New Construction / Substantial Rehabilitation financing for:

• Urban Renewal Apartments

Single asset borrower may be comprised of:

• For-Profit Sponsor

• Nonprofit Sponsor

• Public Entity Sponsor

New Construction of proposed multifamily housing including detached, semi-detached, row, walkup or elevator-type rental or cooperative housing containing 5 or more units:

• In urban renewal areas, or

• In concentrated development areas designated by HUD, pursuant to a locally developed strategy for neighborhood improvement, conservation or preservation.

Substantial Rehabilitation – must meet one of the following criteria:

• Cost of repairs, replacements and improvements exceeds the greater of 15% of estimated replacement cost after completion, or $6,500 per unit adjusted by jurisdiction, or

• Two or more major building components are being substantially replaced.

Permitted to serve the needs of the project’s residents and other residents of the area, limited to:

• 20% of gross floor area of the project, and

• 30% of gross income of the project.

New Construction – the lesser of:

• 90% (100% for nonprofits) of replacement costs,

• Loan supportable by 90% (95% for nonprofits) of net income,

• FHA’s statutory per unit limits, adjusted by jurisdiction.

Substantial Rehabilitation – the lesser of:

• 90% (100% for nonprofits) of sum of rehabilitation costs and existing value of land and improvements,

• Loan supportable by 90% (95% for nonprofits) of net income,

• FHA’s statutory per unit limits, adjusted by jurisdiction.

• Urban Renewal Area Apartments – no rent restrictions or tenant income limits.

• Affordable Housing Apartments are permitted – rent and income limits apply pursuant to IRS Code.

• Loan Term – construction period plus up to 40 years.

• Fully amortizing loan, no balloon payment.

• Non-recourse during both construction and permanent loan phases.

• Loan is fully assumable by new owner.

• Rate is fixed for entire loan term prior to initial loan closing.

• No lease-up hurdle is required for conversion to permanent loan.

• Program may be used to credit enhance taxable and tax exempt bonds in conjunction with the 4% LIHTC program, or as a direct loan in conjunction with the 9% LIHTC program.

• Secondary financing, including grants and tax credits, is permitted in conjunction with the FHA-insured loan to cover certified project costs in excess of 100% of value or replacement cost if provided by a Federal, State or local governmental authority or instrumentality.

• Developer fee (Builder’s and Sponsor’s Profit & Risk Allowance “BSPRA”) equal to 10% of all costs other than land may be included in replacement costs.

• Higher commercial space allowance may serve both the needs of the project residents and other residents of the area, making this program well suited for downtowns and historic buildings.

• Higher statutory per unit limits permit higher loan amounts.

• Apartments limited to elderly occupancy are not permitted.

• Davis-Bacon prevailing wage requirements apply to costs of new construction or rehabilitation.

Please provide the following information for a preliminary loan quote:

• Brief description of proposed improvements including number of units with breakdown of rents by unit type.

• Development or rehabilitation budget.

• Pro forma income and expenses for completed project.

• Estimate of value of site; copy of purchase contract.

• Any available market studies, appraisals or environmental reports.

• Names of sponsor, developer, management agent, general contractor, architect, etc.; resumes if available.

• Site plan, unit floor plans, elevations, survey, architectural drawings, etc. to the extent available.