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Impact LIHTC/Tax-Exempt

NewPoint Impact 4% FNMA M.TEB

NewPoint Impact provides financing for the new construction or acquisition/rehabilitation of affordable rental housing, while Fannie Mae writes an unfunded forward commitment to provide the permanent financing pursuant to its M.TEB program.


ELIGIBILITY

Nationwide rental projects financed in conjunction with 4% LIHTC.
Borrower may be for-profit or 501(c)(3).

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.

CONSTRUCTION LENDER

NewPoint will act as Construction Lender and M.TEB purchaser, eliminating the necessity of a second construction lender.

PROCEEDS AVAILABILITY

Drawdown during construction.

CONSTRUCTION LOAN ADMINISTRATOR    

NewPoint

PERMANENT SIZING
  • 1.15x DSCR; 90% LTV for properties with at least 90% of units meeting affordability requirements.
  • 1.20x DSCR; 85% LTV for properties with less than 90% of units meeting affordability requirements.
  • 1.20x DSCR; 80% LTV for refundings.
INTEREST RATE

Fixed rate. Rate equals investor spread plus Fannie Mae servicing and guarantee fees. Interest only during construction.

TERM

10-30 years

AMORTIZATION

35 years

MINIMUM DSCR
  • 1.15x for properties with at least 90% of units meeting affordability requirements.
  • 1.20x for properties with less than 90% of units meeting affordability requirements and for refundings.
MAXIMUM LTV

90% based on as-restricted and as-completed value.

GUARANTIES

Repayment, completion and stabilization guaranties apply during the construction phase. Fannie Mae M.TEB non-recourse carve-outs during the permanent phase.

CONVERSION
  • 1.15x DSCR (at least 90% of units meeting affordability requirements).
  • 1.20x DSCR (less than 90% of units meeting affordability requirements and for refundings).
PREPAYMENT

Yield maintenance subject to typical FNMA requirements.

TAXABLE TAILS

Permitted

TIMING

Able to close 60 days after receipt of third parties.

FEES

Standard application and origination 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.