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Overview of VHDA Multifamily Financing

  • We can provide non-recourse construction financing in conjunction with permanent mortgages.
  • VHDA offers fixed-rate, long-term forward commitments tailored to your needs. Many of the projects we finance use the competitive 9% federal Low-Income Housing Tax Credit program, which VHDA administers.
  • The range of financing products available through the taxable bond program provides multiple options for the diverse housing needs, preferences and demographics of your unique community.
  • We can provide taxable loan increases at any time to existing VHDA loans where appraised values and cash flows warrant.
  • Our tax-exempt program requires no outside bond counsel or credit enhancements. All costs are in the loan rate and fees.
  • We can refund the tax-exempt bonds of other qualified issuers to take advantage of prevailing rates. Existing income limits are retained.
  • We offer below-market financing through our Multifamily SPARC program to qualified projects that would otherwise go unfinanced in the conventional market. These funds may be layered with taxable or tax-exempt bond products, or may stand alone.
  • HUD 236 Decoupling – VHDA can structure two pieces of debt with dissimilar maturities that will be used to pay off an existing 236 mortgage decouple and capitalize the remaining Interest Reduction Payment contract.
  • Rural Development Section 515 Refinancing – VHDA has refinanced a number of existing Rural Development projects where that organization subordinates the existing lien to VHDA’s new debt.
  • We are amenable to refinancing properties where there is an annual Section 8 contract in place. VHDA will underwrite those projects at prevailing market rents.
  • Our loans are generally non-recourse and are based on minimum debt coverage ratios of 1.10. This allows us to finance all types of ownership entities, including tenants-in-common.

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