Permanent Financing / Acquisition, Refinancing for existing:

• Market Rate Family Apartments

• Affordable Housing Apartments

• Senior Independent Apartments

• Urban Renewal Area Apartments

Single asset borrower may be comprised of:

• For-Profit Sponsor

• Nonprofit Sponsor

• Public Entity Sponsor

The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years:

• Projects requiring substantial rehabilitation are not eligible.

Commercial space is permitted, limited to:

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

• 20% of effective gross income of the project.

Purchase Transaction – the lesser of:

• 85% of value as repaired,

• 85% of acquisition cost, including transaction costs, capitalization of replacement reserve and repair costs,

• Loan supportable by 85% of net income,

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

Refinance Transaction – the lesser of:

• 85% of value as repaired,

• Greater of cost to refinance existing debt, including transaction costs, capitalization of replacement reserve and repair costs, or 80% of value,

• Loan supportable by 85% of net income,

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

• Market Rate Family, Senior Independent (age 62+), and Urban Renewal Apartments – no rent restrictions or tenant income limits.

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

• Loan Term – up to 35 years.

• Fully amortizing loan, no balloon payment.

• Non-recourse permanent loan.

• Loan is fully assumable by new owner.

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

• 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; otherwise if provided by a private source, up to 92.5% of value.

• Davis-Bacon prevailing wage requirements do not apply.

• Non-critical repairs may be deferred but must be completed within 12 months of loan closing.

Please provide the following information for a preliminary loan quote:

• Brief description of property including year built, number of units, unit mix and square footages, and site acreage.

• Last three years, and year-to-date income and expense statements and balance sheets.

• Current rent roll.

• Copy of restricted use agreement, if applicable.

• Any available market studies, appraisals or environmental reports.

• Copy of most recent mortgage statement, with escrow balances, for property owned, or copy of purchase contract for property to be acquired.

• List of and estimated costs of desired repairs to be financed.

• Names of owner, principals, management agent, etc.; resumes if available.