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Moderate Rehabilitation

Financing for the moderate rehabilitation of affordable LIHTC multifamily properties

Targeted Affordable Housing Offerings

  • Bond Credit Enhancement – 4% LIHTC
  • Bond Credit Enhancement With Other Affordability Components
  • 9% LIHTC Mortgage
  • Cash Mortgages With Other Affordability Components
  • Moderate Rehabilitation
  • Tax-Exempt Bond Securitization (TEBS)
  • Fixed and Variable Liquidity Pricing

At-a-Glance Comparison

Product Summary  Bond Credit Enhancement –
4% LIHTC		 9% LIHTC
Product Description Bond Credit Enhancements provide for the moderate rehabilitation with tenants in place of affordable multifamily properties with 4% LIHTC Financing for the moderate rehabilitation with tenants in place of affordable multifamily properties with 9% LIHTC
Type of Funding Bond credit enhancement for acquisition/ rehabilitation based on projected post-rehab NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and mortgage amount (collateral held until stabilization). Interest only during the rehabilitation/stabilization period. Financing for acquisition/ rehabilitation (max 24 months); based on projected post-rehab NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and mortgage amount (collateral held until stabilization). Interest only during the rehabilitation/stabilization period.
Eligible Properties Garden, mid-rise or high-rise multifamily properties with 4% LIHTC undergoing moderate rehabilitation with tenants in place Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that are undergoing moderate rehabilitation with tenants in place
Minimum Debt Coverage Ratio
  • Variable-rate with cap hedge: 1.20x; 1.25x for cash-out refinance
  • Fixed-rate and variable rate with minimum 10-year swap: 1.15x; 1.20x for cash-out refinance
 1.15x (1.10x w/ HUD Risk Sharing)
Cash-out Refinance:
1.20x (1.15x w/ HUD Risk Sharing)
Maximum Loan-to-Value
  • Variable-rate with cap hedge: 80% of adjusted value or 85% of market value
  • Fixed-rate and variable rate with minimum 10-year swap: 85% of adjusted value or 90% of market value
  • HUD Risk Sharing (fixed-rate only): 90% of adjusted value
 90% of market value
Loan Term Minimum of the remaining LIHTC compliance period. Maximum term of 35 years. Rehabilitation/ stabilization period (max 24 months) will be included in loan term. Minimum of the remaining LIHTC compliance period. Maximum term of 35 years. Rehabilitation/ stabilization period (max 24 months) will be included in loan term.
Maximum Amortization 35 years 35 years
Prepayment Provisions Fee Maintenance Yield Maintenance
Subordinate Financing Permitted per TAH Guide requirements Permitted per TAH Guide requirements
Tax and Insurance Escrows Required per TAH Guide  Required per TAH Guide 
Fees Refer to Exhibit 11: TAH Fee Schedule, in the TAH Guide Refer to Exhibit 11: TAH Fee Schedule, in the TAH Guide

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