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  • Tax-Exempt Bond Loan Variable Rate Term Sheet

    Printable full term sheet


    • 30 year maximum term
    • 30 year maximum amortization


    • Origination Fees are 1.5%  of mortgage loan commitment amount for permanent financing only. 2.5% of the mortgage loan commitment amount for WHEDA construction financing with permanent financing.
    • Loan Structuring Fee (non-refundable) is one half of the origination fee, payable upon acceptance of the Mortgage Loan Commitment Letter; this fee is credited toward the loan origination fee at closing.
    • Application Fee is $250 for developments of 24 units or fewer, or $500 for developments of 25 units or more.
    Fees are subject to periodic review and change.


    • Eligible borrowers include for-profit entities, qualified nonprofits and housing authorities. All three of the following criteria must be met by the Borrower/Developer in order to qualify for the Variable Rate program. They include:
      1. Must have an adjusted Net Worth of $5 million minimum
      2. Must have Net Liquid Assets of $150,000 minimum
      3. Must have a minimum of 6 years of developer real estate experience for similar types of multifamily developments
    • Developments must be residential rental housing for families, elderly, or people with disabilities.
      • Eligible developments include:
        • Apartments, including townhouses,
        • Residential care apartment complexes (RCACs),
        • Community-based residential facilities (CBRFs),
        • And other housing types permitted by the Internal Revenue Code. Developments may include:
        • New Construction with permanent financing;
        • Acquisition with rehabilitation of an existing building; (The value of rehabilitation and essential equipment must equal or exceed 15% of that portion of the cost of buildings and fixtures financed with bonds); or
        • Refinance of an existing development for 501(c)(3) nonprofits.

    Minimum Set-Aside Units

    20% of all units set-aside for households with incomes not exceeding 50% of County Median Income (CMI).
    40% of all units set-aside for households with incomes not exceeding 60% of CMI.

    Total rent plus utilities cannot exceed 30% of the respective CMI levels.

    How to Use Tax-Exempt Bond Financing

    • Consider your market. A market study helps you assess the market you are considering; will it work or not? Prepare according to the guidelines in Appendix A.  
    • Looking to finance an existing multifamily property? A capital needs assessment identifies and quantifies a building's current physical condition and future physical and financial needs. Find a provider and prepare according to the guidelines
    • Talk to a  Commercial Lending Officer (CLO) regarding any pre-application issues. 
    • Complete an application and send it to WHEDA, along with the application fee. 
    • Your application will be reviewed and a CLO will contact you within 4-5 days upon receipt.