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The multifamily loans will be structured as second mortgage loans used as "gap financing" . These loans will be provided to non-profit and for profit multifamily developers offering affordable rental workforce housing units. The loan amount will not exceed the lesser of $25,000 per unit or twenty percent (20%) or the capital expenditures (excluding fees paid to a developer or its affiliates).
Funds may be used in conjunction with conventional financing, bond financing, or other private/ public financing to construct and / or rehab multifamily residential housing, finance predevelopment, and site development cost.
Eligible Applicants Must:
- Be 501(c)3 non-profit or for profit developer or housing authority in good standing
- Demonstrate the capacity to construct and develop a residential development project;
- Demonstrate success in leveraging additional funds from both public and private sources;
- Have experience commensurate with the scope and size of the proposed project;
- Exhibit financial strength to undertake the project and show a successful track record of property management
Eligible Projects Must:
- Be located within the City Limits of Atlanta. URFA will encourage developers to plan/develop projects that are located in the following areas:
- Economic Development Priority Areas
- Qualified Census Tracts or Difficult to Develop Zones
- Adjacent to mass transit (Transit Oriented Development)
- Within newly created or existing Tax Allocation Districts (TAD)
- Areas that stimulate comprehensive neighborhood revitalization
- Serve a population at or below 60% of AMI with a minimum of twenty percent (20%) of the units set aside for this population
- Provide for long-term affordability provisions of 15 years or more
- Be newly constructed, acquisitions/ rehabilitations, or conversions
- Have a fully funded budget, including appropriate cost and based on conservative assumptions
Eligible Loans:
- Will serve as gap/bridge loans only; loan cannot exceed the lesser of $25,000.00 per unit or twenty percent (20%) of the capital expenditures (excluding fees paid to a developer or its affiliates).
- Have full recourse loans to the borrower and/or sponsor
- Will have a below market interest rate
- Will be underwritten based on need
Implementation:
Qualified applicants will apply for loans through URFA's application process. Borrowers must meet URFA's underwriting criteria and demonstrate creditworthiness. Upon approval by URFA, loans will be submitted to AHOC for final approval and funding.
URFA has consolidated the Tax Exempt Bond application with the Housing Opportunity Bond application for multifamily developers and CHDOs. This revised application is available at the link below and the applicant will notice an adjustment to the asset management fees in the revised application for the Tax Exempt Bond.
PDF: Fillable 2009 Multifamily Development Loan Program Tax Exempt Bonds/Housing Opportunity Bonds Application
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