financing strategies
DESCRIPTION
I nnovative. Financing Strategies. Chris Hilbert, VHDA Strategic Markets Development Manager VHC Tax Credit Conference September 5, 2013. STRATEGIC MARKETS LENDING GROUP. Aligning our programs with local /regional priorities Encouraging public/private partnerships - PowerPoint PPT PresentationTRANSCRIPT
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Financing StrategiesInnovative Chris Hilbert, VHDA
Strategic Markets
Development Manager
VHC Tax Credit Conference
September 5, 2013
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STRATEGIC MARKETS LENDING
GROUP
Aligning our programs with local /regional priorities
Encouraging public/private partnerships
Providing technical assistance
Demonstrating commitment for mission-driven lending through long term investment
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SPARC Multifamily Rental Loan Program
• General Standards
• Guidelines
• Application Process
• Example Properties
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General Standards
Loan Limit: $950,000 (NoVA $1,500,000)Loan Rates: REACH at 2.95% FixedLoan Term: 25 - 30 years (depending upon age)
Loan Fee: 0.5% Due at applicationInc. Restrictions: 50% residents @ 50% AMILoan Security: First lien deed of trustAppraisal: MAI appraiser requiredEnvironmental: Phase I/Environmental Screen
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General Standards (contd.)Replacement Reserve: Min. $250 PUPA
Debt Service Coverage: Minimum 110%
Arch. & Engineering Review: Required
Rehab Investment Minimum: $15,000/unit
Property Mgmt. Certification: New Requirement
Readiness: Use and funding in place
Loan Documents: Non-negotiable
Construction/Perm: Only permanent financing
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GuidelinesProject must address at least one of the five following critical housing needs in the Commonwealth:
• Frail Elderly (Assisted or Independent Living)
• Homelessness (Permanent Supportive Housing Only)
• Persons with Disabilities (Housing with Services)
• Preservation of Affordable Rental Housing (Expiring Subsidy)
• Revitalization (Need $1,000/unit local match and must be located in a Revitalization Area)
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Application Process
VHDA Website Link to applicationhttp://www.vhda.com/BusinessPartners/MFDevelopers/MFFinancing/Pages/MF-SPARC-Program-Guidelines.aspx•Application•Application Checklist•Exhibits to the Application•SPARC Program Guidelines
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Cloverleaf Apartments• Developer: Virginia Supportive Housing• Critical Housing Need: Homelessness• Adaptive Reuse of former skating rink• Commercial Corridor (lowered NIMBY)• 60 units of Permanent Supportive Housing• Targeted towards Chronically Homeless• One of the first regional SRO in the nation
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Cloverleaf ApartmentsVirginia Beach
Before After
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Hilltop Homes• Developer: Lynchburg Neighborhood Dev.
Foundation• Critical Housing Need: Revitalization• Scattered-Site Historic Rehab• 24 units located on 12 sites and 13 structures• Avoids concentration of poverty• Lowers NIMBY barriers vs. higher management costs• Funding Sources:
– Low Income Housing Tax Credits– VHDA SPARC– DHCD and Local - HOME
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Hilltop HomesLynchburg
Before After