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Multifamily SPARC Financing

VHDA’s Sponsoring Partnerships and Revitalizing Communities (SPARC) uninsured loan program has increased the availability of affordable rental housing for the homeless and people with disabilities, as well as encouraged developers to consider the positive community impact of preservation and revitalization.

This financing is available to private, for-profit and not-for-profit developers to enable the construction or acquisition/rehabilitation of multifamily rental housing. With SPARC financing, developers can design creative solutions to address critical affordable multifamily rental issues in their communities.

Financing Details

To qualify for a SPARC loan, 50% of the households in the rental housing development must have incomes that are at or below 50% of the area median, with the remainder of the tenant population having incomes under 150% of the area median income. In rural locations, 100% of the residents’ incomes must be below 150% of the area median income.

VHDA’s SPARC program can also be layered with other types of financing. When SPARC funds are used with other rent-restricted programs, such as federal Low-Income Housing Tax Credit, the income limits revert to that of those programs.

Additional Criteria

  • The lesser of 90% loan-to-value or 95% total approval development cost or 100% loan-to-value or 100% total development costs for not-for-profit developers (excluding developer’s fees).
  • Minimum 1.10 debt coverage ratio.
  • Loans are for permanent financing only; borrower must evidence source of construction financing.
  • No upfront application fee; 1% processing fee due at commitment.
  • Up to 30-year loan term for new construction; 25-year term for rehabilitation.
  • Loans are generally non-recourse.
  • Minimum $7,500 per unit rehabilitation.
  • Maximum loan of $950,000 ($1.5 million in Planning District 8 in Northern Virginia MSA).  
  • Stand-alone REACH applications may be submitted to a member of the REACH Virginia team. Applications for REACH loans with taxable or tax-exempt bond financing must be submitted through a VHDA-approved mortgage broker.

Rates posted on are fixed. Taxable and tax-exempt portions 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 Staff


Multifamily Servicing Staff

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Toll Free: 877-VHDA-123
Local: 804-782-1986


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