MS Affordable Housing Development Fund

Eligible Borrowers:

• Nonprofit Corporations, Partnerships, For-Profit Corporations, Public Housing Authorities, Planning and Development Districts, and Limited Equity Cooperatives. Individuals are not eligible.

 

Use of Funds:

• Construction loans for new owner-occupied or rental housing.
• Pre-development, site control, site development.
• Rehabilitation loans for owner-occupied and rental properties.

 

Program Priorities:

• Project that address elderly housing
• Projects involving combination of nonprofit organizations with for profit partners and investors.
• Projects that empower low-to-moderate income families through resident management, self-help housing, selfsufficiency activities designed to increase household incomes, or similar programs meeting critical housing needs.
• Projects designed to access FNMA, FHLMC, or other secondary mortgage markets and requiring commitments of funds from the RLF for 7 years or less.

 

Loan Terms:

Rate: Rates as low as 3.0%.
Term: Development 3 years
Acquisition/Rehab 7 years
New Construction 7 years
Amortization: Negotiable. Can include loans that are fully or partially amortized. Balloon, interest only, or deferred interest with balloon will be considered. A letter of credit may be required.
Loan to Value: For-profit 80%, Non-profit 90% ( in some cases 95%), using the lesser of the sales or appraised value of the asset being considered.
Debt Service Coverage: (for rental projects) Minimum debt service coverage of 1.05:1.00
Security: 1st Lien Position only.
Prepayment: Loans may be prepaid at any time, with no prepayment penalties.
Assumability: Assumable upon approval of MHC.