (such as remote work arrangements) as well as cultural, technological, global or local economic and market developments. In addition, changing interest rate environments and associated changes in lending standards and higher refinancing rates may adversely affect the commercial real estate and CMBS markets. The occurrence of any of the foregoing developments would likely increase default risk for the properties and loans underlying these investments as well as impact the value of, and income generated by, these investments. These developments could also result in reduced liquidity for CMBS. See "DESCRIPTION OF THE HIT, ITS INVESTMENTS AND RISK--Risk Factors--8. Real Estate-Related Risks" above. Certain types of commercial properties may also be subject to other risks in addition to those described in that section. CMBS are not insured or guaranteed by any government agency or instrumentality, by any private mortgage insurer or by any other firm or entity.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Risks of U.S. Treasury Futures Contracts** 

A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset at a specified price on a specified day or days in the future. U.S. Treasury futures contracts are futures contracts where the underlying asset is a security issued by the U.S. Treasury. The use of futures contracts is a highly specialized activity that involves investment techniques and risks different from those associated with investments in more traditional securities and instruments, including market price, interest rate, leverage, liquidity, counterparty, operational and legal risks. There is no guarantee that the use of U.S. Treasury futures contracts to manage the duration of the HIT's portfolio will be successful. U.S. Treasury futures contracts are subject to risks that include, among others, unanticipated changes in interest rates and margin requirements, which include the risk that the HIT will be required to pay additional margin or set aside additional collateral to maintain open derivative positions. The HIT bears the risk that it will not accurately forecast future interest rates in entering into futures contracts. Futures contracts may also effectively add leverage to the HIT's portfolio because, in addition to its total net assets, the HIT would be subject to investment exposure on the notional amount of the futures contracts. A futures contract will not be considered to constitute the issuance of a "senior security".

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Risks of Total Return Swap Contracts** 

TRS Contracts are highly specialized instruments that require investment techniques and risk analyses different from those associated with traditional investments. The use of TRS Contracts requires an understanding not only of the referenced asset and reference rate, but also of the contract itself, without the benefit of observing the performance of the contract under all possible market conditions. As a result, TRS Contracts may involve risks that are different from and may be greater than those of the underlying tax-exempt bonds, the other assets held by the HIT, or the HIT's market index. The risks of TRS Contracts may be higher during periods of economic and financial volatility. Some of these risks are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) *Counterparty Risk.* TRS Contracts are subject to the possibility that the counterparty may fail
 to make payments to the HIT or to otherwise fulfill its contractual obligations and that
 collateral proffered in the event of such default may be inadequate to make the HIT whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) *Market and Convergence Risk.* The HIT bears the risk that it will not accurately forecast future market trends or the values of assets, reference
rates, indexes, or other economic factors in entering into TRS

Contracts. In particular, the relationship between tax-exempt rates and taxable rates could move in a direction different from that expected by the HIT. Market forces could, among other things, cause the rate determining payments due to the HIT to decrease relative to the rate determining payments owed by the HIT. In addition, the HIT may lose money to the extent transaction costs associated with the TRS Contracts exceed the benefits obtained by entering into them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) *Liquidity Risk.* TRS Contracts may also be subject to liquidity risk, which exists when a particular
 contract is difficult to purchase or sell or when it is not possible to enter into a
 TRS Contract or terminate a TRS Contract at an advantageous time or price. In addition,
 certain TRS Contracts may be classified as subject to the HIT's limitation on investments
 in illiquid securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) *Leverage Risk.* TRS Contracts may effectively add leverage to the HIT's portfolio because,
 in addition to its total net assets, the HIT would be subject to investment exposure
 on the notional amount of the swap. Leverage risk may impact the HIT to the extent that
 losses taken on both a TRS Contract and the investments made with proceeds from the associated
 sale of the tax-exempt bonds could compound one another. A TRS Contract will not be considered
 to constitute the issuance of a "senior security," and will not be subject
 to the 300% asset coverage requirement otherwise applicable to borrowings by the HIT,
 if the HIT covers the transaction in accordance with SEC requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) *Payment Date and Valuation Risk.* The HIT could bear temporary payment date risk related to
 TRS Contracts requiring payment streams on a schedule that fails to match up. The HIT
 may bear some additional risk of loss on TRS Contracts that require subjective valuations
 of gains or losses of the underlying bonds for purposes of calculating termination payments.

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Risks of Forward Commitments** 

As explained above, the HIT may invest in Mortgage Securities originated under forward commitments, in which the HIT agrees to purchase an investment, typically either in or backed by mortgage loans that have not yet closed. In periods of declining interest rates or as a consequence of other market factors, Mortgage Securities for which the HIT has issued commitments may not be delivered to the HIT. In general, the risks of investing in forward commitments reflect the risks of investing in other Mortgage Securities. However, the HIT typically seeks to reduce the likelihood of non-delivery for Mortgage Securities backed by multifamily projects and certain single family loans by including mandatory-delivery clauses in its commitments, which in some cases are secured by a lien on the property. In addition, the HIT usually requires a good faith deposit, payable when commitments for Mortgage Securities related to multifamily projects are issued. The HIT retains the deposit if any such investment is not delivered to the HIT. These mechanisms help assure delivery of the related Mortgage Securities, but there is no guarantee that all investments the HIT commits to purchase will actually be delivered to the HIT, or that the deposit will cover all of the lost value of any Mortgage Security not delivered as required. Finally, forward commitments may add leverage risk to the HIT's portfolio because the HIT would be subject to potential compound losses on any asset which it is committed to purchase and on the assets that it holds pending that purchase.

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Risks Related to Fannie Mae and Freddie Mac Investments** 

As of December 31, 2025, approximately 51.43% of the HIT's assets were issued or guaranteed by Fannie Mae or Freddie Mac. In September 2008, the U.S. government took Fannie Mae and Freddie Mac into conservatorship. As conservator, the FHFA has the authority to transfer any of Fannie Mae's or Freddie Mac's assets or liabilities, including their guaranties, without the approval of any other party, including any holder of Mortgage Securities guaranteed by Fannie Mae or Freddie Mac. Under existing legislation, the FHFA must place Fannie Mae or Freddie Mac into receivership if the FHFA's director determines that either entity's assets are, and for a period of 60 days have been, less than its obligations or that either entity is unable to pay its debts and has been unable to do so for a period of 60 days. In connection with the conservatorship, the U.S. Treasury entered into a senior preferred stock purchase agreement ("SPA") with each of Fannie Mae and Freddie Mac pursuant to which the U.S. Treasury agreed to purchase up to 1,000,000 shares of senior preferred stock with an aggregate initial liquidation preference of $1 billion and obtained warrants and options to for the purchase of common stock of each of Fannie Mae and Freddie Mac. Under the SPAs as currently amended, the U.S. Treasury has pledged to provide financial support to a government-sponsored enterprise (GSE) in any quarter in which the GSE has a net worth deficit as defined in the respective SPA. The future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things)

the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in its role as conservator, the restrictions placed on Freddie Mac's and Fannie Mae's operations and activities as a result of the senior preferred stock investment made by the U.S. Treasury, market responses to developments at Freddie Mac and Fannie Mae, and future legislative, political and regulatory action that alters the operations, ownership, structure and/or mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any mortgage-backed securities guaranteed by Freddie Mac and Fannie Mae, including any such mortgage-backed securities held by the HIT.

As of December 31, 2025, single family loans constituted approximately 25.08% of all Fannie Mae or Freddie Mac guaranteed assets held by the HIT. Fannie Mae and Freddie Mac are currently operating certain mortgage refinance, modification and loss mitigation programs with funds from federally sponsored programs for distressed single family borrowers. Fannie Mae and Freddie Mac may provide financial incentives to loan servicers and borrowers who participate in certain of these programs. These programs may result in higher-than-expected rates of repurchase of the loans backing these Mortgage Securities by the mortgage originators or servicers, which would have the same effect as if the mortgage loans had been prepaid more quickly than anticipated. However, certain other existing market conditions could reduce the likelihood of prepayment on Mortgage Securities backed by single family loans. Political uncertainty or federal government policy changes (such as the elimination of subsidies or changes to the structure of Fannie Mae or Freddie Mac) could heighten the risks associated with securities issued or guaranteed by Fannie Mae or Freddie Mac.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Risks Related to Investments in Special Purpose Investment Funds to Facilitate the Utilization of New Markets Tax Credits** 

The HIT is permitted to invest, either directly or through Building America, its indirectly wholly owned CDE, in loans to special purpose investment funds to facilitate the utilization of the federal NMTCs, subject to the requirements set forth in the HIT's Declaration of Trust. However, because of the requirements of the NMTC program the underlying investment securities would be held by Building America (or its designated subsidiary) and not by the HIT during the NMTC holding period. The HIT would hold contractual, secured interests and/or other rights in the underlying investment security, including indirect ownership rights through its ownership of Building America, but exercising these rights involves additional risk of loss that the HIT would not bear if it directly owned the security. In addition, investments in NMTC structures will typically remain illiquid, and may be subject to liquidity risk, during the NMTC holding period. Finally, there is a risk that the HIT may not be able to fully control all aspects of the choice of any required replacement investment in the event underlying transactions in NMTC-related investments liquidate during the holding period.

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Valuation Risk** 

The HIT invests in part in assets that have no readily available price quotations. These securities are valued using evaluated prices supplied by a third-party pricing vendor or prices generated by a fair value methodology under consistently applied procedures approved by the Board of Trustees. For more information on valuation of HIT units, please see "VALUATION OF UNITS" below. The sales price the HIT could receive for any particular portfolio investment may differ from the HIT's valuation of the investment, particularly for assets that are valued using a fair value methodology. Investors who purchase or redeem Units may receive fewer shares or lower redemption proceeds than they would have received if the HIT had used an alternative valuation methodology.

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Risk Related to Internal Management** 

The HIT is internally managed and as such does not employ the services of an investment adviser, administrator, underwriter, or distributor, among other separate fund service providers (together "Service Entities"). Typically, Service Entities may be held liable to a fund for certain losses or expenses, such as those arising from an act of negligence or malfeasance; an allegation of such act leading to litigation; or an operational error, such as a valuation or trading error. To the extent the HIT suffers such a loss or incurs such an expense due to the action of its internal management, which is not reimbursed by insurance proceeds, such losses or expenses would be paid out of fund assets rather than out of the assets of the Service Entity.

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Risks of Technology Systems Failures and Related Cybersecurity Incidents** 

The HIT and its significant service providers, including but not limited to the transfer agent and the custodian as well as their underlying service providers (collectively, the "Service Providers"), are heavily dependent on proprietary and third-party technology and infrastructure and on related operational and information systems, networks and functions (collectively, "Systems") to perform necessary business activities. The Systems may be vulnerable to significant damage and disruption arising from Systems failures or cybersecurity incidents. Cybersecurity incidents include, but are not limited to, gaining unauthorized access to Systems (e.g., through "hacking" or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. In addition, the HIT and its service providers may be even more reliant on such Systems in times of emergencies or other significant disruptions affecting business operations when more personnel carry out their duties remotely for extended periods. Work from home arrangements, if any, by the HIT or its service providers could increase all of the above risks, create additional data and informational accessibility concerns, and make the HIT or its service providers susceptible to operational disruptions, any of which could adversely impact their operations. Furthermore, the HIT or its service providers may be appealing targets for cybersecurity threats such as hacking and malware. Systems failures include malfunctions, failures, user error and misconduct arising from employees and agents, natural disasters, pandemics, epidemics or other events (whether foreseeable or unforeseeable). Cybersecurity incidents include intentional (*e.g*., hacking) and unintentional events or activity (*e.g*., user error). Systems failures and cybersecurity incidents may result in (i) proprietary or confidential information or data being stolen, released, corrupted or rendered unavailable, (ii) loss of operational capacity, including from denial-of-service attacks (*i.e*., efforts to make network services unavailable to intended users), and (iii) the misappropriation of HIT assets or sensitive information, among other consequences. Any such events could negatively impact the Systems and may have significant adverse impacts on the HIT and its Participants. Recently, geopolitical tensions may have increased the scale and sophistication of deliberate attacks, particularly those from nation-states or from entities with nation-state backing.

Service Providers may utilize artificial intelligence ("AI"), including large language models and machine learning algorithms. The use of AI introduces distinct and evolving operational risks that may not be captured by traditional risk management frameworks and could have an adverse effect on the HIT, its operations, and its Participants. Cybersecurity incidents related to AI include intentional (*e.g.*, hacking, adversarial attacks on AI systems, and data poisoning of machine learning models) and unintentional events or activity (*e.g.*, user error, misconfiguration of AI systems, or unintended outputs).

Systems failures and cybersecurity incidents may also interfere with or negatively impact the processing of HIT Participant transactions, pricing of HIT investments, calculating the HIT's NAV, and trading, while causing or subjecting the HIT to reputational damage, violations of law, legal claims, regulatory fines, penalties, financial losses, reimbursement expenses or other compensation costs and remediation costs, as well as additional compliance, legal, and operational costs. System failures and cybersecurity incidents may necessitate significant investment to repair or replace impacted Systems. Such events could negatively affect the HIT and its performance. Even if the HIT is able to protect its Systems from failures or cybersecurity incidents, the HIT may incur significant expenses in connection with its responses to any such events as well as from the need to adopt, implement and maintain appropriate security measures. The HIT cannot be certain that evolving threats from cyber criminals and other cyber threat actors, exploitation of new vulnerabilities in its Systems, or other developments will not compromise or impact the technology or other security measures protecting its Systems.

To date, the HIT has not experienced any material Systems failures or cybersecurity incidents; however, there is no guarantee that any Systems failures or cybersecurity incidents will not occur in the future.

Although the HIT and its Service Providers have established business continuity/disaster recovery plans and systems ("Continuity and Recovery Plans") designed to prevent or mitigate the effects of Systems failures and cybersecurity incidents, there are inherent limitations in Continuity and Recovery Plans. These limitations include the possibility that certain risks have not been identified or that Continuity and Recovery Plans might not – despite testing and monitoring – operate as designed, be sufficient to stop or mitigate losses

or otherwise fail to achieve their objective. The HIT and its Participants could be negatively impacted as a result. In addition, the HIT cannot control the Continuity and Recovery Plans of its Service Providers. As a result, there can be no assurance that Continuity and Recovery Plans will be sufficient to limit any losses relating to Systems failures or cybersecurity incidents affecting the HIT in the future. In addition to those losses, the HIT may incur substantial costs for Systems failure risk management and cybersecurity risk management in order to attempt to prevent any such events or incidents in the future.

Insurance and other traditional risk-shifting tools may be held by or available to the HIT in order to manage or mitigate the risks associated with Systems failures and cybersecurity incidents, but they are subject to terms such as deductibles, coinsurance, limits and policy exclusions, as well as risk of counterparty denial of coverage, default or insolvency. In addition, contractual remedies may not be available with respect to Service Providers or may prove inadequate if available (e.g., because of limits on the liability of the Service Providers) to protect the HIT against all losses. It is not possible to predict with certainty how such losses would be allocated among the HIT or its Service Providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Inflation Risk** 

The HIT's investments may be subject to the risk that the real value (*i.e.,* the nominal price of the asset adjusted for inflation) of income from its investments will be less in the future because inflation decreases the purchasing power and value of future interest payments (*i.e.*, as inflation increases, the real value of the HIT's future interest payments and thus its assets can decline). Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy and changes in monetary, trade or economic policies (or expectations that these policies may change). The HIT's investments may not keep pace with inflation, which would adversely affect the real value of a Participant's investments in the HIT. The risk is greater for fixed-income instruments with longer maturities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** **Risks Related to Early Stage or Structured Financings** 

The HIT is subject to certain heightened and/or unique risks in connection with Early Stage or Structured Financings. For example, with respect to pre-development loans, because the financing is typically provided in the earlier stages of a multifamily housing or other real estate project, the HIT is subject to a greater risk of loss as compared to other forms of construction financing because there is a greater risk that the project will not be viable or that construction of the project will not ultimately commence. In addition, unlike conventional mortgage loans, Early Stage or Structured Financings are not secured by first-lien mortgages and may not be secured by mortgages or liens on real property at all. Generally, mezzanine loans may be more highly leveraged than other types of loans and subordinate in the capital structure of the borrower. Accordingly, mezzanine loans involve a greater risk of default due to the need of the borrower to service more indebtedness and, therefore, the HIT is subject to a greater risk of loss. While foreclosure of a mezzanine loan generally takes less time than foreclosure of a conventional mortgage loan, the holder of a mezzanine loan has different and less favorable remedies available as compared to the holder of a first lien mortgage loan. To the extent that the amount of mortgages and senior indebtedness and liens exceed the value of the real estate, any collateral underlying a mezzanine loan may have little or no value. Preferred equity is similar to a mezzanine loan in function and, therefore, subjects the HIT to the heightened and/or unique risks described above. However, there are heightened risks associated with preferred equity investments because preferred equity is subordinate to conventional mortgage loans as well as mezzanine loans and the higher level of indebtedness subjects the HIT to a greater risk of loss because of the greater risk of default.

**MANAGEMENT OF THE HIT**

The HIT is a common law trust organized under the laws of the District of Columbia pursuant to its Declaration of Trust. Under the terms of the Declaration of Trust, the Board of Trustees of the HIT is responsible for overseeing the management and policies of the HIT. The Board of Trustees currently maintains three committees: the Executive Committee, the Audit Committee and the Nominating Committee. The Chief Executive Officer, assisted by the other officers of the HIT, is responsible for the HIT's day-to-day administration.

Up to 12 of the Trustees may be officers or employees of the AFL-CIO or its member unions ("Union Trustees"); up to 12 Trustees may be either (i) officers or management employees of organizations which contribute

to an Eligible Pension Plan or officers or management employees of an Eligible Pension Plan, or (ii) officers, directors or trustees of housing, finance or real estate development organizations or current or former federal, state or local government officials (collectively, "Management Trustees"). One Trustee, the Chairman (also referred to as the "Chair"), must be an individual who is not an officer, trustee or employee of any organization that participates in the HIT. As of the date of this SAI, the Board of Trustees consists of the Chairman, nine Union Trustees and six Management Trustees. The number of Management Trustees may not exceed the number of Union Trustees, unless a Union Trustee dies or resigns before the expiration of his or her term. All of the members of the Board of Trustees, including the Chairman, are not interested persons as defined in Section 2(a)(19) of the Investment Company Act ("Interested Person").

Between meetings of the full Board of Trustees, the Executive Committee of the Board of Trustees acts for the Board in overseeing HIT affairs. The Executive Committee is currently composed of Chair Christopher Coleman, Union Trustees Sean McGarvey, Terry O'Sullivan and Liz Shuler, and Management Trustees Kevin Filter, Jack F. Quinn, Jr., and Harry W. Thompson. The Executive Committee has all the authority of the Board of Trustees when the Board is not in session.

The Audit Committee monitors the accounting practices of the HIT's management and independent registered public accounting firm. The Audit Committee is composed of Union Trustee Fred Redmond, and Management Trustees Vito V. Mundo, Jack Quinn, Jr. and Harry W. Thompson (Committee Chair and designated Audit Committee Financial Expert). The Audit Committee operates under a written charter adopted by the Board of Trustees. Pursuant to its charter, the Audit Committee must meet annually with the independent registered public accounting firm to review the audit outside the presence of HIT management.

The Nominating Committee is currently composed of Union Trustees Sean McGarvey and Liz Shuler (Committee Chair) and Management Trustee Bridget Gainer. The Nominating Committee recommends candidates for election to the Board of Trustees. Pursuant to Section 4 of its charter, the Nominating Committee will consider Trustee candidates recommended by Participants. The Nominating Committee has not adopted formal procedures to be followed by Participants in submitting such recommendations. However, it is the practice of the Board of Trustees, no member of which is an Interested Person, to set a record date by which Participants may submit matters for consideration by the Participants at the annual meeting, including recommendations for trustee candidates. Once received, the Nominating Committee reviews the eligibility of each candidate in accordance with the criteria set forth in the charter. The Trustees' policy is to nominate Trustees in a manner that seeks to produce the best candidates with a diversity of qualities, experience, backgrounds, and complementary skills.

No committee functions as a compensation committee as such. The Executive Committee, however, does make recommendations to the Board of Trustees concerning compensation payable to Trustees acting in their capacities as trustees and compensation payable to any executive officers with an employee contract.

Consistent with its overall responsibility for the management and policies of the HIT, the Board of Trustees oversees the risk management of the HIT directly and, through its committee structure and delegations to HIT management, indirectly. The Board of Trustees has adopted and periodically reviews and approves policies and procedures designed to address areas of potential concern, such as valuation, liquidity, internal controls, business continuity and portfolio management, and to regulate the daily business conduct of the HIT. The Board of Trustees requires regular reports from Trust management on matters related to risk both at its regular meetings and periodically throughout the year. The Chief Financial Officer reports regularly to the Board of Trustees and the Audit Committee on matters related to internal controls, audits and accounting. The Chief Compliance Officer reports to the Board of Trustees in person and in writing regarding the effectiveness of the HIT's compliance program and other compliance related matters at least annually. In addition, the Board of Trustees and the Audit Committee require regular reports from independent valuation validation consultants and the HIT independent auditor and periodic reports from outside counsel and fund compliance service providers to assist their risk management efforts.

The Board of Trustees met four times during the HIT's fiscal year ended December 31, 2025. The Nominating Committee met one time, the Audit Committee met three times, and the Executive Committee met three times during the HIT's fiscal year ended December 31, 2025.

The Chief Executive Officer, assisted by the other officers of the HIT, is responsible for the HIT's day-to-day

administration. The Portfolio Management Team, overseen by the Portfolio Management Committee, manages the portfolio to, among other things, achieve competitive risk adjusted returns. The Investment Committee reviews and approves proposed investments in transactions negotiated and structured by HIT Multifamily staff to ensure that they meet both the portfolio's risk and return and the HIT's union labor requirements. The Valuation Committee is the Board's "valuation designee" pursuant to Rule 2a-5 under the Investment Company Act ("Valuation Designee") and oversees and monitors the HIT's valuation process to ensure that portfolio is properly valued consistent with Board-directed valuation policies and procedures and with legal requirements. The Board has also appointed the Valuation Committee as the Liquidity Program Administrator. The Portfolio Management, Investment and Valuation Committees are comprised of senior HIT staff. The Executive Committee of the Board of Trustees reviews and approves any proposed single transaction over $75 million for newly originated mortgage assets or over 2% of the HIT's NAV for other investments.

**TRUSTEES OF THE HIT**

The current Trustees of the HIT, their principal occupations and qualifications for Board service, and other information are listed below. Correspondence intended for a Trustee may be sent to the AFL-CIO Housing Investment Trust, 1227 25<sup>th</sup> Street, N.W., Suite 500, Washington, DC 20037.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name and Age\*** | &nbsp;&nbsp;**Position Held with the HIT** | &nbsp;&nbsp;**Term of Office and Length of Time Served** | &nbsp;&nbsp;**Principal Occupation & Business Experience During at Least Past 5 Years/ Qualification for Board Service** | &nbsp;&nbsp;**Other Directorships Held by Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Christopher Coleman<br>Age 64<br>| &nbsp;&nbsp;Chairman | &nbsp;&nbsp;Service Commenced December 2020, Term Expires 2026 | &nbsp;&nbsp;President and CEO, Twin Cites Habitat for Humanity; formerly, Mayor, City of Saint Paul, MN; President, National League of Cities; Member, St. Paul City Council; Investment Advisor, RBC Cain Rauscher. Mr. Coleman has particular knowledge and experience regarding real estate finance and construction, economic and community development and public policy.<br>|  |
| &nbsp;&nbsp;&nbsp;Timothy J. Driscoll<br>Age 63<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced March 2020, Term Expires 2028<br>| &nbsp;&nbsp;President, International Union of Bricklayers and Allied Craftworkers ("BAC"); Member, BAC Executive Board; Co-Chair of both Bricklayers and Trowel Trades International Pension Fund and International Health Fund; Member, Governing Board of Presidents, NABTU; formerly, Secretary-Treasurer and Executive Vice President, International Union BAC. Mr. Driscoll has particular knowledge and experience regarding pension plans, the construction industry and the labor movement.<br>|  |

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\* None of the Trustees of the HIT is an "interested person" as defined in the Investment Company Act. However, several of the Trustees are associated with organizations that, among other things, develop and manage affordable housing, promote the construction of affordable housing and/or facilitate employment for union members in the construction trades and related industries. From time to time, organizations with which Trustees may be associated may, directly or indirectly, be involved in a transaction in which the HIT is also a participant.

\*\* Disclosure is related to the past 5-year period and is limited to directorships in a corporation or trust having securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, or subject to the requirements of Section 15(d) of such Act, or a company registered as an investment company under the Investment Company Act.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name and Age\*** | &nbsp;&nbsp;**Position Held with the HIT** | &nbsp;&nbsp;**Term of Office and Length of Time Served** | &nbsp;&nbsp;**Principal Occupation & Business Experience During at Least Past 5 Years/ Qualification for Board Service** | &nbsp;&nbsp;**Other Directorships Held by Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Brendan Griffith<br>Age 44<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced<br>December 2025, <br> Term Expires<br>2028<br>| &nbsp;&nbsp;President, New York City Central Labor Council ("NYC CLC"); Board Vice Chair New York Committee for Occupational Safety & Health; Adjunct Professor SUNY Empire State College Harry Van Arsdale Jr School of Labor Studies; formerly Chief of Staff and Assistant to the President, NYC CLC; apprenticed with Iron Workers Local 40; Mr. Griffith has knowledge and experience regarding public policy, the labor movement and the construction industry.<br>|  |
| &nbsp;&nbsp;&nbsp;Sean McGarvey<br>Age 63<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced December 2012, Term Expires 2027 | &nbsp;&nbsp;President, North America's Building Trades Unions; formerly Secretary-Treasurer, Building and Construction Trades Department, AFL-CIO. Mr. McGarvey has particular knowledge and experience regarding the construction industry, pension plans and the labor movement.<br>|  |
| &nbsp;&nbsp;&nbsp;Paul A. Noble<br>Age 60<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced March 2023, Term Expires 2026 | &nbsp;&nbsp;International Secretary-Treasurer, International Brotherhood of Electrical Workers ("IBEW"); formerly International Vice President, Sixth District, IBEW. Mr. Noble has particular knowledge and experience regarding the construction industry, pension funds and the labor movement.<br>|  |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name and Age\*** | &nbsp;&nbsp;**Position Held with the HIT** | &nbsp;&nbsp;**Term of Office and Length of Time Served** | &nbsp;&nbsp;**Principal Occupation & Business Experience During at Least Past 5 Years/ Qualification for Board Service** | &nbsp;&nbsp;**Other Directorships Held by Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Terry O'Sullivan<br>Age 70<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced December 2019, Term Expires 2028<br>| &nbsp;&nbsp;General President Emeritus, LIUNA; Labor Co-Chairman of the Laborers' Training and Education Fund; Board Chairman of the LIUNA Charitable Foundation; Chairman of the Board, ULLICO. Formerly, General President, LIUNA. Mr. O'Sullivan has particular knowledge and experience regarding pension plans, the construction industry, and the labor movement.<br>|  |
| &nbsp;&nbsp;&nbsp;Fredrick Redmond<br>Age 71<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced September 2021, Term Expires 2026 | &nbsp;&nbsp;Secretary-Treasurer, AFL-CIO; Trustee, AFL-CIO Staff Retirement Plan; President, Trade Union Confederation of Americas, Chair, A. Philip Randolph Institute; formerly International Vice President (Human Affairs), United Steelworkers. Mr. Redmond has particular knowledge and experience regarding public policy, economic justice, and the labor movement.<br>|  |
| &nbsp;&nbsp;&nbsp;Anthony Shelton<br>Age 72<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced June 2020, Term Expires 2026 | &nbsp;&nbsp;International President, Bakery, Confectionery, Tobacco Workers & Grain Millers Union ("BCTGM"); formerly International Secretary-Treasurer, BCTGM. Mr. Shelton has particular knowledge and experience regarding pension funds and the labor movement.<br>|  |
| &nbsp;&nbsp;&nbsp;Elizabeth Shuler<br>Age 55<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced October 2009, Term Expires 2027 | &nbsp;&nbsp;President, AFL-CIO; Trustee, AFL-CIO Staff Retirement Plan; formerly Secretary-Treasurer, AFL-CIO, Executive Assistant to the President, IBEW. Ms. Shuler has particular knowledge and experience regarding the construction industry, pension plans and the labor movement.<br>|  |
| &nbsp;&nbsp;&nbsp;James A. Williams, Jr.<br>Age 58<br>| &nbsp;&nbsp;Union Trustee | &nbsp;&nbsp;Service Commenced December 2023, Term Expires 2026 | &nbsp;&nbsp;General President, International Union of Painters and Allied Trades ("IUPAT"); Member, Executive<br>Council and Governing Board, AFL-CIO; Member, NABTU Governing Board of Presidents; Co- <br> Chair of the U.S. Industry Pension Fund, the Labor Management Cooperation Initiative, and the<br>International Finishing Trades Institute; formerly, General Vice President At-Large, IUPAT.  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name and Age\*** | &nbsp;&nbsp;**Position Held with the HIT** | &nbsp;&nbsp;**Term of Office and Length of Time Served** | &nbsp;&nbsp;**Principal Occupation & Business Experience During at Least Past 5 Years/ Qualification for Board Service** | &nbsp;&nbsp;**Other Directorships Held by Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Kevin Filter<br>Age 72<br>| &nbsp;&nbsp;Management Trustee | &nbsp;&nbsp;Service Commenced December 2019, Term Expires 2028<br>| &nbsp;&nbsp;Managing Principal, GFW Equities, Mud Duck Capital & Los Cielos; formerly International Director, JLL; Co-Founder, Principal and President, Oak Grove Capital; Co-Founder, Principal and President, Glaser Financial Group. Mr. Filter has particular knowledge regarding finance and investments, public policy, real estate and the construction industry. |  |
| &nbsp;&nbsp;&nbsp;Bridget Gainer<br>Age 57<br>| &nbsp;&nbsp;Management Trustee | &nbsp;&nbsp;Service Commenced January 2018, Term Expires<br>2026  | &nbsp;&nbsp;Commissioner, Cook County Board; Vice President Global Affairs, Head of Public Affairs & Business Development & Strategy, Aon; formerly Director, Chicago Parks District. Ms. Gainer has particular knowledge and experience regarding labor relations, pension plans and public policy.<br>|  |
| &nbsp;&nbsp;&nbsp;Vito V. Mundo<br>Age 69  | &nbsp;&nbsp;Management Trustee | &nbsp;&nbsp;Service Commenced December 2024, Term Expires 2027 | &nbsp;&nbsp;Consultant, Joint Industry Board of the Electrical Industry ("JIB"); formerly General Counsel, JIB. Mr. Mundo has particular knowledge and experience regarding labor relations, pension plane, finance law, real estate and investment transactions and corporate governance. |  |
| &nbsp;&nbsp;&nbsp;Jack Quinn, Jr.<br>Age 75<br>| &nbsp;&nbsp;Management<br>Trustee<br>| &nbsp;&nbsp;Service Commenced June 2005, Term Expires 2026 | &nbsp;&nbsp;Senior Advisor for Public & Community Relations, Barclay Damon, formerly President, Erie Community College; formerly President, Cassidy & Associates; Member of Congress, 27th District, New York. Mr. Quinn has particular knowledge and experience regarding the significant facets of the operations of the HIT and public policy.<br>|  |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name and Age\*** | &nbsp;&nbsp;**Position Held with the HIT** | &nbsp;&nbsp;**Term of Office and Length of Time Served** | &nbsp;&nbsp;**Principal Occupation & Business Experience During at Least Past 5 Years/ Qualification for Board Service** | &nbsp;&nbsp;**Other Directorships Held by Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Deidre L. Schmidt<br>Age 56<br>| &nbsp;&nbsp;Management Trustee | &nbsp;&nbsp;Service Commenced January 2018, Term Expires<br>2026  | &nbsp;&nbsp;President & CEO, CommonBond Communities; formerly Principal, One Roof Global Consulting; Lecturer, Harvard Graduate School of Design; Executive Director, Affordable Housing Institute. Ms. Schmidt has particular knowledge and expertise regarding significant facets of real estate finance, community development and public policy.<br>|  |
| &nbsp;&nbsp;&nbsp;Harry W. Thompson<br>Age 66<br>| &nbsp;&nbsp;Management Trustee | &nbsp;&nbsp;Service Commenced April 2019, Term Expires 2027 | &nbsp;&nbsp;Consultant, Harry Thompson Associates; formerly, Chief Financial Officer, Community Preservation & Development Corporation; Chief Financial Officer, Realty Investment Company, Inc. Mr. Thompson has particular knowledge about registered investment companies, accounting, and financial reporting.<br>|  |

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Union Trustees Noble, Redmond, Shelton and Williams and Management Trustees Gainer, Quinn and Schmidt are "Class I" Trustees, whose terms expire at the 2026 Annual Meeting of Participants. Union Trustees McGarvey and Shuler and Management Trustees Thompson and Mundo are "Class II" Trustees whose terms expire at the 2027 Annual Meeting of Participants. Union Trustees Driscoll, Griffith and O'Sullivan, and Management Trustee Filter are "Class III" Trustees whose term expires at the 2028 Annual Meeting of Participants. Chair Coleman is a non-classified trustee with a one-year term expiring at the 2026 Annual Meeting of Participants.

**EXECUTIVE OFFICERS**

The Executive Officers of the HIT are all located at 1227 25<sup>th</sup> Street, N.W., Suite 500, Washington, D.C. 20037. With the exception of the CEO, who serves under the terms of an employment contract, the Executive Officers of the HIT are elected annually by the Board of Trustees to terms of approximately 12 months generally running concurrently with the fiscal year or until their respective successors are appointed and qualify. The executive officers of the HIT are as follows:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name & Age** | &nbsp;&nbsp;**Current Position with the HIT** | &nbsp;&nbsp;**Length of Time Served with the HIT** | &nbsp;&nbsp;**Previous Principal Occupations over at Least Past 5 Years** |
| &nbsp;&nbsp;Chang Suh<br>Age 55<br>| &nbsp;&nbsp;Chief Executive Officer since 2018 and Chief Investment Officer since 2003 | &nbsp;&nbsp;Service Commenced April 1998 | &nbsp;&nbsp;Formerly Co-Chief Portfolio Manager, Senior Executive Vice President and Chief Portfolio Manager, AFL-CIO Housing Investment Trust. |
| &nbsp;&nbsp;John Hanley<br>Age 59<br>| &nbsp;&nbsp;Senior Managing Director – Multifamily Origination since 2019 | &nbsp;&nbsp;Service Commenced July 2019,<br> Previous Service 1992-2001 & 2003-2006 | &nbsp;&nbsp;Formerly Director-Investments, National Real Estate Advisors; Executive Vice-President-Investments and Portfolio Management, AFL-CIO Housing Investment Trust. |

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name & Age** | &nbsp;&nbsp;**Current Position with the HIT** | &nbsp;&nbsp;**Length of Time Served with the HIT** | &nbsp;&nbsp;**Previous Principal Occupations over at Least Past 5 Years** |
| &nbsp;&nbsp;Erica Khatchadourian<br>Age 58<br>| &nbsp;&nbsp;Chief Operating Officer since 2022<br>| &nbsp;&nbsp;Service Commenced April 1993 | &nbsp;&nbsp;Formerly Chief Financial Officer, Controller, Chief of Staff and Director of Operations, AFL-CIO Housing Investment Trust. |
| &nbsp;&nbsp;Nicholas C. Milano<br>Age 59<br>| &nbsp;&nbsp;General Counsel since 2013 | &nbsp;&nbsp;Service Commenced August 2013, Previous Service 2003-2007 | &nbsp;&nbsp;Formerly Of Counsel, Perkins Coie LLP; Deputy General Counsel and Chief Compliance Officer, Legg Mason Capital Management; Deputy General Counsel and Chief Compliance Officer, AFL-CIO Housing Investment Trust; Senior Counsel, Division of Investment Management, Securities and Exchange Commission. |
| &nbsp;&nbsp;Laureen O'Brien<br>Age 55  | &nbsp;&nbsp;Chief Compliance Officer and Counsel since 2022 | &nbsp;&nbsp;Service Commenced July 2002, Previous Service 1993-1995. | &nbsp;&nbsp;Formerly Director of Compliance, Special Counsel, Chief of Staff, Service Commenced July 2002, Previous Service 1993-1995. AFL-CIO Housing Investment Trust |
| &nbsp;&nbsp;Harpreet Peleg<br>Age 52  | &nbsp;&nbsp;Chief Financial Officer since 2022 | &nbsp;&nbsp;Service Commenced March 2005 | &nbsp;&nbsp;Chief Executive Officer, Building America CDE, Inc.; formerly Senior Managing Director – Finance and Controller, AFL-CIO Housing Investment Trust, Chief Financial Officer, AFL-CIO Investment Trust Corporation. |
| &nbsp;&nbsp;William K. Pierce<br>Age 33  | &nbsp;&nbsp;Senior Portfolio Manager | &nbsp;&nbsp;Service Commenced October 2020 | &nbsp;&nbsp;Formerly, Portfolio Manager, AFL-CIO Housing Investments Trust; Portfolio Manager, Capital One. |
| &nbsp;&nbsp;Julissa Servello<br>Age 49  | &nbsp;&nbsp;Managing Director – Investor Relations | &nbsp;&nbsp;Service Commenced September 1998 | &nbsp;&nbsp;Formerly Director of Investor Relations, Senior Investor Relations Manager, Investor Relations Manager, Marking Coordinator, AFL-CIO Housing Investment Trust. |
| &nbsp;&nbsp;Lesyllee White<br>Age 63<br>| &nbsp;&nbsp;Chief Marketing Officer since 2019 | &nbsp;&nbsp;Service Commenced November 1999 | &nbsp;&nbsp;Formerly Executive Vice President and Managing Director of Defined Benefit Marketing, AFL-CIO Housing Investment Trust |

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Information is accurate as of the date of this SAI.

**2025 Compensation Table** 

The following table sets forth the aggregate compensation from the HIT to each of the three highest paid officers of the HIT and to all Trustees of the HIT for the 2025 fiscal year. The HIT is a single, self-managed fund, and as of December 31, 2025, its staff included 43 employees. Therefore, in addition to those individuals identified in the table below, the HIT had 37 other employees who earned aggregate compensation exceeding $60,000 during the 2025 fiscal year.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Person, Position** | &nbsp;&nbsp;**Aggregate Compensation From HIT** | &nbsp;&nbsp;**Pension or Retirement Benefits Accrued in HIT Expenses** | &nbsp;&nbsp;**Estimated Annual Benefits Upon Retirement**<sup>1</sup> | &nbsp;&nbsp;**Total Compensation Paid to Trustees** |
| Chang Suh<sup>2</sup> Chief Executive Officer and Chief Investment Officer | &nbsp;&nbsp;$1253716 | &nbsp;&nbsp;$79900 | &nbsp;&nbsp;$191454 | &nbsp;&nbsp;Not applicable |
| &nbsp;&nbsp;&nbsp;William K. Pierce<sup>3</sup> Senior Portfolio Manager<br>| &nbsp;&nbsp;473758 | &nbsp;&nbsp;89340 | &nbsp;&nbsp;34667 | &nbsp;&nbsp;Not applicable |
| &nbsp;&nbsp;&nbsp;John Hanley<sup>4</sup><br>Senior Management Director – Multifamily Origination<br>| &nbsp;&nbsp;431935 | &nbsp;&nbsp;84600 | &nbsp;&nbsp;110008 | &nbsp;&nbsp;Not applicable |
| &nbsp;&nbsp;&nbsp;Christopher Coleman<br>Chair  | &nbsp;&nbsp;36000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;36000 |

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<sup>1</sup> The estimated annual benefits payable upon retirement at normal retirement age to the executive officers and staff of the HIT are determined primarily by a formula based on final average salary and years of service and assume that the officers retire at ages that are consistent with IRS requirements. See "STAFF RETIREMENT PLAN" below.

<sup>2</sup> Aggregate HIT compensation includes $26,350 of deferred compensation and includes $350,004 of a Nonqualified Deferred Compensation Arrangement ("NCDA") deferral. HIT's 2025 retirement benefits expense includes $8,500 of 401(k) employer matching funds, $71,400 contributed to the defined benefit retirement plan. Mr. Suh's December 31, 2025, 401(k) Plan balance is $2,501,463. No amounts were paid or distributed from the 401(k) Plan or the NDCA for Mr. Suh in 2025. Pursuant to the NDCA, provided that Mr. Suh remains in his current position with the HIT, Mr. Suh will accrue an additional $350,004 per year through December 31, 2026, at which time Mr. Suh would receive a lump sum payment representing the total amount accrued under the NDCA, which would be $2,650,000. Under the terms of the NDCA, Mr. Suh would receive the amount that has been accrued to date upon his separation from the HIT if that occurs prior to the final payout payable as of December 31, 2026.

<sup>3</sup> Aggregate HIT Compensation includes $23,479 of deferred compensation under the 401(k) Plan, and excludes amounts contributed to the SRP on Mr. Pierce's behalf. Pension or Retirement Benefits as Part of HIT Expenses includes $10,000 of matching funds paid by the HIT into the 401(k) Plan and $79,340 contributed to the SRP on Mr. Pierce's behalf. Mr. Pierce's December 31, 2025, 401(k) Plan balance is $460,599. No amounts were paid or distributed from the 401(k) Plan for Mr. Pierce in 2025.

<sup>4</sup> Aggregate HIT Compensation includes $17,209 of deferred compensation under the 401(k) Plan, and excludes amounts contributed to the SRP on Mr. Hanley's behalf. Pension or Retirement Benefits as Part of HIT Expenses includes $9,000 of matching funds paid by the HIT into the 401(k) Plan and $75,600 contributed to the SRP in 2025 on Mr. Hanley's behalf. Mr. Hanley's December 31, 2025,401(k) Plan balance is $302,009. No amounts were paid or distributed from the 401(k) Plan for Mr. Hanley in 2025. Pursuant to a supplemental retirement plan, Mr. Hanley will receive a one-time payment at retirement intended to close a pension plan payment scale gap as a consequence of an earlier break in employment service with the HIT and a pension plan freeze prior to his rehire by the HIT. The amount to be paid at retirement pursuant to this supplemental plan is currently undetermined.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Person, Position** | &nbsp;&nbsp;**Aggregate Compensation From HIT** | &nbsp;&nbsp;**Pension or Retirement Benefits Accrued in HIT Expenses** | &nbsp;&nbsp;**Estimated Annual Benefits Upon Retirement**<sup>[1]</sup> | &nbsp;&nbsp;**Total Compensation Paid to Trustees** |
| &nbsp;&nbsp;&nbsp;Vincent Alvarez<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Timothy J. Driscoll<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Kevin Filter<br>Management Trustee  | &nbsp;&nbsp;4000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;4000 |
| &nbsp;&nbsp;&nbsp;Sean McGarvey<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Vito V. Mundo<br>Management Trustee  | &nbsp;&nbsp;3000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;3000 |
| &nbsp;&nbsp;&nbsp;Paul Noble<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Fred Redmond<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Anthony Shelton<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Liz Shuler<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;James A. Williams Jr.<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Bridget Gainer<br>Management Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Jack F. Quinn, Jr.<br>Management Trustee  | &nbsp;&nbsp;8000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;8000 |
| &nbsp;&nbsp;&nbsp;Deidre L. Schmidt<br>Management Trustee  | &nbsp;&nbsp;4000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;4000 |
| &nbsp;&nbsp;&nbsp;Terry O'Sullivan<br>Union Trustee  | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;&nbsp;Harry W. Thompson<br>Management Trustee  | &nbsp;&nbsp;28000 | &nbsp;&nbsp;-- | &nbsp;&nbsp;-- | &nbsp;&nbsp;28000 |

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**RETIREMENT PLANS**

The HIT participates in the AFL-CIO Staff Retirement Plan (the "Staff Retirement Plan") and sponsors the AFL-CIO Housing Investment Trust 401(k) Plan (the "401(k) Plan") described below for all of its employees.

**Staff Retirement Plan**

The Staff Retirement Plan is open to employees of the AFL-CIO and other participating employers that are approved by the Staff Retirement Plan's board of trustees. All participating employers make contributions to the Staff Retirement Plan on their employees' behalf. Such employees become members of the Staff Retirement Plan on their first day of employment that they are scheduled to work at least 1,000 hours during the next 12 consecutive months.

Under the Staff Retirement Plan, contributions are based on an eligible employee's base salary. The Internal Revenue Service ("IRS") imposes an annual maximum on the amount that can be included in determining base salary for employer contributions. During 2025 that maximum amount was $350,000. In general, employer contribution rates are determined actuarially every year. The Staff Retirement Plan was funded by employer contributions at rates of 24.00% of eligible employees' base salaries during the twelve months ended December 31, 2025. During 2025, the annual base salary used to calculate estimated annual pension payments upon retirement from the Staff Retirement Plan for Mr. Suh was $250,000, Mr. Pierce was $231,840 and Mr. Hanley was $171,483 prior to July 1, 2024, and $324,000, $276,859, and $324,000 respectively thereafter, consistent with the terms for determining the current Final Average Salary explained below. As of the date hereof, Mr. Suh has approximately 28, Mr. Pierce has approximately 6, and Mr. Hanley has approximately 21 credited years of service under the Staff Retirement Plan.

The Staff Retirement Plan provides a retirement pension to eligible employees for life, beginning at age 65 if the employee has at least three years of vesting service, beginning as early as age 60 if the employee has at least 10 years of credited service, or beginning as early as age 50 if the employee's age plus years of credited service equals 80 or more. The amount of this pension depends on average base salary and years of credited service. For service through June 30, 2024, eligible employees will receive 3.00% of their "Part A - Final Average Salary" for each year of credited service up to 25 years, and 0.5% of their Part A - Final Average Salary for each year of credited service over 25 years. Part A – Final Average Salary is an average of the highest consecutive 36 months' base earnings through June 30, 2014 (or at the point of vesting if later). For service on and after July 1, 2024, eligible employees will receive 2.12% of "Part B – Final Average Salary" for each year of credited service up to 25 years and 0.5% of their Part B – Final Average Salary for each year of credited service over 25 years. Part B – Final Average Salary is an average of the highest consecutive 60 months' base earnings while working in covered employment under the Plan.

This final calculated pension amount at retirement is subject to (1) IRS limits, (2) certain elections related to survivor benefits made by the employee at the time of retirement, (3) the Part A - Final Average Salary for service prior to July 1, 2024, and (4) the Part B – Average Salary for service on and after July 1, 2024.

Set forth below is a table showing estimated annual benefits payable upon retirement in specified compensation and years of service classifications. Each table reflect the estimated amounts as though all service had been earned under the respective formula.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Estimated Annual Benefit Under Part A** (pre June 30, 2024) | **Estimated Annual Benefit Under Part A** (pre June 30, 2024) | **Estimated Annual Benefit Under Part A** (pre June 30, 2024) | **Estimated Annual Benefit Under Part A** (pre June 30, 2024) | **Estimated Annual Benefit Under Part A** (pre June 30, 2024) |
| **Frozen Final Average Salary<sup>1</sup>** | Years of Service | Years of Service | Years of Service | Years of Service |
| **Frozen Final Average Salary<sup>1</sup>** | 15 | 20 | 25 | 30 |
| $100000 | $45000 | $60000 | $75000 | $77500 |
| 150000 | 67500 | 90000 | 112500 | 116250 |
| 200000 | 90000 | 120000 | 150000 | 155000 |
| 250000 | 112500 | 150000 | 187500 | 193750 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Estimated Annual Benefit Under Part B** (post June 30, 2024) | **Estimated Annual Benefit Under Part B** (post June 30, 2024) | **Estimated Annual Benefit Under Part B** (post June 30, 2024) | **Estimated Annual Benefit Under Part B** (post June 30, 2024) | **Estimated Annual Benefit Under Part B** (post June 30, 2024) |
| **Final Average Salary** | Years of Service | Years of Service | Years of Service | Years of Service |
| **Final Average Salary** | 15 | 20 | 25 | 30 |
| $100000 | $31800 | $42400 | $53000 | $55500 |
| 150000 | 47700 | 63600 | 79500 | 83250 |
| 200000 | 63600 | 84800 | 106000 | 111000 |
| 250000 | 79500 | 106000 | 132500 | 138750 |

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<sup>1</sup> Final average salary frozen as of June 30, 2014, or point of vesting if later.

**The 401(k) Plan**

Under the 401(k) Plan, an eligible employee may designate to set aside up to 100% of his or her total compensation, up to the IRS maximum. All employees of the HIT are eligible to participate in the 401(k) Plan provided such employee has reached the age of 21 and is not a nonresident alien. Eligible employees may enroll in or change their contribution at any time during the year. The HIT matched dollar-for-dollar the first $10,000 contributed by the employee in 2025 and is matching the first $10,000 in 2026. The amount elected to be deferred by an eligible employee and the amount of the HIT's matching contribution will be deposited in a trust account at the recordkeeper in the employee's name and vests immediately. No part of the trust account is secured by the HIT.

Except as noted below, an actively working employee under the age of 59½ cannot withdraw these amounts unless the employee has a financial hardship as defined by the IRS. The employee's entire 401(k) account value, plus the vested value of the employer matching contributions may be used towards a financial hardship. Additionally, an active employee may borrow from his or her account subject to certain prescribed limitations, however, the loan must be paid back upon termination of employment or treated as a distribution, and penalties and taxes may apply.

When a participating employees active employment terminates, the employee will be able to receive as a lump sum payment the salary reduction amounts that were contributed to the trust account on the employee's behalf, the amounts that the HIT contributed to the trust account on the employee's behalf, plus income earned (or less losses incurred) as a result of investment of these contributions (less the employee's allocated share of expenses). The use of such lump sum payments are governed by tax laws.

Per IRS regulations, amounts in an individual's account must be distributed to the employee in one lump sum or in periodic installments directed by the individual, beginning no later than April 1<sup>st</sup> of the year following the year in which the employee retires after reaching age 73. Additionally, these amounts must be distributed within a reasonable time following the termination of the 401(k) Plan.

**CODE OF ETHICS**

The Board of Trustees of the HIT has adopted a Code of Ethics (the "Code") under Rule 17j-1 under the Investment Company Act for the HIT. The Code applies to the personal trading activities of "access persons" (generally, officers and employees of the HIT who participate in or have access to information respecting the HIT's purchase or sale of investments). The Code requires that access persons report their securities holdings and transactions to the HIT, and that such persons obtain pre-clearance from the HIT for certain transactions. The Code permits access persons to invest in securities, including, under certain circumstances, securities that may be purchased or held by the HIT. The Code is incorporated by reference as an exhibit to this Post-Effective Amendment to the HIT's registration statement and has been filed with the SEC.

**PORTFOLIO MANAGERS**

The HIT's portfolio is internally managed and has no contract with an investment adviser. The Board of Trustees has determined that that the HIT's internalized management structure is in the best interest of the HIT and the Participants. The members of the Portfolio Management Team that are jointly and primarily responsible for the day-to-day management of the HIT's portfolio are Chang Suh and William K. Pierce. Messrs. Suh and Pierce do not

manage any other accounts and have no ownership interest in the HIT.

As of the filing of this SAI, the HIT's portfolio managers' compensation primarily consists of non-incentivized, base salary and standard employee benefits, which is determined by their experience and performance in the role. In addition, the portfolio managers are eligible to participate in the HIT's Retirement and 401(k) Plans (see "STAFF RETIREMENT PLAN" and "THE 401(K) PLAN" above), as well as the standard health and welfare benefits available to all HIT employees. In connection with his role as Chief Executive Officer of the HIT, Mr. Suh also participates in a NDCA (see "2025 COMPENSATION TABLE" above). In addition, all employees, including the portfolio managers, may on occasion receive merit bonuses based on management's subjective assessment of individual contributions or the success of the organization. Such merit bonuses are not calculated based on the performance returns of the portfolio. All other components of the portfolio managers' compensation, such as retirement compensation and standard benefits, are either fixed amounts or amounts based on fixed calculations with fixed inputs.

**PRINCIPAL HOLDERS AND MANAGEMENT OWNERSHIP**

As of March 31, 2026, the following Participants owned of record and is known by the HIT to own beneficially 5% or more of Units:

---

| | |
|:---|:---|
| **Participant** | **Percentage of Units Owned** |
| ILWU-PMA Pension Plan | 13.97% |
| 1188 Franklin Street, Suite 300 |  |
| San Francisco, CA 92109 |  |
| National Electrical Benefit Fund | 6.24% |
| 900 Seventh Street, N.W., 9<sup>th</sup> Floor |  |
| Washington, D.C. 20001 |  |

---

Individuals are not eligible to invest directly in the HIT, and the Trustees and officers, as a group, directly own no Units in the HIT. Individual officers, as employees of the HIT, may, however, invest funds held in their accounts under the AFL-CIO Housing Investment Trust 401(k) Plan in the HIT Daily Value Fund (the "DVF"), which is a Collective Investment Fund that invests its portfolio assets, in turn, in the HIT, index funds tracking the Bloomberg U.S. Aggregate Bond Index and cash-like assets. The amount that individual officers, as a group, hold indirectly in the HIT through the DVF is less than one percent (1.0%) of the asset value of the HIT.

**SALES AND DISTRIBUTION ACTIVITIES**

The HIT's Marketing Division, operating primarily out of the HIT offices in the District of Columbia, conducts, and manages the other HIT staff members who conduct, sales and distribution activities for the HIT. Sales and distribution activities are directed to eligible investors and include solicitations in person or by mail or telephone as well as responding to inquiries concerning the HIT's offering of Units, and the ministerial and clerical work of effecting sales of Units. Expenses of sales and distribution of Units in this manner are paid by the HIT pursuant to a Plan for Distribution adopted by the Trustees and the Participants pursuant to SEC Rule 12b-1 under the Investment Company Act (the "Distribution Plan"). Sales and distribution expenses, including printing of the prospectus and travel costs, for the year ended December 31, 2025, were $1,658,000 which represents approximately 0.02% of the HIT's average net assets. The Board of Trustees has approved the use of up to $600,000 or 0.05% of the HIT's average monthly net assets on an annualized basis for the fiscal year, whichever is greater, under the HIT's Distribution Plan, from which non-material increases may be made by the Board of Trustees. No material increase in the budget for the Distribution Plan will be made without Participant approval.

Of the $1,658,000 of sales and distribution expenses incurred for the year ended December 31, 2025, the following amounts were expended on each of the categories listed below. All such amounts were paid in cash.

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| | |
|:---|:---|
| &nbsp;&nbsp;Category | Year Ended December 31, 2025 |
| &nbsp;&nbsp;Printing and mailing of prospectuses to other than current security holders | $0 |
| &nbsp;&nbsp;Advertising | 10000 |
| &nbsp;&nbsp;Compensation to sales personnel (salaries plus fringe benefits) | 1135000 |
| &nbsp;&nbsp;Other (includes travel and meeting expenses, office supplies, consulting fees and expenses) | 513000 |
| &nbsp;&nbsp;TOTAL | $1658000 |

---

No interested person of the HIT or any disinterested Trustee had any direct or indirect financial interest in the operation of the Distribution Plan or related agreements during the year ended December 31, 2025 with the possible exception of certain of the HIT's marketing staff who, if determined to be "interested persons" of the HIT, would have such an interest because part of their compensation is covered by the Distribution Plan.

**PARTICIPANT UNITS**

**Securities Offered**

Beneficial interests of the HIT are divided into Units representing equal portions of the HIT assets. Rights arising from ownership of Units are set forth in the Declaration of Trust. The Declaration of Trust can be amended by vote of a majority of Trustees without any requirements of a vote by Participants. However, the Declaration of Trust provides that, notwithstanding anything to the contrary contained in the Declaration of Trust or any amendment thereto, no part of the HIT that equitably belongs to any Participant (other than such part as is required to pay the expenses of the HIT) is to be used for any purpose other than the exclusive benefit of the investors. In addition, fundamental investment policies may not be changed without the approval of holders of a majority of the HIT's outstanding Units.

Each Unit carries the right to vote to elect Trustees, to ratify selection of the auditors and to approve changes in fundamental policies. Each Unit entitles the holder thereof to participate pro rata with all other Units in the distribution of assets in the event of a liquidation of the HIT. No preemptive rights attach to Units; the HIT has the right to sell or exchange Units without offering the same to the holders of the then outstanding Units. Units issued and sold in accordance with the Declaration of Trust and By-Laws (and for the consideration described in the HIT's Prospectus and SAI) will be validly issued, fully paid and non-assessable, except as set forth below.

The majority of jurisdictions in the United States recognize a trust, such as the HIT, as a separate legal entity, wholly distinct from its beneficiaries. In those jurisdictions, the beneficiaries of a trust, such as the Participants in the HIT, are not liable for the debts or other obligations of the trust. A few jurisdictions do not recognize so-called "business trusts" as separate legal entities and hold the beneficiaries of such trusts personally liable for actions of the business trusts. The HIT, nevertheless, does not expect to exclude otherwise eligible investors in such jurisdictions from investing in Units.

It is the practice of the HIT to seek that written contracts that the HIT executes include a provision that states that the contract is not binding upon any of the Trustees, officers, or Participants personally, but is solely an obligation of the HIT. In most jurisdictions, Participants will have no personal liability under any contract that contains this provision. However, in jurisdictions that do not recognize the separate legal status of a trust such as the HIT, Participants could be held personally liable for claims against the HIT. These claims could include contract claims (where the contract does not limit personal liability), tort claims, tax claims and certain other statutory liabilities. If such liability were ever imposed upon Participants, Participants would be liable only to the extent that the HIT's assets and insurance were not adequate to satisfy the claims.

Units are not transferable and are not assignable. No holder of a Unit has the authority to pledge the Unit as collateral for any loan. The HIT does not issue certificates to evidence ownership of Units. In lieu thereof, Units are issued and redeemed by book entry and without physical delivery of any securities.

The HIT may be terminated at any time by the Trustees after notice in writing to all Participants. The Declaration of Trust may be amended or altered at any time by a majority of the Trustees.

**Eligible Participants**

Only "Labor Organizations," "Eligible Pension Plans" and "State Public Funds" are eligible to own Units.

Pursuant to the Declaration of Trust, a "Labor Organization" means an organization of any kind, any agency, employee representation committee, group, association, or plan in which employees participate directly or through affiliated organizations, and which exists for the purpose, in whole or in part, of dealing directly or through affiliated organizations with employers concerning terms or conditions of employment; any employee benefit plan (such as a voluntary employee beneficiary association (VEBA)) that benefits the members of such an organization, or any other organization that is, in the discretion of the Board of Trustees, affiliated with or sponsored by such an organization.

Pursuant to the Declaration of Trust, an "Eligible Pension Plan" is defined as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 pension plan ("Pension Plan") constituting a qualified trust under Section
 401(a) of the IRC which has beneficiaries who are represented by a Labor Organization
 and the assets of which are managed without the direct intervention or control of the
 plan's beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 governmental plan ("Governmental Plan") within the meaning of section 414(d)
 of the IRC which has beneficiaries who are represented by a Labor Organization and the
 assets of which are managed without the direct intervention or control of the plan's
 beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 master trust, including without limitation a collective investment trust, holding the
 assets of more than one Pension Plan or more than one Governmental Plan, where at least
 one of the plans with assets in such master trust has beneficiaries who are represented
 by a Labor Organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 pension or retirement program of a non-United States jurisdiction that is similar to
 a "governmental plan" as defined in Title 29, Section 1002(32) of the United
 States Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 non-United States employee benefit plan subject to regulation under applicable non-United
 States laws that are similar in purpose and intent to the Employee Retirement Income
 Security Act of 1974, as amended.

Pursuant to the Declaration of Trust, "State Public Funds" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) treasury
 or public funds held for investment and administered under the authority of a State (including
 a Commonwealth of the United States of America and the District of Columbia) or Municipal
 Treasurer (or similar position, including but not limited to, a State Controller) pursuant
 to state or local statutes governing the investment of public funds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 other public fund that is, in the discretion of the Board of Trustees, deemed to be similar
 in purpose and intent to an investment fund described in subparagraph (a) above.

**PRICING, PURCHASE AND REDEMPTION OF UNITS**

The price of Units is based on the NAV of each Unit. The NAV for a particular purchase will be determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) of the New York Stock Exchange ("NYSE") on the last business day of each calendar month (each such date a "Valuation Date") following receipt of the purchase order by dividing the value of the HIT's investments plus any cash and other assets (including interest and dividends accrued but not collected) less all liabilities (including accrued expenses but excluding capital and surplus), by the number of Units outstanding as of that Valuation Date. See "VALUATION OF UNITS" below for a discussion of the valuation methods used by the HIT in determining each Unit's NAV. Notwithstanding the foregoing and although

the HIT is not required to do so, the HIT makes estimated daily valuations available to the Participants as described in "Disclosure of Portfolio Holdings" above, however, this does not modify the HIT's purchase and redemption policies.

Whole or fractional Units may be purchased as of monthly Valuation Dates. Each purchase request, if received in good order, will be processed, and priced as of the Valuation Date in the month in which it is received. "Good order" generally means that any applicable participation form is fully completed, and the instructions are provided by the person(s) authorized to request transactions in the account and are received by the HIT's transfer agent before 4:00 p.m. Eastern Time on the Valuation Date as of which they are to be issued. Investors must remit the required payment for Units to the HIT's transfer agent by check or wire transfer for receipt by the transfer agent generally no later than 8:00 p.m. Eastern Time (under normal conditions) on the Valuation Date. All purchase payments received prior to the Valuation Date (e.g., mid-month) will be held in the HIT's non-interest-bearing demand deposit account by its transfer agent, as directed by the Participant, until the calculation of NAV as of the Valuation Date. A minimum initial purchase of $50,000 is required. A copy of the participation form that must accompany an initial purchase order is available from the HIT at no charge upon request. All Units are sold without any sales charge (load) or commission payable in connection with the purchase of Units. Units are issued and redeemed by book entry and without physical delivery of any securities. The HIT has the right to reject any purchase order, or to suspend or modify the sale of Units.

The HIT will redeem Units, without charge, at NAV calculated as of the last business day of the applicable month, i.e., each Valuation Date. To sell Units, a redemption request must be submitted to the HIT's transfer agent by signed writing, and it must be received by the transfer agent on a business day at least 15 days before the last business day of the month, although the HIT may in its sole discretion waive the 15-day notice requirement. If the redeeming Participant agrees, the HIT may deliver securities, mortgages, or other assets in full or partial satisfaction of a redemption request. A Participant that receives such assets may incur expenses in selling or disposing of such assets for cash.

For additional information about purchasing and redeeming Units, please see "BUYING AND SELLING UNITS IN THE HIT" in the Prospectus.

**PRINCIPAL UNDERWRITER AND DISTRIBUTOR**

The HIT handles all sales and redemptions of Units directly through its transfer agent, and all marketing activities are conducted pursuant to applicable exemptions under the federal securities laws. As a result, the HIT does not distribute Units through a principal underwriter or distributor.

**SECURITIES LENDING**

The HIT does not engage in securities lending, and it had no income from and paid no fees related to such activities.

**Brokerage Fees**

The HIT purchases and sells portfolio securities on a principal transaction basis. Accordingly, HIT pays no brokerage commissions, markups, or markdowns on principal transactions. As such, no brokerage commissions were paid by the HIT over the past three years.

**VALUATION OF UNITS**

The price of Units is based on the NAV as of each monthly Valuation Date, which is determined by dividing the value of the HIT's investments plus any cash and other assets (including interest and dividends accrued but not collected) less all liabilities (including accrued expenses but excluding capital and surplus) as of that Valuation Date by the number of Units then outstanding.

The Board of Trustees is responsible for the valuation process and has designated the officers of the HIT that comprise the HIT's valuation committee ("Valuation Committee") as the Valuation Designee to perform fair

valuations of the HIT's investments pursuant to Rule 2a-5 under the Investment Company Act. The Valuation Committee, in accordance with the policies and procedures approved by the Board of Trustees, is also responsible for evaluating the effectiveness of the HIT's pricing policies, determining the reliability of third-party pricing information, and reporting to the Board of Trustees on valuation matters, including fair value determinations. The Valuation Committee is composed of senior staff of the HIT.

Portfolio securities for which market quotations are readily available are valued using quotes from exchanges or mutual funds. The majority of the remaining portfolio assets are valued using evaluated prices provided by independent pricing services that have been approved by the Board of Trustees.

The HIT's assets for which market quotations or third-party evaluated prices are not readily available or are deemed unreliable are valued at their fair value determined in good faith by the Valuation Committee, as Valuation Designee, pursuant to procedures approved by the Board of Trustees. The fair value of an asset is the amount, as determined in good faith, that the HIT reasonably expects to receive upon a current sale of the security. Fair value determinations are made, consistent with the Board approved policies and procedures, using the methodologies deemed most appropriate under the circumstances and considering all available, relevant factors and indications of value. The HIT has retained an independent firm to determine the fair value of portfolio assets when appropriate and necessary. Securities purchased with a stated maturity of less than 60 days are valued at amortized cost, which constitutes fair value under the procedures adopted by the Board of Trustees. In addition, the ownership interest in HIT Advisers, the HIT's indirect wholly owned subsidiary, is valued at its fair value determined in good faith under consistently applied procedures adopted by the Board of Trustees, which currently represents the carry value of HIT Advisers. Valuing assets using fair value methodologies involves greater reliance on judgment than valuing assets based on market quotations. A fund that uses fair value methodologies may value those assets higher or lower than another fund using its own fair value methodologies to price the same assets. Because of the judgment involved in fair valuation decisions, there can be no assurance that the value ascribed to a particular security is accurate or that the HIT could sell the security at the value assigned to the security by the HIT.

The NYSE is typically closed on New Year's Day, Martin Luther King Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas, and on the preceding Friday or subsequent Monday when one of these holidays falls on a Saturday or Sunday, respectively.

Although the NAV of the Units of the HIT is calculated monthly as described above as of each Valuation Date, bank collective trusts that may become Participants in the HIT are required to calculate their NAV on a daily basis. As a practical expedient to facilitate this process, the HIT's custodian calculates an estimated value of HIT's portfolio on a daily basis based on inputs and fair value modeling from various sources, which it combines with expense and Unit holdings information from the HIT to produce an estimated daily value (EDV) for the HIT. The HIT currently posts the EDV on its website after close of business on each business day. While the estimation process is intended to approximate the NAV of the HIT for the particular day, there can be no assurance that the EDV thus generated is the same as or will predict the NAV calculated by the HIT as described above as part of its monthly valuation process, and the value of a Participant's Units and the price at which a Unit may be redeemed is determined solely through such monthly valuation process. The EDV is not binding in any way on the HIT and should not be relied upon by Participants as an indication of the value of their Units.

**DISTRIBUTIONS AND TAX ISSUES**

**Distributions**

Pro rata distributions of net income earned during the preceding month are paid to Participants each month. Such distributions are made in cash. Pursuant to an IRS ruling received by the HIT, a Participant may authorize the HIT automatically to reinvest any distributions to which the Participant is entitled in the HIT in exchange for a corresponding amount of Units, calculated at the NAV as of the end of the calendar month.

**Tax Issues**

The Prospectus contains information about the federal income tax considerations applicable to the HIT and certain federal income tax consequences of ownership of Units. Certain supplementary information is presented below.

The HIT has elected to qualify and intends to remain qualified as a regulated investment company under Subchapter M of the IRC. This relieves the HIT (but not Participants) from paying federal income tax on income which is distributed to Participants and permits net capital gains distributions of the HIT (*i.e.*, the excess of net capital gains from the sale of assets held for more than 12 months over net short-term and long-term capital losses) to be designated as capital gains of the Participants, regardless of how long Participants have held their Units in the HIT.

Qualification as a regulated investment company requires, among other things, that (a) at least 90% of the HIT's annual gross income (without reduction for losses from the sale or other disposition of securities) be derived from interest, dividends, payments with respect to securities and loans, and gains from the sale or other disposition of securities, loans or interests therein or foreign currencies, or other income derived with respect to its business of investing in such securities or currencies; (b) the HIT diversify its holdings so that, at the end of each quarter of the taxable year (i) at least 50% of the market value of the HIT's assets is represented by cash, U.S. government securities and other securities limited in respect of any one issuer to an amount not greater than 5% of the market value of the HIT's assets and 10% of the outstanding voting securities of such issuer, and (ii) not more than 25% of the value of its assets is invested in the securities of any one issuer (other than U.S. government securities); and (c) the HIT distribute to Participants at least 90% of its net taxable investment income (including short-term capital gains) other than long-term capital gains and 90% of its net tax exempt interest income in each year.

The HIT would be subject to a 4% non-deductible excise tax on certain amounts if they were not distributed (or not treated as having been distributed) on a timely basis in accordance with a calendar year distribution requirement. The HIT intends to distribute to Participants each year an amount sufficient to avoid the imposition of such excise tax.

The HIT may purchase debt securities that contain original issue discount. Original issue discount that accrues in a taxable year is treated as income earned by the HIT and is subject to the distribution requirements of the IRC. Because the original issue discount earned by the HIT in a taxable year may not be represented by cash, the HIT may have to dispose of other securities and use the proceeds to make distributions to satisfy the IRC's distribution requirements. Debt securities acquired by the HIT also may be subject to the market discount rules.

Income of a regulated investment company (such as the HIT) that would be treated as unrelated business taxable income ("UBTI") if earned directly by a tax-exempt entity generally will not be attributed as UBTI to such an entity that is a shareholder in the regulated investment company. Notwithstanding this "blocking" effect, a tax-exempt Participant could realize UBTI by virtue of its investment in the HIT if the HIT's shares constitute debt-financed property in the hands of the Participant.

Participants should consult their own tax advisors regarding specific questions of federal, state, local or foreign tax considerations, including the application of the unrelated business income tax.

**GENERAL INFORMATION**

**Performance Comparisons**

The HIT may compare its performance to that of the Bloomberg U.S. Aggregate Bond Index, other industry indices, averages or data, or other funds with similar investment objectives in marketing materials, reports to Participants, or other communications. References to financial publications that may discuss the HIT or rate HIT performance over various time periods may also be used in communications. The HIT may also reprint and distribute articles from these and other publications. When comparing its performance to a market index, the HIT may refer to various statistical measures derived from the historic performance of the HIT and the index, such as standard deviation and coefficient of correlation. As with other performance data, performance comparisons should not be considered indicative of the HIT's relative performance for any future period.

**Independent Registered Public Accounting Firm**

HIT's Participants, at their 2025 Annual Meeting, approved Ernst & Young LLP, 1775 Tysons Boulevard, Tysons, VA 22102 as HIT's independent registered public accounting firm for the fiscal year ending December 31, 2025.

**Custodian And Transfer Agent**

In February 2023, the HIT entered into a Transfer Agency and Unitholder Services Agreement with BNY Mellon Investment Servicing (US) Inc. ("BNY Mellon"), a mutual fund services company whose principal office is located at 301 Bellevue Parkway, Wilmington, DE 19809. Pursuant to this agreement, BNY Mellon serves as the HIT's transfer agent, registrar, distribution disbursing agent and provides certain reporting and other services to Participants. A predecessor entity of BNY Mellon originally commenced performance of these services as of May 1, 2004. The current contract became effective on February 28, 2023.

In February 2004, the HIT entered into a Custodian Services Agreement with Bank of New York Mellon (formerly PFPC Trust Company) ("Bank of New York"), whose principal office is located at One Wall Street, New York, NY 10286. Pursuant to this agreement as amended, Bank of New York serves as the HIT's custodian. Bank of New York took over safekeeping of the HIT's Mortgage Securities effective May 1, 2004.

**Legal Matters**

Certain legal matters in connection with the offering of Units were reviewed for the HIT by Dechert LLP, 1900 K Street, NW, Washington, D.C 20006.

**Use Of Union Labor**

All on-site construction work financed through HIT investments is required to be performed by 100% union labor. Work on projects that are constructed under a Project Labor Agreement meets this requirement.

**Insurance And Bonding**

As of the date of this document, the HIT maintains professional liability insurance coverage of $10,000,000 pursuant to a policy that expires on June 1, 2026 and general liability insurance coverage in the aggregate amount of $2,000,000, with an umbrella policy for an additional aggregate amount of $7,000,000, pursuant to policies that expire on June 1, 2026. The HIT also maintains, in accordance with Rule 17g-1 under the Investment Company Act, an Investment Company Fidelity Bond for $15,000,000 that expires on June 1, 2026. This bond exceeds the minimum amount required (based on the HIT's assets) under Rule 17g-1 of the Investment Company Act. Copies of the HIT's certificates of insurance for these and other miscellaneous policies will be provided upon request. The HIT's insurance policies may be amended or renewed on different terms.

**Internet Postings, Press Releases, Reports And Other Communications**

From time to time, the HIT will make public website postings, press releases, reports, newsletters or other materials concerning its financing of particular housing projects, its involvement in particular housing development initiatives, its investment in particular geographic areas, its use of union labor in its projects, or its participation in programs to increase opportunities for homeownership. These materials will often be directed at educating prospective real estate developers, housing groups, non-profit organizations, public officials, or the broad labor community concerning the activities of the HIT in these areas. The materials may also contain information about any HIT wholly owned subsidiary. The HIT maintains a website at www.aflcio-hit.com, on which certain material about the HIT may be found.

**FINANCIAL STATEMENTS**

The audited financial statements of the HIT for the fiscal year ended December 31, 2025, including notes thereto and the report of Ernst & Young LLP were filed with the Securities and Exchange Commission on March 9, 2026 (Accession No. 0001839882-014501) on Form N-CSR, and are incorporated by reference into this SAI.

**PART C: OTHER INFORMATION**

ITEM 28. EXHIBITS:

(a) *Articles of Incorporation*. The HIT's current articles of incorporation, charter, declaration
 of trust or corresponding instruments and any related amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Declaration
 of Trust, as amended through March 10, 2026, filed as Exhibit (a)(1) to this Registration
 Statement.

(b) *By-laws.* The HIT's current by-laws or corresponding instruments and any related amendment *.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [By-laws, as amended through December 1, 2020, incorporated herein by reference from Exhibit (b)(1)](http://www.sec.gov/Archives/edgar/data/225030/000138713121005172/ex99-b1.htm) to Post-Effective Amendment No. 80 to the HIT's Registration
 Statement, as filed with the SEC on April 30, 2021.

(c) *Instruments Defining Rights of Security Holders.* Instruments defining the rights of holders of
 the securities being registered, including the relevant portion of the HIT's Declaration
 of Trust or by-laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Articles V and VI of the Declaration of Trust, as amended through March 10, 2026, incorporated herein by reference from Exhibit(a)(1)](http://www.sec.gov/Archives/edgar/data/225030/000199937124005397/ex99-a1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) [Article II of the By-laws, as amended through December 1, 2020, incorporated herein by reference from Exhibit (b)(1)](http://www.sec.gov/Archives/edgar/data/225030/000138713121005172/ex99-b1.htm) to Post-Effective Amendment
 No. 80 to the HIT's Registration Statement, as filed with the SEC on April 30,
 2021.

(d) *Investment Advisory Contracts.* Investment advisory contracts relating to the management of the
 HIT's assets.

(Not applicable)

(e) *Underwriting Contracts.* Underwriting or distribution contracts between the HIT and a principal
 underwriter, and agreements between principal underwriters and dealers.

(Not applicable)

(f) *Bonus or Profit Sharing Contracts.* Bonus, profit sharing, pension, or similar contracts
 or arrangements in whole or in part for the benefit of the HIT's Trustees or officers
 in their official capacity. Describe in detail any plan not included in the formal document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Summary of Benefits AFL-CIO Staff Retirement Plan dated December 1, 2016, as amended October 2021 and July 2024, incorporated herein by reference from Exhibit (f)(1)](http://www.sec.gov/Archives/edgar/data/225030/000199937125005164/ex99-f1.htm) to Post-Effective
 Amendment No. 85 to the HIT's Registration Statement, as filed with the SEC on
 April 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) [Summary Plan Description of the AFL-CIO Housing Investment Trust 401(k) Retirement Plan](ex99-f2.htm) , effective May 1, 2025, filed as Exhibit (f)(2) to this Registration Statement.

(g) *Custodian Agreements.* Custodian agreements and depository contracts under section 17(f) [15
 U.S.C. 80a-17(f)] concerning the HIT's securities and similar investments, including
 the schedule of remuneration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Custody Services Agreement, dated as of February 23, 2004, incorporated herein by reference from Exhibit (g)(1)](http://www.sec.gov/Archives/edgar/data/225030/000102677704000023/custodianagreement.txt) to Post-Effective Amendment No.
 42 to the HIT's Registration Statement, as filed with the SEC on April 29, 2004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) [Transfer Agency Services Agreement, dated as of February 28, 2023, incorporated herein by reference from Exhibit (g)(2)](http://www.sec.gov/Archives/edgar/data/225030/000138713123005684/ex-g2.htm) to Post-Effective Amendment
 No. 83 to the HIT's Registration Statement, as filed with the SEC on April 28,
 2023.

(h) *Other Material Contracts.* Other material contracts not made in the ordinary course of business
 to be performed in whole or in part on or after the filing date of the registration statement.

(Not applicable)

(i) *Legal Opinions.* An opinion and consent of counsel regarding the legality of the securities
 being registered, stating whether the securities will, when sold, be legally issued,
 fully paid, and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Opinion of Dechert LLP, dated April 30, 2026, filed as Exhibit (i)(1) to this Registration Statement.](ex99-i1.htm)

(j) *Other Opinions.* Any other opinions, appraisals, or rulings, and related consents relied
 on in preparing the registration statement and required by section 7 of the Securities
 Act [15 U.S.C. 77g].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Written consent of Ernst & Young LLP dated April 30, 2026, filed as Exhibit (j)(1) to this Registration Statement.](ex99-j1.htm)

(k)&nbsp;&nbsp;&nbsp;&nbsp; *Omitted Financial Statements.* Financial statements omitted from Item 27.

(Not applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Initial Capital Agreements.* Any agreements or understandings made in consideration for providing
 the initial capital between or among the HIT, the underwriter, adviser, promoter or initial
 shareholders and written assurances from promoters or initial shareholders that purchases
 were made for investment purposes and not with the intention of redeeming or reselling.

(Agreements for Advances, executed September 24, 1981, September 25, 1981, October 19, 1981 and April 16, 1982, previously submitted, have expired.)

(m) *Rule 12b-1 Plan.* Any plan entered into by the HIT under rule 12b-1 and any agreements
 with any person relating to the plan's implementation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [Amended Plan of Distribution under Rule 12b-1, dated March 19, 2009, incorporated herein by reference from Exhibit (m)(1)](http://www.sec.gov/Archives/edgar/data/225030/000116923209002297/d76835_exm1.txt) to
 Post-Effective Amendment No. 53 to the HIT's Registration Statement, as filed with
 the SEC on April 29, 2009.

(n) *Rule 18f-3 Plan.* Any plan entered into by the HIT under rule 18f-3 and any agreement with
 any person relating to the plan's implementation and any amendment to the plan
 or an agreement.

(Not applicable)

(o) *Reserved.* 

(p) *Codes of Ethics.* Any codes of ethics adopted under rule 17j-1 of the Investment Company
 Act [17 CFR 270.17j-1] and currently applicable to the HIT (*i.e.*, the codes of
 the HIT and its investment advisers and principal underwriters).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) [The Rule 17j-1 HIT Code of Ethics, as amended through October 19, 2011, incorporated herein by reference from Exhibit (p)(1)](http://www.sec.gov/Archives/edgar/data/225030/000138713120004282/ex99-p1.htm) to Post-Effective
 Amendment No. 78 to the HIT's Registration Statement, as filed with the SEC on
 April 29, 2020.

<u>Other Exhibits</u>:

Ex 1 [Powers of Attorney for Trustees Coleman, Driscoll, Filter, Gainer, Griffith, McGarvey, Mundo, Noble, O'Sullivan, Quinn, Redmond, Schmidt, Shelton, Shuler, Thompson, and Williams filed as Exhibit 1 to this Registration Statement](ex99-1.htm).

ITEM 29. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.

HIT Advisers and HIT Advisers Managing Member, each Delaware limited liability companies, are wholly-owned, unconsolidated subsidiaries of the HIT. Building America CDE Inc., a Delaware corporation, and AFL-CIO Labor Capital Partners, a Delaware limited liability company, are wholly-owned subsidiaries of HIT Advisers LLC.

ITEM 30. INDEMNIFICATION.

Pursuant to Section 4.8 of the HIT's Declaration of Trust (see Exhibit (a)(1) under "Exhibits" above), the HIT shall indemnify each Trustee and officer of the HIT and each former Trustee and officer of the HIT against fines, judgments, amounts paid in settlement and expenses, including attorneys' fees, actually and reasonably incurred in connection with any pending or threatened criminal action, civil suit or administrative or investigative proceeding (any "matter") against him or her arising by reason of the fact that he or she is or was a Trustee or officer of the HIT, or by reason of actions taken by him or her as such Trustee or officer, if it is found that his or her liability does not result from willful malfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office ("disabling conduct"). The finding that liability does not arise from disabling conduct may be made in a final decision by a court or other body before which the matter giving rise to the expense or liability was brought or, in the absence of such a decision, by (a) the vote of a majority of a quorum of Trustees who are neither "interested persons" of the HIT as defined in Section 2(a)(19) of the Investment Company Act of 1940 nor parties to such matter ("disinterested non-party Trustees") or (b) an independent legal counsel in a written opinion. Expenses of the kind eligible for indemnification may be paid as incurred by a Trustee or officer in advance of final disposition of a matter upon receipt of an undertaking by the recipient to repay such amount unless it is ultimately determined that he is entitled to indemnification hereunder if (a) the indemnitee provides security for his or her undertaking, (b) the HIT is insured for losses arising by reason of any lawful advances or (c) a majority of a quorum of disinterested non-party Trustees or independent legal counsel (in a written opinion) determines, based on a review of readily available facts, that there is reason to believe that the indemnitee ultimately will be found entitled to indemnification. Section 4.8 is intended to provide indemnification to Trustees and officers to the full extent permitted by law and is to be construed and enforced to that extent.

ITEM 31. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.

None

ITEM 32. PRINCIPAL UNDERWRITERS.

None.

ITEM 33. LOCATION OF ACCOUNTS AND RECORDS.

All accounts, books, and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, as amended, and rules thereunder, are maintained in the possession of the Chief Executive Officer of the HIT, 1227 25<sup>th</sup> Street, N.W., Suite 500, Washington, D.C. 20037.

ITEM 34. MANAGEMENT SERVICES.

None.

ITEM 35. UNDERTAKINGS.

None.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended (the "1933 Act"), and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all the requirements for effectiveness of this post-effective amendment pursuant to Rule 485(b) under the 1933 Act and has duly caused this amendment to the Registration Statement to be signed on its behalf by the undersigned, thereto duly authorized, in the City of Washington, District of Columbia on the 30<sup>th</sup> day of April 2026.

---

| |
|:---|
| AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST |
| By: |
| /s/ Chang Suh |
| Chang Suh |
| Chief Executive Officer |

---

Pursuant to the requirements of the 1933 Act, this amendment to the Registration Statement has been signed below by the following persons in the capacities indicated on the 30<sup>th</sup> day of April 2026:

---

| |
|:---|
| /s/ Christopher Coleman |
| Christopher Coleman<br>|
| Chairman |
| /s/ Thomas J. Driscoll |
| Thomas J. Driscoll |
| Trustee |
| /s/ Kevin Filter |
| Kevin Filter |
| Trustee |
| /s/ Bridget Gainer |
| Bridget Gainer |
| Trustee |
| /s/ Brendan Griffith |
| Brendan Griffith |
| Trustee |
| /s/ Sean McGarvey |
| Sean McGarvey |
| Trustee |
| /s/ Vito V. Mundo |
| Vito V. Mundo |
| Trustee |
| /s/ Paul A. Noble |
| Paul A. Noble |
| Trustee |

---

---

| |
|:---|
| /s/ Terry O'Sullivan |
| Terry O'Sullivan |
| Trustee |
| /s/ Jack Quinn, Jr. |
| Jack Quinn, Jr. |
| Trustee |
| /s/ Fredrick Redmond |
| Fredrick Redmond |
| Trustee |
| /s/ Deidre L. Schmidt |
| Deidre L. Schmidt |
| Trustee |
| /s/ Anthony Shelton |
| Anthony Shelton |
| Trustee |
| /s/ Elizabeth H. Shuler |
| Elizabeth H. Shuler |
| Trustee |
| /s/ Harry W. Thompson |
| Harry W. Thompson |
| Trustee |
| /s/ James A. Williams, Jr. |
| James A. Williams, Jr. |
| Trustee |
| /s/ Chang Suh |
| Chang Suh |
| Chief Executive Officer (Principal Executive Officer) |
| /s/ Harpreet S. Peleg |
| Harpreet S. Peleg |
| Chief Financial Officer (Principal Financial and Accounting Officer) |

---

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* Erica Khatchadourian, by signing her name hereto, signs this document on behalf of each of the persons so indicated above pursuant to powers of attorney duly executed by such person and filed as Exhibit 1 to this Registration Statement. |
| /s/ Erica Khatchadourian |
| Erica Khatchadourian |

---

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| (a)(1) | [Declaration of Trust, as amended through March 10, 2026.](ex99-f2.htm) |
| (f)(2) | [Summary Plan Description of the AFL-CIO Housing Investment Trust 401(k) Retirement Plan, effective May 1, 2025.](ex99-f2.htm) |
| (i)(1) | [Opinion of Dechert LLP, dated April 30, 2026.](ex99-i1.htm) |
| (j)(1) | [Written consent of Ernst & Young, LLP dated April 30, 2026.](ex99-j1.htm) |

---

Ex. 1 [Powers of Attorney for Trustees Coleman, Driscoll, Filter, Gainer, Griffith, McGarvey, Mundo, Noble, O'Sullivan, Quinn, Redmond, Schmidt, Shelton, Shuler, Thompson, and Williams](ex99-1.htm).

## Ex-99.(F)(1)

[AFL CIO 485BPOS](hit-485bpos_043026.htm)

**Exhibit 99.(a)(1)**

**AMERICAN FEDERATION OF LABOR**

**AND CONGRESS OF INDUSTRIAL ORGANIZATIONS**

**HOUSING INVESTMENT TRUST**

**DECLARATION OF TRUST**

(as amended and restated through March 10, 2026)

DECLARATION OF TRUST made in Washington, D.C. by the original signatories to this instrument (who, together with their successors in office, are hereinafter called "Trustees").

WHEREAS, by Declaration of Trust made September 19, 1981, there was created a trust (the "Trust") as a step in the organization of a new pooled investment fund to be created under the auspices of the American Federation of Labor -- Congress of Industrial Organizations ("AFL-CIO");

WHEREAS, the Trustees have amended the Declaration of Trust from time to time to create an investment company by naming the Trust the "American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust" and by restating the Declaration of Trust in its entirety as set forth herein; and

WHEREAS, certain subscriptions to Units in the Trust hereby created have been and will be received from the participants whose interests are hereinafter described,

NOW, THEREFORE, the Trustees declare that they will hold all such contributions that they have acquired or will acquire as Trustees, together with the proceeds thereof, in trust, in the manner and subject to the provisions hereof, for the benefit of any and all contributors to the corpus of the Trust (hereinafter collectively called "Participants").

ARTICLE I

<u>Purposes</u>

<u>Section 1.1</u>. The purpose of this Trust shall be to earn a fair and secure rate of return for its Participants by investing the pooled contributions of all Participants. All buildings, structures and other improvements that are to be built or rehabilitated on mortgaged real estate or exchanged for such Trust investments must be built or rehabilitated by union labor except as otherwise expressly provided in Section 3.3.

ARTICLE II

<u>Name and Trustees</u>

<u>Section 2.1</u>. The Trust shall be named "The American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust". The Trustees shall manage the Trust property, execute all instruments in writing, and do all other things relating to the Trust. Every duly authorized instrument executed in the name of the Trust shall have the same effect as if executed in the name of the Trustees.

<u>Section 2.2</u>. There shall be up to twenty-five voting Trustees and such non-voting members of the Board of Trustees as provided by Section 2.10 hereof.

<u>Section 2.3</u>. (a) Up to twelve of the Trustees (hereinafter the "Union Trustees") shall be officers or employees of the AFL-CIO or an AFL-CIO member union; (b) up to twelve of the Trustees (hereinafter the "Management Trustees") shall be (i) officers or management employees of one or more organizations contributing directly or indirectly through contractors to an Eligible Pension Plan as defined in Section 5.2 hereof, or officers or management employees of such an Eligible Pension Plan, or (ii) with respect to the Management Trustees, an officer, director, or trustee of an organization connected in whole or in part with the housing, finance, or real estate development industries, or a current or former elected or appointed official of the federal or any state or local government or an agency or instrumentality thereof; and (c) one Trustee (hereinafter the "Chairman") shall be an individual who is neither an officer, trustee, or employee of any organization that is a Participant in the Trust. The number of Management Trustees shall not exceed the number of Union Trustees except as the result of a vacancy during an unexpired term caused by death or resignation. The Board shall select from the Management Trustees or the Union Trustees one (1) Vice-Chairman of the Board, who shall be an individual who is neither an officer, trustee, nor employee of any organization that is a Participant in the Trust and who shall have the duties set forth in the Bylaws of the Trust.

<u>Section 2.4</u>. The Union and Management Trustees shall be divided into up to three classes ("Classes") in respect to term of office, *provided that* no new Class shall be established if any existing Class has less than five Trustees. No Class shall have more than eight Trustees. Each Class shall have, insofar as the population of Trustees permits, an equal number of Union and Management Trustees and, upon the appointment of one or more new Trustees, the Trustees shall alter Class assignments as required to comply with the provisions of this sentence. The term of the first Class of Trustees shall expire at the first annual meeting of Participants, the term of the second Class shall expire at the second annual meeting of Participants, and the term of the third Class shall expire at the third annual meeting of Participants. After the expiration of the initial terms as set forth above, the term of each Class of Trustee shall expire at the third annual meeting following its election. At each annual meeting, the Participants shall elect a Chairman to serve until the next annual meeting and such number of Trustees as necessary to fill vacancies in the Class of Trustees whose terms expire as of such meeting. Each Trustee shall serve until his successor shall be elected and shall qualify.

<u>Section 2.5</u>. A Trustee shall be an individual at least twenty-one years of age who is not under legal disability and who shall have in writing accepted his or her appointment and agreed to be bound by the terms of this Declaration of Trust. The Trustees, in their capacity as Trustees, shall not be required to devote their entire time to the business and affairs of the Trust.

<u>Section 2.6.</u> All Trustees shall serve their full terms unless they resign or die. Any Trustee can resign at any time by giving written notice to the other Trustees, to take effect upon receipt of the notice or such later date as the notice specifies.

<u>Section 2.7</u>. Upon the death or resignation of any Union Trustee, the remaining Union Trustees shall appoint by a majority vote a replacement to serve out the remainder of the term (with the Chairman, if any, voting only in case of a tie). Upon the death or resignation of any Management Trustee, the remaining Management Trustees shall appoint by majority vote a replacement to serve out the remainder of the term (with the Chairman, if any, voting only in case of a tie). Upon the death or resignation of the Chairman, the Vice Chairman shall serve out the remainder of the term. Upon the death or resignation of the Vice Chairman, the Union and Management Trustees together shall appoint by majority vote a replacement to serve out the remainder of the term.

<u>Section 2.8</u>. The death or resignation of one or more Trustees shall not annul the Trust or revoke any existing agency created pursuant to the terms of this Declaration of Trust. Whenever a Trustee's position becomes vacant because of the Trustee's death or resignation the other Trustees shall have all of the powers specified in this Declaration of Trust until such vacancy is filled.

<u>Section 2.9</u>. The Chairman, Management Trustees and non-voting members may be compensated for their services as provided by the Board of Trustees. No Union Trustee shall receive any compensation or fee for his services as Trustee. Trustees and non-voting members shall be reimbursed for expenses of attending meetings of the Board of Trustees and committees thereof.

<u>Section 2.10</u>. The Chief Executive Officer, upon his or her retirement or resignation, may be appointed by the Executive Committee, subject to approval by the Board of Trustees, as a non-voting member of the Board of Trustees, with the right to attend meetings and participate in discussions, for an initial term not to exceed five years.

ARTICLE III

<u>Powers</u>

<u>Section 3.1</u>. The Trustees shall have power to do all things proper or desirable in order to carry out, promote, or advance the purpose of the Trust even though such things are not specifically mentioned in this Declaration of Trust. Any determination as to what is in the interests of the Trust made by the Trustees in good faith shall be conclusive.

<u>Section 3.2</u>. The Trustees shall have without further authorization, full, exclusive, and absolute power, control, and authority over the Trust property and over the business of the Trust to the same extent as if the Trustees were the sole owners of the Trust property and business in their own right, subject to such delegation as may be permitted in this Declaration of Trust. The enumeration of any specific powers or authority herein shall not be construed as limiting the aforesaid powers or authority or any specific power or authority. In construing the provisions of this Declaration of Trust the presumption shall be in favor of a grant of power to the Trustees. Subject to any applicable limitation in this Declaration of Trust, the Trustees shall have power and authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To employ suitable counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To employ banks or trust companies to act as depositories or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To engage in and to prosecute, compound, compromise, abandon, or adjust by arbitration or otherwise any actions, suits, proceedings, disputes, claims, or demands relating to the Trust property to pay any debts, claims, or expenses incurred in connection therewith, including those of litigation, upon any evidence that the Trustees may deem sufficient (these powers to apply whether or not the Trust is named as a party or any of the Trustees are named individually).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To form corporations, partnerships, or trusts upon such terms and conditions as the Trustees deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To purchase, sell, and hold legal title to any securities or other property including Certificates of Interest in the Trust upon such terms and conditions as the Trustees deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To purchase, lease, or rent suitable offices for the transaction of the business of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To appoint, employ, or contract with any person or persons as the Trustees deem necessary or desirable for the transaction of the business of the Trust, including any person who, under the supervision of the Trustees and consistent with the Trustees' ultimate responsibility to supervise the affairs of the Trust, may, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Administer the day-to-day operations of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Serve as the Trust's adviser and consultant in connection with policy decisions made by the Trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Furnish reports to the Trustees and provide research, economic, and statistical data to the Trustees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Act as accountants, correspondents, technical advisers, attorneys, brokers, underwriters, fiduciaries, escrow agents, depositories, insurers or insurance agents, transfer agents, or registrars for Units, or in any other capacity deemed necessary or desirable by the Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To purchase, maintain and pay for entirely out of Trust property insurance policies insuring any person who is or was a Trustee, officer, employee, or agent of the Trust or who is or was serving at the request of the Trust as a director, officer, employee or agent of another person individually against any claim or liability of any nature asserted against him or incurred by him in any such capacity, or arising out of his status as such, whether or not the Trust would otherwise have the power to indemnify such person against such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To execute and deliver as Trustees hereunder any and all deeds, leases, mortgages, conveyances, contracts, waivers, releases, and other instruments in writing necessary or proper for the accomplishment of the purposes of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To pay out of the funds of the Trust property any and all taxes or liens imposed upon or against the Trust property or any part thereof, or imposed upon any of the Trustees herein, individually or jointly, by reason of the Trust property, or of the business conducted by the Trustees under the terms of this Declaration of Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) To issue, purchase, or sell Units in the Trust either for cash or for property whenever and in such amounts as the Trustees deem desirable, but subject to the limitations specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) To make distributions of net income to Participants, in the manner specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To determine whether money or other assets received by the Trust shall be charged to income or capital or allocated between income and capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) To determine conclusively the value of any of the Trust property and of any services, securities, assets, or other consideration hereafter acquired by the Trust, and to revalue Trust property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) To engage in activities that are designed to generate potential investments in which the Trust is authorized to invest under this Declaration of Trust, including but not limited to activities that also (x) generate fees for the Trust or (y) benefit unions and/or union members, such as facilitating or promoting (i) housing construction utilizing union labor, (ii) construction of housing for union members or their families or (iii) the availability of mortgage loans for union members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) To make, adopt, amend, and repeal such by-laws (not inconsistent with the terms of this Declaration of Trust) as the Trustees deem necessary or desirable for the management of the Trust and for the government of themselves, their officers, agents, employees, and representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) To establish separate and distinct Series with separately defined investment objectives and policies and distinct investment purposes in accordance with the provisions of Article V and to establish Classes of such Series, each such Series and Class with such rights, preferences, limitations, restrictions and other relative terms as shall be determined by the Trustees from time to time, consistent with applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To allocate assets, liabilities and expenses of the Trust to a particular Series or Class, as appropriate, or to apportion the same between or among two or more Series or Classes, as appropriate, provided that any liabilities or expenses incurred by a particular Series or Class shall be payable solely out of the assets belonging to that Series as provided in Article V.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) To interpret the investment policies, practices or limitations of any Series.

<u>Section 3.3</u>. In respect of the investment of the assets belonging to Series A (as designated by the Trustees), the Trustees shall have each of the following specific powers and authority in the administration of the Trust, to be executed in their sole discretion in accordance with the Investment Company Act of 1940, as amended ("Investment Company Act"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) To invest in construction and/or long-term mortgage loans or mortgage-backed securities that are guaranteed or insured by the federal government or an agency thereof or interests in such mortgage loans or securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) To invest in securities that are secured by securities and/or mortgage loans of the type described in paragraph (a) above and that are rated in one of the two highest rating categories by at least one nationally recognized statistical rating agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) To invest in (i) obligations issued or guaranteed by Fannie Mae or Freddie Mac, or (ii) securities that are backed by Fannie Mae or Freddie Mac and are, at the time of their acquisition by the Trust, rated in one of the two highest rating categories by at least one nationally recognized statistical rating agency or (iii) securities that are secured by single family or multifamily mortgage securities and/or single family or multifamily mortgage loans and that are rated at the highest rating by Standard & Poors ("S&P") or a comparable rating by another nationally recognized statistical rating agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) To invest up to 30 percent of the value of all of the Trust's assets in any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Construction and/or permanent loans, or securities backed by construction and/or permanent loans, or interests in such loans or securities, provided that the total principal amount of investments made under this section 3(d)(i) that are outstanding at the time of their acquisition shall not exceed 15 percent of the value of all of the Trust's assets; and *provided further that*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such loans or securities are supported by a full faith and credit guaranty of a state or local government or agency or instrumentality thereof that has general taxing authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) (i) such loans or securities have a rating of "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency) at the time of acquisition by the Trust and are issued or guaranteed, as the case may be, by a state or local housing finance agency, or (ii) such loans or securities issued or guaranteed, as the case may be, by a state or local housing finance agency with a general obligation rating of "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency at the time of acquisition by the Trust, and are also in the case of investments under this clause (ii) only, (I) with full recourse (directly or by way of guaranty or indemnity) to such agency's general credit and assets, or (II) secured by recourse to such assets of the agency or by such third party credit enhancement as to provide, in the judgment of management, protection comparable to a pledge of the agency's general credit, or (III) backed by the "moral obligation" of the state in which such agency is located in the form of the state's commitment to replenish any insufficiencies in the funds pledged to debt service on the obligations or similar commitment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) such loans or securities are supported by a guaranty of at least the first 75 percent of the principal amount of such loans or securities under a state insurance or guarantee program by a state-related agency with a record of creditworthiness as evidenced by a rating of the agency or the obligations issued or guaranteed by such agency of at least "A" by S&P or a comparable rating by another nationally recognized statistical rating agency at the time of their acquisition by the Trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D) *Intentionally Omitted*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E) *Intentionally Omitted*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (F) such loans are made by any lender acceptable to the Trust and such securities, loans or the securities backed by such loans are fully collateralized or secured in a manner satisfactory to the Trust by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (I) cash placed in trust or in escrow with an independent third party satisfactory to the Trust on terms and conditions satisfactory to the Trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (II) a letter of credit, insurance or other guaranty from an entity satisfactory to the Trust which has a rating (at the time of the Trust's acquisition of the related loan, securities or interests in such loans or securities) which is at least "A" or better from S&P (or a comparable rating by another nationally recognized statistical rating agency)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Construction and/or permanent loans, or securities backed by construction and/or permanent loans or interests in such loans or securities, that have evidence of support by a state or local government or an agency or instrumentality thereof, provided that the total principal amount of investments made under this section and under sections 3(d)(iii) and (iv) hereof that are outstanding from time to time shall not exceed 15 percent of the value of all of the Trust's assets and all of the following criteria are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) the loan-to-value ratio of the project shall not exceed 65 percent, the "value" for such purposes to be determined on the basis of an independent appraisal by a licensed appraiser acceptable to the Trust, except that (1) a loan-to-value ratio of up to 80 percent shall be permitted if (x) mortgage insurance in an amount which will cover all losses down to a 65 percent loan-to-value level has been provided by a mortgage insurance provider rated at least "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency, as determined by the Executive Committee of the Trust); or (y) another form of guaranty or credit support of the Trust's investment which will cover all losses down to a 65 percent loan-to-value level and which is provided by a guarantor rated "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency, as determined by the Executive Committee of the Trust) at the time of acquisition by the Trust; or (z) the project receives the benefits of Low Income Housing Tax Credits pursuant to Section 42 of the Internal Revenue Code of 1986, as amended, in accordance with the standards adopted by the Executive Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) the state or local government or agency or instrumentality thereof or a foundation exempt from federal income tax under Section 501(c) of the Internal Revenue Code of 1986, as amended, must make or facilitate a financial contribution in the project within guidelines adopted by the Executive Committee of the Trust, such financial contribution to be in the form of subordinate financing, an interest rate write-down, a donation of land, an award of tax credits, grants or other financial subsidy, a form of insurance or guarantee or some other similar contribution all within guidelines adopted by the Executive Committee of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) the development and ownership team of the project must have a demonstrably successful record of developing or managing low-income housing projects, in accordance with guidelines to be developed by the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D) the underwriter and servicer of the mortgage loan for the project must have been approved by the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E) the minimum debt service coverage for the project must be at least 1.15, based upon projections of future income and expenses satisfactory to the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Construction and/or permanent loans, or securities backed by construction and/or permanent loans or interests in such loans or securities, for the financing of market rate projects, provided that the total principal amount of investments made under this section and under sections 3(d)(ii) and (iv) that are outstanding from time to time shall not exceed 15 percent of the value of all of the Trust's assets and all of the following criteria are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) the loan-to-value ratio of the project shall not exceed 65 percent, the "value" for such purposes to be determined on the basis of an independent appraisal by a licensed appraiser acceptable to the Trust, except that a loan-to-value ratio of up to 80 percent shall be permitted if (1) mortgage insurance in an amount which will cover all losses down to a 65 percent loan-to-value level has been provided by a mortgage insurance provider rated at least "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency, as determined by the Executive Committee of the Trust); or (2) another form of guaranty or credit support of the Trust's investment which will cover all losses down to a 65 percent loan-to-value level and which is provided by a guarantor rated "A" or better by S&P (or a comparable rating by another nationally recognized statistical rating agency, as determined by the Executive Committee of the Trust) at the time of acquisition by the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) the development and ownership team of the project must have a demonstrably successful record of developing market rate housing projects, in accordance with guidelines to be developed by the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) the underwriter and servicer of the mortgage loan for the project must have been approved by the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D) the minimum debt service coverage for the project must be at least 1.25, based upon projections of future income and expenses satisfactory to the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) Bridge loans or interests in bridge loans for or related to multifamily housing developments which have allocations or other rights to receive federal or state tax credits; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) The loans or interests in such loans have been approved by the Trust in accordance with underwriting guidelines established by Trust management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) The total principal amount of investments made under this section and under sections 3(d)(ii) and (iii) hereof that are outstanding from time to time shall not exceed, at time of purchase, 15% of the value of all the Trust's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) To make loans to special purpose investment funds (each, an "Investment Fund") or to provide funds to Building America CDE, Inc. ("BACDE") to enable BACDE to make loans to Investment Funds, in each case to provide a portion of the monies which such an Investment Fund will use to make a "qualified equity investment" ("QEI") in a "community development entity" ("CDE") to facilitate the utilization of New Markets Tax Credits ("NMTCs"), provided that all the following criteria are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) BACDE, an affiliate of the Trust, or its designated subsidiary is a participant in the NMTC structure and a portion of the QEI will be used to provide a "qualified low income community investment" ("QLICI") to a "qualified low income community business" ("QALICB") to provide a portion of the funds for the acquisition and construction and/or rehabilitation of a housing or mixed use project or healthcare facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) BACDE or its designated subsidiary will hold bare legal title to an investment security (the "Investment Security") which is in the form of (i) a mortgage-backed security guaranteed by GNMA and backed by a mortgage on the project granted by the QALICB or an entity at least 99% owned by and controlled by the QALICB (or an interest in such a security) or (ii) a mortgage or an interest in a mortgage on the project granted by the QALICB or an entity at least 99% owned by and controlled by the QALICB which is acceptable to the Trust in form and substance and in which the Trust is otherwise authorized to invest pursuant to Section 3.2 or 3.3 hereof; the Investment Security must be in a principal amount at least equal to the amount of the related loan to the Investment Fund from the Trust or BACDE, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) BACDE or its designated subsidiary must be expected to hold bare legal title to the Investment Security throughout the holding period required by the NMTC rules and regulations and the Trust or BACDE or its designated subsidiary, as applicable, must have the right to receive the Investment Security at the end of such holding period in exchange for the loan from the Trust or BACDE to the related Investment Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D) In the event of a default on the mortgage comprising or securing the Investment Security during the holding period, the Trust shall have the right to direct the reinvestment of the proceeds from the liquidation of the Investment Security to the extent permitted under the NMTC program and in the event of any such reinvestment, BACDE or its designated subsidiary shall hold bare legal title to any replacement Investment Security in which such proceeds are reinvested, which Investment Security must be in a principal amount at least equal to the lesser of the loan from the Trust or BACDE, as applicable, to the Investment Fund or the liquidation proceeds and the Trust or BACDE or its designated subsidiary, as applicable, must have the right to receive the Investment Security at the end of such holding period in exchange for the loan from the Trust or BACDE to the related Investment Fund; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E) The total amount of loans made under this section shall not exceed 3 percent of the value of all the Trust's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Other instruments, interests, loans or assets that provide early-stage or structured financing (i.e., gap financing) related to or for the construction or rehabilitation of multifamily and/or single family housing developments, including predevelopment loans, mezzanine loans, and preferred interests; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The instruments, interests, loans or assets have been approved by the Trust in accordance with underwriting guidelines established by Trust management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The total amount of investments made under this section that are outstanding from time to time shall not exceed, at time of acquisition, 2% of the value of all the Trust's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) To invest in mortgage loans, or securities or obligations backed by mortgage loans, described in paragraph (a) or paragraph (c) of this Section 3.3 that include provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Requiring the borrower to pay, in addition to all payments of principal and base interest insured or guaranteed by the federal government, an agency thereof, or by Fannie Mae or Freddie Mac, additional interest based on net or gross cash flow and/or net or gross proceeds upon the sale, refinancing or disposition of the mortgaged real estate properties which is not guaranteed or insured, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Requiring the borrower to pay the principal balance of the mortgage loan in full prior to its scheduled maturity.

In negotiating investments with participating features or rights to demand early repayment, the Trust may accept a base interest rate of up to 2 percent per annum lower than the rate which it would otherwise be willing to receive in the absence of such features.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) To invest in construction and/or permanent loans, or securities or obligations backed by construction and/or permanent loans which are supported, either concurrently or sequentially, by any combination of two or more of the types of credit enhancement described in paragraphs (a) through (d) of this section, as long as all of the principal component of such loans or securities or

obligations backed by such loans are fully collateralized by one or more of the different types of the credit enhancement described in paragraphs (a) through (d) of this section; provided, however, that the principal portion of any investment made pursuant to this paragraph which is secured by one of the types of credit enhancement described in paragraph (d) of this section shall be subject to the 30 percent limitation set forth in paragraph (d) of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) If necessary or desirable to facilitate any investment by the Trust permitted under paragraphs (a) through (f) of this section, to deposit the purchase price for the loan, securities, interests in loans or other obligations to be acquired by the Trust in an escrow account which is structured and secured in a manner acceptable to the Trust and consistent with the provisions of the Investment Company Act of 1940, as amended, until the purchase price is disbursed, either in a lump sum or over time, to fund the Trust's purchase of such investment, provided that (i) all monies in such escrow must be invested, as fully and as continuously as practical, in instruments in which the Trust is permitted to invest under paragraph (m) of this section or (ii) all monies in such escrow must be secured or supported by one or more of the different types of credit enhancement described in paragraphs (a) through (d) of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) To invest up to 20 percent of the value of all of the Trust's assets in any of the following instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) United States Treasury issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United States Treasury futures contracts, *provided however*, that the total notional value of such contracts that are outstanding from time to time may not exceed ten percent (10%) of the value of the Trust's portfolio assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Obligations which are either (a) issued or guaranteed by Fannie Mae, Freddie Mac or the Federal Home Loan Banks or (b) backed by Fannie Mae, Freddie Mac or the Federal Home Loan Banks and, at the time of their acquisition by the Trust, rated in one of the two highest rating categories by at least one nationally recognized statistical rating agency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) Commercial mortgage backed securities ("CMBS") that at the time of their acquisition by the Trust are rated in the highest rating category by at least one nationally recognized statistical rating agency;

*provided, however*, for purposes of clarity, no investment shall be included in the 20 percent cap on this Section 3.3(h) if the Trust may invest in such security in another section of this Declaration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) To sell any asset held by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (j) To renew or extend (or to participate in the renewal or extension of) any mortgage construction loan; and.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k) To engage in borrowing, provided that the Trust may not (i) issue senior securities, except as permitted by (A) the Investment Company Act and the rules and regulations thereunder, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (B) exemptive or other relief from the SEC, SEC staff, or other authority; and (ii) borrow money, except as permitted by (X) the Investment Company Act and the rules and regulations thereunder, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (Y) exemptive or other relief from the SEC, SEC staff, or other authority, provided that not more than 50% of the HIT's assets will be used as security for such borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (l) To manage, administer, operate, lease for any number of years, or sell any real estate acquired by reason of foreclosure by the Trust and to hold such property in the name of the Trust or its nominees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m) To take title to real estate in lieu of its foreclosure sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (n) To invest money held pending investment in mortgages or construction loans in any of the following instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) United States Treasury issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Federal agency issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Commercial bank time certificates of deposit of banks whose accounts are insured by the Federal Deposit Insurance Corporation through its Bank Insurance Fund ("BIF");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) Savings bank deposits (insured by the Federal Deposit Insurance Corporation through BIF);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) Savings and loan association deposits (insured by the Federal Deposit Insurance Corporation through its Savings Association Insurance Fund);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) Bankers acceptances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) Commercial paper rated as category A-1 by S&P (or a comparable rating by another nationally recognized statistical rating agency);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (viii) Collateral loans (including warehousing agreements) secured by Federal Housing Administration or Veterans Administration guaranteed single-family or multi-family mortgages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ix) Interests (including repurchase agreements) in U.S. Government securities pledged by a bank or other borrower to secure short-term loans from the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x) Securities issued by an investment company registered under the Investment Company Act that invests predominantly in United States Treasury issues or Federal agency issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (o) In connection with any investment in tax-exempt bonds otherwise permitted by any paragraph of this Article III, to enter into total return swap contracts with counterparties that are rated in one of the two highest rating categories by at least two nationally recognized statistical rating agencies, provided that the total notional value of the tax-exempt bonds involved in such contracts that are outstanding from time to time shall not exceed ten percent (10%) of the value of all of the Trust's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (p) To issue new Units of the Trust in exchange for assets of the AFL-CIO Mortgage Investment Trust ("Mortgage Trust") on the basis of relative net asset values, provided that: the Board of Trustees of the Trust (including a majority of the Trustees who are not interested persons of either the Trust or the Mortgage Trust) find that the exchange is in the best interests of the Trust and that the interests of existing Participants in the Trust will not be diluted as a result of its effecting the transactions; and provided further that the United States Securities and Exchange Commission ("SEC") issues an Order of Exemption under Section 17 of the Investment Company Act, having found that: (1) the terms of the proposed transaction, including the consideration to be paid or received, are reasonable and fair and do not involve overreaching on the part of any person concerned; (2) the proposed transaction is consistent with the policy of the Trust and the Mortgage Trust as recited in their registration statements and reports filed with the SEC under the Investment Company Act; and (3) the proposed transaction is consistent with the general purposes of the Investment Company Act.

ARTICLE IV

<u>Operations</u>

<u>Section 4.1</u>. The principal office of the Trust shall be in Washington, D.C., unless changed to another location by a majority vote of the Trustees. The Trust may have such other office or places of business as the Trustees determine necessary or expedient.

<u>Section 4.2</u>. The Chairman shall be the chairman of the Board of Trustees. The Trustees may select from among themselves an Executive Committee to whom the Trustees may delegate appropriate power to carry on the business of the Trust. The Trustees may elect or appoint, from among their number or otherwise, or may authorize the Chairman to appoint, such other officers or agents to perform functions on behalf of the Trustees as the Trustees or Chairman deemed advisable.

<u>Section 4.3</u>. The Trustees shall meet at the Chairman's request or as specified in rules and regulations of the Trustees, but in no event less than once each year. Action by the Trustees may also be taken by them in writing. A quorum for doing business shall be a majority of the Trustees entitled to vote, but never less than three.

<u>Section 4.4</u>. The Trustees may authorize one or more of their number to sign, execute, acknowledge, and deliver any note, deed, certificate, or other instrument in the name of, and in behalf of, the Trust, and upon such authorization such signature, acknowledgment, or delivery shall have full force and effect as the act of all of the Trustees. The receipt of the Trustees, or any of them, or any of the officers or agents thereunto authorized, for money or property paid or delivered to them, or any of them, shall be an effectual discharge therefor to the person paying or delivering such money or property.

<u>Section 4.5</u>. This Declaration of Trust may be amended or altered by a majority of the Trustees at any time. The Trust, or any Series or Class thereof, may be terminated at any time by the Trustees after notice in writing to all Participants of the Trust or such Series or Class thereof (as applicable). Upon such termination, the Trust or any Series or Class thereof shall carry on no business except for the purpose of winding up its affairs, the Trustees shall retain all powers given to them under this Declaration of Trust with respect to the Trust, such Series or Class until the Trust or such Series or Class (as applicable) shall have been wound up, and, after paying or adequately providing for the payment of all liabilities, the Trustees shall distribute the remaining Trust property or Trust property allocated or belonging to such Series or Class to the Participants in the Trust or of the Series or Class (as applicable) according to their respective rights.

<u>Section 4.6</u>. A majority of the Trustees may: (a) select or direct the organization of a corporation, association, trust, or other organization to take over the Trust property and carry on the affairs of the Trust; (b) sell, convey, and transfer the Trust property to any such organization in exchange for shares, securities, or beneficial interests therein, and the assumption by such transferee of the liabilities of the Trust; and (c) thereupon terminate the Trust and deliver such shares, securities, or beneficial interest proportionately among the Participants in redemption of their Units.

<u>Section 4.7</u>. No Trustee shall be liable for having acted in good faith in any transaction connected with the Trust or the administration of the Trust. The Trustees shall be held harmless in acting upon any instrument, certificate, or paper that they believe to be genuine and to be signed or presented by the proper person or persons. The Trustees shall have no duty to make any investigation or inquiry concerning any statement contained in any such writing. No recourse shall be had at any time upon any note, bond, contract, instrument, certificate, undertaking, obligation, covenant, or agreement (whether oral or written) made, issued, or executed by the Trustees in pursuance of the terms of this Declaration of Trust, or by any officer or agent of the Trustees, against the Trustees or such officer or agent individually by legal or equitable proceeding, except only to compel the proper application or distribution of the Trust property, *provided that* no Trustee shall be excused from liability for willful malfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office ("disabling conduct"). The Trustees shall not be liable for the proper application of any part of the Trust property, *provided that* distributions are made in accordance with directions provided in this Declaration of Trust. Nothing contained in this Declaration of Trust shall be construed as giving power to the Trustees to contract any debt or to do anything that will bind any Participant personally. Any person, firm, corporation, or association dealing with the Trustees shall be limited to satisfying any obligation, liability, or covenant with the Trustees only out of the Trust property, and not out of the personal property of any Participant.

<u>Section 4.8</u>. The Trust shall indemnify each Trustee and officer and each former Trustee and officer of the Trust against fines, judgments, amounts paid in settlement and expenses, including attorneys' fees, actually and reasonably incurred in connection with any pending or threatened criminal action, civil suit or administrative or investigative proceeding (any "matter") against him or her arising by reason of the fact that he or she is or was a trustee or officer of the Trust, or by reason of actions taken by him or her as such Trustee or officer, if it is found that his or her liability does not result from disabling conduct. The finding that liability does not arise from disabling conduct may be made in a final decision by a court or other body before which the matter giving rise to the expense or liability was brought or, in the absence of such a decision, by (a) the vote of a majority of a quorum of Trustees who are neither "interested persons" of the Trust as defined in Section 2(a)(19) of the Investment Company Act nor parties to such matter ("disinterested non-party Trustees") or (b) an independent legal counsel in a written opinion. Expenses of the kind eligible for indemnification may be paid as incurred by a trustee or officer in advance of final disposition of a matter upon receipt of an undertaking by the recipient to repay such amount unless it is ultimately determined that he is entitled to indemnification hereunder if (a) the indemnitee provides security for his or her undertaking, (b) the Trust is insured for losses arising by reason of any lawful advances or (c) a majority of a quorum of disinterested non-party Trustees or independent legal counsel (in a written opinion) determines, based on a review of readily available facts, that there is reason to believe that the indemnitee ultimately will be found entitled to indemnification. This Section is intended to provide indemnification to Trustees and officers to the full extent permitted by law and shall be construed and enforced to that extent.

<u>Section 4.9</u>. The Trustees and any employee or agent of the Trustees (except a bank or trust company) who handles funds or other property of the Trust shall be bonded for the faithful discharge of his or her duties in such amount and as otherwise required by applicable law. The expenses of such bond shall be paid by the Trust.

<u>Section 4.10</u>. No person dealing with the Trustees shall be bound to make any inquiry concerning the validity of any transaction purporting to be made by the Trustees, or be liable for the application of money or property paid, loaned, or delivered. Every note, bond, contract, instrument, certificate, or undertaking, and every other act or thing executed or done by any Trustee in connection with the Trust, shall be conclusively taken to have been executed or done only in his or her capacity as Trustee, and such Trustee shall not be personally liable thereon. Every such note, bond, contract, certificate or undertaking made or issued by the Trustees shall recite that it is executed or made by them not individually, but as Trustees, and that the obligations of any such instrument are not binding upon any of the Trustees individually, but bind only the Trust property, and may contain any further recital that they may deem appropriate, but the omission of such recital shall not operate to bind the Trustees individually.

<u>Section 4.11</u>. The Trustees shall be reimbursed from the Trust property for their expenses and disbursements, including expenses for clerks, transfer agents, office hire, and counsel fees, and for all losses and liabilities by them incurred in administering the Trust and for the payment of such expenses, disbursements, losses, and liabilities, the Trustees shall have a lien on the Trust property prior to any rights or interests of the Participants.

<u>Section 4.12</u>. This Declaration of Trust shall be construed, regulated, and administered under the laws of the District of Columbia and in the courts of the District of Columbia.

ARTICLE V

<u>Units and Distributions</u>

<u>Section 5.1.</u> (a) The beneficial interests of the Trust shall be divided into portions ("Units") of one or more separate and distinct Series or Classes of Series as the Trustees shall, from time to time, create and establish. The number of authorized Units of each Series and Class thereof is unlimited. In lieu of issuing certificates to evidence ownership of such Units, the Trustees may establish a book-entry system whereby Units may be issued and redeemed by bookkeeping entry and without physical delivery of the securities. The Trustees shall have full power and authority in their sole discretion, and without obtaining any prior authorization or vote of the Participants (to the extent permitted by applicable law) (i) to create and establish (and to change in any manner) Units or any Series or Classes thereof with such preferences, voting powers, rights, and privileges as the Trustees may from time to time, determine; (ii) to divide or combine the Units or any Series or Classes thereof into a greater or lesser number; (iii) to classify or reclassify any issued Units into one or more Series or Classes of Units; (iv) to abolish any one or more Series or Classes of Units; (v) to reorganize or merge any Series or Class thereof into another Series or Class thereof; and (vi) to take such other action with respect to the Units or Series or Classes thereof as the Trustees may deem desirable; provided, however, that the Trustees may not amend a fundamental policy with respect to any Series or Class without the affirmative vote of Participants holding a majority of the Units of such Series or Class. The Trustees shall have the right to sell or exchange such additional Units without offering the same to the holders of the then-outstanding Units. All references to Units in this Declaration shall be deemed to include references to Units of any or all Series or Classes as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The establishment of any Series or Class thereof shall be effective upon the adoption of a resolution of the majority of the then Trustees setting forth such establishment and designation and the relative rights and preferences of the Units of such Series or Class, whether directly in such resolution or by reference to, or approval of, another document that sets forth such relative rights and preferences of the Units of such Series or Class including, without limitation, any registration statement of the Trust, or as otherwise provided in such resolution. At any time that there are no Units outstanding of any particular Series or Class previously established and designated, the Trustees may by a majority vote abolish such Series or Class and the establishment and designation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Until such time as any Units of any Series or Class are issued, the Trustees may exercise all rights of the holders of such Series or Class and may take any actions required or permitted by law, the Declaration or Bylaws to be taken by the holders of such Series or Class.

<u>Section 5.2.</u> Only Labor Organizations, Eligible Pension Plans, and State Public Funds as defined in this section shall be eligible to own Units of the Trust or to hold Units in the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) A "Labor Organization" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) any organization of any kind, any agency, employee representation committee, group, association or plan in which employees participate directly or through affiliated organizations, and which exists for the purpose in whole or in part, of dealing directly or through affiliated organizations with employers concerning grievances, labor disputes, wages, rates of pay, hours or other terms or conditions of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any employee benefit plan that benefits the members of such an organization; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any other organization that is, in the discretion of the Board of Trustees, affiliated with or sponsored by such an organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) An "Eligible Pension Plan" includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) a pension plan ("Pension Plan") constituting a qualified trust under Section 401(a) of the Internal Revenue Code of 1986, as amended (the "Code") which has beneficiaries who are represented by a Labor Organization and the assets of which are managed without the direct intervention or control of the plan's beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) a governmental plan ("Governmental Plan") within the meaning of section 414(d) of the Code which has beneficiaries who are represented by a Labor Organization and the assets of which are managed without the direct intervention or control of the plan's beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) a master trust, including without limitation a collective investment trust, holding the assets of more than one Pension Plan or more than one Governmental Plan, where at least one of the plans with assets in such master trust has beneficiaries who are represented by a Labor Organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) a pension or retirement program of a non-United States jurisdiction that is similar to a "governmental plan" as defined in Title 29, Section 1002(32) of the United States Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) a non-United States employee benefit plan subject to regulation under applicable non-United States laws that are similar in purpose and intent to the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) State Public Funds mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) treasury or public funds held for investment and administered under the authority of a State (including a Commonwealth of the United States of America and the District of Columbia) or Municipal Treasurer (or similar position, including but not limited to, a State Controller) pursuant to state or local statutes governing the investment of public funds: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other public fund that is, in the discretion of the Board of Trustees, deemed to be similar in purpose and intent to an investment fund described in subparagraph (i) above.

Units will not be transferable or assignable. No holder of a Unit will have the authority to pledge its Unit as collateral for any loan.

<u>Section 5.3</u>. All consideration received by the Trust for the issue or sale of Units of a particular Series, together with all assets in which such consideration is invested or reinvested, all income, earnings, profits, and proceeds thereof, including any proceeds derived from the sale, exchange, or liquidation of such assets, and any funds or payments derived from any reinvestment of such proceeds in whatever form the same may be, shall be referred to as "assets belonging to" that Series. In addition, any assets, income, earnings, profits, and proceeds thereof, funds or payments that are not readily identifiable as belonging to any particular Series or Class, shall be allocated by the Trustees between and among one or more of the Series or Classes in such manner as they, in their sole discretion, deem fair and equitable. Each such allocation shall be conclusive and binding upon the Participants in all Series or Classes for all purposes, and shall be referred to as assets belonging to that Series or Class. The assets belonging to a particular Series shall be so recorded upon the books of the Trust or of its agent or agents and shall be held by the Trustees in trust for the benefit of the holders of Units of that Series.

The assets belonging to each particular Series shall be charged with the liabilities of that Series and all expenses, costs, charges, and reserves attributable to that Series, except that liabilities and expenses may, in the Trustee's discretion, be allocated solely to a particular Class and, in which case, shall be borne by that Class. Any general liabilities, expenses, costs, charges, or reserves of the Trust that are not readily identifiable as belonging to any particular Series or Class shall be allocated and charged by the Trustees between or among any one or more of the Series or Classes in such manner as the Trustees, in their sole discretion, deem fair and equitable and shall be referred to as "liabilities belonging to" that Series or Class. Each such allocation shall be conclusive and binding upon the Participants in all Series or Classes for all purposes. Any creditor of any Series may look only to the assets of that Series to satisfy such creditor's debt. No Participant or former Participant of any Series shall have a claim on or any right to any assets allocated or belonging to any other Series.

<u>Section 5.4</u>. (a) The term "Net Asset Value" of any Series or Class shall mean that amount by which the assets of the Series or Class exceed its liabilities, all as determined by or under the direction of the Trustees. Such Net Asset Value per Unit shall be determined separately for each Series or Class of Units and shall be determined on such days and at such times as the Trustees may determine (each, a "Valuation Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding subparagraph (a) of this Section 5.4, with respect to Series A, the net asset value shall be set at fair value as determined by the Trustees as of the close of business at the end of each calendar month (hereinafter "Series A Valuation Dates"). On the basis of the valuation made on the Series A Valuation Date, the beneficial interest of each Participant shall be adjusted to reflect the effect of income (collected or accrued), realized and unrealized gains and losses, expenses, and all other transactions with respect to such Series since the last preceding Series A Valuation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In determining the value of the assets of any Series or Class of Units, the Trust will comply with the Investment Company Act, including Section 2(a)(41) thereof, and the rules, regulations, and interpretations thereof promulgated or issued by the Commission or insofar as permitted by any order of the Commission applicable to the Trust, as the same may be amended from time to time. The Trustees may delegate any of their powers and duties under this Section 5.4 with respect to valuations of assets and liabilities.

<u>Section. 5.5</u>. The Trustees shall as of each Valuation Date declare dividends of net income earned during each month. Such distributions will be payable after the end of each calendar quarter or such other dates as the Trustees may designate and will be made in cash, except that on written request of a Participant, distribution can be made in Units of the relevant Series or Class of the Trust valued as of the distribution date *provided that* such automatic reinvestment of income distribution does not subject the Trust to adverse consequences in the opinion of legal counsel for the Trust.

<u>Section 5.6</u>. Notwithstanding anything to the contrary contained in this Declaration of Trust or in any amendment thereto, no part of the Trust that equitably belongs to any Participant (other than such part as is required to pay the expenses of the Trust) shall be used for any purpose other than the exclusive benefit of the Participant.

<u>Section 5.7</u>. The Trustees shall render from time to time an accounting of the Trust's transactions. A copy of such accounting will be made available to each Participant. No person other than a Participant may require an accounting or bring any action against the Trustees with respect to the Trust or because of any Trustee's actions on behalf of the Trust.

<u>Section 5.8</u>. In case of the loss or destruction of any certificate, the Trustees may, under such terms as they deem expedient, issue a new certificate in place of the one so lost.

ARTICLE VI

<u>Admissions to and Withdrawals from Trust</u>

<u>Section 6.1</u>. (a) No admission to or withdrawal from the Trust shall be permitted except in Units. Units shall be issued and redeemed only as of a Valuation Date and may be issued and redeemed in fractions of a Unit. A request for issuance of Units must be received by the Trust before the Valuation Date as of which they are to be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to Series A Units, a request for redemption of Units must be received by the Trust at least 15 days before the Series A Valuation Date as of which they are to be redeemed. No issue of Units will be made to any new Participant having a value of less than Fifty Thousand Dollars ($50,000). Any request for redemption of Units made between Valuation Dates will be considered as having been made 15 days before the next ensuing Valuation Date and will be honored only as of such date.

<u>Section 6.2</u>. Payment in satisfaction of a duly tendered request for redemption shall be made as soon as practicable and in any event within seven days after the Valuation Date as of which redemption is effected.

<u>Section 6.3</u>. Upon the agreement of the redeeming Participant, the Trust may give securities and/or mortgages or other Trust assets in partial or full satisfaction of a duly tendered request for redemption. Such securities and/or mortgages will be treated for redemption purposes as being the cash equivalent of their value of the Valuation Date before the date on which redemption was requested.

## Ex-99.(F)(2)

[AFL CIO 485BPOS](hit-485bpos_043026.htm)

**Exhibit 99.(f)(2)**

**AFL-CIO HOUSING INVESTMENT TRUST 401(K) RETIREMENT PLAN**

**SUMMARY PLAN DESCRIPTION**

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **INTRODUCTION TO YOUR PLAN** | **INTRODUCTION TO YOUR PLAN** |
| What kind of Plan is this? | 1 |
| What information does this Summary provide? | 1 |
| **ARTICLE I** | **ARTICLE I** |
| **PARTICIPATION IN THE PLAN** | **PARTICIPATION IN THE PLAN** |
| How do I participate in the Plan? | 1 |
| What happens if I'm a Participant, terminate employment and then I'm rehired? | 2 |
| **ARTICLE II** | **ARTICLE II** |
| **EMPLOYEE CONTRIBUTIONS** | **EMPLOYEE CONTRIBUTIONS** |
| What are salary deferrals and how do I contribute them to the Plan? | 2 |
| What are "rollover" contributions? | 3 |
| What are In-Plan Roth Conversions? | 3 |
| What are In-Plan Roth Rollover? | 3 |
| What are In-Plan Roth Rollover Transfers? | 4 |
| **ARTICLE III** | **ARTICLE III** |
| **EMPLOYER CONTRIBUTIONS** | **EMPLOYER CONTRIBUTIONS** |
| What is the Employer matching contribution and how is it allocated? | 4 |
| **ARTICLE IV** | **ARTICLE IV** |
| **COMPENSATION AND ACCOUNT BALANCE** | **COMPENSATION AND ACCOUNT BALANCE** |
| What compensation is used to determine my Plan benefits? | 4 |
| Is there a limit on the amount of compensation which can be considered? | 5 |
| Is there a limit on how much can be contributed to my account each year? | 5 |
| How is the money in the Plan invested? | 5 |
| Will Plan expenses be deducted from my account balance? | 5 |
| **ARTICLE V** | **ARTICLE V** |
| **VESTING** | **VESTING** |
| What is my vested interest in my account? | 6 |
| What happens if the Plan becomes a "top-heavy plan"? | 6 |
| **ARTICLE VI** | **ARTICLE VI** |
| **DISTRIBUTIONS PRIOR TO TERMINATION AND HARDSHIP DISTRIBUTIONS** | **DISTRIBUTIONS PRIOR TO TERMINATION AND HARDSHIP DISTRIBUTIONS** |
| Can I withdraw money from my account while working? | 6 |
| Can I withdraw money from my account in the event of financial hardship? | 7 |
| **ARTICLE VII** | **ARTICLE VII** |
| **BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT** | **BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT** |
| When can I get money out of the Plan? | 7 |
| What happens if I terminate employment before death, disability or retirement? | 8 |
| What happens if I terminate employment at Normal Retirement Date? | 8 |

---

---

| | |
|:---|:---|
| What happens if I terminate employment at Early Retirement Date? | 8 |
| What happens if I terminate employment due to disability? | 8 |
| How will my benefits be paid to me? | 9 |
| **ARTICLE VIII** | **ARTICLE VIII** |
| **BENEFITS AND DISTRIBUTIONS UPON DEATH** | **BENEFITS AND DISTRIBUTIONS UPON DEATH** |
| What happens if I die while working for the Employer? | 9 |
| Who is the beneficiary of my death benefit? | 9 |
| How will the death benefit be paid to my beneficiary? | 10 |
| When must the last payment be made to my beneficiary? | 10 |
| What happens if I'm a Participant, terminate employment and die before receiving all my benefits? | 10 |
| **ARTICLE IX** | **ARTICLE IX** |
| **TAX TREATMENT OF DISTRIBUTIONS** | **TAX TREATMENT OF DISTRIBUTIONS** |
| What are my tax consequences when I receive a distribution from the Plan? | 10 |
| Can I elect a rollover to reduce or defer tax on my distribution? | 10 |
| **ARTICLE X** | **ARTICLE X** |
| **LOANS** | **LOANS** |
| Is it possible to borrow money from the Plan? | 11 |
| What are the loan rules and requirements? | 11 |
| **ARTICLE XI** | **ARTICLE XI** |
| **PROTECTED BENEFITS AND CLAIMS PROCEDURES** | **PROTECTED BENEFITS AND CLAIMS PROCEDURES** |
| Are my benefits protected? | 12 |
| Are there any exceptions to the general rule? | 12 |
| Can the Plan be amended? | 12 |
| What happens if the Plan is discontinued or terminated? | 12 |
| How do I submit a claim for Plan benefits? | 12 |
| What if my benefits are denied? | 13 |
| What is the Claims Review Procedure? | 14 |
| What are my rights as a Plan Participant? | 15 |
| What can I do if I have questions or my rights are violated? | 16 |
| **ARTICLE XII** | **ARTICLE XII** |
| **GENERAL INFORMATION ABOUT THE PLAN** | **GENERAL INFORMATION ABOUT THE PLAN** |
| Plan Name | 16 |
| Plan Number | 16 |
| Plan Effective Dates | 16 |
| Other Plan Information | 16 |
| Employer Information | 17 |
| Administrator Information | 17 |
| Plan Trustee Information and Plan Funding Medium | 17 |

---

**AFL-CIO HOUSING INVESTMENT TRUST 401(K) RETIREMENT PLAN**

**SUMMARY PLAN DESCRIPTION**

**INTRODUCTION TO YOUR PLAN**

**What kind of Plan is this?**

AFL-CIO Housing Investment Trust 401(k) Retirement Plan ("Plan") has been adopted to provide you with the opportunity to save for retirement on a tax-advantaged basis. This Plan is a type of qualified retirement plan commonly referred to as a 401(k) Plan.

**What information does this Summary provide?**

This Summary Plan Description ("SPD") contains information regarding when you may become eligible to participate in the Plan, your Plan benefits, your distribution options, and many other features of the Plan. You should take the time to read this SPD to get a better understanding of your rights and obligations under the Plan.

In this Summary, your Employer has addressed the most common questions you may have regarding the Plan. If this SPD does not answer all of your questions, please contact the Administrator or other Plan representative. The Administrator is responsible for responding to questions and making determinations related to the administration, interpretation, and application of the Plan. The name and address of the Administrator can be found at the end of this SPD in the Article entitled "General Information About the Plan."

This SPD describes the Plan's benefits and obligations as contained in the legal Plan document, which governs the operation of the Plan. The Plan document is written in much more technical and precise language and is designed to comply with applicable legal requirements. If the non-technical language in this SPD and the technical, legal language of the Plan document conflict, the Plan document always governs. If you wish to receive a copy of the legal Plan document, please contact the Administrator.

The Plan and your rights under the Plan are subject to federal laws, such as the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, as well as some state laws. The provisions of the Plan are subject to revision due to a change in laws or due to pronouncements by the Internal Revenue Service (IRS) or Department of Labor (DOL). Your Employer may also amend or terminate this Plan. Your Employer will notify you if the provisions of the Plan that are described in this SPD change.

**Types of contributions.** The following types of contributions may be made under this Plan:

● Employee salary deferrals including Roth 401(k) deferrals

● Employer matching contributions

● Employee "rollover" contributions

**ARTICLE I**

**PARTICIPATION IN THE PLAN**

**How do I participate in the Plan?**

Provided you are not an Excluded Employee, you may become a "Participant" in the Plan once you have satisfied the eligibility requirements and reached your "Entry Date." The following describes the eligibility requirements and Entry Dates that apply. You should contact the Administrator if you have questions about the timing of your Plan participation.

**All Contributions**

**Excluded Employees.** If you are a member of a class of employees identified below, you are an Excluded Employee and you are not entitled to participate in the Plan. The Excluded Employees are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● certain nonresident aliens who have no earned income from sources within the United States

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● leased employees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● interns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● temporary employees. However, if as a temporary employee, you complete one (1) Year of Service in any year of employment, you will no longer be part of this excluded class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● seasonal employees. However, if as a seasonal employee, you complete one (1) Year of Service in any year of employment, you will no longer be part of this excluded class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Independent Contractors

**Eligibility conditions.** You will be eligible to participate in the Plan when you have satisfied the following eligibility condition(s). However, you will actually become a Participant in the Plan once you reach the Entry Date as described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● attainment of age 21.

**Entry Date.** Your Entry Date will be the date on which you satisfy the eligibility requirements.

**What happens if I'm a Participant, terminate employment and then I'm rehired?**

If you are no longer a Participant because you terminated employment, and you are rehired, then you will be able to participate in the Plan on your date of rehire provided you are otherwise eligible to participate in the Plan.

**ARTICLE II**

**EMPLOYEE CONTRIBUTIONS**

**What are salary deferrals and how do I contribute them to the Plan?**

**Salary deferrals.** As a Participant under the Plan, you may elect to reduce your compensation by a specific percentage or dollar amount and have that amount contributed to the Plan as a salary deferral. There are two types of salary deferrals: Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. For purposes of this SPD, "salary deferrals" generally means both Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. Regardless of the type of deferral you make, the amount you defer is counted as compensation for purposes of Social Security taxes.

**Pre-Tax 401(k) deferrals.** If you elect to make Pre-Tax 401(k) deferrals, then your taxable income is reduced by the deferral contributions so you pay less in federal income taxes. Later, when the Plan distributes the deferrals and earnings, you will pay the taxes on those deferrals and the earnings. Therefore, with a Pre-Tax 401(k) deferral, federal income taxes on the deferral contributions and on the earnings are only postponed. Eventually, you will have to pay taxes on these amounts.

**Roth 401(k) deferrals.** If you elect to make Roth 401(k) deferrals, the deferrals are subject to federal income taxes in the year of deferral. However, the deferrals and, in most cases, the earnings on the deferrals are not subject to federal income taxes when distributed to you. In order for the earnings to be tax free, you must meet certain conditions. See "What are my tax consequences when I receive a distribution from the Plan?" below.

**Deferral procedure.** The amount you elect to defer will be deducted from your pay in accordance with a procedure established by the Administrator. The procedure will require that you enter into a salary deferral agreement after you satisfy the Plan's eligibility requirements. You may elect to defer a portion of your salary as of your Entry Date. Such election will become effective as soon as administratively feasible after it is received by the Administrator. Your election will generally remain in effect until you modify or terminate it.

**Deferral modifications.** You are permitted to revoke your salary deferral election at any time during the Plan Year. You may make any other modification as of each payroll period or in accordance with any other procedure that your Employer provides. Any modification will become effective as soon as administratively feasible after it is received by the Administrator.

**Deferral Limit.** As a Participant, you may elect to defer an amount from your compensation each year instead of receiving that amount in cash. You may defer up to 100% of your compensation. Such election will also apply to irregular pay (e.g., bonuses) unless the Plan has a policy to exclude these amounts or allows for a different deferral election for these amounts.

Your total deferrals in any taxable year may not exceed a dollar limit which is set by law. The limit for 2025 is $23,500. After 2025, the dollar limit may increase for cost-of-living adjustments. See the paragraph below on Annual dollar limit.

**Catch-up contributions.** If you are at least age 50 or will attain age 50 before the end of a calendar year, then you may elect to defer additional amounts (called "catch-up contributions") to the Plan as of the January 1st of that year. The additional amounts may be deferred regardless of any other limitations on the amount that you may defer to the Plan. The maximum "catch-up contribution" that you can make in 2025 is $7,500. After 2025, the maximum may increase for cost-of-living adjustments. Any "catch-up contributions" that you make will not be taken into account in determining any Employer matching contribution made to the Plan.

**Annual dollar limit.** You should also be aware that each separately stated annual dollar limit on the amount you may defer (the annual deferral limit and the "catch-up contribution" limit) is a separate aggregate limit that applies to all such similar salary deferral amounts and "catch-up contributions" you may make under this Plan and any other cash or deferred arrangements (including tax-sheltered 403(b) annuity contracts, simplified employee pensions or other 401(k) plans) in which you may be participating. Generally, if an annual dollar limit is exceeded, then the excess must be returned to you in order to avoid adverse tax consequences. For this reason, it is desirable to request in writing that any such excess salary deferral amounts and "catch-up contributions" be returned to you.

If you are in more than one plan, you must decide which plan or arrangement you would like to return the excess. If you decide that the excess should be distributed from this Plan, you must communicate this in writing to the Administrator not later than the March 1st following the close of the calendar year in which such excess deferrals were made. However, if the entire dollar limit is exceeded in this Plan or any other plan your Employer maintains, then you will be deemed to have notified the Administrator of the excess. The Administrator will then return the excess deferrals and any earnings to you by April 15th.

**Allocation of deferrals.** The Administrator will allocate the amount you elect to defer to an account maintained on your behalf. You will always be 100% vested in this account (see the Article in this SPD entitled "Vesting"). This means that you will always be entitled to all amounts that you defer. This money will, however, be affected by any investment gains or losses. If there is an investment gain, then the balance in your account will increase. If there is an investment loss, then the balance in your account will decrease.

**Distribution of deferrals.** The rules regarding distributions of amounts attributable to your salary deferrals are explained later in this SPD. However, if you are a highly compensated employee (generally more than 5% owners and certain family members (regardless of how much they earn), or individuals receiving wages in excess of certain amounts established by law), a distribution of amounts attributable to your salary deferrals or certain excess contributions may be required to comply with the law. The Administrator will notify you when a distribution is required.

**What are "rollover" contributions?**

**Rollover contributions.** At the discretion of the Administrator, if you are a Participant who is currently employed or an Eligible Employee, you may be permitted to deposit into the Plan distributions you have received from other retirement plans and certain IRAs. Such a deposit is called a "rollover" contribution and may result in tax savings to you. You may ask the Administrator or Trustee of the other plan or IRA to directly transfer (a "direct rollover") to this Plan all or a portion of any amount that you are entitled to receive as a distribution from such plan. Alternatively, you may elect to deposit any amount eligible to be rolled over within 60 days of your receipt of the distribution. You should consult qualified counsel to determine if a rollover is in your best interest.

**Rollover account.** Your "rollover" contribution will be accounted for in a "rollover account." You will always be 100% vested in your "rollover account" (see the Article in this SPD entitled "Vesting"). This means that you will always be entitled to all amounts in your "rollover account." Rollover contributions will be affected by any investment gains or losses.

**Withdrawal of "rollover" contributions.** You may withdraw the amounts in your "rollover account" at any time.

**What are In-Plan Roth Conversions?**

Ordinarily, you do not pay taxes on the contributions or earnings of your accounts attributable to your employer's contributions (including accounts attributable to Employer matching contributions and accounts attributable to Employer profit sharing contributions) until you receive an actual distribution from such accounts because such amounts are usually held in what is called "pre-tax" accounts. In other words, the taxes on the contributions and earnings in your pre-tax accounts are deferred until a distribution is made. Roth accounts, however, are the opposite. With a Roth account you pay current taxes on the amounts contributed. When a distribution is made to you from the Roth account, you do not pay taxes on the amounts you had contributed. In addition, if you have a "qualified Roth distribution", you also do not pay taxes on the earnings that are attributable to the contributions. See the Q&A called "What are my tax consequences when I receive a distribution from the Plan?" for the definition of a qualified Roth distribution.

This Plan allows an In-Plan Roth conversion feature. That means that a portion of your funds that are already in one or more of your tax- deferred accounts under the Plan can be converted from a pre-tax basis to a Roth tax basis. For tax purposes, such recharacterized amounts will be treated by the Plan as if such funds had been Roth deferrals to your account, i.e., they will not be taxed at the time of distribution. That is because you will be taxed on the total amount being converted to a Roth tax basis for the year in which such conversion(s) are made.

Once you make an election to convert an amount to a Roth tax basis, your election cannot be changed. It's important that you understand the tax effects of making the election and ensure you have adequate resources outside of the plan to pay the additional taxes. The In-Plan Roth transfer does not affect the timing of when a distribution may be made to you under the Plan; the transfer only changes the tax character of your account. You should consult with your tax advisor prior to making a transfer election.

There are two conversion options available under the plan, In-plan Roth Rollovers and In-plan Roth Transfers. Each type of conversion is described in greater detail in the two Questions that immediately follow, because there are some technical differences between the two types.

**What are In-Plan Roth Rollovers?**

**In-Plan Roth Rollovers.** Effective January 1, 2023, if you are eligible for a distribution from an account and you are currently an employee, you may elect to roll over all or a portion of the distribution to a designated Roth contribution account in the Plan (referred to as an In-Plan Roth Rollover). You may only roll over the distribution directly. If you wish to convert all or a portion of a non-distributable account to a Roth tax basis, see the Question "What are In-Plan Roth Rollover Transfers?"

The following limitations apply to the In-Plan Roth Rollovers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The minimum In-Plan Roth Rollover amount is $1,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● An In-Plan Roth Contribution can only be made from accounts which are 100% vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● No more than 1 transfers may be made during a Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● A transfer can only be made at a time when you are still employed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Loans may not be distributed as part of the distribution.

The law restricts any in-service distributions from certain accounts which are maintained for you under the Plan before you reach age 59 1/2. These accounts are the ones set up to receive your salary deferral contributions and other Employer contributions which are used to satisfy special rules for 401(k) plans. Ask the Administrator if you need more details.

**What are In-Plan Roth Rollover Transfers?**

**In-Plan Roth Rollover Transfers.** Effective January 1, 2023, as a Participant under the Plan, you may make an In-Plan Roth Rollover Transfer (provided you are an employee at the time of the transfer). An In-Plan Roth Rollover Transfer allows you to elect to change the tax treatment of all or some of your pre-tax accounts provided the account is 100% vested, as explained below. However, loans may not be rolled over as an In-Plan Roth Rollover Contribution.

**Conditions and Limitations.** The following limitations apply to the In-Plan Roth Rollover Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The minimum amount that may be transferred is $1,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● A transfer can only be made from accounts which are 100% vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Loans may not be distributed as part of the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● No more than 1 transfers may be made during a Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● A transfer can only be made at a time when you are still employed.

**Additional Information**: See the Question entitled "What are In-Plan Roth conversions" for more information on this feature.

**ARTICLE III**

**EMPLOYER CONTRIBUTIONS**

In addition to any deferrals you elect to make, your Employer may make additional contributions to the Plan. This Article describes Employer contributions that may be made to the Plan and how your share of the contribution is determined.

**What is the Employer matching contribution and how is it allocated?**

**Discretionary Matching contribution.** Your Employer may make a discretionary matching contribution equal to a percentage of your salary deferrals. Your Employer will select the allocation method for this Contribution in the Adoption Agreement. A Discretionary Match is not subject to a separate notice requirement*.* However, any salary deferrals that are "catch-up contributions" will not be matched.

**Limit on matching contribution.** Your Employer has the option to apply the matching contribution by disregarding (i.e., not matching) salary deferrals made each payroll period that exceed a certain dollar amount or a certain percentage of your compensation for such period. The Administrator will inform you of this limit.

**Allocation conditions.** You will always share in the matching contribution regardless of the amount of service you complete during the Plan Year.

**ARTICLE IV**

**COMPENSATION AND ACCOUNT BALANCE**

**What compensation is used to determine my Plan benefits?**

**Definition of compensation.** For the purposes of the Plan, compensation has a special meaning. Compensation is generally defined as your total compensation that is subject to income tax and paid to you by your Employer during the Plan Year. In addition, salary reductions to this Plan and to any other plan or arrangement (such as a cafeteria plan) will be included in Compensation. If you are a self-employed individual, your compensation will be equal to your earned income. The following describes the adjustments to compensation that may apply under the Plan.

**All Contributions**

**Adjustments to compensation.** The following adjustments to compensation will be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● reimbursements or other expense allowances, fringe benefits, moving expenses, deferred compensation, and welfare benefits will be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● compensation paid after you terminate employment will be excluded.

**Is there a limit on the amount of compensation which can be considered?**

The Plan, by law, cannot recognize annual compensation in excess of a certain dollar limit. The limit for the Plan Year beginning in 2025 is $350,000. After 2025, the dollar limit may increase for cost-of-living adjustments.

**Is there a limit on how much can be contributed to my account each year?**

Generally, the law imposes a maximum limit on the amount of contributions (excluding "catch-up contributions") that may be made to your account and any other amounts allocated to any of your accounts during the Plan Year, excluding earnings. Beginning in 2025, this total cannot exceed the lesser of $70,000 or 100% of your annual compensation. After 2025, the dollar limit may increase for cost-of-living adjustments.

**How is the money in the Plan invested?**

The Trustee of the Plan has been designated to hold the assets of the Plan for the benefit of Plan Participants and their beneficiaries in accordance with the terms of this Plan. The Trust Fund established by the Plan's Trustee will be the funding medium used for the accumulation of assets from which Plan benefits will be distributed.

**Participant directed investments.** You will be able to direct the investment of your entire interest in the Plan. The Administrator will provide you with information on the investment choices available to you, the procedures for making investment elections, the frequency with which you can change your investment choices and other important information. You need to follow the procedures for making investment elections and you should carefully review the information provided to you before you give investment directions. If you do not direct the investment of your applicable Plan accounts, then your accounts will be invested in accordance with the default investment alternatives established under the Plan. These default investments will be made in accordance with specific rules under which the fiduciaries of the Plan, including the Employer, the Trustee and the Administrator, will be relieved of any legal liability for any losses resulting from the default investments. The Administrator has or will provide you with a separate notice which details these default investments and your right to switch out of the default investment if you so desire.

The Plan is intended to comply with Section 404(c) of ERISA (the Employee Retirement Income Security Act). If the Plan complies with Section 404(c), then the fiduciaries of the Plan, including your Employer, the Trustee(s) and the Administrator, will be relieved of any legal liability for any losses which are the direct and necessary result of the investment directions that you give.

**Earnings or losses.** When you direct investments, your accounts are segregated for purposes of determining the earnings or losses on these investments. Your account does not share in the investment performance of other Participants who have directed their own investments. You should remember that the amount of your benefits under the Plan will depend in part upon your choice of investments. Gains as well as losses can occur and your Employer, the Administrator, and the Trustee will not provide investment advice or guarantee the performance of any investment you choose.

Periodically, you will receive a benefit statement that provides information on your account balance and your investment returns. It is your responsibility to notify the Administrator of any errors you see on any statements within 30 days after the statement is provided or made available to you.

**Will Plan expenses be deducted from my account balance?**

**Expenses allocated to all accounts.** The Plan permits the payment of Plan expenses to be made from the Plan's assets. If expenses are paid using the Plan's assets, then the expenses will generally be allocated among the accounts of all Participants in the Plan. These expenses will be allocated either proportionately based on the value of the account balances or as an equal dollar amount based on the number of Participants in the Plan. The method of allocating the expenses depends on the nature of the expense itself. For example, certain administrative (or recordkeeping) expenses would typically be allocated proportionately to each Participant. If the Plan pays $1,000 in expenses and there are 100 Participants, your account balance would be charged $10 ($1,000/100) of the expense.

**Terminated employee.** After you terminate employment, your Employer reserves the right to charge your account for your pro rata share of the Plan's administration expenses, regardless of whether your Employer pays some of these expenses on behalf of current employees.

**Expenses allocated to individual accounts.** There are certain other expenses that may be paid just from your account. These are expenses that are specifically incurred by, or attributable to, you. For example, if you are married and get divorced, the Plan may incur additional expenses if a

court mandates that a portion of your account be paid to your ex-spouse. These additional expenses may be paid directly from your account (and not the accounts of other Participants) because they are directly attributable to you under the Plan. The Administrator will inform you when there will be a charge (or charges) directly to your account.

Your Employer may, from time to time, change the manner in which expenses are allocated.

**ARTICLE V**

**VESTING**

**What is my vested interest in my account?**

**100% vested contributions.** You are always 100% vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● salary deferrals including Roth 401(k) deferrals and "catch-up contributions"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Employer matching contributions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "rollover" contributions

**What happens if the Plan becomes a "top-heavy plan"?**

**Top-heavy plan.** A retirement plan that primarily benefits "key employees" is called a "top-heavy plan." "Key employees" are certain owners or officers of your Employer. A plan is generally a "top-heavy plan" when more than 60% of the plan assets are attributable to "key employees." Each year, the Administrator is responsible for determining whether the Plan is a "top-heavy plan."

**Top-heavy rules.** If the Plan becomes top-heavy in any Plan Year, then non-key employees may be entitled to certain "top-heavy minimum benefits," and other special rules will apply. These top-heavy rules include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Your Employer may be required to make a contribution on your behalf in order to provide you with at least "top-heavy minimum benefits."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If you are a Participant in more than one Plan, you may not be entitled to "top-heavy minimum benefits" under both Plans.

**ARTICLE VI**

**DISTRIBUTIONS PRIOR TO TERMINATION AND HARDSHIP DISTRIBUTIONS**

**Can I withdraw money from my account while working?**

**In-service distributions.** You may be entitled to receive an in-service distribution. However, this distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at retirement. This distribution is made at your election and will be made in accordance with the forms of distributions available under the Plan.

**Conditions and limitations.** Generally, you may receive a distribution from the Plan from certain accounts prior to your termination of employment provided you satisfy any of the conditions described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● you have attained age 59 1/2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● you have attained age 55 (for Employer contributions only)

The following limitations apply to in-service distributions from certain accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● In-service distributions can only be made from accounts which are 100% vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● In-service distributions of your Roth 401(k) deferrals and earnings can only occur after the expiration of a 5-year participation period. The 5-year participation period is the 5-year period beginning on the calendar year in which you first make a Roth 401(k) deferral to our Plan (or to another 401(k) Plan or 403(b) plan if such amount was rolled over into our Plan) and ending on the last day of the calendar year that is 5 years later.

The law restricts any in-service distributions from certain accounts which are maintained for you under the Plan before you reach age 59 1/2. These accounts are the ones set up to receive your salary deferral contributions and other Employer contributions which are used to satisfy special rules for 401(k) plans. Ask the Administrator if you need more details.

**Can I withdraw money from my account in the event of financial hardship?**

**Hardship distributions.** You may withdraw money for financial hardship if you satisfy certain conditions. This hardship distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at retirement.

**Qualifying expenses.** A hardship distribution may be made to satisfy certain immediate and heavy financial needs that you have. A hardship distribution may only be made for payment of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● expenses for medical care (described in Section 213(d) of the Internal Revenue Code) previously incurred by you, your spouse or your dependents or necessary for you, your spouse or your dependents to obtain medical care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● costs directly related to the purchase of your principal residence (excluding mortgage payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● tuition, related educational fees, and room and board expenses for the next twelve (12) months of post-secondary education for yourself, your spouse or your dependents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● amounts necessary to prevent your eviction from your principal residence or foreclosure on the mortgage of your principal residence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● payments for burial or funeral expenses for your deceased parent, spouse, children or other dependents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● expenses for the repair of damage to your principal residence that would qualify for the casualty deduction under the Internal Revenue Code without regard to the limit on casualty losses that are deductible for income tax purposes under IRC 165(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● expenses for disasters arising from federally declared disasters, such as your expenses and losses (including loss of income) attributable to that disaster, provided your principal residence or place of employment was in an area FEMA designates as qualifying for individual assistance.

**Conditions.** If you have any of the above expenses, a hardship distribution can only be made if you certify and agree that all of the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The distribution is not in excess of the amount of your immediate and heavy financial need. The amount of your immediate and heavy financial need may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You have obtained all distributions, other than hardship distributions, currently available under all retirement plans that the Employer maintains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You certify (via a form for that purpose) that you have insufficient cash or other liquid assets reasonably available to satisfy the need.

**Limitations.** The following limitations apply to hardship distributions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Hardship distributions can only be made from accounts which are 100% vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● You must be employed with the Employer at the time of the hardship distribution.

**Account restrictions.** You may request a hardship distribution only from the following accounts provided the account is 100% vested:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● pre-tax deferral accounts plus earnings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Roth 401(k) deferral accounts plus earnings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● account(s) attributable to Employer matching contributions

In addition, there are restrictions placed on hardship distributions which are made from certain accounts. The Employer contributions which are used to satisfy special rules that apply to 401(k) plans, may not be distributed to you on account of a hardship. Ask the Administrator if you need further details.

**ARTICLE VII**

**BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT**

**When can I get money out of the Plan?**

You may receive a distribution of the vested portion of some or all of your accounts in the Plan for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● termination of employment for reasons other than death, disability or retirement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● early retirement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● normal retirement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● disability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● death

This Plan is designed to provide you with retirement benefits. However, distributions are permitted if you die or become disabled. In addition, certain payments are permitted when you terminate employment for any other reason. The rules under which you can receive a distribution are described in this Article. The rules regarding the payment of death benefits to your beneficiary are described in "Benefits and Distributions Upon Death."

You may also receive distributions while you are still employed with the Employer. (See the Article entitled "Distributions Prior to Termination and Hardship Distributions" for a further explanation.)

**Military service.** If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. There may also be benefits for employees who die or become disabled while on active duty. Employees who receive wage continuation payments while in the military may benefit from various changes in the law. If you think you may be affected by these rules, ask the Administrator for further details.

**What happens if I terminate employment before death, disability or retirement?**

If your employment terminates for reasons other than normal retirement, you will be entitled to receive only the "vested percentage" of your account balance.

You may elect to have your vested account balance distributed to you as soon as administratively feasible following your termination of employment. However, if the value of your vested account balance does not exceed $5,000, then a distribution will be made to you regardless of whether you consent to receive it. (See the question entitled "How will my benefits be paid to me?" for additional information.)

**Treatment of "rollover" contributions for consent to distribution.** In determining if the value of your vested account balance exceeds the $5,000 threshold described above used to determine whether you must consent to a distribution, your "rollover account" will be considered as part of your benefit.

**What happens if I terminate employment at Normal Retirement Date?**

**Normal Retirement Date.** You will attain your Normal Retirement Age when you reach age 65. Your Normal Retirement Date is the date on which you attain your Normal Retirement Age.

**Payment of benefits.** You will become 100% vested in all of your accounts under the Plan once you attain your Normal Retirement Age. However, the actual payment of benefits generally will not begin until you have terminated employment and reached your Normal Retirement Date. In such event, a distribution will be made, at your election, as soon as administratively feasible. If you remain employed past your Normal Retirement Date, you may generally defer the receipt of benefits until you actually terminate employment. In such event, benefit payments will begin as soon as feasible at your request, but generally not later than age 70 1/2 (if you were born before July 1, 1949) or age 72 (if you were born after June 30, 1949). (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)

**What happens if I terminate employment at Early Retirement Date?**

**Early Retirement Date.** Your Early Retirement Date is the date you have attained age 55 (early retirement age). You may elect to retire when you reach your Early Retirement Date.

**Payment of benefits.** If you are employed on the date you attain your early retirement age, you will be entitled to your vested account balance under the Plan. However, the payment of benefits generally will not begin until you actually retire after reaching your Early Retirement Date. In such event, a distribution will be made, at your election, as soon as administratively feasible. However, if you retire after reaching your Early Retirement Date but prior to your Normal Retirement Date and the value of your vested account balance does not exceed $5,000, then a distribution of your vested account balance will be made to you, regardless of whether you consent to receive it. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)

**What happens if I terminate employment due to disability?**

**Definition of disability.** Under the Plan, disability is defined as a physical or mental condition resulting from bodily injury, disease, or mental disorder which renders you incapable of continuing any gainful occupation and which has lasted or can be expected to last for a continuous

period of at least twelve (12) months. Your disability must be determined by a licensed physician. However, if your condition constitutes total disability under the federal Social Security Act, then the Administrator may deem that you are disabled for purposes of the Plan.

**Payment of benefits.** If you become disabled while an employee, you will be entitled to your vested account balance under the Plan. Payment of your disability benefits will be made to you as if you had retired. However, if the value of your vested account balance does not exceed $5,000, then a distribution of your vested account balance will be made to you, regardless of whether you consent to receive it. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)

**How will my benefits be paid to me?**

**Forms of distribution.** If your vested account balance does not exceed $5,000, then your vested account balance may only be distributed to you in a single lump-sum payment. In determining whether your vested account balance exceeds the $5,000 threshold, "rollover" contributions (and any earnings allocable to "rollover" contributions) will be taken into account.

In addition, if your vested account balance exceeds $5,000, you must consent to any distribution before it may be made. If your vested account balance exceeds $5,000, you may elect to receive a distribution of your vested account balance in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● a single lump-sum payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● partial withdrawals

**Delaying distributions.** You may delay the distribution of your vested account balance unless a distribution is required to be made, as explained earlier, because your vested account balance does not exceed $5,000. However, if you elect to delay the distribution of your vested account balance, there are rules that require that certain minimum distributions be made from the Plan. If you are a 5% owner, distributions are required to begin not later than the April 1st following the end of the year in which you reach age 70 1/2 (if you were born before July 1, 1949) or age 72 (if you were born after June 30, 1949). If you are not a 5% owner, distributions are required to begin not later than the April 1st following the later of the end of the year in which you reach age 70 1/2 (if you were born before July 1, 1949) or age 72 (if you were born after June 30, 1949) or retire. You should contact the Administrator if you think you may be affected by these rules.

**Medium of payment.** Benefits under the Plan will generally be paid to you in cash only.

**ARTICLE VIII**

**BENEFITS AND DISTRIBUTIONS UPON DEATH**

**What happens if I die while working for the Employer?**

If you die while still employed by the Employer, then your vested account balance will be used to provide your beneficiary with a death benefit.

**Who is the beneficiary of my death benefit?**

**Married Participant.** If you are married at the time of your death, your spouse will be the beneficiary of the entire death benefit unless an election is made to change the beneficiary. IF YOU WISH TO DESIGNATE A BENEFICIARY OTHER THAN YOUR SPOUSE, YOUR SPOUSE (IF YOU ARE MARRIED) MUST IRREVOCABLY CONSENT TO WAIVE ANY RIGHT TO THE DEATH BENEFIT. YOUR SPOUSE'S CONSENT MUST BE IN WRITING, BE WITNESSED BY A NOTARY OR A PLAN REPRESENTATIVE AND ACKNOWLEDGE THE SPECIFIC NONSPOUSE BENEFICIARY.

If you are married and you change your designation, then your spouse must again consent to the change. In addition, you may elect a beneficiary other than your spouse without your spouse's consent if your spouse cannot be located.

**Unmarried Participant.** If you are not married, you may designate a beneficiary on a form to be supplied to you by the Administrator.

**Divorce.** If you have designated your spouse as your beneficiary for all or a part of your death benefit, then upon your divorce, the designation is no longer valid. This means that if you do not select a new beneficiary after your divorce, then you are treated as not having a beneficiary for that portion of the death benefit (unless you have remarried).

**No beneficiary designation.** At the time of your death, if you have not designated a beneficiary or your beneficiary is also not alive, the death benefit will be paid in the following order of priority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) your surviving spouse

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) your children, including adopted children in equal shares (and if a child is not living, that child's share will be distributed to that child's heirs)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) your surviving parents, in equal shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) your estate

**How will the death benefit be paid to my beneficiary?**

**Form of distribution.** If the death benefit payable to a beneficiary does not exceed $5,000, then the benefit may only be paid as a lump-sum. If the death benefit exceeds $5,000, your beneficiary may elect to have the death benefit paid in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● a single lump-sum payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● partial withdrawals

**When must the last payment be made to my beneficiary?**

The law generally restricts the ability of a retirement plan to be used as a method of retaining money for purposes of your death estate. Thus, there are rules that are designed to ensure that death benefits are distributable to beneficiaries within certain time periods.

Regardless of the method of distribution selected, if your designated beneficiary is a person (rather than your estate or some trusts) then minimum distributions of your death benefit will begin by the end of the year following the year of your death ("1-year rule") and must be paid over a period not extending beyond your beneficiary's life expectancy. If your spouse is the beneficiary, then under the "1-year rule," the start of payments will be delayed until the year in which you would have attained age 70 1/2 (if you were born before July 1, 1949) or age 72 (if you were born after June 30, 1949) unless your spouse elects to begin distributions over his or her life expectancy before then. However, instead of the "1-year rule" your beneficiary may elect to have the entire death benefit paid by the end of the fifth year following the year of your death (the "5-year rule"). Generally, if your beneficiary is not a person, your entire death benefit must be paid under the "5-year rule."

Since your spouse has certain rights to the death benefit, you should immediately report any change in your marital status to the Administrator.

**What happens if I'm a Participant, terminate employment and die before receiving all my benefits?**

If you terminate employment with the Employer and subsequently die, your beneficiary will be entitled to your remaining interest in the Plan at the time of your death.

**ARTICLE IX**

**TAX TREATMENT OF DISTRIBUTIONS**

**What are my tax consequences when I receive a distribution from the Plan?**

Generally, you must include any Plan distribution in your taxable income in the year in which you receive the distribution. The tax treatment may also depend on your age when you receive the distribution. Certain distributions made to you when you are under age 59 1/2 could be subject to an additional 10% tax.

You will not be taxed on distributions of your Roth 401(k) deferrals. In addition, a distribution of the earnings on the Roth 401(k) deferrals will not be subject to tax if the distribution is a "qualified Roth distribution." A "qualified distribution" is one that is made after you have attained age 59 1/2 or is made on account of your death or disability and the distribution cannot be made prior to the expiration of a 5-year participation period. The 5-year participation period is the 5-year period beginning on the calendar year in which you first make a Roth 401(k) deferral to our Plan (or to another 401(k) plan or 403(b) plan if such amount was rolled over into our Plan) and ending on the last day of the calendar year that is 5 years later.

**Can I elect a rollover to reduce or defer tax on my distribution?**

**Rollover or direct transfer.** You may reduce, or defer entirely, the tax due on your distribution through use of one of the following methods:

**60-day rollover.** The rollover of all or a portion of the distribution to an individual retirement account or annuity (IRA) or another employer retirement plan willing to accept the rollover. This will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made within strict time frames (normally, within 60 days after you receive your distribution). Under certain circumstances, all or a portion of a distribution (such as a hardship distribution) may not qualify for this rollover treatment. In addition, most distributions will be subject to mandatory federal income tax withholding at a rate of 20%. This will reduce the amount you actually receive. For this reason, if you wish to roll over all or a portion of your distribution amount, then the direct transfer option described below would be the better choice.

**Direct rollover.** For most distributions, you may request that a direct transfer (sometimes referred to as a "direct rollover") of all or a portion of a distribution be made to either an individual retirement account or annuity (IRA) or another employer retirement plan willing to accept the transfer (See the question entitled "What are the In-Plan Roth Rollover Contributions?" for special rules on In-Plan Roth Rollovers). A direct transfer will result in no tax being due until you withdraw funds from the IRA or other employer plan. Like the

rollover, under certain circumstances all or a portion of the amount to be distributed may not qualify for this direct transfer. If you elect to actually receive the distribution rather than request a direct transfer, then in most cases 20% of the distribution amount will be withheld for federal income tax purposes.

**Automatic IRA rollover.** If a mandatory distribution is being made to you because your vested interest in the Plan exceeds $1 but does not exceed $5,000, then the Plan will rollover your distribution to an IRA if you do not make an affirmative election to either receive or roll over the distribution. The IRA provider selected by the Plan will invest the rollover funds in a type of investment designed to preserve principal and provide a reasonable rate of return and liquidity (e.g., an interest-bearing account, a certificate of deposit or a money market fund). The IRA provider will charge your account for any expenses associated with the establishment and maintenance of the IRA and with the IRA investments. You may transfer the IRA funds to any other IRA you choose. You will be provided with details regarding the IRA at the time you are entitled to a distribution. However, you may contact the Administrator at the address and telephone number indicated in this SPD for further information regarding the Plan's automatic rollover provisions, the IRA provider, and the fees and expenses associated with the IRA.

**Tax Notice.** WHENEVER YOU RECEIVE A DISTRIBUTION THAT IS AN ELIGIBLE ROLLOVER DISTRIBUTION, THE ADMINISTRATOR WILL DELIVER TO YOU A MORE DETAILED EXPLANATION OF THESE OPTIONS. HOWEVER, THE RULES WHICH DETERMINE WHETHER YOU QUALIFY FOR FAVORABLE TAX TREATMENT ARE VERY COMPLEX. YOU SHOULD CONSULT WITH QUALIFIED TAX COUNSEL BEFORE MAKING A CHOICE.

**ARTICLE X**

**LOANS**

**Is it possible to borrow money from the Plan?**

Yes, you may request a Participant loan from all your accounts using an application form provided by the Administrator. Your ability to obtain a Participant loan depends on several factors. The Administrator will determine whether you satisfy these factors.

**What are the loan rules and requirements?**

There are various rules and requirements that apply to any loan, which are outlined in this question. In addition, your Employer has established a written loan program which explains these requirements in more detail. You can request a copy of the loan program from the Administrator. Generally, the rules for loans include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Loans are available to Participants on a reasonably equivalent basis. Each loan requires an application which specifies the amount of the loan desired, the requested duration for the loan and the source of security for the loan. All loan applications will be considered by the Administrator within a reasonable time after the Participant applies for the loan. The Administrator may request that you provide additional information to make a determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● All loans must be adequately secured. You must sign a promissory note along with a loan pledge. Generally, you must use your vested interest in the Plan as security for the loan, provided the outstanding balance of all your loans does not exceed 50% of your vested interest in the Plan. In certain cases, the Administrator may require you to provide additional collateral to receive a loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● You will be charged an interest rate equal to 1% above the prime rate. The interest rate will be fixed for the duration of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Loan refinancing is not permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If approved, your loan will provide for level amortization with payments to be made not less frequently than quarterly. Generally, the term of your loan may not exceed five (5) years. However, if the loan is for the purchase of your principal residence, the term will be no longer than 10 years. Generally, the Administrator will require that you repay your loan by agreeing to either payroll deduction or payment by check (for prepayments only). If you have an unpaid leave of absence or go on military leave while you have an outstanding loan, please contact the Administrator to find out your repayment options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● All loans will be considered a directed investment of your account under the Plan. All payments of principal and interest by you on a loan will be credited to your account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The amount the Plan may loan to you is limited by rules under the Internal Revenue Code. Any new loans, when added to the outstanding balance of all other loans from the Plan, will be limited to the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) $50,000 reduced by the excess, if any, of your highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date of the new loan over your current outstanding balance of loans as of the date of the new loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 1/2 of your vested interest in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● No loan in an amount less than $1,000 will be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The maximum number of Plan loans that you may have outstanding at any one time is 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If you fail to make payments when they are due under the terms of the loan, you will be considered to be "in default." The Administrator will consider your loan to be in default if any scheduled loan repayment is not made by the end of the calendar quarter following the calendar quarter in which the missed payment was due. The Plan would then have authority to take all reasonable actions to collect the balance owed on the loan. This could include filing a lawsuit or foreclosing on the security for the loan. Under certain circumstances, a loan that is in default may be considered a distribution from the Plan and could be considered taxable income to you. In any event, your failure to repay a loan will reduce the benefit you would otherwise be entitled to from the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If you terminate employment, your loan generally becomes due and payable in full immediately. You may repay the entire outstanding balance of the loan (including any accrued interest). If you do not repay the entire outstanding loan balance, your vested account balance will be reduced by the remaining outstanding balance of the loan. Contact the Administrator for additional details.

The Administrator may periodically revise the Plan's loan program. If you have any questions on Participant loans or the current loan program, please contact the Administrator.

**ARTICLE XI**

**PROTECTED BENEFITS AND CLAIMS PROCEDURES**

**Are my benefits protected?**

As a general rule, your interest in your account, including your "vested interest," may not be alienated. This means that your interest may not be sold, used as collateral for a loan (other than for a Plan loan), given away or otherwise transferred. In addition, your creditors (other than the IRS) may not attach, garnish or otherwise interfere with your benefits under the Plan.

**Are there any exceptions to the general rule?**

There are three exceptions to this general rule. The Administrator must honor a "qualified domestic relations order." A "qualified domestic relations order" is defined as a decree or order issued by a court that obligates you to pay child support or alimony, or otherwise allocates a portion of your assets in the Plan to your spouse, former spouse, children or other dependents. If a "qualified domestic relations order" is received by the Administrator, all or a portion of your benefits may be used to satisfy that obligation. The Administrator will determine the validity of any domestic relations order received. You and your beneficiaries can obtain from the Administrator, without charge, a copy of the procedure used by the Administrator to determine whether a "qualified domestic relations order" is valid.

The second exception applies if you are involved with the Plan's operation. If you are found liable for any action that adversely affects the Plan, the Administrator can offset your benefits by the amount that you are ordered or required by a court to pay the Plan. All or a portion of your benefits may be used to satisfy any such obligation to the Plan.

The last exception applies to federal tax levies and judgments. The federal government is able to use your interest in the Plan to enforce a federal tax levy and to collect a judgment resulting from an unpaid tax assessment.

**Can the Plan be amended?**

Your Employer has the right to amend the Plan at any time. In no event, however, will any amendment authorize or permit any part of the Plan assets to be used for purposes other than the exclusive benefit of Participants or their beneficiaries. Additionally, no amendment will cause any reduction in the amount credited to your account.

**What happens if the Plan is discontinued or terminated?**

Although your Employer intends to maintain the Plan indefinitely, your Employer reserves the right to terminate the Plan at any time. Upon termination, no further contributions will be made to the Plan and all amounts credited to your accounts will continue to be 100% vested. Your Employer will direct the distribution of your accounts in a manner permitted by the Plan as soon as practicable. (See the question entitled "How will my benefits be paid to me?" for a further explanation.) You will be notified if the Plan is terminated.

**How do I submit a claim for Plan benefits?**

You may file a claim for benefits by submitting a written request for benefits to the Plan Administrator. You should contact the Plan Administrator to see if there is an applicable distribution form that must be used. If no specific form is required or available, then your written request for a distribution will be considered a claim for benefits. In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than by a third party such as the Social Security Administration), then you must also include with your claim sufficient evidence to enable the Plan Administrator to make a determination on whether you are disabled.

Decisions on the claim will be made within a reasonable period of time appropriate to the circumstances. "Days" means calendar days. If the Plan Administrator determines the claim is valid, then you will receive a statement describing the amount of benefit, the method or methods of payment, the timing of distributions and other information relevant to the payment of the benefit.

For purposes of the claims procedures described below, "you" refers to you, your authorized representative, or anyone else entitled to benefits under the Plan (such as a beneficiary). A document, record, or other information will be considered relevant to a claim if it:

● was relied upon in making the benefit determination;

● was submitted, considered, or generated in the course of making the benefit determination, without regard to whether it was relied upon in making the benefit determination;

● demonstrated compliance with the administrative processes and safeguards designed to ensure and to verify that benefit determinations are made in accordance with Plan documents and Plan provisions have been applied consistently with respect to all claimants; or

● constituted a statement of policy or guidance with respect to the Plan concerning the denied treatment option or benefit.

The Plan may offer additional voluntary appeal and/or mandatory arbitration procedures other than those described below. If applicable, the Plan will not assert that you failed to exhaust administrative remedies for failure to use the voluntary procedures, any statute of limitations or other defense based on timeliness is tolled during the time a voluntary appeal is pending; and the voluntary process is available only after exhaustion of the appeals process described in this section. If mandatory arbitration is offered by the Plan, the arbitration must be conducted instead of the appeal process described in this section, and you are not precluded from challenging the decision under ERISA §501(a) or other applicable law.

**What if my benefits are denied?**

Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Administrator will provide you with a written or electronic notification of the Plan's adverse determination. This written or electronic notification must be provided to you within a reasonable period of time, but not later than 90 days (except as provided below for disability claims) after the receipt of your claim by the Administrator, unless the Administrator determines that special circumstances require an extension of time for processing your claim. If the Administrator determines that an extension of time for processing is required, written notice of the extension will be furnished to you prior to the termination of the initial 90-day period. In no event will such extension exceed a period of 90 days from the end of such initial period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination.

In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then instead of the above, the initial claim must be resolved within 45 days of receipt by the Plan. A Plan may, however, extend this decision-making period for an additional 30 days for reasons beyond the control of the Plan. The Plan will notify you of the extension prior to the end of the 45-day period. If, after extending the time period for a first period of 30 days, the Plan Administrator determines that it will still be unable, for reasons beyond the control of the Plan, to make a decision within the extension period, the Plan may extend decision making for a second 30-day period. Appropriate notice will be provided to you before the end of the first 45 days and again before the end of each succeeding 30-day period. This notice will explain the circumstances requiring the extension and the date the Plan Administrator expects to render a decision. It will explain the standards on which entitlement to the benefits is based, the unresolved issues that prevent a decision, the additional issues that prevent a decision, and the additional information needed to resolve the issues. You will have 45 days from the date of receipt of the Plan Administrator's notice to provide the information required.

If the Plan Administrator determines that all or part of the claim should be denied (an "adverse benefit determination"), it will provide a notice of its decision in written or electronic form explaining your appeal rights. An "adverse benefit determination" also includes a rescission, which is a retroactive cancellation or termination of entitlement to disability benefits. The notice will be provided in a culturally and linguistically appropriate manner and will state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reason or reasons for the adverse determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reference to the specific Plan provisions on which the determination was based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A description of any additional material or information necessary for you to perfect the claim and an explanation of why such material or information is necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A description of the Plan's review procedures and the time limits applicable to such procedures. This will include a statement of your right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the case of a claim for disability benefits if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then the following additional information will be provided:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A discussion of the decision, including an explanation of the basis for disagreeing with or not following:

● The views you presented to the Plan of health care professionals treating the claimant and vocational professionals who evaluated you;

● The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with an adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or

● A disability determination made by the Social Security Administration and presented by you to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Either the internal rules, guidelines, protocols, or other similar criteria relied upon to make a determination, or a statement that such rules, guidelines, protocols, or other criteria do not exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the adverse benefit determination is based on a medical necessity or experimental treatment and/or investigational treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances. If this is not practical, a statement will be included that such explanation will be provided to you free of charge, upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim.

If your claim has been denied, and you want to submit your claim for review, you must follow the Claims Review Procedure in the next question.

**What is the Claims Review Procedure?**

Upon the denial of your claim for benefits, you may file your claim for review, in writing, with the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) YOU MUST FILE THE CLAIM FOR REVIEW NOT LATER THAN 60 DAYS (EXCEPT AS PROVIDED BELOW FOR DISABILITY CLAIMS) AFTER YOU HAVE RECEIVED WRITTEN NOTIFICATION OF THE DENIAL OF YOUR CLAIM FOR BENEFITS.

IF YOUR CLAIM IS FOR DISABILITY BENEFITS AND DISABILITY IS DETERMINED BY THE PLAN ADMINISTRATOR (RATHER THAN A THIRD PARTY SUCH AS THE SOCIAL SECURITY ADMINISTRATION), THEN INSTEAD OF THE ABOVE, YOU MUST FILE THE CLAIM FOR REVIEW NOT LATER THAN 180 DAYS FOLLOWING RECEIPT OF NOTIFICATION OF AN ADVERSE BENEFIT DETERMINATION. IN THE CASE OF AN ADVERSE BENEFIT DETERMINATION REGARDING A RESCISSION OF COVERAGE, YOU MUST REQUEST A REVIEW WITHIN 90 DAYS OF THE NOTICE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You may submit written comments, documents, records, and other information relating to your claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Your claim for review must be given a full and fair review. This review will take into account all comments, documents, records, and other information submitted by you relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination.

In addition to the Claims Review Procedure above, if your claim is for disability benefits and disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Your claim will be reviewed without deference to the initial adverse benefit determination and the review will be conducted by an appropriate named fiduciary of the Plan who is neither the individual who made the adverse benefit determination that is the subject of the appeal, nor the subordinate of such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the initial adverse benefit determination was based on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the fiduciary will consult with a health care professional who was neither involved in or subordinate to the person who made the original benefit determination. This health care professional will have appropriate training and experience in the field of medicine involved in the medical judgment. Additionally, medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the initial determination will be identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any medical or vocational experts whose advice was obtained on behalf of the Plan in connection with your adverse benefit determination will be identified, without regard to whether the advice was relied upon in making the benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Plan considers, relies upon or creates any new or additional evidence during the review of the adverse benefit determination, the Plan will provide such new or additional evidence to you, free of charge, as soon as possible and sufficiently in advance of the time within which a determination on review is required to allow you time to respond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Before the Plan issues an adverse benefit determination on review that is based on a new or additional rationale, the Plan Administrator must provide you with a copy of the rationale at no cost to you. The rationale must be provided as soon as possible and sufficiently in advance of the time within which a final determination on appeal is required to allow you time to respond.

The Administrator will provide you with written or electronic notification of the Plan's benefit determination on review. The Administrator must provide you with notification of this denial within 60 days (45 days with respect to claims relating to the determination of disability benefits) after the Administrator's receipt of your written claim for review, unless the Administrator determines that special circumstances require an extension of time for processing your claim. In such a case, you will be notified, before the end of the initial review period, of the special circumstances requiring the extension and the date a decision is expected. If an extension is provided, the Plan Administrator must notify you of the determination on review no later than 120 days (or 90 days with respect to claims relating to the determination of disability benefits).

The Plan Administrator will provide written or electronic notification to you in a culturally and linguistically appropriate manner. If the initial adverse benefit determination is upheld on review, the notice will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reason or reasons for the adverse determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reference to the specific Plan provisions on which the benefit determination was based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Either the specific internal rules, guidelines, protocols, or other similar criteria relied upon to make the determination, or a statement that such rules, guidelines, protocols, or criteria do not exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the adverse benefit determination is based on a medical necessity or experimental treatment and/or investigational treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances. If this is not practical, a statement will be included that such explanation will be provided to you free of charge, upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A statement of your right to bring a civil action under section 502(a) of ERISA and, if the Plan imposes a contractual limitations period that applies to your right to bring such an action, a statement to that effect which includes the calendar date on which such limitation expires on the claim.

If the Plan offers voluntary appeal procedures, a description of those procedures and your right to obtain sufficient information about those procedures upon request to enable you to make an informed decision about whether to submit to such voluntary appeal. These procedures will include a description of your right to representation, the process for selecting the decision maker and the circumstances, if any, that may affect the impartiality of the decision maker. No fees or costs will be imposed on you as part of the voluntary appeal. A decision whether to use the voluntary appeal process will have no effect on your rights to any other Plan benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A discussion of the decision, including an explanation of the basis for disagreeing with or not following:

● the views presented by the claimant to the Plan of health care professionals treating you and vocational professionals who evaluated you;

● the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with an adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or

● a disability determination made by the Social Security Administration and presented by you to the Plan.

If you have a claim for benefits which is denied, then you may file suit in a state or federal court. However, in order to do so, you must file the suit not later than 180 days after the Administrator makes a final determination to deny your claim.

**What are my rights as a Plan Participant?**

As a Participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan Participants are entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Examine, without charge, at the Administrator's office and at other specified locations, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Obtain, upon written request to the Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Administrator may make a reasonable charge for the copies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Receive a summary of the Plan's annual financial report. The Administrator is required by law to furnish each Participant with a copy of this summary annual report.

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your Employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA.

If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and pay you up to $110.00 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.

If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in federal court. You and your beneficiaries can obtain, without charge, a copy of the "qualified domestic relations order" (QDRO) procedures from the Administrator.

If it should happen that the Plan's fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. The court may order you to pay these costs and fees if you lose or if, for example, it finds your claim is frivolous.

**What can I do if I have questions or my rights are violated?**

If you have any questions about the Plan, you should contact the Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

**ARTICLE XII**

**GENERAL INFORMATION ABOUT THE PLAN**

There is certain general information which you may need to know about the Plan. This information has been summarized for you in this Article.

**Plan Name**

The full name of the Plan is AFL-CIO Housing Investment Trust 401(k) Retirement Plan.

**Plan Number**

Your Employer has assigned Plan Number 001 to your Plan.

**Plan Effective Dates**

**Effective Date.** This Plan was originally effective on October 1, 1996. The amended and restated provisions of the Plan become effective on May 1, 2025.

**Other Plan Information**

**Valuation date.** Valuations of the Plan assets are generally made every business day. Certain distributions are based on the Anniversary Date of the Plan. This date is the last day of the Plan Year.

**Plan Year.** The Plan's records are maintained on a twelve-month period of time. This is known as the Plan Year. The Plan Year begins on January 1st and ends on December 31st.

The Plan will be governed by the laws of District of Columbia to the extent not governed by federal law.

Benefits provided by the Plan are NOT insured by the Pension Benefit Guaranty Corporation (PBGC) under Title IV of the Employee Retirement Income Security Act of 1974 because the insurance provisions under ERISA are not applicable to this type of Plan.

Service of legal process may be made upon your Employer. Service of legal process may also be made upon the Trustee or Administrator.

**Employer Information**

Your Employer's name, contact information and identification number are:

AFL-CIO Housing Investment Trust

1227 25th Street Northwest, Suite 500

Washington, District of Columbia 20037

52-6220193

Telephone: (202) 331-8055

**Administrator Information**

The Administrator is responsible for the day-to-day administration and operation of the Plan. For example, the Administrator maintains the Plan records, including your account information, provides you with the forms you need to complete for Plan participation, and directs the payment of your account at the appropriate time. The Administrator will also allow you to review the formal Plan document and certain other materials related to the Plan. If you have any questions about the Plan or your participation, you should contact the Administrator. The Administrator may designate other parties to perform some duties of the Administrator.

The Administrator has the complete power, in its sole discretion, to determine all questions arising in connection with the administration, interpretation, and application of the Plan (and any related documents and underlying policies). Any such determination by the Administrator is conclusive and binding upon all persons.

Your Administrator's name and contact information are:

AFL-CIO Housing Investment Trust

1227 25th Street Northwest, Suite 500

Washington, District of Columbia 20037

Telephone: (202) 331-8055

**Plan Trustee Information and Plan Funding Medium**

All money that is contributed to the Plan is held in a Trust Fund. The Trustees are responsible for the safekeeping of the Trust Fund. The Trust Fund is the funding medium used for the accumulation of assets from which benefits will be distributed. While all the Plan assets are held in a Trust Fund, the Administrator separately accounts for each Participant's interest in the Plan.

The Plan's Trustees are listed below with their contact information:

Erica Khatchadourian, Trustee

Pat Turner, Trustee

Thomas Helsel, Trustee

1227 25th Street Northwest, Suite 500

Washington, District of Columbia 20037

Telephone: (202) 331-8055

The Trustees are collectively referred to as Trustee throughout this Summary Plan Description.

## Ex-99.(I)(1)

[AFL CIO 485BPOS](hit-485bpos_043026.htm)

**Exhibit 99.(i)(1)**

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April 30, 2026

AFL-CIO Housing Investment Trust <br> 1227 25<sup>th</sup> Street, N.W., Suite 500 <br> Washington, D.C. 20037

Re: AFL-CIO Housing Investment Trust

<u>(File Nos. 333-59762 and 811-03493)</u>

Ladies and Gentlemen:

We have acted as counsel for AFL-CIO Housing Investment Trust (the "HIT"), a District of Columbia common law trust, on behalf of its series, Series A – AFL-CIO Housing Investment Trust (the "Fund"), in connection with the filing of Post-Effective Amendment No. 86 to the HIT's Registration Statement on Form N-1A under the Securities Act of 1933, as amended (the "1933 Act"), and Amendment No. 89 under the Investment Company Act of 1940, as amended (the "1940 Act") (the "Registration Statement"), relating to the issuance and sale by the HIT of an indefinite number of portions of beneficial interest of the Fund (the "Units").

In connection with the opinions set forth herein, we have examined the following documents: (i) the HIT's Amended and Restated Declaration of Trust; (ii) the HIT's Amended and Restated By-Laws; and (iii) such other HIT records, certificates, resolutions, documents and statutes that we have deemed relevant in order to render the opinions expressed herein.

In rendering this opinion we have assumed, without independent verification, (i) the due authority of all individuals signing in representative capacities and the genuineness of signatures; (ii) the authenticity, completeness and continued effectiveness of all documents or copies furnished to us; (iii) that any resolutions provided have been duly adopted by the HIT's Board of Trustees; (iv) that the facts contained in the instruments and certificates or statements of public officials, officers and representatives of the HIT on which we have relied for the purposes of this opinion are true and correct; and (v) that no amendments, agreements, resolutions or actions have been approved, executed or adopted which would limit, supersede or modify the items described above. Where documents are referred to in resolutions approved by the HIT's Board of Trustees, or in the Registration Statement, we have assumed such documents are the same as in the most recent form provided to us, whether as an exhibit to the Registration Statement or otherwise.

Based upon the foregoing, we are of the opinion that the Units, when issued and sold in accordance with the HIT's Amended and Restated Declaration of Trust and By-Laws and for the consideration described in the Registration Statement, will be validly issued, fully paid and non-assessable, except that, as set forth in the Registration Statement, owners or holders of Units may under certain circumstances be held personally liable for the HIT's obligations.

This opinion is limited to the laws of the District of Columbia, and we express no opinion with respect to the laws of any other jurisdiction. Further, we express no opinion as to: (i) compliance with any state or federal securities laws, including the securities laws of the District of Columbia; and (ii) any other matter other than as expressly set forth above and no other opinion is intended or may be inferred herefrom. The opinions expressed herein are given as of the date hereof.

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We hereby consent to the filing of this opinion with the U.S. Securities and Exchange Commission as an exhibit to Post-Effective Amendment No. 86 to the Registration Statement and to the use of our name in the HIT's prospectus and Statement of Additional Information to be included in Post-Effective Amendment No. 86 to the Registration Statement, unless and until we revoke such consent. In giving such consent, however, we do not admit that we are within the category of persons whose consent is required by Section 7 of the 1933 Act or the rules and regulations thereunder.

Very truly yours,

<u>/s/ Dechert LLP</u>

Dechert LLP

## Ex-99.(J)(1)

[AFL CIO 485BPOS](hit-485bpos_043026.htm)

**Exhibit 99.(j)(1)**

![](eyheader.jpg)

**Consent of Independent Registered Public Accounting Firm**

We consent to the references to our firm under the captions "Financial Highlights" in the Prospectus and "Independent Registered Public Accounting Firm" and "Financial Statements" in the Statement of Additional Information, each dated April 30, 2026, and each included in this Post-Effective Amendment No. 86 to the Registration Statement (Form N-1A, File No. 333-59762) of American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust (the "Registration Statement").

We also consent to the incorporation by reference of our report dated February 27, 2026, with respect to the financial statements and financial highlights of American Federation of Labor and Congress of Industrial Organizations Housing Investment Trust included in the Annual Report (Form N-CSR) for the year ended December 31, 2025, into this Registration Statement, filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

Tysons, Virginia

April 30, 2026

## Ex-99.(1)

[AFL CIO 485BPOS](hit-485bpos_043026.htm)

**Exhibit 99.(1)**

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Christopher Coleman

(Signature)

<u>Christopher Coleman</u>

Name

<u>01/20/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Timothy J. Driscoll

(Signature)

<u>Timothy J. Driscoll</u>

Name

<u>01/29/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/Kevin Filter

(Signature)

<u>Kevin Filter</u>

Name

<u>01/13/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/Bridget Gainer

(Signature)

<u>Bridget Gainer</u>

Name

<u>01/30/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/Brendan Griffith

(Signature)

<u>Brendan Griffith</u>

Name

<u>01/20/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Sean McGarvey

(Signature)

<u>Sean McGarvey</u>

Name

<u>01/30/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Vito V. Mundo

(Signature)

<u>Vito V. Mundo</u>

Name

<u>01/14/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Paul A. Noble

(Signature)

<u>Paul A. Noble</u>

Name

<u>01/26/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Terry O'Sullivan

(Signature)

<u>Terry O'Sullivan</u>

Name

<u>02/02/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Jack F. Quinn, Jr.

(Signature)

<u>Jack F. Quinn, Jr.</u>

Name

<u>01/21/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Fred Redmond

(Signature)

<u>Fred Redmond</u>

Name

<u>01/21/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Deidre L. Schmidt

(Signature)

<u>Deirdre L. Schmidt</u>

Name

<u>01/29/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Anthony Shelton

(Signature)

<u>Anthony Shelton</u>

Name

<u>01/27/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Elizabeth H. Shuler

(Signature)

<u>Elizabeth H. Shuler</u>

Name

<u>01/28/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ Harry W. Thompson

(Signature)

<u>Harry W. Thompson</u>

Name

<u>01/28/2026</u>

Date

**POWER OF ATTORNEY**

The undersigned Trustee of the AFL-CIO Housing Investment Trust ("Trust") hereby constitutes and appoints Erica Khatchadourian and Harpreet S. Peleg, and each of them, either of whom may act without the joinder of the other, as his/her true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, to sign on his/her behalf, individually and in his/her capacity as a Trustee of the Trust, all post-effective amendments to the Registration Statement on Securities and Exchange Commission Form N-1A or otherwise, executed after the date of this Power of Attorney, which amendments may make such changes and additions to the Registration Statement as the attorney(s)-in-fact may deem necessary or appropriate, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission.

/s/ James A. Williams, Jr.

(Signature)

<u>James A. Williams, Jr.</u>

Name

<u>01/27/2026</u>

Date