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Taxable Bond Financing

VHDA’s Taxable Bond financing provides 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

  • 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 may be:
  • - permanent immediate delivery,
    - permanent forward delivery, or
    - construction to permanent 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 Rates 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.

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


VHDA Fraud, Waste or Abuse Hotline

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