Bond Financing
This program provides multifamily housing developers with permanent and construction loans through the sale of tax-exempt or taxable revenue bonds.
Eligibility Requirements
Applicants must apply with a form of credit enhancement (FNMA, GNMA, or FHA). Housing must be set aside for low-income families, persons with disabilities, or the elderly. A needs assessment and local government certifications must be obtained. If Housing Tax Credits (HTC) are to be utilized, the development must be in compliance with the current HTC Qualified Allocation Plan.
Terms Of Mortgage
The loan term can be up to 50 years. Financing up to 100% for nonprofit sponsors/owners or 90% for all limited profit sponsors/owners is available. The Interest rate is based on the current market.
Application Procedure
Developers can apply to SDHDA for the financing of new construction or acquisition/substantial rehabilitation of rental properties by using the Multifamily Bond Financing Application. If utilizing HTCs, a Housing Tax Credit Application must also be submitted with the bond financing application.
Forms/Resources
