MAP/GinnieMae Refinance/Acquisition 223(f)
MassHousing provides non-recourse, assumable financing for the purchase or refinance of existing multifamily developments which are at least three years old under the §223(f) Program. The program is available to profit motivated, non-profit motivated and public owners of affordable and mixed-income rental developments.
Loans are self-amortizing up to 35 years or 75% of the remaining economic life of the property.
Maximum Loan Amount for refinancing with equity takeout, up to 80% Loan-to-Value (LTV) and 1.20 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 refinancing with no equity takeout or acquisition, Mixed-Income developments up to 85% LTV and 1.176 DSC pro forma NOI based upon the lesser of appraised market or current Section 8 contract rents.
Maximum Loan Amount for refinancing with no equity takeout or acquisition, "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.
Repairs limited to the greater of 15% of value or approximately $17,000/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.