9% LIHTC Cash Loan
FORWARD COMMITMENT
ELIGIBLE PROPERTY TYPES
To-be-built or substantially rehabilitated garden, mid-rise or high-rise multifamily properties with 9% LIHTC.
TERMS
- Minimum term: Lesser of 15 years or the remaining LIHTC compliance period; 15 years with HUD Risk Sharing.
- Maximum term: 35 years.
CONSTRUCTION LOAN TERMS
Maximum forward commitment term: 48 months (with available extensions).
PRODUCT DESCRIPTION
Forward commitment for new construction or substantial rehabilitation of affordable multifamily properties with 9% LIHTC.
TYPE OF FUNDING
Funded or unfunded construction financing commitment; permanent financing at conversion.
MINIMUM DEBT COVERAGE RATIO (DCR)[1]
1.15x.
MAXIMUM LOAN-TO-VALUE (LTV) RATIO[1]
90% of market value.
MAXIMUM AMORTIZATION
40 years.
PREPAYMENT PROVISIONS
Yield maintenance.
INSURANCE ESCROWS
Required.
FEES
Application fee, commitment fee, Delivery Assurance Fee, plus other fees as applicable.
SECURITIZATION AVAILABLE
No.
EARLY RATE-LOCK (ERL) OPTIONS
Not applicable.
IMMEDIATE FUNDING
ELIGIBLE PROPERTY TYPES
Garden, mid-rise or high-rise multifamily properties with 9% LIHTC with 90% occupancy for 90 days.
TERMS
- Minimum term: Lesser of 15 years or the remaining LIHTC compliance period; 15 years with HUD Risk Sharing.
- Maximum term: 35 years.
CONSTRUCTION LOAN TERMS
N/A
PRODUCT DESCRIPTION
Financing for the acquisition or refinance of stabilized affordable multifamily properties with 9% LIHTC with at least 7 years remaining in the in the tax credit benefit stream.
TYPE OF FUNDING
Permanent financing.
MINIMUM DEBT COVERAGE RATIO (DCR)[1]
1.15x.
MAXIMUM LOAN- TO-VALUE (LTV) RATIO[1]
90% of market value.
MAXIMUM AMORTIZATION
40 years.
PREPAYMENT PROVISIONS
Yield maintenance.
INSURANCE ESCROWS
Required.
FEES
Application fee, commitment fee, plus other fees as applicable.
SECURITIZATION AVAILABLE
Yes.
EARLY RATE-LOCK(ERL) OPTIONS
Early rate-lock or Index Lock options available.
PRESERVATION REHABILITATION
ELIGIBLE PROPERTY TYPES
Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that are undergoing moderate rehabilitation with tenants in place.
TERMS
- Minimum term: Lesser of 15 years or the remaining LIHTC compliance period; 15 years with HUD Risk Sharing.
- Maximum term: 35 years.
- Rehabilitation and stabilization period (at a maximum of 24 months) will be included in the loan term.
CONSTRUCTION LOAN TERMS
N/A
PRODUCT DESCRIPTION
Financing for the moderate rehabilitation of affordable multifamily properties with new 9% LIHTC and tenants in place.
TYPE OF FUNDING
Financing for acquisition/rehabilitation (for a maximum of 24 months) based on projected post-rehabilitation net operating income (NOI); cash or letter of credit collateral required to collateralize gap between supportable debt on current NOI and loan amount (collateral held until stabilization); interest only during the rehabilitation/stabilization period.
MINIMUM DEBT COVERAGE RATIO (DCR)[1]
1.15x.
MAXIMUM LOAN- TO-VALUE (LTV) RATIO[1]
90% of market value.
MAXIMUM AMORTIZATION
40 years.
PREPAYMENT PROVISIONS
Yield maintenance.
INSURANCE ESCROWS
Required.
FEES
Application fee, commitment fee, plus other fees as applicable.
SECURITIZATION AVAILABLE
No.
EARLY RATE-LOCK (ERL) OPTIONS
Not applicable.
[1] Adjustments may be made depending on the property, product and/or market.