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 vhda.com. 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.
