VHDA’s Tax-exempt Bond financing provides an uninsured loan that facilitates the construction or acquisition, with substantial rehabilitation, of affordable multifamily rental housing. This ﬁnancing is available to private, for-proﬁt and non-proﬁt developers.
Due to the tax-exempt status, this ﬁnancing is federally regulated. As a result, the developers must make a choice to rent units to a minimum of either 20% of renters at 50% of the area median income, or 40% of renters at 60% of the area median income. The remainder must be no more than 150% of the area median income. This ﬁnancing also allows mortgagors the opportunity to apply for the 4%, non-competitive federal Low-Income Housing Tax Credits.
- The lesser of 90% loan-to-value or 95% of total approved development costs 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 construction with permanent conversion.
- 2% financing fee.
- Maximum 35-year loan term for new construction; 25-year term for rehabilitation.
- Greater of ½% of loan amount or $5,000 non-refundable application fee (applied to financing fee).
- Loans are generally non-recourse.
- Minimum $7,500 per unit rehabilitation or 15% of the acquisition cost, whichever is greater.
- The application must be submitted through a VHDA-approved mortgage 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.