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.
- VHDA may fund up to:
- the lesser of 90% loan-to-value 95% total approved development cost or
- 100% of total development cost for not-for-profit developers (excluding developer’s fees).
These loan amounts should be viewed as limits and not as guaranteed funding levels.
- Minimum 1.10 debt coverage ratio.
- Loans are construction with permanent conversion. VHDA does not provide construction only tax-exempt financing.
- 1% combined processing and financing fee on any permanent only loan.
- 2% combined processing financing fee on all construction to permanent loans; lower fees on the portion of such loans in excess of $7.5 million.
- VHDA pricing assumes a 30-year fully amortizing loan; however, amortization periods up to 35 years will be considered on a case by case basis
- A $10,000 application fee must be submitted with the loan application. This is inclusive of the processing fee and is non- refundable.
- All loans are non-recourse.
- The application must be submitted through a VHDA-approved mortgage broker.
Rates are updated daily on vhda.com
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.