multifamily financing programs jim weglarz assisted projects session manager of business...
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Multifamily Financing Programs
Jim Weglarz
Assisted Projects Session
Manager of Business Development, Multifamily Finance
December 3-4, 2012
IHDA Resources• Tax Credit Programs
• Relevant Soft Money Programs
• Tax Exempt Bond Programs
• A+ Perm Mortgage Program
Federal Low Income Housing Tax Credits9% LIHTCs
• Key Deadlines:• Preliminary Project Assessment – December 13, 2012• Full Application – March 15, 2013
4% LIHTCs• Credits given along with Tax Exempt Bonds• Must Submit a Preliminary Project Assessment – 30 Days prior to Full
Application
State Donation Tax CreditsProgram Keys:• For Non-Profit Organizations
• 50% of Donation given in the form of a state tax credit
• Credit can be transferred back to project sponsor
Soft Money Resources & ProgramsHOME Program
• Federal Source for affordable housing• Greater Income Restriction on Units
IL Housing Trust Fund• Derived from IL Transfer Tax• State Source for affordable housing
Permanent Supportive Housing Program• State Bond Program to Work with Targeted Populations• Currently being reviewed
Tax Exempt Bond OptionsConstruction and Permanent Debt Program along with 4% Credits
Conduit Bond Program• IHDA allocates against its annual volume cap• Defers majority of underwriting to lender
Risk Share Bond Program• IHDA allocates against its annual volume cap• IHDA acts as lender through HUD Risk Share Program
Affordable Plus Perm Mortgage (A+ Mortgage) – Basics and Targets
1st Mortgage Taxable Financing for Affordable Housing
New 9% Tax Credit Projects – Forward Commitments
15 Year 9% Tax Credit Projects – Maturing 1st Mortgages
80/20 Properties – Acquisition and Post Rehab Perms
Affordable Plus Perm Mortgage (A+ Mortgage) - Terms
Loan Amount = $400,000 to $20,000,000
Loan Term/Amortization = Up to 30 Years
DCR/LTV - > 1.15 to 1.25 (For Entire Loan Term) – Loan to Value < 65%> 1.25 (For Entire Loan Term) – Loan to Value <80%
Affordability – Minimum 20% @ 80% AMI
Recourse – Non-Recourse