Multifamily Financing Programs Jim Weglarz Assisted Projects Session Manager of Business...

Multifamily Financing Programs

Jim Weglarz

Assisted Projects Session

Manager of Business Development, Multifamily Finance

December 3-4, 2012

IHDA Resources• Tax Credit Programs

• Relevant Soft Money Programs

• Tax Exempt Bond Programs

• A+ Perm Mortgage Program

Federal Low Income Housing Tax Credits9% LIHTCs

• Key Deadlines:• Preliminary Project Assessment – December 13, 2012• Full Application – March 15, 2013

4% LIHTCs• Credits given along with Tax Exempt Bonds• Must Submit a Preliminary Project Assessment – 30 Days prior to Full

Application

State Donation Tax CreditsProgram Keys:• For Non-Profit Organizations

• 50% of Donation given in the form of a state tax credit

• Credit can be transferred back to project sponsor

Soft Money Resources & ProgramsHOME Program

• Federal Source for affordable housing• Greater Income Restriction on Units

IL Housing Trust Fund• Derived from IL Transfer Tax• State Source for affordable housing

Permanent Supportive Housing Program• State Bond Program to Work with Targeted Populations• Currently being reviewed

Tax Exempt Bond OptionsConstruction and Permanent Debt Program along with 4% Credits

Conduit Bond Program• IHDA allocates against its annual volume cap• Defers majority of underwriting to lender

Risk Share Bond Program• IHDA allocates against its annual volume cap• IHDA acts as lender through HUD Risk Share Program

Affordable Plus Perm Mortgage (A+ Mortgage) – Basics and Targets

1st Mortgage Taxable Financing for Affordable Housing

New 9% Tax Credit Projects – Forward Commitments

15 Year 9% Tax Credit Projects – Maturing 1st Mortgages

80/20 Properties – Acquisition and Post Rehab Perms

Affordable Plus Perm Mortgage (A+ Mortgage) - Terms

Loan Amount = $400,000 to $20,000,000

Loan Term/Amortization = Up to 30 Years

DCR/LTV - > 1.15 to 1.25 (For Entire Loan Term) – Loan to Value < 65%> 1.25 (For Entire Loan Term) – Loan to Value <80%

Affordability – Minimum 20% @ 80% AMI

Recourse – Non-Recourse

Questions?Jim Weglarz

Manager of Business DevelopmentMultifamily Finance

312-836-5375jweglarz@ihda.org