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Tax-exempt Bond Financing

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.

Financing Details

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.

Additional Criteria

  • 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 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.

Contact Us

Multifamily Development Staff


Multifamily Servicing Staff


Customer Service

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


Virginia Relay

In Virginia: 711
Toll Free: 800-828-1140


Virginia Housing Fraud, Waste or Abuse Hotline

Phone: 804-915-3146
Website: Reporting Fraud, Waste or Abuse