Multifamily Housing New Construction/Substantial Rehabilitation
3 W. Main St, Suite 103
Irvington, NY 10533
Multifamily Housing New Construction/Substantial Rehabilitation
Market-rate, affordable, and subsidized multifamily housing properties are eligible. To qualify for substantial rehabilitation, the cost of repairs and/or alterations must exceed $15,000 per unit adjusted for the HUD High Cost Factor or replace two or more building systems.
Fixed-rate for both construction and permanent terms – determined by market conditions
For-profit or not-for-profit single asset entity
Non-recourse, subject to standard carve-outs
PROPERTY TYPE | MAX LOAN TO VALUE | MIN. DEBT SERVICE |
---|---|---|
Broadly Affordable | 90% | 1.11x |
Affordable² | 87% | 1.15x |
Market-Rate | 85% | 1.18x |
1 At least 90% of units supported by a project-based rental assistance contract
2 Regulatory agreement that at least meets the minimum Low-Income Housing Tax Credit restrictions of 40% of units at 60% AMI or 20% of units at 50% AMI in effect for at least 15 years
Maximum of 40 years – plus construction period
Limited to 25% of net rentable area and 15% of effective gross income
Flexible – best execution typically has a combination of lockout and prepayment penalty for 10 years, and is fully assumable, subject to HUD approval
.25% – .65% annually depending on project type
HUD Application: 0.30% of requested loan amount or associated costs
HUD Inspection: 0.50% of loan amount or total of all improvements
Initial Operating Deficit Reserve: Four to twelve months of amortizing debt service depending on deal
Replacement Reserves: Minimum of $250 per unit, per year, or as determined by their third-party vendor
Working Capital Deposit: 4% for new construction and 2% for substantial rehabilitation
Davis-Bacon prevailing wage rate requirements apply
3 W. Main St, Suite 103
Irvington, NY 10533