MAP/GinnieMae 223(f) Low Income Housing Tax Credit (LIHTC) Pilot Program
MassHousing provides non-recourse, assumable financing for multifamily developments with 4% or 9% Low Income Housing Tax Credits (LIHTC).
Loans are self-amortizing up to 35 years or 75% of the remaining economic life of the property.
Maximum Loan Amount for Mixed-Income developments up to 85% Loan-to-Value (LTV) and 1.176 Debt Service Coverage (DSC) pro forma Net Operating Income (NOI) based upon the lesser of appraised market or current Section 8 contract rents.
Maximum Loan Amount for "Affordable" developments (i.e., Project-Based Section 8 HAP Contract for 90% or more units) up to 87% LTV and 1.15 DSC pro forma NOI based upon the lesser of appraised market or current Section 8 contract rents.
Moderate Rehabilitation up to $40,000/unit; and cannot replace more than one major building system component.
Lockout/Prepayments negotiable, but typically closed for two years then open to prepayment at 8% in year three, declining 1% per year until payable at par after the 10th year.
For more information about the 223(f) Program, contact MassHousing's Director of Rental Operations Sergio Ferreira.