A New Type of Multi PC
December 12, 2017
We now offer Tax-Exempt Loan Multi PCs (TEL Multi PCs) in addition to our regular Multi PCs. The new PCs are backed by Tax-exempt Loans (TELs) that typically originate in high-cost markets, such as San Francisco and New York City. Most of these loans have low loan-to-value (LTV) or high debt service coverage ratios (DSCR), or both.
The TEL Multi PCs are attractive to Investors, since they enjoy tax-exempt profits that the underlying loans’ tax-exempt status provides.
TEL Multi PCs will finance Targeted Affordable Housing (TAH) properties that provide homes for low-income families living in high-cost areas. Given the ever-increasing demand for affordable housing, especially in these locations, TEL Multi PCs will serve as a great tool to help us fulfill our core mission while providing another efficient way to transfer market risk away from taxpayers.