Get Short-term Financing
June 19, 2017
Do your Borrowers need help acquiring or refinancing a Low Income Housing Tax Credit (LIHTC) eligible property? Our Bridge to Resyndication product can get them there.
This efficient, short-term loan (24 months, interest-only, with a floating rate) positions properties for recapitalization using 4 percent LIHTCs and long-term financing, such as our Tax-Exempt Loans (TEL).
We’re delighted that our first Bridge recently converted to a TEL. See how the owners of the Parks at Fig Garden in Fresno, California increased their loan proceeds to renovate and preserve an affordable housing development.
We listened to the market feedback and created our streamlined financing structure to help LIHTC owners bridge the financing gap.
The bridge makes resyndicating tax credits easy. And, if the Bridge to Resyndication Loan is converted to a TEL, we waive the 2 percent exit fee.
Developers/owners with financial capacity who’ve successfully completed multiple resyndications using 4 percent LIHTC and tax-exempt debt
- LIHTC properties at or nearing the end of their compliance period with LIHTC rents
- Construction must be sound but will often require moderate repair; the only construction completed during the term of this facility would be any required life-safety repairs and material deferred maintenance
Performance benchmarks will be based on specific requirements to close the LIHTC resyndication, including:
- Bond inducement resolution
- 4% tax credit allocation
- Final plans, specifications and budget for rehabilitation
- LIHTC investor commitment
- Commitments for all other sources necessary to close the LIHTC resyndication
Product Key Facts
- Loan sizing based on floating-rate methodology (via 7-year sizing note rate)
- More than 17 Bridge to Resyndication Loans closed since we started in 2015
- Client can get a forward rate-lock on the permanent TEL portion when closing the Bridge loan, taking rising interest rate risk off the table
- Most clients can increase their loan proceeds from the Bridge to when the property converted to an immediate TEL