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Impact LIHTC/Tax-Exempt

NewPoint Impact Synthetic 221(d)(4)

NewPoint Impact provides financing for the new construction or acquisition/rehabilitation of an affordable rental housing project and rate locks an FHA 223(f) refinancing at the close of construction.


ELIGIBILITY
  • Nationwide rental projects financed in conjunction with 4% LIHTC.
  • Borrowers may be for-profit or 501(c)(3) that have previous experience with FHA lending programs.
MINIMUM INVESTMENT AMOUNT

$8 million

CONSTRUCTION SIZING

Permanent sizing plus any amounts necessary to satisfy the 50% test. Ability to bridge LIHTC with credit-worthy counterparties.

PROCEEDS AVAILABILITY

Drawdown during construction.

CONSTRUCTION LOAN ADMINISTRATOR

NewPoint

PERMANENT SIZING

Typical FHA 223(f) requirements.

INTEREST RATE

Fixed rate. Rate equals investor spread plus FHA servicing fee, plus GNMA guarantee fee plus MIP. Investor spread steps down upon delivery of the GNMA MBS.

MATURITY

35 years

AMORTIZATION

35 years

GUARANTIES

Repayment, completion and stabilization guaranties apply during the construction phase.

CONVERSION

Financing must satisfy the FHA 223(f) program.

PREPAYMENT

Typical FHA stepdown. Initially 10pts and declining 1pt per year. Negotiable.

CONVERSION MECHANICS

Project is underwritten pursuant to the FHA 223(f) program after stabilization. Upon delivery of the GNMA MBS, the fixed rate on the bonds is decreased by an agreed upon amount.

RATE SETTING MECHANICS

Both the construction rate and the permanent rate are set at the closing of the construction phase.

FEES

Standard application, origination and HUD fees apply. NewPoint’s outside counsel fee to be quoted for each transaction.

 

This sheet is designed solely as an aid to prospective borrowers and other clients on programs offered by NewPoint. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This sheet does not constitute an offer to sell, buy or the solicitation of an offer to buy any securities. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint and its affiliates.