The Concessionary Debt program provides loan options to for-profit, nonprofit, and governmental entities to support affordable housing investment, including:
- Multifamily Finance: Debt financing for the development and preservation of low- and middle-income multifamily rental developments
- LIHTC Gap Finance: Gap financing in the form of subordinate debt for Low Income Housing Tax Credit projects
- LIHTC Predevelopment Finance: Gap financing in the form of predevelopment loans for LIHTC projects
Modular and Factory-build Manufacturers
The fourth option is debt financing for modular and factory-build housing manufacturers and is not subject to AMI or Proposition 123 Local Government Affordable Housing Commitment requirements. Proposition 123 Modular Finance program awardees for fiscal year 22-23 have been selected. Please visit the Innovative Housing Manufacturer Financing webpage to learn more.
How to Apply
Concessionary Debt Process and Timeline
The application window has closed for the Concessionary Debt Multifamily Finance, LIHTC Gap Finance, and LIHTC Predevelopment Finance programs established by Proposition 123. CHFA received 38 applications representing more than $113M in funding requests (PDF). Each application was evaluated against the criteria established in their respective program guidelines and from the directives in the Governor’s Executive Order from August 21, 2023. Priority criteria included the number of units (high density), environmental sustainability, geographic diversity, readiness to proceed, and economic diversity in the mix of unit income restrictions.
Based on these criteria and the limited amount of available funds, seven of the 38 applicants, representing $14.5M in funding requests, were selected to move forward (PDF) to full underwriting.
Funded projects will be announced in January 2024.
|September 18, 2023
|CHFA will begin accepting applications.
|October 9, 2023
|Application submission period will end at 11:59pm MT.
|CHFA will announce projects selected to receive Concessionary Debt funds.
- Concessionary Debt: Application Initial Determinations (PDF)
- Concessionary Debt: Applications List (PDF)
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CHFA Community Development
Manager, Community Development Lending
Commercial Loan Officer III