Multifamily Housing New Construction/Substantial Rehabilitation
3 W. Main St, Suite 103
Irvington, NY 10533
Contact info
844.X-Caliber
(212.220.7040)
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ELIGIBLE PROPERTIES
Market-rate, affordable, and subsidized multifamily housing properties are eligible. Build-to-Rent (BTR) communities consisting of detached single-family rental homes, duplexes, or triplexes are eligible for new construction only – minimum of five units on one cohesive, contiguous site, professionally managed as one multifamily property.
INTEREST RATE
Fixed-rate for both construction and permanent terms – determined by market conditions
BORROWER
For-profit or not-for-profit single-asset entity
PERSONAL LIABILITY
Non-recourse, subject to standard carve-outs
MAXIMUM LOAN
| PROPERTY TYPE | MAX LOAN TO VALUE | MIN. DEBT SERVICE |
|---|---|---|
| Broadly Affordable¹ | 90% | 1.11x |
| Affordable² | 90% | 1.11x |
| Market-Rate | 87% | 1.15x |
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
MINIMUM VACANCY
Vacancy: 3% for 90%+ Section 8, minimum of 5% for affordable properties; greater of 7% or comparable market vacancy for market-rate properties
Lease-Up: Absorption period of up to 24 months may be considered, subject to supporting ana
TERM
Maximum of 40 years – plus construction period
COMMERCIAL SPACE
Limited to 25% of net rentable area and 15% of effective gross income
PREPAYMENT AND ASSUMPTION
Flexible – best execution typically has a combination of lockout and prepayment penalty for 10 years, and is fully assumable, subject to HUD approval
MORTGAGE INSURANCE PREMIUM
0.25%
FEES
HUD Application: 0.30% of requested loan amount or associated costs
HUD Inspection: 0.50% of loan amount or total of all improvements
RESERVE ACCOUNTS
Initial Operating Deficit Reserve: Four to twelve months of amortizing debt service depending on deal. BTR: Minimum of the greater of 3% of the loan amount or four months of debt service, subject to underwriting
Replacement Reserves: Minimum of $250 per unit, per year – higher initial and annual deposits may be required for BTR
Working Capital Deposit: 4% for new construction and 2% for substantial rehabilitation
LABOR STANDARDS
Davis-Bacon prevailing wage rate requirements apply
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