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| Term Sheet |
| HOME TEAM Advantage Tax Exempt Lending |
|
| Purpose |
This program combines tax-exempt financing and federal HOME funds to encourage rental housing developments located in rural communities of the state or developments that have been awarded funding under USDA's Rural Development Section 515 Program. |
| Eligible Borrowers |
Non profit housing corporations and limited dividend entities eligible under the Authority's Act. |
| Eligible Developments |
Developments must be between 12-49 units, except rehabilitation, which can be 12-100 units if the targeting criteria are met. New construction or adaptive re-use of rental developments for family or senior occupancy. |
| Loan Limits |
Minimum $1000 per unit.
Maximum amount will be lesser of the equity gap determined by MSHDA or $16,000 per unit as multiplied by the total number of units. Up to $25,000 per unit is available for projects with higher development costs and significant community impact. |
| Income Restrictions |
Minimum of 10% of the total units must be available for those 30% below the AMI,
as published by HUD, the remaining must below 60% of the AMI. Up to 10% may be market rate. |
| Rate |
Visit our Rates Page for current rates. |
| Term |
35 years
|
| Amortization |
35 years |
| Debt Coverage Ratio |
1.10 minimum
|
| Loan Guarantee |
Non-recourse |
| Prepayment Provision |
Pre-payment
restriction
for life of loan |
| Operating Assurance Reserve |
Operating Assurance Reserve (OAR) will be established equal to four months estimated operating expenses. OAR held by MSHDA and accumulates interest. |
| Replacement Reserve |
Replacement reserve of $250 per unit for elderly and $300 per units for family housing and rehabilitation. |
| Michigan Green Communities Grant |
Grant of $1,000 per affordable unit, up to a maximum of $50,000 is available from MSHDA for rehabilitated developments meeting the Michigan Green Communities criteria. The Enterprise Foundation matching funds and a $3,000 grant for administrative reporting is available. |
| Environmental Reviews |
Phase I Environmental Site Assessment required. |
| Origination and Other Fees |
2% of mortgage loan amount. LIHTC application, commitment and compliance fees apply.
|
| Application Fee |
$1000 |
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