Construction Plus Tax Credit Development Loan

Printable full term sheet

Terms

• 3 year maximum term

Fees

• Origination Fee of 1.0% of mortgage loan commitment amount.
• Loan Documentation Fee of $15,000 one-time loan documentation fee on 9% LIHTC loans.
• Loan Structuring Fee (non-refundable) of one-half of the origination fee and legal fee is payable upon acceptance of the Mortgage Loan Commitment; this fee is credited toward the loan origination fee at closing. Borrowers that elect to exchange the origination fee for a higher rate will be required to submit a deposit equal to 0.50% of the mortgage loan amount; this fee will be credited towards closing costs at closing.
• Application Fee of $250 for developments of 24 units or fewer, or $500 for developments of 25 units or more.

Eligibility

• Eligible borrowers include for-profit, qualified non-profits, housing authorities, or other entities meeting criteria established by WHEDA.
• Eligible developments must be residential rental housing for families, elderly, or people with disabilities.
  • Eligible developments include:
    • Apartments, including townhouses
    • Construction Plus loans are available on new construction, the purchase and renovation of existing multifamily properties and adaptive re-use developments 

Minimum Set-Aside Units

20% of all units set-aside for households with incomes not exceeding 50% of County Median Income (CMI). 
Or 
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 the Construction Plus Loan

• 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 Loan Officer (CLO) regarding any pre-application issues.
• Complete an application and send it to WHEDA, along with the application fee. Use the application checklist when completing your application package. 
• Your application will be reviewed and a CLO will contact you within 4-5 days upon receipt.
• Always know that you may contact a CLO during the process if you have any questions.