VHDA’s Taxable Bond financing is an uninsured loan product used to facilitate the construction and/or acquisition (with or without rehabilitation) of affordable multifamily rental housing. This financing is available for private, for-profit or not-for-profit developers.
Financing Details
Renters of these units must have incomes that are less than 150% of the area median income. This financing can be used with the competitive 9% federal Low-Income Housing Tax Credit and other VHDA financing programs. In these cases, incomes are limited further by those programs.
Additional Criteria
- The lesser of 90% loan-to-value or 95% total approved development cost or 100% of total development cost for not-for-profit developers (excluding developer’s fees).
- Minimum 1.10 debt coverage ratio.
- Loans may be an immediate closing, construction/permanent or permanent forward.
- 1% financing fee for immediate or permanent forward.
- 2% financing fee for construction/permanent.
- 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 the financing fee).
- Loans are generally non-recourse.
- The application must be submitted through a VHDA-approved mortgage banker/ broker, along with a copy of the application.
Rates are updated daily on vhda.com, and are locked upon return 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.
