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The single family builder loan incentive loans will provide construction financing to non-profits and for profit developers to finance the acquisition, construction, or renovation of single family residential units to be sold to affordable homebuyers.
These funds must be leveraged with additional funds secured by the developer from both public and private sources. Housing Opportunity funds cannot be the sole source of project financing. Eligible uses of the funds include cost associated with acquisition, constructing, and equipping the development.
Projects involving public/private partnerships and are located within the ADA designated Priority Areas will be given top priority.
Eligible Applicants Must:
- Be a 501(c)3 non-profit or for profit developer 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
Eligible Projects:
- Condominiums, town homes, and or single family detached developments
- Must be located within the City of Atlanta
- Market and sell at least 20% of the "for-sale" units in the total development to families of two or less not in excess of 100% of AMI and families of three or more not in excess of 115% of AMI with purchase price less than $252,890 or current 203 FHA limit
Eligible Loans:
- May finance in part the acquisition, construction, or renovation of a single family housing for low and moderate income families
- May be used for homeownership development and will not be made or unconditionally committed to be made unless secure funding sources for the balance of the total project cost of the housing project
- Will be evidenced by a promissory note and shall be secured by a deed to secure debt
- Will have a below market interest rate fixed for the loan term
Implementation
Applications will be received, reviewed, and underwritten by URFA staff. The underwriting review will include a comprehensive analysis of the applicant; the " set-side" units; the economic viability of the project; the ability of the Applicant to proceed; and evidence of the need for Housing Opportunities funds.
The underwriting criteria and guidelines are being developed by URFA staff and will provided to the public Fall 2007.
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