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Stand-Alone Bond Financing

Printable full term sheet


WHEDA offers multiple borrower selected options relating to Stand Alone tax exempt or taxable bond financing.

Fixed Rate Options

Variable Rate Option 
  1. Rate fixed to term.
  2. Rate fixed to an intermediate date. At the intermediate date, Borrower may elect either a rate “reset” either to term, or other intermediate date, or elect a variable rate (all subject to strength of the development and financial markets available at the time).
  3. Variable rate swapped to fixed, either to term or to some intermediate term. At the end of the swap period (typically 7, 10 or 15 years but at borrower’s option), the Borrower may elect either another swap, a straight variable rate, or a fixed rate either to term or to an intermediate term (all subject to strength of the development and financing products available at the time).

This option may result in a lower rate than fixed rate bonds, but with some corresponding additional risk.

A swapped interest rate will typically be established between commitment and closing, but is at the Borrower's election. The final rate will be based on the length of rate lock chosen by the Borrower and the market at the time the rate is locked. Until the rate is locked, the Borrower is taking the interest rate risk.

  1. Variable rate (low floaters). WHEDA’s Variable Rate underwriting standards will apply. See Variable Rate term sheet. 


  • 35 year maximum term
  • 35 year maximum amortization


  • Bond Security Fee (non-refundable) of $100,000 or 50% of the WHEDA estimated Bond Issuance Costs, whichever is greater, payable due at Mortgage Loan and Bond Commitment. This fee is credited toward Bond Issuance costs at closing.
  • WHEDA Bond Issuance and Origination Fee of 1.0% of Bond Proceeds. This fee is included in Bond Issuance cost quotes. Due at closing.
  • Bond Issuance Costs are fully paid by the borrower at closing.
  • Application Fee of $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, 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. Each rental unit must be complete and include separate tenant spaces for living, sleeping, cooking, eating, and sanitation. Shared tenant spaces are allowed only if the Borrower is a qualified 501(c) (3) corporation.
    • Eligible developments include:
      • Apartments, including townhouses
      • Retirement centers
      • Residential care apartment complexes (RCACs)
      • Community-based residential facilities (CBRFs)
      • And other housing types permitted by the Internal Revenue Code
    • Developments may be for:
      • New Construction
      • 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)
      • Refinance of an existing development for qualified 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

  • Stand-Alone Bond Financing is designed generally for a single development.
  • WHEDA will issue the bonds, either taxable or tax-exempt, and credit-enhance the bonds for a 1.35% fee built in to the loan rate. Borrowers can price their funds based on current market conditions, and customize their transaction regarding term, call provisions, and interest rate modes.
  • The decision to use the Stand-Alone product vs. WHEDA's standard tax-exempt product should be done on a loan by loan basis. However, the most likely candidate will be a new construction development $4 to $5 million or larger, which can more efficiently carry the cost of bond issuance.
  • 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. 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.