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Mixed-use with Mixed-income

VHDA’s Mixed-use with Mixed-income financing offers an uninsured loan product to finance developments composed of mixed-income multifamily rental housing and commercial or other non-housing (i.e., mixed-use) buildings or portions thereof in certain revitalization areas. Developments must be mostly residential. This financing is available to borrowers who are either private, for- profit or not-for-profit developers.

Financing Details

20% of the housing units must be occupied by renters whose income are 80% of the area median income. Another 20% of the housing units must be occupied by renters whose incomes are 120% of the area median income. The remaining 60% of the units are not subject to income limits. Other VHDA loan products may be used with this financing, as well as with the competitive 9% federal Low-Income Housing Tax Credit. Housing units assisted with such credits will be subject to the applicable federal income limits.

Additional Criteria

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

  • The resolution by the local governing body designating the area as a revitalization area because of blight or deterioration and determining that the non-housing building(s) or portion(s) of building(s) are necessary or appropriate for revitalization.
  • The 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 and determining that the non-housing building(s) or portion(s) of building(s) are necessary or appropriate for industrial, commercial or other economic development.
  • The 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.) and confirming that the governing body has determined that the non-housing building(s) or portion(s) of building(s) are necessary or appropriate for either revitalization or for industrial, commercial or other economic development.
  • In the case of a development that is in a qualified census tract or targeted area, the letter from the locality confirming that the governing body has determined that such non-housing building(s) or portion(s) of building(s) are necessary or appropriate for either revitalization or for industrial, commercial or other economic development.

Developments must also meet these requirements:

  • The lesser of 90% loan-to-value or 95% of total development cost or 100% loan-to-value or 100% of total development costs for non-profit developers (excluding developer’s fees).
  • Minimum 1.10 debt coverage ratio.
  • Loans are generally permanent forward commitments.
  • 1% to 2% financing fee (SPARC/REACH loans 1/2% financing fee).
  • 30-year maximum loan term for new construction; 25-year term for rehabilitation of older developments.
  • Greater of 1/2% 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 regular issuer of bonds for its larger loans. As such, our rates include bond counsel fees, rating agency fees and bond underwriting fees, and require no bond insurance or additional credit enhancements.

Contact Us

Multifamily Development Division

Multifamily Development Staff Directory

 

Multifamily Servicing Division

Multifamily Servicing Staff Directory

Keith Sherrill

Community Housing Officer
Phone: 804-343-5735
keith.sherrill@vhda.com


Customer Service

Toll Free: 877-VHDA-123
Local: 804-782-1986
Or Contact VHDA Online

 

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