VHDA’s Mixed-income financing offers an uninsured loan product developed to finance the construction and/or acquisition rehabilitation of developments composed of mixed-income multifamily rental housing in certain revitalization areas.

This financing is available to borrowers who are private, for-profit or not-for-profit developers.

Financing Details

To qualify for a Mixed-income loan, 20% of the housing units must be occupied by renters whose incomes are 80% or less of AMI and 20% at 120% or less of AMI (area median income)  not adjusted for family size, and the remaining 60% of the units are not subject to any income limit.

Additional Criteria

A mixed-income development may be financed if located in a revitalization area  that satisfies one of the following criteria:

• A resolution by the local governing body designating the area as a revitalization area because of blight or deterioration. 
• A resolution by the local governing body designating the area as a revitalization area because of lack of housing for industrial, commercial or other economic development.
• A letter from the locality confirming that the area is in a redevelopment area, conservation area or rehabilitation area created or designated by the city or county pursuant to Chapter 1 of Title 36 of the Code of Virginia (Section 36-1 et seq.).
• The development is in a qualified census tract or targeted area. If not, the development is located in a revitalization area that must satisfy one of the following criteria:
• A resolution by the local governing body determining that the units that are not for low- and moderate-income households will enhance the ability to provide housing for low- and moderate-income households.
• A resolution by the local governing body determining that the area is or will be predominantly low-income and will benefit from an economic mix of residents.

 Developments (except those financed under the REACH Virginia and SPARC programs, which have different requirements) must also meet these requirements:

• The lesser of 90% loan-to-value or 95% total approval development cost or 100% loan-to-value or 100% of total development costs for not-for-profit developers (excluding developer’s fees).
• Minimum 1.10 debt coverage ratio.
• Loans are generally permanent forward.
• 1% to 2% financing fees.
• Up to a 35-year loan term for new construction; 25-year term for rehabilitation of older developments.
• Greater of ½% of loan amount or $5,000 non-refundable application fee (applied to the financing fee).
• Loans are generally non-recourse.
• The application must be submitted through a VHDA-approved mortgage banker/ broker.

Rates are updated daily on vhda.com, and are locked upon return and acceptance of commitment and all fees.

VHDA is a frequent issuer of bonds. As such, our rates include bond counsel fees, rating agency fees and bond underwriting fees, and require no bond insurance or additional credit enhancements.