VHDA’s multifamily loans are based on minimum debt coverage ratios of 1.10, lesser of 90 percent LTV or 95 percent total development cost. They are generally non-recourse and made in conjunction with permanent or construction/permanent mortgages. We offer fixed-rate, long-term commitments tailored to meet individual developer needs.

The following uninsured loan products are available for both private and non-profit developers, and require no outside bond counsel or credit enhancements; all costs are included in the loan rates and fees.

Taxable bond financing - loans for construction and/or acquisition (with or without rehabilitation) of affordable and conventional multifamily rental housing. The income limit is 150 percent of area median income (AMI).

Tax-exempt bond financing - federally regulated loans for construction or acquisition with substantial rehabilitation of affordable multifamily rental housing. The developer must rent at least 20 percent of units to renters at or below 50 percent of AMI adjusted by family size, or 40 percent of units to renters at or below 60 percent of the AMI adjusted by family size. The balance of the units have income limits of 150 percent of AMI, not adjusted by family size.

Mixed-use/mixed-income financing - loans for developments composed of mixed-income multifamily rental housing together with commercial or other non-housing buildings. The area must be designated by the localities or be in certain revitalization areas to be eligible. The income limit is 20 percent at or below 80 percent and 20 percent at 120% of the AMI, not adjusted by family size.

Mixed-income financing - loans for the construction and/or acquisition with rehabilitation of developments composed of mixed-income multifamily rental housing. The area must be designated by the localities or in certain revitalization areas to be eligible. The income limit is 20 percent at or below 80 percent and 20 percent at 120 percent of the AMI, not adjusted by family size.

REACH/SPARC financing - the Sponsoring Partnerships and Revitalizing Communities (SPARC) program is a low interest rate loan to encourage the availability of affordable rental housing for the homeless and for people with disabilities, and also supports preservation and revitalization of mixed-use projects. This financing may be standalone, or layered with taxable or tax-exempt bond products.

For more information, see Loan Applications