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Taxable Bond Financing

VHDA’s Taxable Bond financing is an uninsured loan 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

There are specific occupancy requirements that must be met as a condition of this financing.  This financing can be used alone, with the competitive 9% federal Low-Income Housing Tax Credit and with other VHDA financing 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 broker, along with a copy of the application.

Rates are updated daily on, 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.